Tax Rate Swap & Drop
Keller ISD is exploring an upcoming plan to generate additional revenue for the District while also lowering taxpayers' overall tax rate – it's a Tax Rate Swap & Drop.
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 would call for a Tax Ratification Election when it approves the 2018-19 budget in June 2018. If that happens, a Special Election would likely be held in early September.
For questions regarding the Tax Rate Swap & Drop plan, please email Communications@KellerISD.net.