Frisco ISD homeowners could see an increase in their property tax bills this year if a proposed tax rate hike is approved by voters. The Frisco ISD Board of Trustees is scheduled to discuss a potential voter-approval tax rate election (VATRE) during their meeting on August 19, which would determine whether or not the Frisco ISD tax rate increase will appear on the November 5 ballot.
What is a VATRE?
A VATRE is a special election required when a school district seeks to raise its tax rate above the voter-approval level. This measure gives residents the power to approve or reject the proposed increase. According to the Texas Comptroller’s Office, any rate higher than the voter-approval tax rate must go before voters.
The board did not make a final decision on placing the VATRE on the ballot during their August 5 workshop, but August 19 marks the deadline to submit items for the November ballot.
What Could This Mean for Homeowners?
If the VATRE is approved by voters, the average homeowner in Frisco ISD could see their tax bill increase by approximately $158 annually. The proposed tax rate would raise the district’s maintenance and operations (M&O) tax rate by $0.0294 per $100 of property valuation. This would bring the district’s total tax rate to $1.0569 per $100 valuation.
How Will the Additional Revenue Be Used?
The proposed tax rate increase is expected to generate an additional $11.5 million in revenue for the district. While the total increase would generate $19.5 million, $8 million would be sent back to the state through the recapture process. This additional revenue is critical for Frisco ISD, as the district faces a potential $30.81 million revenue shortfall in the general fund for the 2024-25 fiscal year.
The district’s budget, adopted in May, totals $963.78 million and includes a compensation plan aimed at maintaining competitive salaries. This plan offers a 3% raise for eligible employees and sets a starting teacher salary at $60,500 for those with no prior experience.
Bond Package on the Agenda
In addition to the VATRE, Frisco ISD trustees will also consider placing a $1.08 billion bond package on the November ballot during the August 19 meeting. This bond is divided into three propositions covering maintenance, technology, and sports facilities. Notably, the bond package would not result in an increase in the district’s current $0.27 tax rate.
What’s Next?
The August 19 meeting will be crucial for determining whether these significant financial measures will go before voters this November. If you’re a Frisco ISD resident, this is your chance to stay informed and engaged in decisions that could impact your taxes and the quality of education in our community.
Stay tuned to our blog for updates on the outcome of the meeting and what it could mean for you and your family.
0 Comments Leave a comment