Laredo I.S.D. Board of Trustees Special Call Meeting Monday, August 10, :30 PM Amber Yeary Board Room Houston St Laredo, TX 78040

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1 Laredo I.S.D. Board of Trustees Special Call Meeting Monday, August 10, :30 PM Amber Yeary Board Room Houston St Laredo, TX A. Call to Order B. Roll Call C. Pledge of Allegiance 1. Discussion and possible action to approve the updated Capital Improvement Plan (CIP). Dr. A. Marcus Nelson, Superintendent of Schools 2. Discussion and update on the District Improvement Plan and Campus Improvement Plans. Dr. A. Marcus Nelson, Superintendent of Schools 3. Discussion and possible action to approve the 2015 local property values as certified by the Webb County Appraisal District. Dr. A. Marcus Nelson, Superintendent of Schools 4. Discussion and possible action to approve four required certifications by Mr. Rodolfo Sanchez, RTA, CSTA, Director of Tax Collections, as listed below: A. The anticipated debt collection rate for tax year 2015 (fiscal year ). B. The excess debt collections for tax year 2014 (fiscal year ). C. The submission of the rollback tax rate for 2015 tax year (fiscal year ). D. The estimated unencumbered fund balance for the Maintenance & Operations and the Interest & Sinking Funds for fiscal year Dr. A. Marcus Nelson, Superintendent of Schools 1

2 5. Discussion and possible action to approve the Annual Budget, to include: A. 101 Child Nutrition Program B. 180 E-Rate C. 181 Athletics D. 182 Technology E. 199 General Operating F. 511 Debt Service Dr. A. Marcus Nelson, Superintendent of Schools 6. Discussion and possible action to approve a resolution to adopt a tax rate, in two parts, for the 2015 tax year ( fiscal year): (A) Maintenance & Operating Rate and (B) Debt Service Rate. Dr. A. Marcus Nelson, Superintendent of Schools 7. Adjournment If during the course of the meeting, discussion of any item on the agenda should be held in a closed meeting, the Board will conduct a closed meeting in accordance with the Texas Open Meetings Act, Texas Government Code, Chapter 551, Subchapter D and E. It is the policy of the Laredo Independent School District not to discriminate on the basis of race, color, national origin, gender, religion, limited English proficiency, or handicapping condition in its programs. DISABILITY ACCESS STATEMENT Persons with disabilities who plan to attend this meeting and who may need auxiliary aid or services are requested to contact Josie Z. Rodriguez at (956) at least two working days prior to the meeting so that appropriate arrangements can be made. The accessible entrance and accessible parking spaces are located at the Amber Yeary Board Room, 900 Main. 2

