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[00:00:02]

I CALL THIS MEETING AT THE LOCKHART INDEPENDENT SCHOOL DISTRICT BOARD OF TRUSTEES TO ORDER ON AUGUST 14TH, 2023 AT

[Call to Order]

6:30 P.M.. LET THE RECORD SHOW THAT A QUORUM OF BOARD MEMBERS IS PRESENT, THAT THIS MEETING HAS BEEN DULY CALLED AND THAT NOTICE OF THIS MEETING HAS BEEN POSTED IN ACCORDANCE WITH THE TEXAS OPEN MEETING ACT.

TEXAS GOVERNMENT CODE CHAPTER 551.

LET THE RECORD SHOW THAT TRUSTEES SANCHEZ, RAYOS, LOCKHART, BURNETT, GUYTON, PULLIAM, WRIGHT ARE PRESENT.

SO WE'LL MOVE TO ITEM TWO ON THE AGENDA, PUBLIC COMMENTS.

HAS ANYBODY SIGNED UP? WE HAVE NO PUBLIC COMMENTS.

NOW WE'LL MOVE TO ITEM THREE.

[Public Meeting for 2023-2024 Proposed Tax Rate]

WE WILL OPEN UP THE PUBLIC MEETING, MRS. WEISER.

NOPE, NOT VERY LOUD.

DO I HAVE TO HIT A BUTTON? OKAY.

GOOD EVENING.

THIS EVENING, WE WILL BE PROPOSING A TAX RATE FOR THE 23 TAX YEAR.

AT THIS TIME, WE'LL HAVE A PUBLIC HEARING IN CASE ANYBODY IN THE PUBLIC WANTS TO COME AND COMMENT ON IT.

SO I'M GOING TO GO THROUGH AND TALK A LITTLE BIT ABOUT THE TAX RATE THAT WE'RE PROPOSING THIS EVENING SHOULD THE PUBLIC HAVE ANY TYPE OF QUESTIONS? SO JUST AN OVERVIEW OF HOW OUR DISTRICTS FUNDED.

WE'RE FUNDED TWO MAJOR WAYS THROUGH A STATE ALLOCATION AND THEN OUR LOCAL TAXES, AND THEN WE RECEIVE SMALL ALLOCATIONS FROM THE AT THE FEDERAL LEVEL AND THEN ANY OTHER KIND OF SMALL GRANTS THAT WE MIGHT GET COMPETITIVELY OR LOCALLY.

AND I JUST WANT TO GO THROUGH WHAT THAT LOOKS LIKE ON THOSE TWO MAIN SOURCES OF REVENUE.

SO WHAT I HAVE HERE IS A BUCKET, AND THAT BUCKET REPRESENTS THE TOTAL COST THAT IT WOULD BE TO EDUCATE A STUDENT IN LOCKHART ISD.

THIS BUCKET, THE SIZE OF THIS BUCKET IS DETERMINED BY THE TEXAS EDUCATION AGENCY BASED ON HOW MANY STUDENTS WE HAVE IN OUR DISTRICT.

THE DEMOGRAPHICS IN OUR DISTRICT, THE COST OF LIVING IN OUR DISTRICT.

HOW MANY OF THOSE STUDENTS SHOW UP, THEIR ATTENDANCE, WHAT KIND OF SERVICES THEY MAY NEED, AND THEN THEY DECIDE HOW BIG THAT BUCKET IS.

AND THEN FROM THERE, THAT'S THE TOTAL COST TO EDUCATE THE STUDENTS THE SIZE OF THE BUCKET.

AND THEN WE START FILLING THE BUCKET UP.

AND THE FIRST WAY THAT IT'S FILLED UP IS THROUGH OUR LOCAL TAX COLLECTION.

AND THE STATE COMES IN AND THEY FILL THE REST OF THAT BUCKET IN SO THAT WE'RE ABLE TO EDUCATE THE STUDENTS THAT WE HAVE HERE BASED ON THEIR ESTIMATES, ON THEIR ON THEIR COST.

THE WAY THAT THEY DO THAT, THE WAY THAT THEY RECONCILE THEIR PORTION TO MAKE SURE THAT THEIR PORTION OF THE BUCKET THAT THEY PUT IN IS, IS IN LOTS OF WAYS.

BUT THE TWO MAIN WAYS IS GOING TO BE THROUGH OUR PEIMS SUBMISSION AND OUR PEIMS SUBMISSION HAS ALL OF OUR STUDENT DATA.

THAT'S HOW THEY RECONCILE WHAT WHAT OUR STUDENTS ARE, HOW OFTEN THEY COME, WHAT OUR COST OF LIVING IS IN THE AREA.

AND THAT'S HOW THEY RECONCILE THAT SIDE OF IT, BECAUSE THEY OF COURSE WANT TO MAKE SURE THAT THE PORTION THAT THEY'RE PAYING IS FAIR AND TRUE FOR THEM.

RIGHT. THE SECOND THING THAT THEY DO IS THEY MAKE SURE THAT THE PORTION THAT WE'RE PAYING IN OUR TAX AND OUR TAX COLLECTION TOWARDS THE EDUCATION OF THE STUDENTS IN LOCKHART ISD IS FAIR AND TRUE TO THEM TO FILL UP THE REST OF THE BUCKET.

SO THE WAY THAT THEY RECONCILE THAT IS THEY DO AN ANNUAL PROPERTY VALUE STUDY.

SO I WANT TO WALK THROUGH THE ANNUAL PROPERTY VALUE STUDY BECAUSE IT PLAYED A BIG PART IN OUR BUDGET IN 22-23, BUT IT PLAYED A REALLY LARGE PART IN CREATING OUR BUDGET FOR 23-24, WHICH LEADS US TO OUR 23 PROPOSED TAX RATE.

AND SO THAT'S WHY IT'S REALLY IMPORTANT THAT I WANT TO MAKE SURE WE GO THROUGH THAT PROPERTY VALUE STUDY.

SO THE STATE COMPARES THE LOCAL TAX ROLL HERE IN CALDWELL COUNTY IN LOCKHART ISD TO WHAT THEY SAY THE PROPERTY VALUES SHOULD BE AT THE COMPTROLLER'S OFFICE AND THEY MAKE SURE THAT THOSE VALUES ARE WITHIN RANGE.

AND WHAT THAT MEANS IS THAT THE PROPERTY VALUE STUDY, WHICH IS RELEASED EVERY YEAR AT THE END OF JANUARY, SO THE TAX RATE THAT WE WOULD BE ADOPTING TONIGHT, PROPOSING AND POTENTIALLY ADOPTING TONIGHT IS FOR THE PROPERTIES THAT WILL BE RECONCILED.

AND THEN WE'LL GET THAT ANSWER IN JANUARY, FIVE MONTHS FROM NOW.

SO THE COMPTROLLER OFFICE WILL RELEASE THAT.

THE PROPERTY VALUES BETWEEN THE COMPTROLLER'S OFFICE AND THE COUNTY HAVE TO BE WITHIN A CERTAIN RANGE FOR THAT PROPERTY VALUE STUDY TO BE CONSIDERED A PASSING STUDY.

[00:05:01]

AGAIN, THEY USE THAT STUDY TO RECONCILE TO MAKE SURE THAT WE'RE COLLECTING ENOUGH TAXES SO THAT THEIR PORTION OF THE BUCKET THAT THEY'RE PAYING AT THE TEXAS EDUCATION AGENCY, THEY FEEL IS TRUE AND FAIR.

SO IF THE LOCAL PROPERTY VALUES ARE LOWER THAN THAT THRESHOLD, OUR VALUES ARE LOWER THAN WHAT THE STATE SAYS.

THE DISTRICT GOES INTO WHAT IS CALLED GRACE, A GRACE PERIOD.

A DISTRICT IS ALLOWED THREE YEARS OF GRACE AFTER THREE YEARS OF GRACE, AND THERE IS A FAILED PROPERTY VALUE STUDY, THEN THAT DISTRICT IS ASSIGNED STATE PROPERTY VALUES.

AND I'M GOING TO TALK MORE ABOUT WHAT THAT MEANS, THAT STATE VALUE ASSIGNMENT HERE IN JUST A SECOND.

BUT SO LOCKHART ISD, WE WENT OUT OF GRACE AFTER THREE FAILED PROPERTY VALUE STUDIES IN TAX YEAR 2020 AND WE WERE ASSIGNED STATE PROPERTY VALUES IN 2020.

UM, AT THIS POINT, ONCE YOU ARE OUT OF GRACE, YOU HAVE A FAILED YEAR.

