Trustees Adopt Lowest Tax-Rate Since 2005

At a special-called board meeting on Tuesday, August 29, the Terrell ISD Board of Trustees voted unanimously to adopt a property tax rate of $1.0682 - the lowest tax rate since 2005.

The new tax rate represents a decrease of 18.68 percent (.2454 cents) from last year’s total tax rate of $1.3136. 

Combined with the new, lower tax rate and the passing of the new Texas Homestead Exemption law, the majority of Terrell ISD homeowners should expect to see a reduction in their property taxes. 

Trustees voted to adopt a total budget of $72.7 million - $57.5M for maintenance and operations; $11.2M for interest and sinking; and $4M for school nutrition services. 

Maintenance and operations, also known as M&O, are the funds the district utilizes to pay the monthly bills, i.e. salaries, contracted services for busing and custodial services,  utilities, supplies and other general operating expenses.  Salaries make up more than 70% of the M&O budget.  

The interest and sinking fund, also known as I&S, are the funds the district utilizes to pay its debt related to voter-approved bonds for school construction and facilities. 

Lastly, the board approved $4M for school nutrition service funds which are largely comprised of federal funds and are used to provide meals through the national school lunch program. 

In another move to reduce debt, Trustees voted to set aside monies to pay off a portion of the district’s debt from the 2016 bond, which will save taxpayers an estimated $3.7M in interest.  Since 2021, Trustees have taken similar actions to reduce interest debt by approximately $10.5M. 

“Our Board of Trustees is committed to being good stewards of the monies entrusted to us by Terrell ISD taxpayers, all the while providing a high-quality education for students,” stated Board President, Dena Risinger. “We want to thank Dr. Warnock and her team for their commitment to working on, and bringing forth a budget that meets the needs of all stakeholders.” 

Click here to learn more about the new Texas Homestead Exemption and the application process.