CCISD board to propose tax rates, call for September 8 tax ratification election
By LYNETTE SOWELL
The Copperas Cove Independent School District board of trustees will hold a special meeting on Monday, July 9 at 6:30 p.m. at the CCISD administration board room, located at 408 S. Main St.
During the meeting, the board will consider and approve a resolution for the 2018-2019 tax rate.
The rate on $100 valuation is proposed to be $1.17 for district maintenance and operations, and $0.18 for the Interest and Sinking Fund, which will be to cover the principal and interest on voter approved debt, making the total proposed rate of $1.35 per $100 valuation.
With that resolution, the board will “covenant” that, upon approval of the rate by Copperas Cove voters, the debt service portion of the tax rate will immediately drop to $0.05 from $0.18, with the total tax rate equaling the present tax rate of $1.22 per $100.
Along with the approval of the resolution on Tuesday night, the board will also order the tax ratification election to go with the proposed tax rate. The move would increase the district’s funding for maintenance and operations by approximately $4.1 million.
The election will take place on Saturday, September 8.
The shifting of property tax funds between maintenance and operations and a district’s interest and sinking fund is sometimes called a “tax switch.” During its June workshop, the board heard a presentation by the district’s financial advisor, Doug Whitt, along with the district’s bond counsel, that explained how the election works.
During that presentation, Whitt told the board that one of the goals of the district is to “put forth a tax ratification election in order to soften the blow of lost revenues on the maintenance and operations side.”
With a tax ratification election, the district can keep the overall property tax rate the same, while it decreases the amount of taxes collected to pay off district debts and at the same time increases the amount of revenue to fund maintenance and operations.