YOU HAVE TO HAVE THREE GOOD YEARS TO GET BACK THE OPPORTUNITY TO GO TO GRACE.

AND SO GREAT NEWS IN 2021, WE HAD A PASSED PROPERTY VALUE STUDY, WHICH WOULD HAVE BEEN THAT FIRST YEAR OF BEING ABLE TO TO MAYBE GET BACK GRACE TWO YEARS LATER, RIGHT? SO WE WERE ON A GOOD TRAJECTORY THAT YEAR OUR RESIDENTIAL VALUES WENT WAY UP AND THE COUNTY WAS BACK IN LINE WITH THE STATE, THE STATE VALUES.

AND THEN SURPRISINGLY, HERE IN JANUARY OF 2023, WE LEARNED THAT OUR 2022 PROPERTY VALUE WAS A FAILED PROPERTY VALUE STUDY AND WE WERE ASSIGNED STATE PROPERTY VALUES.

SO AGAIN, I'LL TALK ABOUT WHAT THAT MEANS HERE IN JUST A SECOND.

BEING ASSIGNED STATE PROPERTY VALUES.

SO NOW WE'VE BACKED UP AGAIN AND WE'RE STARTING OVER WITH 2023 POTENTIALLY BEING THE FIRST YEAR OF HAVING A GOOD YEAR TO GO BACK AND GAIN GRACE BACK. SO WHAT THEY DO THIS IS STRAIGHT OFF THE COMPTROLLER'S WEBSITE.

THEY TAKE OUR TOTAL TAX ROLL, OUR TOTAL TAXABLE TAX ROLL, RIGHT? OUR OUR PROPERTY VALUES AND IT'S $2 POINT ALMOST 8 BILLION AND THEY SAY THEY SHOULD BE $3.1 BILLION.

SO THAT'S TOO FAR OFF.

IT'S OUTSIDE OF RANGE.

IF YOU WOULD HAVE BEEN CORRECTLY IN RANGE, YOU WOULD HAVE COLLECTED ON $3.1 BILLION AND NOT $2.7 BILLION, WHICH IS WHAT YOUR WHAT YOUR VALUES ARE.

SO WHAT HAPPENS? THEY AGAIN, WE HAVE OUR TOTAL BUCKET.

THE BUCKET SIZE, AGAIN, IS DETERMINED BY THE TEXAS EDUCATION AGENCY BASED ON OUR STUDENTS.

WE FILLED IT UP WITH OUR LOCAL TAX COLLECTION WAS WHICH WAS THE $2.7 BILLION WORTH OF OF VALUE.

AND WITH THE PROPERTY VALUE STUDY, THEY SAID THAT WE SHOULD HAVE REALLY COLLECTED ON $3.1 BILLION HAD THOSE PROPERTIES BEEN CORRECTLY ASSESSED AND THEREFORE WE'RE NOT WE'RE GOING TO REDUCE OUR STATE PORTION BECAUSE Y'ALL WERE YOU'RE OUT OF GRACE. YOU HAD THREE YEARS OF GRACE.

THIS IS WHAT WE USE TO RECONCILE OUR PORTION THAT WE FILL UP IN THE BUCKET ON THE STATE REVENUE SIDE.

SO YOU'RE NOW OUT OF GRACE.

WE'RE GOING TO REDUCE OUR STATE REVENUES BY $3.1 MILLION REDUCTION, WHICH WAS QUITE SIGNIFICANT THE LARGER THAT WE GET THE LARGER THAT THAT REDUCTION COULD POTENTIALLY BE WITH THOSE RANGES.

RIGHT? CAN I ASK A QUESTION REAL QUICK? ABSOLUTELY. IS THERE ANYTHING THE SCHOOL DISTRICT DID TO CAUSE THAT REDUCTION? NO, WE HAVE ZERO CONTROL OVER THAT MONEY AT ALL, CORRECT? CORRECT. WE HAVE ZERO CONTROL OVER PLACING THE VALUES OF PROPERTY.

WE REALLY, REALLY DON'T EVEN DO THE COLLECTION.

WHAT'S IN CONTROL HERE IS THAT YOU ALL SET THE TAX RATE? WE LET THE COUNTY KNOW WHAT THE TAX RATE IS.

THEY COLLECT ON IT.

THEY ALSO ASSESS THE PROPERTIES.

OKAY, SO THIS LEADS US TO WHERE WHERE WE ARE TONIGHT, WHICH IS OUR VOTER APPROVAL RATE.

AND I WANTED TO GO BACK AS FAR AS THE PROPERTY VALUE STUDY AND JUST EXPLAIN THAT, BECAUSE IT REALLY HAD A HUGE IMPACT ON CREATING OUR 23-24 BUDGET. IN AN ASSUMPTION THAT WE ARE GOING TO BE ASSIGNED STATE PROPERTY VALUES AGAIN, WE'RE NOT IN GRACE ANYMORE, SO WE HAVE TO TAKE THAT INTO CONSIDERATION.

THERE ARE TWO PIECES OF THE VOTER APPROVAL TAX RATE THAT IS SET BY WHICH WOULD BE LOCKHART ISDS TAX RATE.

WE HAVE THE MAINTENANCE AND OPERATION PORTION OF OUR TAX RATE, WHICH THAT CONSISTS OF TWO PORTIONS AS WELL.

[00:10:03]

IT'S THE MCR, THE MAXIMUM COMPRESSED RATE WHICH IS SET BY THE TEXAS EDUCATION AGENCY.

AND THEN ANY KIND OF ENRICHMENT GOLDEN PENNIES.

I'LL GO INTO A LITTLE BIT MORE DETAIL ON THAT THIS EVENING.

BUT REALLY THOSE TWO MAIN PIECES MAKE UP THE MAINTENANCE AND OPERATIONS TAX RATE.

AND THEN WE, OF COURSE, HAVE OUR INTEREST AND SINKING TAX RATE, WHICH IS OUR DEBT PAYMENT ON OUR BONDS, WHICH BUILDS BUILDS OUR SCHOOL.

SO THOSE TWO PORTIONS OF THE TAX RATE MAKE UP THE LOCKHART ISD DISTRICT TAX RATE.

SO IN 2023 TAX RATE THAT WILL BE PROPOSED TONIGHT, WE HAVE OUR VOTER APPROVAL TAX RATE.

THE VOTER APPROVAL TAX RATE CONSISTS, JUST LIKE WE TALKED ABOUT, IS THE M&O TAX RATE.

THIS IS SET BY THE TEXAS EDUCATION AGENCY.

THEY JUST SET THIS ABOUT TEN DAYS AGO.

SO IT IS $0.6192 PENNIES SO $0.6192.

THE M&O RATE WAS COMPRESSED BY OVER 18 PENNIES.

WE HAVE LOCAL GOLDEN PENNIES, ALSO KNOWN AS ENRICHMENT PENNIES.

WE ALREADY HAVE FIVE OF THOSE THOSE.

SO WHEN WE ADD THAT TO OUR I&S TAX RATE, WHICH IS $0.2577, WE'VE KEPT A CONSISTENT RATE FOR THE PAST THREE YEARS.

WE DID NOT HAVE TO INCREASE OUR I&S RATE DUE TO OUR BOND.

WE WERE ABLE TO THROUGH GROWTH PROPERTY GROWTH, WE WERE ABLE TO KEEP THAT RATE STEADY.

WE DID MAKE OUR FIRST PAYMENT.

AND SO WE'RE WE'RE ROLLING ON THAT AND THAT'S GREAT.

SO OUR 2023 VATRE TAX RATE IS 92 VATR.

I'M SORRY, TAX RATE IS $0.9269 PENNIES.

SO THIS IS THE RATE, THE VOTER APPROVAL TAX RATE, $0.9269 THAT WAS SET BY THE TEXAS EDUCATION AGENCY JUST HERE A FEW LESS THAN TWO WEEKS AGO.

THIS EVENING, WE HAVE A PROPOSED TAX RATE.

THE PROPOSED TAX RATE IS THE M&O COMPRESSED TAX RATE OF THE $0.6192 PENNIES, OUR LOCAL GOLDEN PENNIES THAT WE ALREADY HAVE AND THEN AN ADDITIONAL VATRE, THREE GOLDEN PENNIES.

SO SCHOOL DISTRICTS ARE ALLOWED UP TO EIGHT GOLDEN PENNIES.

AND THIS WOULD THIS WOULD ALLOW FOR THOSE EIGHT TOTAL EIGHT GOLDEN PENNIES.

