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  • TAX RATIFICATION ELECTION

    About TRE

    SFDRCISD TAX RATIFICATION ELECTION 

    The San Felipe Del Rio CISD Board of Trustees has called a Tax Ratification Election or TR­E for Tuesday, November 6, 2018. The purpose of the TRE is to ask the community to consider approving a tax swap, which would maximize state funding and provide the district with more operational funds without increasing the total tax rate.

    The tax swap would increase the maintenance and operations portion of the tax rate by $0.1198 by subtracting (or swapping) $0.1198 from the interest and sinking portion of the total tax rate, holding the overall tax rate at $1.1598 per $100 valuation. This proposed restructuring of the tax rate will require voter approval, but will not change, or increase the overall school tax rate.

    The Basic Facts

    School districts are funded through different sources: local tax dollars, state funding and federal funding. While local taxpayers pay one overall tax rate, local taxes are collected and separated into two different funds – maintenance and operations (M&O) and Interest and Sinking (I&S). The M&O fund pays for the everyday operations of the District including student resources, building maintenance, employee salaries and safety & security improvements. The I&S portion of the tax is used to pay the District’s outstanding debt. The total overall tax rate collected by SFDRCISD is $1.1598 for every 100 dollars a property is worth. The overall school tax rate is then separated into $1.04 for maintenance & operations (M&O) and .1198 cents for interest & sinking (I&S). Together, these rates make up the overall SFDRCISD tax rate of $1.1598.

    The state of Texas funds school districts based on a series of formulas that take into account our local tax rate; specifically, the higher the local M&O tax rate the more funding a school district receives from the state of Texas. In other words, each additional dollar generated by the local tax rate on the M&O side yields more funding from the state than a dollar generated on the I&S side.  

    The School Funding Issue

    The state of Texas has not increased state funding for school districts. If the Tax Ratification Election is approved, additional operating funds from a TRE would be used to provide cost of living increases for teachers and staff, hire additional special education teachers, provide additional safety measures in our schools, and prevent costly operating budget cuts to current programs or services.

     

     

    That’s where the TRE comes in

    If a school board adopts an M&O rate above $1.04, it must hold a Tax Ratification Election (TRE) to ratify, or increase, the rate. San Felipe Del Rio CISD Board of Trustees has called a Tax Ratification Election or TRE, to ask the community to consider the tax swap to increase the maintenance and operations portion of the tax rate by swapping $0.1198, or 12 pennies, from the interest and sinking portion of the total tax rate.

     If approved, the I&S tax rate will be reduced to $0.00, and the proposed change would bring the District an estimated additional $1.6 million dollars from the state of Texas each year. Based upon this plan, there will be no increase in the SFDRCISD tax rate whether the Tax Ratification Election passes or fails and the total tax rate will remain at $1.1598.

     

     

     

  • Video Presentation

    Community
    Community Conversation with the SFDR Board of Trustees
    SFDR
    SFDR TRE Survey
    Moak,
    Moak, Casey & Associates financial model of a "TRE"
    What
    What is the TRE?
  • FAQ

    The Tax Ratification Election (TRE) asks voters to approve a tax swap, which would provide the district more operational funds without increasing the total tax rate. The tax swap would increase the maintenance and operations portion of the tax rate by $0.1198 by subtracting $0.1198 from the interest and sinking portion of the total tax rate, holding the overall tax rate at $1.1598 per $100 valuation.

    The I&S rate funds only repayment of debts while the M&O rate can fund daily operations as well as debt repayment.

    Even though the total tax rate is not increasing, SFDRCISD must seek voter approval to increase its M&O rate above $1.04 per $100 valuation, according to state law. If approved, the new M&O rate would total $1.1598 per $100 valuation.

    The maximum voter-approved M&O rate allowed by law is $1.17 per $100 valuation.

    Passage of the TRE will not affect the district’s overall tax rate. The tax rate will remain at $1.1598 per $100 valuation. 

    Although rising property values in Val Verde County could lead to a higher property tax bill, SFDRCISD’s total property tax rate will not change with the results of the election.

    According to district information, state law only allows us to tell voters that the M&O rate is increasing. The ballot cannot include wording that the I&S rate is also being lowered.

    Although the fiscal year 2018-19 budget avoids a deficit—if the TRE is not approved by voters—the district would struggle to meet program and staffing needs if the election fails. 

    Approval of the TRE would provide the district about $3.5 million more in funding to meet operational needs.

     SFDRCISD is seeking additional funding via the TRE because the district—like districts across the state—have seen the state’s share of its funding decrease over the last several years as local property revenue has increased, resulting in essentially no change in its overall revenue from year to year.

