|TRE Video: NO TAX INCREASE!|
Posted Date: 07/27/2017
Mexia ISD is planning to order a Tax Ratification Election (TRE) on October 14 to take advantage of the state finance formula to restructure the tax rate. If approved by voters, the district would receive
$1,000,000 in additional state funding with no increase in the tax rate.
The TRE would allow Mexia ISD to restructure its tax rate by increasing its Maintenance and Operations (M&O) tax rate by 13 cents while reducing the Interest and Sinking (I&S) tax rate by the same 13 cents. Therefore, the tax rate would remain at $1.20363 and there would be no tax rate increase.
The district receives more state funding for its M&O tax rate than for its I&S tax rate. Increasing Mexia ISD’s M&O tax rate brings more state dollars to the district than the I&S tax rate does. This process is known as a “penny swap” or a “tax rate swap”. In summation, the board plans to conduct the TRE to increase state funding by $1,000,000 annually while keeping the tax rate the same at $1.20363.
For additional information about the Tax Ratification Election, watch the TRE video below.
Message from the Superintendent:
As you know, in 2015 Mexia ISD voters generously authorized $15.5 million in new bonds to improve our school facilities. One result of the 2015 bond election is that as bond payments increase over time, the Mexia ISD Board may be required to increase your annual property tax rate to keep up with the bond payments. We are excited about offering our voters an alternative plan this year that will keep your taxes at the same rate as last year, while at the same time bringing more state revenue to Mexia ISD. It is truly a win-win opportunity that is good for our community, our schools, and most importantly our students. Please take a few minutes to view my explanation below of how this change will work for the good of our kids. We'll see you on Election Day!
Dr. Lyle DuBus
Superintendent of Schools