OUR I&S TAX RATE, OF COURSE, AT $0.2577 FOR A 2023 PROPOSED TAX RATE OF $0.9569.

THIS PROPOSED TAX RATE IS $0.03 HIGHER THAN THE VOTER APPROVED TAX RATE.

THEREFORE, SHOULD THIS PROPOSED TAX RATE GET APPROVED, IT WOULD REQUIRE AN ELECTION OF THAT PROPOSED TAX RATE.

THE PROPOSED DECREASE TO OUR TOTAL TAX RATE WOULD BE $0.1554 PENNIES ON $100 VALUE OF PROPERTY.

AND LATER, WHEN WE'RE TALKING ABOUT ADOPTING THE ACTUAL TAX RATE, THIS IS JUST THE THE PUBLIC COMMENT.

I'LL GO INTO HOW THAT WILL HOW A LOCAL HOMEOWNER WILL BE AFFECTED BY THAT DECREASE IN THE TAX RATE.

UM, ACTUALLY, I'M GOING TO TALK ABOUT THAT RIGHT NOW.

I DIDN'T REALIZE I WAS IN HERE. I APOLOGIZE.

I'VE GOT ALL THESE PRESENTATIONS TOGETHER.

OKAY, SO HOW WILL THAT NEW RATE AFFECT THE AVERAGE HOME HERE IN LOCKHART ISD? I HAVE A FEW YEARS UP HERE BECAUSE I JUST REALLY WANTED TO SHOW THE HISTORY OF WHAT HAS HAPPENED IN THE PAST COUPLE OF YEARS TO OUR TAX RATE.

IF WE LOOK AT THE 2023 PROPOSED TAX RATE, WE CAN SEE THAT WE HAVE AN AVERAGE MARKET VALUE OF A RESIDENCE HERE IN LOCKHART ISD IS ABOUT $314,000.

THAT'S THE MARKET VALUE, UP FROM $264,000 LAST YEAR.

AND THEN OF COURSE, YOU CAN SEE THAT IT WAS UP FROM THE $191 THE PREVIOUS YEAR.

SO WE'VE HAD SOME LARGE JUMPS IN MARKET VALUE OF OUR HOMES HERE IN LOCKHART ISD.

THEN WE GO DOWN AND WE CAN SEE THAT THE AVERAGE TAXABLE VALUE OF A HOME ACTUALLY DECREASED FROM $160,000 TO $135,000.

AND THIS IS DUE TO SENATE BILL TWO, WHICH WILL ALSO BE ON THE BALLOT.

THIS IS NOT AN ITEM THAT IS A LOCKHART ISD ITEM, BUT IT IS SENATE BILL TWO THAT WILL BE ON THE BALLOT.

IT WILL INCREASE THE HOMESTEAD EXEMPTION SHOULD IT PASS FROM $40,000 TO $100,000 ON ALL THE HOMES.

SO THAT AVERAGE TAXABLE VALUE IS REFLECTIVE OF THE PASSAGE OF THAT ITEM, WHICH IS ALSO ON THE NOVEMBER BALLOT.

SO WITH THE PASSAGE OF THAT, WITH THE THREE PENNY VATRE, THE AVERAGE HOMEOWNER IN LOCKHART ISD WILL SEE AN ANNUAL DECREASE IN THEIR TAXES OF AT LEAST $496.

[00:15:08]

NOW ARE THERE ANY QUESTIONS OR CONCERNS ? OKAY. THANK YOU FOR THE PRESENTATION.

SO THIS IS THE TIME FOR ANYBODY WHO WANTS TO MAKE ANY PUBLIC COMMENTS TO STEP FORWARD AND DO SO.

SEEING NONE. WE'LL MOVE ON.

THE PUBLIC MEETING IS CLOSED.

THANK YOU, MISS WEISER.

WE'RE MOVING ON ITEM FOUR, A APPROVED RESOLUTION ADOPTING THE MAINTENANCE AND OPERATING TAX RATE INTEREST AND SINKING TAX RATE AND TOTAL TAX RATE FOR 2023.

[Approve Resolution Adopting the Maintenance and Operations Tax Rate, Interest and Sinking Tax Rate and Total Tax Rate for 2023]

MA'AM. OKAY.

GOOD EVENING. AT THIS POINT, THIS IS WHERE WE'LL ACTUALLY TALK THROUGH THE TAX RATE THAT WE'RE PROPOSING THIS EVENING AND THEN YOU'LL HAVE AN OPPORTUNITY TO VOTE ON THAT.

SO THE 2023 TAX RATE IS FOR THE 23-24 FISCAL YEAR.

SO THE COLLECTION THAT WE RECEIVE FROM THIS TAX RATE IS FOR THE BUDGET THAT WE ALREADY ADOPTED AT THE END OF JUNE FOR THE FISCAL YEAR THAT WE'RE ALREADY IN THE SECOND, SECOND MONTH OF.

SO AGAIN, WHAT IS THE VOTER APPROVAL TAX RATE FOR A SCHOOL DISTRICT? IT'S THE MAINTENANCE AND OPERATIONS PORTION OF THE TAX RATE, WHICH CONSISTS OF THE MAXIMUM COMPRESS RATE AND ANY TYPE OF ENRICHMENT, GOLDEN PENNIES THAT A DISTRICT MAY HAVE, PLUS THE INTEREST AND SINKING PORTION OF THE TAX RATE THAT IS USED TO PAY FOR ANY TYPE OF DEBT SERVICE ON SCHOOL BUILDINGS.

THE M&O BUCKET.

I KNOW I'VE SHOWN SEVERAL DIFFERENT TYPES OF BUCKETS.

THIS IS JUST THE M&O BUCKET, THE M&O TAX RATE PLUS THE I&S TAX RATE EQUALS OUR TOTAL TAX RATE.

SO THERE'S TWO DIFFERENT BUCKETS.

THEY ARE TWO SEPARATE TAX RATES.

AND THEY'RE THEY'RE CALCULATED DIFFERENTLY FOR DIFFERENT REASONS.

SO I WANT TO GO INTO EACH OF THOSE SO THAT WE UNDERSTAND THOSE TWO WHAT THOSE FUNDS ARE FOR AND THEN HOW WE GET TO THOSE TAX RATES.

SO THE MAXIMUM COMPRESSED TAX RATE IS SET BY THE TEXAS EDUCATION AGENCY.

UM, IT WE JUST GOT OUR MAXIMUM COMPRESSED TAX RATE ABOUT TEN DAYS AGO.

AND THEN WE HAVE WE HAVE AN OPPORTUNITY FOR ENRICHMENT PENNIES.

WE CURRENTLY HAVE FIVE ENRICHMENT PENNIES.

SO WE ADD THOSE TWO AMOUNTS TOGETHER, THE MAXIMUM COMPRESSED RATE, OUR GOLDEN PENNIES AND WE HAVE OUR M&O TAX RATE.

YOU CAN ONLY CHANGE YOUR M&O TAX RATE WE REALLY DON'T HAVE MUCH CONTROL OVER THAT.

THE ONLY WAY THAT WE CAN CHANGE THAT IS IF TEA COMPRESSES IT, WHICH HAPPENED THIS YEAR OR IF WE HAVE A VOTER APPROVAL TAX RATIFICATION ELECTION.

THOSE ARE THE ONLY TWO WAYS TO DO THAT.

AND THE VOTER APPROVAL TAX RATIFICATION ELECTION WOULD INCREASE THE ENRICHMENT PENNY PORTION OF THE TAX RATE.

ON THE INTEREST AND SINKING BUCKET WHEN THERE IS AN INCREASE IN PROPERTY VALUES, AND THIS COULD BE TWOFOLD, THIS COULD BE PROPERTY OR PROPERTY VALUES.

LIKE IF WE GET NEW PROPERTY IN THE DISTRICT OR VALUES GO UP, THAT WOULD EITHER THAT WOULD DO TWO THINGS THAT WOULD DECREASE OUR I&S TAX RATE BECAUSE WE HAVE MORE OPPORTUNITY OF PAYING IN BECAUSE WE HAVE MORE TAX PAYERS OR WE HAVE A HISTORY HERE OF PAYING DOWN DEBT TO SAVE TAXPAYERS IN THE FUTURE.

RIGHT. OR SO THAT WE CAN INCREASE OUR CAPACITY.

SO IF WE HAVE AN INCREASE IN PROPERTY VALUE AND THAT'S DUE TO GROWTH, WE PROBABLY WOULD NEED TO BUILD NEW SCHOOLS BECAUSE WE HAVE A LOT OF GROWTH.

