Swap & Drop TRE Explained
Texas school districts tax rates are broken up into two separate rates – an Interest and Sinking (I&S) rate that funds the payment of debt from bonds that are used to build and maintain school buildings, and Maintenance and Operations (M&O) rate that funds everything else including programming, teacher salaries, and utilities. The M&O rate is currently capped at $1.04 per $100 property valuation, but can be raised to $1.17 with the community's approval. This is done through a Tax Ratification Election.
If the community passes a Tax Ratification Election, Keller ISD could raise the M&O rate by $0.13, but would also be in position to lower the I&S rate by $0.14 due to higher valuations and fiscally responsible refinancing over the years. This would lower the overall tax rate, while providing Keller ISD with $19 million in additional net operating revenue.
That's more money for your schools while lowering your overall tax rate. It's a Tax Rate Swap & Drop!
Keller ISD's Board of Trustees called for a Tax Ratification Election on June 11, 2018. Election Day will be held for the Tax Ratification Election on Saturday, September 8, 2018. Early Voting will take place August 22 through September 4.
For questions regarding the Tax Rate Swap & Drop plan, please email Communications@KellerISD.net.