WHAT IS A VATRE?
A Voter-Approval Tax Rate Election (VATRE) is an election that is required by state law when a school board adopts an M&O tax rate that is greater than the rate set by the State. The compressed rate set by the State for 2023-2024 is .6792 cents. The Lago Vista ISD Board of Trustees adopted a rate of .6992 cents which is two cents higher than the rate set by the State of Texas.
WHAT ARE THE TAX RATE COMPONENTS AND ALLOWABLE USES?
A school district's total tax rate consists of two separate tax rates: Maintenance & Operations (M&O) and Interest & Sinking (I&S). The money generated from each rate can only be used for specific types of expenses. M&O revenue is used for operating the District - salaries, instructional materials, utilities, maintenance, etc. I&S revenue can only be used for payment of principal and interest on bonds sold to construct and furnish school district facilities.
The amount of local tax revenue generated by these rates is based on property value appraisal. In Lago Vista ISD, the property values used to determine homeowners annual tax payments include a 20% Local Optional Homestead Exemption (LOHE).
WHAT IS THE IMPACT OF THE VATRE ON MY TAX RATE?
The Lago Vista ISD tax rate has declined each year since 2019. The State has compressed the M&O tax rates over the past several years. Due to the tax rate compression by the State, Lago Vista ISD's total tax rate for 2023-2024 will still DECREASE with the passage of the VATRE.
With the passage of the VATRE, the 2023-2024 total tax rate for Lago Vista ISD is $1.0192 and is a decrease from the District’s 2022-2023 tax rate of $1.184. Also, property tax rates for homeowners 65 years and older with the appropriate exemptions will have a $0 impact by the passage of the VATRE.
WHY CALL A VATRE?
There are several reasons Lago Vista ISD has called for a VATRE:
- Total tax rate is still reduced so taxpayers get the advantage of the M&O tax rate compression
- Increase of revenue generated to be used for employee compensation and safety & security
- $800,000 will stay local annually
HOW IS A VATRE DIFFERENT THAN A BOND?
Bond elections and VATREs are held for different reasons and impact different aspects of a school district's budget.
Bond Election Funds:
- Are voter approved funds for constructing, renovating, and furnishing facilities
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Impact the school district's Interest & Sinking (I&S) budget.
- Cannot be used for staff pay or other day-to-day operating expenses.
- Add to a school district's debt.
Voter Approval Tax Ratification Election Funds:
- Are voter approved funds from adjusting a school district's tax rate.
- Impact the school district's Maintenance & Operations (M&O) budget.
- VATRE funds CAN be used for staff pay and day-to-day operating expenses.
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Do not add to a school district's debt.
HOW WILL VATRE FUNDS BE DISTRIBUTED*?
*Pending Board Approval
