GOOD EVENING AND WELCOME TO THE DEL VALLE ISD SCHOOL BOARD TRUSTEES MEETING.
[I. Call to Order]
[00:00:06]
I'D LIKE TO CALL THIS MEETING TO ORDER. LET THE RECORD SHOW THAT A QUORUM IS PRESENT. THAT NOTICE OF THIS MEETING HAS BEEN POSTED IN ACCORDANCE WITH THE TEXAS OPEN MEETINGS ACT.[III.A. Public Hearing on the 2025-26 Tax Rate for Maintenance and Operations and Interest and Sinking (Debt Service)]
THE THIRD ITEM IS GOING TO BE CALL FOR THE PUBLIC HEARING.THIS IS THE SPECIAL MEETING WE HAVE A 6:15 P.M.
AND THEN A 6:30 P.M. MEETING. SO THIS ONE IS THE PUBLIC HEARING.
AND AT THIS TIME I WOULD LIKE TO CALL MS. DINA EDGAR, DEPUTY SUPERINTENDENT OF ADMINISTRATIVE SERVICES FOR THE PUBLIC HEARING ON THE 2025-2026 TAX RATE FOR MAINTENANCE AND OPERATIONS AND INTEREST IN SINKING DEBT SERVICE.
GOOD EVENING, PRESIDENT WEGNER, DOCTOR GUTIERREZ AND MEMBERS OF THE BOARD.
THIS EVENING, WE'RE HOLDING THE PUBLIC HEARING FOR THE PROPOSED TAX RATE FOR FISCAL YEAR 2025-2026.
SO, AS A REMINDER, THERE WERE SEVERAL BILLS PASSED OUT OF THE LEGISLATURE THAT IMPACTED PROPERTY VALUES AND THAT OFFER PROPERTY TAX RELIEF THROUGH THE PUBLIC SCHOOL FINANCE SYSTEM. SO SENATE BILL 4 RAISES THE RESIDENTIAL HOMESTEAD EXEMPTION FROM $100,000 TO $140,000.
NOW, BOTH OF THESE BILLS OFFER A HOLD HARMLESS PROVISION, WHICH MEANS THE STATE COMMITS TO OFFSET LOSSES WITH ADDITIONAL STATE AID THROUGH THE FUNDING FORMULAS. HOWEVER, THE ISSUE IS WE DO HAVE COMPETING HOLD HARMLESS PROVISIONS FROM ALL THESE, HOLD HARMLESS THROUGHOUT THE YEARS, AND THEY INTERFERE WITH EACH OTHER, REALLY, RESULTING IN AN OVERALL LOSS OF REVENUE.
THERE IS NO HOLD HARMLESS PROVISION FOR THIS PARTICULAR PROVISION.
IT ALSO ALTERS THE REQUIREMENTS FOR PROPERTY OWNERS TO SELF-REPORT PERSONAL PROPERTY, WHICH ALLOWS THEM TO FORGO REPORTING IF THEY BELIEVE THIS VALUE TO BE UNDER THE THRESHOLD. SO IT'S A LITTLE BIT OF A LOOPHOLE THERE.
IN ORDER TO SUPPORT THESE BUDGETS, THE DISTRICT IS PROPOSING A MAINTENANCE AND OPERATIONS TAX RATE OF $61.89 AND AN INTEREST IN SINKING OR DEBT SERVICE TAX RATE OF $0.33. THIS NEXT SLIDE ILLUSTRATES DEL VALLE PROPERTY VALUE GROWTH OVER TEN YEARS.
SO WE'RE SEEING ABOUT A 17% YEAR OVER YEAR PROPERTY VALUE INCREASE.
BUT IF YOU LOOK AT THE SPAN OF THE FULL TEN YEARS, OUR VALUES HAVE QUADRUPLED SINCE 2015.
SO THAT'S HUGE. AND WHILE OVERALL PROPERTY VALUES HAVE INCREASED PRETTY SUBSTANTIALLY, THE TAX RATE IS DECREASING BY ALMOST $0.05 OVER THE PRIOR YEAR, WHICH RESULTS IN LOWER TAX PAYMENTS FOR RESIDENTIAL TAXPAYERS OF ALMOST $500 ANNUALLY.