SO IF WE HAVE A BUNCH OF NEW PEOPLE MOVING IN THAT ARE PAYING INTO THE I&S BUCKET THAT MAKES THE BUCKET BIGGER, IT GROWS OUR CAPACITY AND ALLOWS US TO BUILD NEW FACILITIES.

WHEN WE PAY DOWN OUR DEBT THAT'S ANOTHER THAT COULD BE ANOTHER WAY THAT THE I&S RATE CHANGES.

AND AGAIN, THIS WOULD BE THE SAME THING.

THE I&S RATE COULD POTENTIALLY GO DOWN AS WE PAY DEBT DOWN OR WE WOULD BE ABLE TO INCREASE OUR CAPACITY.

SO THAT'S THE ONLY WAY THAT THE I&S RATE CHANGES IS REALLY JUST BASED ON THE GROWTH AND IT INCREASES OUR CAPACITY SO THAT WE CAN SUPPORT THE GROWTH IN THE COMMUNITY THROUGH THAT I&S RATE.

IT IS ONLY USED FOR BOND PAYMENTS ONLY.

WE CANNOT DO ANYTHING ELSE WITH THAT RATE.

AND THEN THOSE TWO RATES TOGETHER EQUAL THE DISTRICT'S TOTAL TAX RATE.

SO WE HAVE A LOT OF HISTORY HERE.

AND THAT'S BECAUSE I REALLY JUST STILL WANTED TO CONTINUE TO SHOW TAX RATE COMPRESSION.

[00:20:06]

SO IN 20 AND AFTER 2018, WHEN SCHOOL DISTRICTS WERE NOT SETTING THE RATE ANYMORE AND TEA WAS COMING IN AND THEY WERE SETTING THAT MAXIMUM COMPRESSED RATE.

SINCE THEN, WE'VE HAD A DROP OF MORE THAN $0.37.

AND WHAT I WANT TO REALLY POINT OUT TONIGHT IS THIS ADDITIONAL VATR GOLDEN PENNIES, BECAUSE UP AT THE TOP WE HAVE OUR M&O RATE WHICH IS BROKEN UP WITH THE DIFFERENT BROKEN DOWN, WITH THE DIFFERENT WAYS THAT THE M&O TAX RATE COMES TOGETHER.

AND THEN OUR MCR, OF COURSE, RIGHT HERE FROM THE TEXAS EDUCATION AGENCY.

SO I WANT TO REALLY UNPACK THOSE TWO A LITTLE BIT BECAUSE THE OTHERS HAVE ALL STAYED THE SAME.

WE'VE HAD THOSE FOUR GOLDEN ENRICHMENT PENNIES AND THEN IN 2021 WE GOT AN ADDITIONAL PENNY THAT WAS BOARD ADOPTED FOR THE 2020 TAX YEAR.

EXCUSE ME. SO I WOULD LIKE TO GO INTO EACH OF THOSE.

BUT THE MAIN THING I WANT TO POINT OUT IS THAT IN JUST THIS YEAR, THIS TAX YEAR ALONE, WE HAVE A 15 PENNY, 15.5 PENNY DECREASE AND OVERALL OVER $0.37 DECREASE IN OUR TAX RATE.

THIS IS A VISUAL OF THAT DECLINE WITH THAT TAX RATE DROPPING AGAIN, 37 AND HALF PENNIES SINCE 2018 AND 15.5 PENNIES JUST IN THIS YEAR ALONE WITH THAT PROPOSED RATE OF 95, $0.9569 PENNIES.

SO THAT LEADS ME TO THE VOTER APPROVAL TO RAISE EARNINGS FOR ALL.

IN 2022 WE HAD A MAXIMUM COMPRESSED RATE OF 80.46 PENNIES AND THEN THIS YEAR, TEA COMPRESSED OUR RATE BY 18.54 PENNIES FOR A NEW MAXIMUM COMPRESSED RATE OF 61.92 PENNIES.

IF WE HAVE STILL A 15.54 PENNY DECREASE.

SO 15.5 PENNY DECREASE, WE CAN HAVE A THREE PENNY VOTER APPROVED TAX RATIFICATION ELECTION, WHICH WOULD ADD THREE PENNIES TO THE MAXIMUM COMPRESSED RATE AND FILL THAT JAR BACK UP FROM THE COMPRESSION AND STILL HAVE A REDUCTION IN THE TAXPAYER'S BILL.

SO LET'S LOOK AT THE M&O TAX RATE COMPARED TO LAST YEAR.

LAST YEAR'S M&O TAX RATE, THE TOTAL TAX RATE WAS 85.46 PENNIES.

THIS YEAR THE M&O TAX RATE THAT WE ALREADY HAVE, WHICH IS THE COMPRESSION PLUS OUR FIVE ENRICHMENT PENNIES, IS 66.92 PENNIES PLUS THREE GOLDEN PENNIES FOR A TOTAL PER POST M&O TAX RATE OF 69.92 PENNIES.

SO THIS PROPOSED DECREASE TO THE M&O TAX RATE OF 0.1554 OR 15.54 PENNIES PER $100 OF VALUE WOULD LEAD US TO THE VOTER APPROVAL TO RAISE EARNINGS FOR ALL, WHICH THESE WOULD BE VOTER APPROVED PENNIES FROM THAT LOSS OF THE MAXIMUM COMPRESSION RATE WHERE THEY THEY REDUCED OUR RATE BY OVER 18 PENNIES, WE STILL HAVE A REDUCTION OF MORE THAN 15 PENNIES.

THIS IS A VISUALIZATION SHOWING THAT COMPRESSION OUR I&S RATE STAYED THE SAME.

WE KEPT THAT STEADY, BUT THAT GRAY PORTION, WHICH IS THE BUCKET, THAT IS WHAT WE USE FOR JUST OUR DAILY OPERATIONS OF OUR DISTRICT AND HOW SIGNIFICANT THAT THAT DROPPED.

SO VATRE WOULD GENERATE ABOUT $3 MILLION OF NEW REVENUE TO THE DISTRICT.

I WANT TO SAY THAT $1 MILLION OF THAT, A LITTLE LESS THAN $1 MILLION OF THAT COMES FROM THE ACTUAL THREE PENNIES ON THE TAXPAYER AND $2 MILLION OF IT COMES FROM THE TEXAS EDUCATION AGENCY.

SO WHEN A COMMUNITY INVESTS THOSE PENNIES IN THROUGH THEIR TAX RATE, THEN THE TEXAS EDUCATION AGENCY REWARDS THAT COMMUNITY BY PAYING THEM BACK TWICE AS MUCH.

SO THAT'S HOW WE GET TO THE $3 MILLION.

WE HAVE A TOTAL TAX RATE DECREASE OF 15.54 PENNIES, AND THEN THAT GOLDEN PENNY VALUE INCREASES WITH PROPERTY GROWTH.

SO IF WE HAVE MORE HOUSES BEING BUILT IN THE DISTRICT AND MORE TAXPAYERS, THEN THOSE ARE THREE MORE PENNIES ALL ACROSS THE DISTRICT.

AND THOSE PENNIES JUST KEEP GROWING, RIGHT WITH THE DISTRICT.

LIKEWISE, AS ENROLLMENT GROWS, THE PENNY WILL INCREASE IN VALUE ALSO BECAUSE THAT BUCKET IS DETERMINED BASED ON

[00:25:01]

THAT, ALL OF OUR STUDENTS THAT ARE IN THE DISTRICT.

SO IF THE STUDENTS GROW, THE BUCKET GROWS.

THIS IS THIS IS REALLY IMPORTANT AND A LITTLE BIT CONFUSING.

SO I WANT TO GO THROUGH IT SO THAT WE DON'T GET CONFUSED.

IT'S IT'S A LITTLE ESPECIALLY CONFUSING THIS YEAR BECAUSE WE HAVE THIS SIDEBAR OF THE SENATE BILL TWO, WHERE THE HOMESTEAD EXEMPTION IS BEING INCREASED FROM $40,000 TO $100,000 ON HOMES.

AND WHAT WHAT HOW THAT IS GOING TO IMPACT OUR COLLECTION IS SIGNIFICANT.

SO WHAT THIS IS, IS THAT WE ARE WE'RE REQUIRED TO SHOW WHAT OUR TOTAL TAX COLLECTION WILL BE BASED ON OUR TOTAL LEVY, OUR TOTAL VALUES, TAXABLE VALUE OF PROPERTY AND OUR NEW PROPOSED TAX RATE AND HOW MUCH COLLECTION WE WILL WE WILL COLLECT BASED ON THAT.

