Marble Falls School Board calls for tax-rollback election Aug. 25
MARBLE FALLS — Marble Falls school district voters will head to the polls Aug. 25 to determine whether they will get a lower property tax rate — though they are being asked to approve an increase.
Superintendent Rob O’Connor has likened the vote to more of a “tax shift,” because voters are being asked to basically move a penny.
“Since we’re exceeding the $1.04 (maintenance-and-operation) rate, we’re triggering a tax-rollback election regardless that we’re reducing the entire tax rate by a penny,” O’Connor said during the Marble Falls Independent School District board meeting July 16.
Trustees voted to adopt an overall 2012-2013 property tax rate of $1.28 per $100 valuation. The current rate is $1.29, or a penny more.
The bump comes on the M&O side of the rate. The district property tax includes the M&O, which covers operations and salaries, and the Interest and Sinking fund dedicated to debt payments.
O’Connor wants to increase the M&O rate from $1.04 to $1.0533.
Under state law, the district must hold a tax ratification election when the M&O rate exceeds the rollback number of $1.04 per $100 valuation.
The slight increase in the M&O rate will bring in $402,732 in both local and state funding, said Lisa LeMon, the district’s accounting supervisor.
To make the scenario work, the district is shaving 2.3 cents from the I&S side of the rate, dropping it to 22.67 cents. LeMon said the cut to the debt service is possible because the district is at a point where its bond payments will begin decreasing.
The shift translates to an overall rate decrease with a penny going back to the tax payers.
LeMon said the M&O rate increase is necessary since the state cut $1.8 million in funding to MFISD in the 2011-2012 fiscal year.
Officials anticipate the state to slash another $1.2 million in funding for the 2012-2013 fiscal year.
The district is looking at a slimmer budget this year as well.
LeMon said MFISD’s prospective budget is about $36.7 million, compared to the current one of $38.3 million.
School officials have warned that some non-core school programs could be threatened down the road if preventive measures aren’t taken now.