     According to the state funding formula for public school districts, local property tax revenue makes up the first share of the district’s funding per student. As local revenue increases, the state’s share decreases.

    The additional $3.5 million SFDRCISD will receive if the TRE is approved would go to salary increases, security improvements, staffing needs, increased campus budgets and program enhancements.

    The TRE will not affect the district’s debt repayment timeline or the district’s amount of debt. About $3.5 million received on the M&O side—in addition to the $4 million allotted for district needs— from the tax swap would go to continue paying the district’s debt, which is voter-approved debt from bond referendums. Funds collected by the M&O rate can go to repay debt as well as support operational costs.

    The authorization for the debt tax stems from the original vote to authorize the issuance of bonded debt, and the “swap” of rates does not affect that authorization. 

    Unless additional debt is approved by voters in the form of a proposed bond referendum, the district’s I&S tax rate cannot increase above the rate necessary to continue repaying debts.

    The estimated election cost will be about $65,000.

    Increased property tax revenue—local funding for the district—does not increase the district’s total funding amount per student.


    The state allows districts to collect a basic allotment per student. This has remained at $5,140 per pupil since FY 2015-16. As the state has placed a cap on the basic allotment, districts with more local revenue receive fewer state dollars. Residents paying more in property tax to school districts does not mean the districts are receiving more overall funding. 


    According to the state funding formula for public school districts, local property tax revenue makes up the first share of the district’s funding per student. As local revenue increases, the state’s share decreases.

    Our citizens with Over 65 or Disabled Persons exemptions have established tax ceilings on their homesteads and those ceilings will not be impacted. In other words, homestead taxes are frozen for our citizens with the Over 65 or Disabled Persons exemptions unless the citizen is currently paying below their tax ceiling.

  • Election Information

     

    The San Felipe Del Rio CISD Board of Trustees has called a Tax Ratification Election or TR­E for Tuesday, November 6, 2018. The purpose of the TRE is to ask the community to consider approving a tax swap, which would maximize state funding and provide the district with more operational funds without increasing the total tax rate.  

    Ballot Language

     A tax ratification election is hereby ordered to be held on November 6, 2018 (“Election Day”).  At the election the following PROPOSITION shall be submitted in accordance with law, and the official ballots for the election shall be prepared in accordance with the Texas Election Code so as to permit the electors to vote “FOR” or “AGAINST” the PROPOSITION, which shall be expressed as follows:

     

    PROPOSITION

     

    For _____

     

    Approving the ad valorem tax rate of $1.279600 per $100 valuation in San Felipe Del Rio Consolidated Independent School District for the current year, a rate that is $0.125828 higher per $100 valuation than the school district rollback tax rate, for the purpose of increasing revenue for maintenance and operations at a final tax rate of $1.1598 which is no increase to the overall 2017 Tax Rate.

     

    Against _____

     

     

    Early Voting Information 

    Early Voting for the TRE will be held at the location and times listed below.

    Location

    Dates and Times

    Del Rio Civic Center

    1915 Veterans Blvd

    Del Rio, Texas 78840

     

    Monday, October 22, 2018 through Saturday, October 27, 2018 from 8:00 am to 5:00 pm

    Sunday, October 28, 2018 from 12:00 pm to 5:00 pm

    Monday, October 29, 2018 through Friday, November 2, 2018 from 8:00 am to 5:00 pm

     

     

    Election Day Information

    Election Day is Tuesday, November 6th. Voting is conducted between the hours of 7:00 a.m. and 7:00 p.m. at the polling locations listed below. Eligible voters shall vote at the locations listed below. All eligible voters of the District may vote in the Election.

     

    Precinct Nos.

    Location

    10

    Old Court at Law

    207 East Losoya

    11

    Joe Ramos Facility

    1105 De La Rosa Street

    12

    Knights of Columbus

    Hwy 90 East

    13

    Ruben Chavira Elementary School

    Hwy 277 South

    20

    Rough Canyon Fire House

    6911 Rec Road 2

    21

    Loaves & Fishes

    400 Aguirre St. (Cortinas Entrance)

    22

    Del Rio Civic Center

    1915 Veterans Blvd

    23

    Del Rio Civic Center

    1915 Veterans Blvd

    24

    Hamilton County Fire Station

    Hamilton Lane

    30

    4H Barnes (County Fairgrounds)

    2006 N. Main Street

    31

    Buena Vista Elementary School

    100 Echo Valley

    33

    Northside County Fire Station

    10190 W US HWY 90

    40

    St. Joseph Church Parish Hall

    510 Wernett Street

    41

    Val Verde Community Center

    1690 Cienegas Rd

     

CopyrightSan Felipe Del Rio CISD.