Alvord ISD considers tax rate increase

By Brian Knox | Published Saturday, August 25, 2018
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Taxpayers in Alvord ISD could see an increased tax rate this year.

The school board is considering an increase in the debt service portion of the tax rate between 1-cent and 3.424-cents per $100 of taxable value.

Superintendent Randy Brown said despite an increase in tax values in the school district this year, the increase was not enough to be able to avoid a tax rate increase.

Brown said the district saw a large drop in tax values a few years ago. The district has been able to keep the tax rate steady the past few years by using money out of the debt service fund balance to make up the difference – an option that is not available this year.

“After the 2015-2016 school year, we saw an $89 million decrease in values, which mean less money to pay debt service,” Brown said. “We spent money out of our fund balance the last two years. The values haven’t come up enough, and we’ve depleted the fund balance where we can no longer do that this year.”

The current debt service, or interest and sinking, tax rate is 18.4 cents per $100 valuation. The district is proposing the same maintenance and operation tax rate of $1.17 per $100 valuation.

If the board approves a 3.424-cent I&S tax rate increase, taxes would increase $193 for the owner of a home with the average taxable value of $128,387.

“In my opinion, the board has done all they can to keep the I&S tax rate as low as they can. That’s certainly their intent,” Brown said.

The district is projecting a $590,000 increase in revenue this year, which will mostly be used for maintenance and transportation needs, Brown said. The proposed budget also includes a 3 percent of midpoint salary increase for teachers.

The school will hold a public hearing on the tax rate and budget at 7 p.m. Thursday at the administration building, 100 Mosley Lane. The board will vote on both items following the public hearing.

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