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²ÝÁñÉçÇø Tax Ratification Election
Community Votes in Favor of Restructuring the ²ÝÁñÉçÇø Tax Rate
Voters in ²ÝÁñÉçÇø approved the restructuring of the district’s tax rate in the Tax Ratification Election held Saturday, September 7. This approval does not require a tax rate increase. A total of 928 votes were cast, with 779 (83.94%) votes for the measure and 149 (16.06%) against in the special election. Early voting was held August 21 through September 3, with a total of 585 voters who cast a ballot during this time. Eagle Mountain-Saginaw ISD has 42,993 registered voters.With the passage of the election, a resolution adopted by the Board of Trustees at the June 19 Board meeting immediately goes into effect, keeping the 2013-2014 combined tax rate the same as the current tax rate of $1.54 per every $100 of taxable assessed value. This restructuring of the tax rate will generate an additional $650,000 from the state of Texas annually. The monies will be used to help offset the operating budget, which the district has been forced to cut by $16 million in the past three years due to reductions in state funding.
The Board of Trustees will meet Monday, September 19 to canvass the election results. For additional information on the ²ÝÁñÉçÇø budget, visit www.emsisd.com/finances.
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Download a one-page fact sheet by clicking here.At the June 17, 2013 Board meeting, the Eagle Mountain-Saginaw ISD Board of Trustees approved a Maintenance and Operations (M & O) tax rate that is above the maximum rate allowed without voter approval. This M & O rate must be approved by voters before it can be adopted by the school district. To do this, the Board adopted an order calling for a Tax Ratification Election (TRE) to be held on Saturday, September 7, 2013. If the TRE is approved by voters, the higher Maintenance and Operations tax rate would generate approximately $650,000 in additional state funding for the school district with no increase in the overall tax rate in the 2013-2014 school year.
What is a TRE?
A district that adopts a tax rate above its maximum M & O tax rate must hold a Tax Ratification Election (TRE) to provide voters the ability to ratify the higher rate. If a majority of the votes are cast in favor of the proposition, the tax rate for the current year is adopted by the Board. If the proposition is not approved, then the Board may not adopt a tax rate for the current year that exceeds the maximum rate.How will the TRE affect my taxes?
Why is an election needed if the tax rate is going to stay the same?
No matter the outcome of the TRE, the tax rate for taxpayers in ²ÝÁñÉçÇø will remain at $1.54 per $100 of property value. If the TRE is approved, the shift in the M & O and I & S tax rates will generate an additional $650,000 for the district. If the TRE is not approved, the tax rate will remain at $1.54 and no additional funding will be created.The district is funded by local funds, state funds, and some federal funds. The local dollars are generated through taxes and this tax rate is divided into to categories:Maintenance and Operations (M & O) - Taxes generated by the M & O tax rate fund day-to-day expenses such as salaries, building maintenance, transportation, utilities, and supplies.Interest and Sinking (I & S) - Taxes generated by the I & S tax rate fund the debt payments of the district, which includes the construction of new facilities.By shifting the tax rate amounts in these two funds, based on funding formulas from the state, the district can generate an additional $650,000 without increasing the total tax rate.