SO LAST YEAR OUR LEVY WAS $2.7 BILLION.

THIS YEAR OUR LEVY IS $3.4 BILLION.

AND THEN WE TAKE HOW MUCH WE WILL COLLECT BASED ON THAT AT $100 OF VALUE AND WE WILL COLLECT $24 MILLION, WHICH IS $600,000 MORE THAN WE COLLECTED LAST YEAR.

IT DOESN'T MEAN THAT WE'RE INCREASING TAXES BY $600,000.

IT MEANS THAT WE HAVE MORE TAXPAYERS IN THE DISTRICT BECAUSE WE KNOW THAT WE HAD A TAX RATE DECREASE.

AND SO THAT'S WHERE IT CAN GET A LITTLE BIT CONFUSING.

BUT WE ARE REQUIRED TO REPORT THAT PERCENTAGE INCREASE OF 2.62% BECAUSE WE ARE COLLECTING MORE BECAUSE WE HAVE WE HAVE MORE TAX PAYERS IN LOCKHART ISD.

I MUST ALSO SAY THAT THIS IS UNDER CURRENT LAW WITH THE $40,000 HOMESTEAD EXEMPTION, UM, SHOULD SENATE BILL TWO PASS AND THE TAXPAYERS VOTE TO INCREASE THAT EXEMPTION TO $100,000, WE ACTUALLY WILL HAVE A TOTAL COLLECTION OF $1.3 MILLION LESS.

SO WE'LL ACTUALLY HAVE A DECREASE IN TOTAL COLLECTION BY 5.5%.

AND AS YOU CAN SEE, OUR LEVY, IF I GO IF I GO BACK, OUR LEVY UNDER OLD LAW IS $3.4 BILLION AND OUR LEVY UNDER NEW LAW IS $3.16 BILLION. SO THAT'S THAT IS HOW MUCH THE HOMESTEAD EXEMPTION DECREASES THOSE TAXABLE VALUES ON A HOME.

UM, OKAY.

SO WE WILL LOOK AT HOW WHAT THAT MEANS TO THE AVERAGE HOMEOWNER AND LOCKHART ISD.

EXCUSE ME. THIS SHOWS THE PAST THREE YEARS AND THE CHANGE IN MARKET VALUE OF A HOME AGAIN HERE IN LOCKHART ISD.

NOT JUST NOT CALDWELL COUNTY ACROSS THE BOARD, BUT IN LOCKHART ISD ONLY AND OUR AVERAGE TAXABLE VALUE.

SO WE SEE IN 2021 THAT IT WAS $150, ALMOST $151,000, IT WENT UP TO $160,000 AND THEN NOW IN 2023 DECREASES TO $135,000 WHILE THAT WHILE THAT APPRAISED VALUE, THE MARKET VALUE OF IT IS REALLY $313,000 AND THAT IS WITH THE $100,000 HOMESTEAD EXEMPTION PASSING.

UM SHOULD THAT PASS THE THE AVERAGE HOMEOWNER WOULD SEE ANNUALLY A DECREASE OF $496 IN THEIR TAX BILL, AND THAT IS WITH THE THREE GOLDEN PENNIES.

SHOULD THE VATRE NOT PASS, THERE WOULD BE A DECREASE IN THEIR ANNUAL TAX BILL OF $536.

SO I THINK THAT'S PROBABLY ONE OF THE MOST IMPORTANT LINES IN THE PRESENTATION TONIGHT, YOU KNOW, BECAUSE THE COMMUNITY IS GOING TO ASK IF THE BOARD CALLS FOR THIS ELECTION, HOW MUCH ARE MY TAXES GOING TO CHANGE? AND THE ANSWER TO THAT IS, IF IT PASSES ABOUT $500 FOR THE $96 AND IF PEOPLE VOTE NO, IT WILL BE $536.

SO THE QUESTION IS, YOU KNOW, IS $40 A YEAR IN SAVINGS WORTH IT TO YOU? WHICH WHICH WORKS OUT TO A LITTLE OVER $3 A MONTH, BUT THAT $3 A MONTH TO THE TAXPAYER TURNS INTO $3 MILLION TO THE SCHOOL DISTRICT.

SO THAT RIGHT THERE I THINK IS ONE OF THE MOST IMPORTANT PIECES THAT THAT WE NEED TO BE ABLE TO COMMUNICATE AND UNDERSTAND WHAT THIS VOTE THE EFFECT OF THIS VOTE.

[00:30:02]

OKAY. SO WE'LL GO THROUGH BEFORE WE VOTE.

WE'LL GO THROUGH TO MAKE SURE THAT WE UNDERSTAND ALL THE PIECES OF OF THE VOTER APPROVAL TAX RATE.

SO THE 2023 VOTER APPROVAL TAX RATE IS THE TEA MAXIMUM COMPRESSED RATE OF 61.92 PENNIES. OUR FIVE LOCAL GOLDEN PENNIES AND OUR I&S RATE, WHICH IS STAYING THE SAME AT 25.77 PENNIES FOR A TOTAL VOTER APPROVED TAX RATE OF 92.69 PENNIES.

THE 2023 PROPOSED TAX RATE IS THE M&O COMPRESSED TAX RATE FROM THE TEXAS EDUCATION AGENCY OF 61.92 PENNIES. OUR CURRENT LOCAL GOLDEN PENNIES OF FIVE AND OUR VATRE ADDITIONAL GOLDEN PENNIES OF THREE.

AND THEN OUR I&S TAX RATE, OF COURSE, OF 25.77.

WE HAVE A TOTAL PROPOSED 2023 TAX RATE OF 95.69 PENNIES.

THIS PROPOSED RATE IS $0.03 HIGHER THAN THE VOTER APPROVAL TAX RATE OF 92.69 PENNIES AND THUS WOULD REQUIRE A VOTER APPROVAL ELECTION SHOULD THAT PROPOSED TAX RATE BE APPROVED.

THE PROPOSED DECREASE TO THE TAX RATE IS 15.54 PENNIES ON $100 OF VALUE.

DO YOU HAVE ANY QUESTIONS ON YOUR PROPOSED 2023 TAX RATE? I WOULD ASK MR. ESTRADA.

SO IF WE VOTE TONIGHT TO CALL FOR THE ELECTION WHAT WOULD HAPPEN IN NOVEMBER IF THE ELECTION WAS NOT APPROVED IN OUR BUDGET? WHAT CHAIN OF EVENTS IS THAT HAPPENS AFTER THAT? SO RIGHT NOW, WE WERE AS THE BOARD IS AWARE, WE WERE NOT ABLE TO GIVE A RAISE.

WE DO HAVE CONTINGENCY PLAN ON TO GIVE A RAISE WERE THIS TO BE APPROVED.

IF THIS WAS NOT TO PASS, WE WOULD NOT BE ABLE TO GIVE A RAISE TO OUR STAFF AS WELL AS WE WOULD REMAIN OVER $700,000 DEFICIT IN THE DEFICIT THIS BUDGET CYCLE.

THE SECURITY UPGRADES THAT WE HAVE HAD TO PUT ON PAUSE.

AND YOU KNOW, WE'VE ALREADY SPENT ALL OF OUR STATE ALLOTMENT WHEN IT COMES TO SECURITY, BUT WE STILL HAVE A HOST OF SECURITY UPGRADES THAT WE WE FEEL ARE CRITICAL TO ENSURE OUR SCHOOLS ARE AS SAFE AS POSSIBLE.

THOSE WILL HAVE TO REMAIN ON PAUSE, YOU KNOW, AND IN THE LONG RUN, WE WERE, YOU KNOW, WE'VE BEEN ABLE THE LAST COUPLE OF YEARS TO USE FUND BALANCE THAT IS NOT SUSTAINABLE.

AND IF THIS WERE NOT TO PASS, UM, YOU KNOW, WE WOULDN'T HAVE ANY OTHER FUND BALANCES MOVING FORWARD NEXT YEAR AND IN FUTURE BUDGETS TO HELP CLOSE SOME OF THOSE GAPS.

YOU KNOW, SO THIS ELECTION WOULD BE CRITICAL TO THE LONG TERM SUSTAINABILITY OF OUR DISTRICT'S FINANCIAL SITUATION.

AND SO THE AVERAGE HOMEOWNER WOULD BE LOOKING AT, WHAT, $40 A YEAR, RIGHT? YES, SIR. BUT STILL A DECREASE IN THEIR DECREASE.

CORRECT. SO WE NEED TO BE VERY CLEAR.

IT'S NOT IT'S IT'S THAT THEY WOULD SAVE $40 LESS BY VOTING FOR IT.

