Round Rock ISD will save millions in interest payments while maintaining its current tax rate for the 2016-2017 fiscal year.
The Board of Trustees approved a $1.3325 tax rate for the 2016–2017 fiscal year at the regular meeting Thursday night. The approved rate is the same as the previous year and is comprised of $1.04 for general operating and $0.2925 for debt service.
The approved tax rate is part of the District’s efforts to continue to provide taxpayers savings over the long term, maintain the district’s tax rate as one of the lowest in the region, help reduce the district’s overall debt burden and prepare for continued growth within the district, Chief Financial Officer Randy Staats said.
Through the approved tax rate, the District will be able to pay off some debt earlier than its original maturity date, saving about $5.9 million.
“The Round Rock ISD business and financial team are dedicated to ensuring that our district is able to provide the best resources to students while remaining mindful of our taxpayers,” Superintendent Dr. Steve Flores said. “Their work, along with the support and vision of our outstanding Board of Trustees, allows us to continue designing the Destination District for Public Schools.”
Although the tax rate remains the same as last years, taxpayers may see an increase in their property taxes as a result of increased property values.
During their regular June meeting, Trustees adopted an operating budget of $388 million that increased expenditures by $14.2 million, attributed to more programming aligned to its Strategic Plan and anticipated student growth.
“Our Board wants to provide taxpayers a high value in their public schools,” Board President Paul J. Tisch said. “With this adopted tax rate, we’re able to create flexibility for our community’s Strategic Plan, continue to improve our high quality academic product for kids, and be responsible to homeowners.”
The Board also heard a presentation from the Round Rock ISD business office regarding its results from the Financial Integrity Rating System of Texas. Round Rock ISD earned an “A” for “Superior Achievement” in the rating system developed by the Texas Education Agency to assess the quality of financial management.
“The hard work and dedication of our team at Round Rock ISD and our supportive leadership gives us the ability to exceed state requirements in financial stewardship,” Staats said. “Our District has an excellent tradition of placing itself in a position to provide world-class programs, facilities and resources while remaining responsible to our taxpayers and financially accountable.”
The FIRST rating system scores districts on 15 indicators in areas such as financial audits and related opinions, cash and investments, financial ratios, fund balance, debt management, administrative costs and staffing levels.
With the highest rating possible in FIRST, Round Rock ISD continues its reputation for stellar financial performance. It is the only school district in the state of Texas to earn a AAA rating from Fitch and Moody’s, following the latest bond rating upgrade. The district has maintained a AAA bond rating from Moody since 2010 and was recently upgraded to AAA by Fitch Ratings. AAA is the highest bond rating possible which demonstrates the manner in which the district carries out its fiscal responsibilities.