3 LAREDO INDEPENDENT SCHOOL DISTRICT CAPITAL IMPROVEMENT PLAN PROPOSED YEAR Category Sub Cat Location Project Information Source Estimated Cost Equipment Furniture/Fixtures Martin High School New 25x8 classroom student chairs for new science building Local-E $ 35,000 $ 35,000 Facilities Improvement Cigarroa High School Sprinkler system for entire school Local-F $ 48,000 $ 48,000 Equipment Furniture/Fixtures Cigarroa High School Purchase and installation of new scoreboards(2) Local-F $ 28,000 $ 28,000 Equipment Furniture/Fixtures Jose A. Valdez High School New furniture for Administration and classrooms Local-E $ 9,000 $ 9,000 Facilities Maintenance Christen Middle School Paint throught school Local-F $ 55,000 55,000 Facilities Security/Safety Christen Middle School Electric Gate Local-F $ 10,000 $ 10,000 Equipment Cameras Lamar Middle School 14 security cameras Local-F $ 18,000 18,000 Facilities Maintenance Cigarroa Middle School Door handles and hardware schoolwide Local-F $ 42,000 $ 42,000 Facilities Maintenance Memorial Middle School Erosion and landscaping on marcella Local-F $ 35,000 35,000 Facilities Canopies Don Jose Gallego Elementary Construction of awnings around the building Local-F $ 157,000 $ 130,000 Facilities Improvement Farias Elementary Doors replacements Local-F $ 35,000 $ 35,000 Facilities Canopies Macdonell Elementary *Installation of canopies on North and South side walls of school Local-F $ 89,000 $ 35,000 Facilities Canopies Ryan Elementary Canopy outisde ECC Local-F $ 25,000 $ 25,000 Equipment Furniture/Fixtures Santa Maria Elementary Replacement of hardware Local-F $ 45,000 $ 45,000 Facilities Canopies Santa Maria Elementary Canopy Local-F $ 78,000 $ 25,000 Equipment Furniture/Fixtures Kawas Elementary Replacement of auditorium curtains Local-E $ 12,000 $ 12,000 Facilities Improvement Kawas Elementary Cement slab for play area Local-F $ 13,000 $ 13,000 Facilities Maintenance Dovalina Elementary Paint interior school Local-F $ 45,000 $ 45,000 Facilities Playground Ligarde Elementary Canopy for playground area Local-F $ 40,000 $ 40,000 Facilities Security/Safety Safety & Occupational Health Dept. Security Inspection items Local-F $ 90,000 $ 90,000 Equipment Machines Fixed Assets & Custodial Services Funding for equipment Local-E $ 792,500 $ 100,000 Facilities Maintenance Fixed Assets & Custodial Services Warehouse interior and exterior painting Local-F $ 10,000 $ 10,000 Equipment Computers Information Technology Replacement of projectors per replacement schedule Local-T $ 506,000 $ 150,000 Equipment Computers Information Technology Virtual desktop infraestructure, District wide licensing, PC Desktop replacements Local-T $ 1,894,000 $ 1,050,000 Equipment Furniture/Fixtures CTE replace cosmetology equipment/furniture Local-E $ 25,000 $ 25,000 Equipment Machines CTE upgrade culinary arts equipment/furniture CHS Local-E $ 20,000 $ 20,000 Equipment Computers Health Services Computers for nurses Local-E $ 30,000 $ 30,000 Equipment Vehicles Pupil Transportation Purchasing of school buses (2 per year) Local-E $ 808,000 $ 208,000 Facilities Software Division Of Operations Upgrades to I-Net -HVAC Control software Local-F $ 95,000 $ 45,000 Equipment Vehicles Division Of Operations Replacement of 2 maintenance vehicles per year (vans or trucks) Local-E $ 320,000 $ 70,000 Facilities Maintenance Division Of Operations *Painting needs district wide (2014 and 2015) Local-F $ 417,000 $ 100,000 Facilities Security/Safety Division Of Operations Security Cameras Local-F $ 25,000 $ 25,000 Equipment Other Division Of Operations Lawn Mower Tractors Local-E $ 28,000 $ 28,000 Equipment Vehicles Athletic Department Upgrades to veterans field Local-E $ 64,000 $ 64,000 Page 1 8/7/ :24 PM

4 LAREDO INDEPENDENT SCHOOL DISTRICT CAPITAL IMPROVEMENT PLAN PROPOSED YEAR Category Sub Cat Location Project Information Source Estimated Cost Equipment Vehicles Pupil Transportation Purchase of 3 Suburbans (Unit price $38,000) Regular $ 114,000 $ 114,000 Equipment Vehicles Pupil Transportation Purchase of 7 buses (Unit price $130,000) Regular $ 910,000 $ 910,000 Equipment Vehicles LISD Police Department Purchase of 8 police cars (Unit price $ 26,000) Regular $ 208,000 $ 208,000 Equipment Vehicles Instructional Television Purchase of 2 vans (Unit price $30,000) Regular $ 60,000 $ 60,000 Equipment Vehicles Fixed Assets & Custodial Services Purchase of 2 box trucks (Unit price $ 50,000) Regular $ 100,000 $ 100,000 Equipment Vehicles Fixed Assets & Custodial Services Purchase of 1 cargo van (Unit price $25,000) Regular $ 25,000 $ 25,000 Equipment Vehicles Athletic Department Purchase of 3 activity buses (Unit price $60,000) Regular $ 180,000 $ 180,000 Facilities Expansion District Wide Funding for Administration Complex (Fund 616) Regular $ 1,627,438 $ 1,627,438 Legend Additions to CIP (Budget identified by the Finance Department to purchase vehicles and fund the construction of a new Administration Building) Regular $ 3,224, CIP $1,500,000 Local-E $ 601,000 Local-F $ 899,000 Local-T $ 1,200,000 Page 2 8/7/ :24 PM

