H.3. Consider Approval of Resolution of the Board to Set Tax Rate Description: The District is proposing a 2026 tax rate of $.6928 per $100 valuation for maintenance and operations (M&O) and a $.4600 per $100 valuation for interest and sinking (I&S) for a total tax rate of $1.1528 per $100 valuation. The M&O tax rate is calculated and certified using the TEA Tax Rate Survey template. The M&O compr

Staff Report & Agenda Item Details

H.3. Consider Approval of Resolution of the Board to Set Tax Rate Description: The District is proposing a 2026 tax rate of $.6928 per $100 valuation for maintenance and operations (M&O) and a $.4600 per $100 valuation for interest and sinking (I&S) for a total tax rate of $1.1528 per $100 valuation. The M&O tax rate is calculated and certified using the TEA Tax Rate Survey template. The M&O compressed rate calculated was $.5628. The District is allowed to add $.05 to the compressed rate without an election. The District passed a Voter Approved Tax Rate Election (VATRE) in November 2021 to add $.05 plus $.08. The total proposed M&O tax rate is $.6928, a reduction in taxes of $0.0107. Administration is recommending a 2026 property tax rate of $.46 per $100 valuation for Interest and Sinking (I&S), bond payments. The Board of Trustees have a resolution to approve an Order Authorizing Redemption of Outstanding Bonds. This order allows the District to adopt an I&S rate above the calculated rate for the purpose of paying off bonds before their scheduled maturity date. The prior year I&S tax rate was $.46. The rate will remain the same. The total proposed tax rate is $1.1528 per $100 valuation. This is a decrease of $.0107 or 1% less than last year’s rate saving Taxpayers approximately $10.70 per year on an average home cost of $100,000. Although the tax rate is lower, the proposed tax rate is $.4687 higher than the No New Tax rate calculation of $.694793 on the Comptroller’s Form 50-859, due to significant property growth, which triggers the exact motion below. Attachments: ( 1 ) Resolution Setting The Tax Rate 2026

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 8.9/10). Under the Bastiat Liberty Watchdog Index, voting YES on measures that cap or reduce ad valorem tax burdens, expand taxpayer exemptions, retire debt early, enforce competitive bidding caps, or remove regulatory/zoning barriers to private property rights earns a positive Pro-Liberty score.