THEY WOULD SAVE $40 MORE BY VOTING AGAINST IT.

SO EITHER WAY, THEY'RE GOING TO SAVE ABOUT $500 ON AVERAGE.

WHEN YOU LOOK AT THAT TAXABLE VALUE OF ABOUT $150,000, ASSUMING THE HOUSE BILL TWO ASSUMING CORRECT, ASSUMING.

AND THAT'S A STATEWIDE ELECTION, RIGHT? THAT'S A STATEWIDE ELECTION.

I JUST WANT THEM TO KNOW THAT THAT'S THAT'S ASSUMING THAT PASSES.

YEAH, YEAH, YEAH.

ABSOLUTELY. BUT MORE THAN LIKELY TO WARREN'S POINT, WHO WOULDN'T VOTE FOR GETTING YEAH, THAT'S A MASSIVE IT'S A MASSIVE DECREASE.

YOU KNOW, I FEEL PRETTY CONFIDENT THAT THAT IS GOING TO PASS STATEWIDE.

YOU KNOW, THE GOVERNOR IS REALLY TOUTING THAT AND THE EDUCATION IS THERE.

UM, YOU KNOW, SO I FEEL VERY SAFE THAT ACROSS THE STATE PEOPLE ARE GOING TO COME OUT TO VOTE IN FAVOR OF THAT BECAUSE WHY WOULDN'T THEY? ANY OTHER QUESTIONS BOARD? SO DO YOU HEAR A MOTION ON ITEM FOUR A? MR. PRESIDENT, I MOVE THAT THE TOTAL PROPERTY TAX RATE BE ADOPTED IN THE AMOUNT OF 0.6992 PER $100 PROPERTY VALUE, WHICH IS EFFECTIVELY A 2.626 INCREASE PERCENT INCREASE IN THE TAX RATE.

[00:35:01]

AND I FURTHER MOVE THAT THE BOARD APPROVE THE RESOLUTION ADOPTING THE MAINTENANCE AND OPERATIONS TAX RATE INTEREST AND SINKING TAX RATE AND TOTAL TAX RATE AS DESCRIBED IN THE RESOLUTION. I SECOND.

WE HAVE A MOTION, WE HAVE A SECOND.

ANY OTHER QUESTIONS? ALL THOSE IN FAVOR SAY AYE.

AYE. ANY OPPOSED? PASSES 7 TO 0.

WE'LL MOVE ON TO ITEM FOUR B CONSIDERATION AND ACTION WITH RESPECT TO AN ORDER CALLING FOR A VOTER APPROVAL TAX RATE ELECTION FOR THE NOVEMBER 7TH, 2023

[Consideration and Action with Respect to an "Order Calling for a Voter Approval Tax Rate Election" for the November 7, 2023 Uniform Election date]

UNIFORM ELECTION DATE.

[INAUDIBLE] OKAY.

SO WITH THE APPROVAL OF THE TAX RATE AT 95.69 PENNIES, THAT MOVES US TO THE VOTER APPROVAL TAX RATE ELECTION.

AGAIN, WE HAD A VOTER APPROVAL TAX RATE THAT WAS TOTALED TO BE 92.69 PENNIES.

THE APPROVED TAX RATE IS 95.69 PENNIES.

THE ALL CONSISTING OF WHAT IS THE COMPRESSION RATE FROM THE TEXAS EDUCATION AGENCY, OUR CURRENT LOCAL GOLDEN PENNIES, A NOVEMBER VATRE GOLDEN PENNY ELECTION OF THREE GOLDEN PENNIES, AND THEN OUR I&S TAX RATE FOR A TOTAL OF 95.69 PENNIES.

THE APPROVED RATE IS $0.03 HIGHER THAN THE VOTER APPROVED TAX RATE.

THEREFORE, IT REQUIRES THE NEED FOR A VOTER APPROVAL ELECTION OF THAT APPROVED RATE.

AND SO WE'RE GOING TO MOVE THROUGH WHAT THAT MEANS FOR THE VOTER APPROVAL.

WE HAVE TO GO OVER SOME BALLOT LANGUAGE AND EVERYTHING LIKE THAT.

SO WE'LL GO THROUGH ALL OF THAT.

THAT TAX RATE THAT WAS JUST APPROVED IS A DECREASE OF 15.54 PENNIES FOR THE TAXPAYER.

SO THE VOTER APPROVAL TO RAISE ALL TO RAISE EARNINGS FOR ALL COMES FROM OUR REDUCTION OF OUR MCR, WHICH IS THAT RATE FROM THE TEXAS EDUCATION AGENCY AND OUR M&O RATE.

SO LAST YEAR WE HAD 80.46 PENNIES OUR RATE WAS COMPRESSED BY 18.54 PENNIES.

LAST YEAR IT WAS COMPRESSED BY A LITTLE OVER ONE PENNY.

JUST AS A REMINDER.

SO THIS YEAR IT WAS COMPRESSED BY 18.54 PENNIES, BRINGING THE NEW MAXIMUM COMPRESSED RATE TO 61.92 PENNIES.

YOU DID JUST APPROVE A 15.4 PENNY DECREASE TO MOVE THREE OF THOSE PENNIES BACK INTO THE JAR FOR THE INCREASING THE MAXIMUM COMPRESSED RATE ON THE M&O SIDE.

SO AS WE COMPARE LAST YEAR TO THIS YEAR, WE DO HAVE A DECREASE IN THE M&O TAX RATE OF 15.54 PENNIES.

AND THAT THEN TRIGGERED A VOTER APPROVAL TAX RATE ELECTION, WHICH IS OUR VOTER APPROVAL TO RAISE EARNINGS FOR ALL.

IT WAS APPROVED PENNIES.

THESE PENNIES WERE LOST IN THE MAXIMUM COMPRESSION RATE FOR THIS YEAR FOR 2023.

THIS IS A VISUAL OF THAT LOSS.

IN OUR MAXIMUM COMPRESSION RATE, OUR I&S RATE STAYED THE SAME AND THAT OUR MAXIMUM COMPRESSION RATE DROPPED BY 18 PENNIES.

WE HAVE THAT $0.03 IN THERE SHOWING THE TOTAL TAX RATE DECREASE OF 15.54 PENNIES.

THE VATRE WOULD GENERATE ABOUT $3 MILLION OF NEW REVENUE TO THE DISTRICT.

IT'S IMPORTANT FOR ME TO SAY THAT A LITTLE LESS THAN THAT THAN $1 MILLION IS ACTUALLY GENERATED FROM THE THREE PENNIES IN TAX COLLECTION.

THE REMAINING $2 MILLION IS FROM THE TEXAS EDUCATION AGENCY WHAT THEY PUT ON TOP OF A GOLDEN PENNY.

IT'S IT'S WHY IT'S CALLED A GOLDEN PENNY.

WHEN A COMMUNITY INVESTS WITH THOSE EXTRA GOLDEN PENNIES, THE TEXAS EDUCATION AGENCY INVESTS TWOFOLD BACK, AND THAT GOLDEN PENNY WILL INCREASE AS MORE PROPERTIES ARE BUILT IN THE COMMUNITY.

WE'LL HAVE MORE TAX PAYERS SO THAT $3 MILLION WILL GROW WITH THAT.

IT'LL ALSO GROW AS OUR ENROLLMENT GROWS.

THE EFFECT ON AN AVERAGE HOME HERE IN LOCKHART ISD IS AN OVERALL DECREASE IN TAXES BASED ON THE PASSAGE OF SENATE BILL TWO, WHICH IS ALSO ON THE BALLOT THIS YEAR, AND IT INCREASES THE HOMESTEAD EXEMPTION FROM $40,000 TO $100,000.

SO THE VALUES THAT YOU SEE HERE ARE REFLECTIVE OF THAT.

THE COUNTY ALREADY HAS THOSE VALUES CALCULATED AND READY TO GO.

SO WITH THE PASSAGE OF SENATE BILL TWO, THE AVERAGE HOME TAXABLE VALUE IN LOCKHART ISD HAS DECREASED.

[00:40:01]

FROM $160,000 TO $135,000.

SO EVEN THOUGH THE MARKET VALUE INCREASED FROM $264,000 TO $313,000, THAT TAXABLE VALUE DECREASED TO $135,000. OUR TAX RATE ALSO DECREASED BY MORE THAN 15 PENNIES, WHICH IS ALLOWING THE AVERAGE TAXPAYER TO SEE A $500 A YEAR ANNUAL DECREASE IN THEIR TAXES.

