Alto ISD to call voter- approval tax rate election, decrease total tax rate by 1 cent
Alto ISD is planning to order Voter-Approval Tax Rate Election (VATRE) on Nov. 2, 2021, to take advantage of the state finance formula to restructure the tax rate. If approved by voters, the district would receive $740,000 in additional funding while decreasing the local tax rate by one penny.
The VATRE would allow Alto ISD to restructure its tax rate, essentially decreasing its Maintenance and Operations (M&O) tax rate by a penny, while keeping the Interest and Sinking (I&S) tax rate unchanged. Therefore, total tax rate would be $1.5319, one cent lower than last year’s tax rate.
If voters approve the tax rate adopted by the board, of the additional funding Alto ISD would receive, 76 percent – or $560,000 – would be from the state. If the VATRE is not approved by voters, these state funds are left on the table in Austin and will not come to Alto.
The board plans to conduct the VATRE to increase funding by $740,000 annually while decreasing the tax rate one penny. These funds are needed to help the district recover from the destructive storms of 2019 and the COVID outbreak of 2020.
There is more good news in the future: Alto voters will see the tax rate drop 10 cents in 2023, two years from now. As the debt payment decreases, a smaller debt rate will be needed.
For additional information about the Voter-Approval Tax Rate Election, visit www.alto.esc7.net.
Please support the Cherokeean Herald by subscribing today!