SO THIS ADDITIONAL TAX COMPRESSION IS ATTRIBUTABLE TO SENATE BILL 1.
SENATE BILL 4 AND SENATE BILL 23 COMING OUT OF THE 89TH LEGISLATIVE SESSION.
AND ALSO, YOU'LL SEE THAT RESIDENTIAL PROPERTY VALUES HAVE DECLINED SLIGHTLY.
SO WE ARE ALLOWED UP TO 12 ADDITIONAL PENNIES WITH VOTER APPROVAL.
WE CURRENTLY DON'T HAVE ANY COPPER PENNIES. BUT THE BIGGEST TAKEAWAY ON THIS CHART IS UPON ADOPTION OF THE 2025 TAX RATE, WE WILL HAVE LOWERED THE M&O TAX RATE BY $0.42 SINCE 2018.
[00:05:01]
BONDS IN 2019 AND 2022. THIS NEXT CHART SHOWS OUR TOP TEN TAXPAYERS WITH TESLA AND TITOS. AND TITO IS THAT FIRST GENERATION REPRESENTING OUR TOP THREE TAXPAYERS.THESE TOP TEN TAXPAYERS REPRESENT ALMOST 44% OF OUR ENTIRE TAX BASE.
SO THAT'S WHY YOU'RE SEEING THAT 17% INCREASE.
EVEN THOUGH RESIDENTIAL PROPERTY VALUES HAVE DECLINED OUR COMMERCIAL PROPERTY HAVE INCREASED.
SO THEN PUTTING IT ALL TOGETHER, WE ARE PROPOSING A MAINTENANCE AND OPERATIONS TAX RATE OF $61.89 AND A DEBT SERVICE TAX RATE OF 33 PENNIES, FOR A TOTAL TAX RATE OF $94.89, WHICH DOES REPRESENT A $4.8 CENT REDUCTION FROM THE PRIOR YEAR.
AND THAT CONCLUDES THE PUBLIC HEARING. I'M HAPPY TO ANSWER ANY QUESTIONS.
THANK YOU. BOARD ARE THERE ANY COMMENTS OR QUESTIONS?
[IV. Close Public Hearing]
AT THIS TIME I'D LIKE TO CLOSE THE PUBLIC HEARING.[V.A. Tax Rate Ordinance & Adoption of the 2025-26 Tax Rate Dina Edgar, Deputy Superintendent of Administrative Services]
RATE. YES GOOD EVENING AGAIN. SO WE JUST REVIEWED THE PRESENTATION FOR THE PROPOSED TAX RATE FOR 25-26, WITH THE MAINTENANCE AND OPERATIONS TAX RATE OF $61.89.INTEREST IN SINKING TAX RATE OF $0.33, FOR A TOTAL TAX RATE OF $94.89.
WE ARE REQUESTING THE BOARD APPROVE THE TAX RATE AS PRESENTED THIS EVENING.
THIS IS A SAMPLE TAX ORDINANCE THAT WILL BE SIGNED AFTER THE TAX RATE ADOPTION.
QUESTIONS. BOARD ARE THERE ANY COMMENTS OR QUESTIONS IN REFERENCE TO THE ORDINANCE FOR THE TAX RATE? HEARING NONE. DO I HAVE A MOTION? SECRETARY GUADIAN.
I MOVE TO APPROVE THE MAXIMUM MAINTENANCE AND OPERATIONS TAX RATE OF $61.89 AND THE INTEREST AND TAX OF $0.33, FOR THE TOTAL MAXIMUM TAX RATE OF $94.89 FOR 2025-2026.
THANK YOU. MOTION'S BEEN MADE. DO I HAVE A SECOND? TRUSTEE FRANCO MAKES A SECOND. ALL THOSE IN FAVOR BY A SHOW OF HANDS, PLEASE.
MOTION CARRIES 9 TO 0. THANK YOU VERY MUCH. HAVING NOTHING FURTHER, THIS CONCLUDES OUR SPECIAL MEETING, WHICH INCLUDED THE PUBLIC HEARING. OUR NEXT MEETING CANNOT BE CALLED PRIOR TO 06:30 P.M.
SO WE'VE GOT ABOUT FIVE MINUTES, UNFORTUNATELY.
* This transcript was compiled from uncorrected Closed Captioning.