SHOULD THE VATRE NOT PASS THAT THE DECREASE IN THE TAXES WOULD BE AROUND $535, $536 FOR THE AVERAGE HOME IN LOCKHART ISD.

SO WE'RE GOING TO GO THROUGH THE THE BALLOT LANGUAGE.

THIS BALLOT LANGUAGE IS REQUIRED BY STATUTE.

I'M GOING TO READ IT JUST TO MAKE SURE THAT WE GO THROUGH IT AND WE UNDERSTAND THE BALLOT LANGUAGE.

SO THE BALLOT LANGUAGE, WHICH WILL BE ON THE NOVEMBER 7TH BALLOT, SAYS RATIFYING THE AD VALOREM TAX RATE OF 95.69 OR I'M SORRY, .9569 IN LOCKHART ISD FOR THE CURRENT YEAR, A RATE THAT WILL RESULT IN AN INCREASE OF 2.626% IN MAINTENANCE AND OPERATIONS TAX REVENUE FOR THE DISTRICT FOR THE CURRENT YEAR AS COMPARED TO THE PRECEDING YEAR, WHICH IS AN ADDITIONAL $614,874.

SO NOW THAT I'VE READ IT OUT LOUD, I'M SURE YOU WANT TO GO THROUGH IT AND SEE WHAT ALL THAT MEANS.

AND SO I'M GOING TO GO THROUGH AND BREAK IT DOWN BECAUSE IT IS A LITTLE BIT CONFUSING.

AND THE THREE THINGS THAT I REALLY WANT TO GO OVER ARE THE ACTUAL TOTAL TAX RATE THAT WHERE IT SAYS AN INCREASE IN THE PERCENTAGE OF 2.626% AND THEN THE ADDITIONAL DOLLARS COLLECTED.

WE'RE GOING TO UNPACK EACH OF THOSE.

SO THE FIRST THING I WANT TO LOOK AT IS THE ACTUAL TOTAL TAX RATE.

SO THIS IS THE TOTAL TAX RATE APPROVED BY THE BOARD, EVEN THOUGH THE APPROVED RATE IS ONLY $0.03 MORE AND THAT'S WHAT THE VOTERS ARE VOTING FOR ON NOVEMBER 7TH.

WE ARE REQUIRED TO PUT THE ENTIRE TAX RATE IN THERE AND NOT JUST THE THREE PENNIES.

SO THAT'S WHY IT HAS THE 95 POINT THE .9569 PENNIES.

SO 95.69 IS OUR M&O TAX RATE.

I CANNOT BELIEVE THAT IT'S LESS THAN A DOLLAR.

THAT JUST BLOWS MY MIND TO SAY THAT.

AND THE IF YOU REMEMBER, THE VOTER APPROVED TAX RATE WAS 92.69, WHICH IS WHY WE ARE GOING TO BALLOT FOR THE APPROVAL OF THE 95.69 PENNIES.

THIS NEXT SECTION IS THE INCREASE OF 2.626%.

WE ARE REQUIRED TO PUT THIS IN THE BALLOT LANGUAGE, SO THIS IS THE TOTAL PERCENTAGE INCREASE IN THE TOTAL COLLECTION DUE TO THE INCREASE IN THE NUMBER OF PROPERTIES.

SO WE TALKED ABOUT HOW IF WE IF WE COLLECT MORE FUNDS, IT'S NOT BECAUSE THE TAX RATE, THE TAX RATE DROPPED BY OVER 15 PENNIES, IT'S BECAUSE WE HAVE MORE TAX PAYERS COMING INTO THE COMMUNITY.

SO WE'RE GOING TO BE COLLECTING MORE.

SO THAT'S WHAT THAT INCREASES.

AND OF COURSE WE DID HAVE AN INCREASE IN PROPERTY VALUES UNDER THE $40,000 EXEMPTION, WHICH THE $40,000 EXEMPTION IS THE CURRENT LAW.

SO THAT'S WHAT IS REFLECTED IN THE BALLOT LANGUAGE.

SO THIS PERCENTAGE IS NOT AN INCREASE IN TAXABLE VALUE.

IT'S NOT AN INCREASE IN THE TAX PAYMENT FOR THE HOUSEHOLDS HERE IN LOCKHART ISD.

IT'S JUST AN INCREASE IN THE TOTAL COLLECTION THAT LOCKHART ISD COLLECTS BECAUSE WE HAVE OUR INCREASE IN TAX PAYERS.

THIS PERCENTAGE IS NOT REFLECTIVE OF SENATE OF THE PASSAGE OF SENATE BILL TWO, WHICH IS ALSO ON THE NOVEMBER BALLOT TO INCREASE THAT HOMESTEAD EXEMPTION FROM $40,000 TO $100,000.

SO LIKE I SAID, BECAUSE THAT'S NOT LAW YET, WE CANNOT PUT THAT IN THE LANGUAGE OR ELSE WE WOULD HAVE A DECREASE HERE OF 5.5% IN TAXES, WHICH HERE I'M GETTING AHEAD OF MYSELF.

I'M SORRY, THE INCREASE IN THE HOMESTEAD EXEMPTION TO $100,000 ACTUALLY DECREASES OUR M&O TAX REVENUE BY 5.5%, WHICH IS A DECREASE OF ALMOST $1.3 MILLION.

SO SHOULD THAT HAVE BEEN LAW ALREADY THE LANGUAGE WOULD SAY A DECREASE OF 5.54% RIGHT HERE.

BUT BECAUSE THE $40,000 IS A CURRENT LAW, THE BALLOT WILL SAY THAT IT IS AN INCREASE OF 2.62%.

[00:45:07]

WHICH BRINGS ME TO THE ADDITIONAL REVENUE OF $600 AND ALMOST $15,000 ON THE BALLOT.

SO THIS IS AN INCREASE IN TOTAL TAX COLLECTION DUE TO THE INCREASE IN THE NUMBER OF PROPERTIES IN THE COMMUNITY AND INCREASE IN PROPERTY VALUE OF THE PROPERTIES THAT ARE HERE.

THIS IS NOT AN INCREASE IN THE TAX COLLECTION THAT LOCKHART ISD WILL RECEIVE AS A RESULT OF THE OF THE VATRE. SO EVEN THOUGH THIS IS ON THE BALLOT FOR THE THREE PENNIES.

THE BALLOT LANGUAGE DOES NOT SAY THAT WE'RE HERE FOR THREE PENNIES, THAT WE'RE INCREASING BY THIS MUCH DUE TO THE THREE PENNIES AND THAT THE DISTRICT IS COLLECTING THIS MUCH DUE TO THE THREE PENNIES.

THE LANGUAGE HAS NOTHING TO DO WITH ANYTHING ABOUT THE THREE PENNIES.

IT HAS TO DO WITH THE OVERALL COLLECTION OF THE $40,000 EXEMPTION VALUES.

YOU DON'T THINK THE STATE DID THAT ON PURPOSE? NO, NO, NO.

NO COMMENT. I YES.

SO YEAH, THE INCREASE IN TAX COLLECTION THAT LOCKHART ISD WILL RECEIVE AS A RESULT OF THE TAX RATIFICATION ELECTION IS APPROXIMATELY $967,000.

SO THE THREE PENNIES DOES GENERATE REVENUE FROM THE FROM THE TAX COLLECTION.

IT GENERATES $967,000.

THIS AMOUNT IS NOT REFLECTIVE OF THE PASSAGE OF SENATE BILL TWO, WHERE WE'RE INCREASING THE EXEMPTION FROM $40 TO $100.

WE ACTUALLY, IN THE SAME CIRCLE, WOULD HAVE A DECREASE OF ALMOST $1.3 MILLION SHOULD THAT HAVE ALREADY BEEN IN THE LAW.

AND WE WERE HAVING THE THE VATRE.

SO THAT IS THE BALLOT LANGUAGE EXPLAINED.

DO YOU ALL HAVE ANY QUESTIONS ON THE BALLOT LANGUAGE? ANY FURTHER QUESTIONS? OKAY. ANY OTHER QUESTION FOR HER? NO. SO DO YOU HAVE ANYTHING ELSE TO SAY? I'M SORRY. I AM JUST GOING TO GO OVER HOW I WAS WANTING TO SHOW THAT BECAUSE IT'S IN THE BALLOT LANGUAGE, THESE TWO CALCULATIONS. I WAS WANTING TO SHOW HOW WE GOT TO THAT CALCULATION.

