The Lamar Consolidated ISD Board of Trustees voted to propose a property tax rate of $1.32 per $100 of taxable value for the coming school year.
The board will hold a public hearing at 6:30 p.m. on Aug. 15 to discuss the proposed property tax rate and the district’s 2019-2020 budget. If the proposed rate is adopted it will be a decrease from LCISD’s previous tax rate of $1.39 per $100 of taxable value.
The proposed rate is also lower than the district’s effective rate of $1.40757 per $100 of taxable value.
The effective rate is the tax rate necessary to produce the same amount of revenue as last year from the same number of taxable properties. The effective rate doesn’t include new construction of new properties when calculating a budget, according to the Texas Comptroller’s Office.
A school district’s property tax rate is split into two categories: maintenance and operations and interest and sinking. State law prohibits school districts from moving funds between the two categories.
LCISD’s board is proposing a maintenance and operations tax rate of $0.97 per $100 of taxable value. The proposed maintenance and operations tax rate is lower than the district’s previous maintenance and operations rate of $1.06 per $100 of taxable value.
Funds raised for maintenance and operations are used to cover the district’s day-to-day expenses. If the board adopts the proposed rates, the district’s interest and sinking rate would also decrease from $0.38962 per $100 of taxable value to $0.35 per $100 of taxable value.
Interest and sinking funds are used to pay the interest and principal on any bonds that the district has issued.
The proposed decrease in the tax rates will result in homeowners seeing, on average, about a $70 reduction in their annual property tax bill, unless it has been re-evaluated.
At Thursday’s meeting, the board received some preliminary budget projections for the next school year. If the proposed budget is accepted, all LCISD employees will receive a 5% pay increase. Returning teachers with five years or less experience will see a $3,000 bump in pay.
Returning teachers with more than six years of experience will see a $3,500 increase.