I IT IS MY GOAL TO EXPLAIN THIS AS MANY TIMES AS ANYONE WANTS TO HEAR IT, SO THAT WHEN ON NOVEMBER 7TH, EVERYBODY FEELS CONFIDENT WHEN THEY'RE READING THAT VERY CONFUSING BALLOT LANGUAGE.

BUT WHAT THAT IS, IS THAT IS A TOTAL PERCENTAGE INCREASE IN TOTAL COLLECTION.

SO IT DOES NOT MEAN THAT THAT WE'RE COLLECTING 2.6% HIGHER ON EVERY HOME.

IT DOESN'T MEAN THAT WE'RE COLLECTING AN ADDITIONAL $600,000 BECAUSE WE'VE INCREASED THE TAX RATE.

WE CLEARLY THE TAX RATE HAS DECREASED BY OVER 15 PENNIES.

AND THEN OUR LEVY HAS INCREASED FROM $2.7 BILLION TO $3.4 BILLION.

AND SO THAT'S WHAT THAT IS AND HOW THAT CALCULATION COMES ABOUT, WHICH IS IN THE BALLOT LANGUAGE.

BASED ON THE $3.4 BILLION LEVY IS BASED ON OLD WELL, CURRENT LAW OF $40,000 SHOULD SENATE BILL TWO PASS INCREASING THE HOMESTEAD EXEMPTION TO $100,000, OUR LEVY WILL DECREASE TO $3.163 BILLION AND WE WILL ACTUALLY DECREASE IN OUR TOTAL TAX COLLECTION BY $1.3 MILLION EVEN WITH THE VOTER APPROVED TAX RATIFICATION ELECTION, WHICH IS ACTUALLY A DECREASE IN TAX REVENUE OF 5.5%.

NOW DO YOU HAVE ANY QUESTIONS? IS EVERYBODY SUFFICIENTLY GLAZED OVER? YES. OKAY.

SO WE'RE READY TO HEAR A MOTION ON FOUR B.

I MOVE TO APPROVE AN ORDER CALLING FOR A VOTER APPROVAL TAX RATE ELECTION TO BE HELD ON NOVEMBER THE 7TH, 2023.

I FURTHER MOVE TO AUTHORIZE THE ADMINISTRATION TO TAKE ANY STEPS NECESSARY TO EFFECTUATE SUCH AN ELECTION.

SECOND. WE HAVE A MOTION, WE HAVE A SECOND.

ALL THOSE IN FAVOR SAY AYE.

AYE. ANY OPPOSED? PASSES 7 TO 0.

THANK YOU. BOARD. THANK YOU ALL FOR YOUR SUPPORT.

THANK YOU. WE MOVE ON TO ITEM FOUR C CONSIDER AND OR APPROVE A CONTRACT FOR ELECTION SERVICES BETWEEN CALDWELL COUNTY IN LOCKHART ISD FOR FOR THE NOVEMBER 7TH, 2023

[Consider and/or Approve Contract for Election Services between Caldwell County and Lockhart ISD for November 7, 2023 Uniform Election]

UNIFORM ELECTION.

I MEAN. YOU HAVE THE LANGUAGE THERE.

THIS JUST GIVES US THE ABILITY TO SET UP THE CONTRACT, TO HAVE THE ELECTION AND USE THE COUNTY FOR THEIR SERVICES.

[00:50:06]

THEY'LL BE ABLE TO CONDUCT THE ELECTION FOR US.

SO I'LL HEAR A MOTION FOR THIS.

I MOVE TO APPROVE THE CONTRACT FOR ELECTION SERVICES BETWEEN CALDWELL COUNTY AND LOCKHART ISD.

I'LL SECOND AS PRESENTED.

SECOND. WE HAVE A MOTION WE HAVE A SECOND.

ALL THOSE IN FAVOR SAY AYE.

AYE. ANY OPPOSED? PASSES 7 TO 0. THANK YOU BOARD.

AND CONSIDER ITEM FOUR D.

[Consider and/or Approve District In-service Calendar]

CONSIDER AND OR APPROVED DISTRICT IN-SERVICE CALENDAR.

GOOD EVENING. JUST REAL QUICK, WE HAD A LAW THAT WAS PASSED WHEN THE REGULATIONS THAT WE HAD TO BRING THE IN-SERVICE CALENDAR TO THE BOARD EVERY YEAR TO REVIEW WHAT WE ARE HAVING FOR OUR TEACHERS, OUR PRINCIPALS, OUR APS.

AND WE DID THIS AND IT'S A GOOD THING YOU TRUST US TO DO OUR JOB, BUT I'M JUST BRINGING IT BACK TO YOU SO YOU HAVE IT.

JUST AS AN OVERVIEW AS WE'RE FINISHING UP THE PD WE HAD AND YOU HAVE IT THERE IN FRONT OF YOU SO THAT UNLESS YOUR EYESIGHT IS REALLY GOOD, BUT IT'S ON THERE AS A COPY, THIS IS THE CALENDAR WE HAD WE MEET WITH.

JUST TO GIVE YOU AN IDEA OF HOW THIS IS FORMULATED, WE MEET WITH THE DISTRICT ADVISORY COMMITTEE TO GIVE US DATES ON HOW THE CADENCE OF THE FIRST DAYS OF SCHOOL BEFORE THEY ALL RESTART SCHOOL, WHAT THEY WOULD LIKE TO SEE IN MEETINGS IN TIME FOR THEM TO PLAN.

SO THEY GAVE US THE SCHEDULE ON WE WOULD LIKE TO HAVE CONVOCATION THIS DAY.

WE WOULD LIKE TO HAVE PLANNING DAYS, WE WOULD LIKE TO HAVE TRAINING ON THESE DAYS.

SO WE FORMED THAT AND THEN WE AT THE DISTRICT LEVEL WILL GET TOGETHER WITH OUR TEAMS AND GET THAT INPUT ON WHAT WE NEED TO FOR THE DIRECTION FOR THE YEAR.

AND WE COME UP WITH THIS CALENDAR FOR STAFFING.

SO ALL OF THAT'S IN FRONT OF YOU.

SO. ANY QUESTIONS? ANY QUESTIONS BOARD? I MOVE TO APPROVE THE DISTRICT IN-SERVICE TRAINING CALENDAR AS PRESENTED.

I SECOND.

WE HAVE A MOTION WE HAVE A SECOND.

ALL THOSE IN FAVOR SAY AYE.

AYE. AYE FOR ME AND ANY OPPOSED? PASSES 7 TO 0.

I KNOW. IT'S JUST.

OKAY. ITEM FOUR E CONSIDER AND OR APPROVE LOCAL POLICY UPDATE 121.

[Consider and/or Approve Local Policy Update 121: CCGB(LOCAL): AD VALOREM TAXES - ECONOMIC DEVELOPMENT; CFB(LOCAL): ACCOUNTING -INVENTORIES; CKE(LOCAL): SAFETY PROGRAM/RISK MANAGEMENT - SECURITY PERSONNEL; CKEC(LOCAL): SECURITY PERSONNEL - SCHOOL RESOURCE OFFICERS; CLB(LOCAL): BUILDINGS, GROUNDS, AND EQUIPMENT MANAGEMENT - MAINTENANCE; CO(LOCAL): FOOD AND NUTRITION MANAGEMENT; COA(LOCAL): FOOD AND NUTRITION MANAGEMENT - PROCUREMENT; COB(LOCAL): FOOD AND NUTRITION MANAGEMENT - FREE AND REDUCED-PRICE MEALS; CRF(LOCAL): INSURANCE AND ANNUITIES MANAGEMENT - UNEMPLOYMENT INSURANCE; CVA(LOCAL): FACILITIES CONSTRUCTION - COMPETITIVE BIDDING; CVB(LOCAL): FACILITIES CONSTRUCTION - COMPETITIVE SEALED PROPOSALS; DEA(LOCAL): COMPENSATION AND BENEFITS - COMPENSATION PLAN; FD(LOCAL): ADMISSIONS; FFI(LOCAL): STUDENT WELFARE - FREEDOM FROM BULLYING]

WE'VE ALREADY GONE OVER THIS.

THIS IS KIND OF JUST A FORMAL.

YES, SIR.

SO DO WE HEAR A MOTION? I MOVE TO APPROVE LOCAL POLICY UPDATE 121 AS PRESENTED.

SECOND. WE HAVE A MOTION WE HAVE A SECOND.

ALL THOSE IN FAVOR SAY AYE.

AYE. ANY OPPOSED PASSES? 7 TO 0.

AWESOME. THANK YOU. THIS MEETING IS ADJOURNED.

* This transcript was compiled from uncorrected Closed Captioning.