5 FACILITIES PLANNING CT (LOCAL) MULTI-YEAR CAPITAL PLANNING IDENTIFYING NEEDS DETERMINING COSTS Capital planning is an important component of the District s academic program and strategic plan. The District shall prepare and adopt a multi-year capital plan that identifies and prioritizes expected needs based on the District s strategic plan, establishes project scope and cost, details estimated amounts of funding from various sources, and projects future operating and maintenance costs. The multi-year capital plan shall cover a period of at least three years. The first step in capital planning shall be to identify District needs. The District shall use the needs assessment form to identify needs and shall incorporate other information from development projections, strategic plans, comprehensive plans, facility master plans, regional plans, and citizen input processes to identify present and future service needs that will require capital infrastructure or equipment. When identifying needs, attention should be given to the following items: Capital assets that require repair, maintenance, or replacement, that, if not addressed, will result in higher costs in future years. Infrastructure improvements needed to support new development or redevelopment. Projects with revenue-generating potential. Improvements that support student achievement. Changes in policy or community needs. The full extent of project costs should be determined when developing the multi-year capital plan. Cost issues to consider shall include the following: The scope and timing of a planned project should be well defined in the early stages of the planning process. The District shall identify and use the most appropriate approaches, including outside assistance, when estimating project costs and potential revenues. For projects programmed beyond the first year of the plan, the District should adjust cost projections based on anticipated inflation. Ongoing operating costs associated with each project should be quantified, and the sources of funding for those costs should be identified. DATE ISSUED: 3/28/ of 3 LDU CT(LOCAL)-X

6 FACILITIES PLANNING CT (LOCAL) A clear estimate of all major components required to implement a project shall be outlined, including land acquisition needs, design, construction, contingency, and postconstruction costs. The non-financial impacts of the project on the community shall be recognized. PRIORITIZING CAPITAL REQUESTS DEVELOPING FINANCING STRATEGIES The District shall prioritize capital project requests due to ongoing and extensive capital needs and limited financial resources. When evaluating project submittals, the District should consider the following: Reflect the relationship of project submittals to financial and governing policies, plans, and studies. Allow submitting schools/departments to provide an initial prioritization. Incorporate input and participation from major stakeholders and the general public. Adhere to legal mandates and requirements. Anticipate the operating budget impacts resulting from capital projects. Apply analytical techniques, as appropriate, for evaluating potential projects (net present value, payback period, costbenefit analysis, life cycle costing, cash flow modeling, and the like). Reevaluate capital projects approved in previous multi-year capital plans. Use a rating system to facilitate decision making. Financing strategies should align with expected project requirements while sustaining the financial health of the District. Given this, the District should consider the following when undertaking the capital financing plan: Anticipate expected revenue and expenditure trends, including their relationship to multi-year financial plans. Prepare cash flow projections of the amount and timing of the capital financing. Continue compliance with all established financial policies. Recognize appropriate legal constraints. DATE ISSUED: 3/28/ of 3 LDU CT(LOCAL)-X

7 FACILITIES PLANNING CT (LOCAL) Consider and estimate funding amounts from all appropriate funding alternatives. Ensure reliability and stability of identified funding sources. Evaluate the affordability of the financing strategy, including the impact on debt ratios, taxpayers, and others. The multi-year capital plan shall be used by the District to develop and implement its capital budget. [See CE(LOCAL)] DATE ISSUED: 3/28/2012 ADOPTED: 3 of 3 LDU CT(LOCAL)-X

8 ANNUAL OPERATING BUDGET CE (LOCAL) FISCAL YEAR BUDGET PLANNING BUDGET MEETING AUTHORIZED EXPENDITURES BUDGET AMENDMENTS CAPITAL BUDGET The District shall operate on a fiscal year beginning September 1 and ending August 31. Budget planning shall be an integral part of overall program planning so that the budget effectively reflects the District s programs and activities and provides the resources to implement them. In the budget planning process, general educational goals, specific program goals, capital improvement goals, and alternatives for achieving program goals shall be considered, as well as input from the District- and campus-level planning and decision-making committees. Budget planning and evaluation are continuous processes and shall be a part of each month s activities. The annual public meeting to discuss the proposed budget and tax rate shall be conducted as follows: 1. The Board President shall request at the beginning of the meeting that all persons who desire to speak on the proposed budget and/or tax rate sign up on the sheet provided. 2. Prior to the beginning of the meeting, the Board may establish time limits for speakers. 3. Speakers shall confine their remarks to the appropriation of funds as contained in the proposed budget and/or the tax rate. 4. No officer or employee of the District shall be required to respond to questions from speakers at the meeting. The adopted budget provides authority to expend funds for the purposes indicated and in accordance with state law, Board policy, and the District s approved purchasing procedures. The expenditure of funds shall be under the direction of the Superintendent or designee who shall ensure that funds are expended in accordance with the adopted budget. The Board shall amend the budget when a change is made increasing any one of the functional spending categories or increasing revenue object accounts and other resources. Once the multi-year capital plan has been adopted [see CT(LOCAL)], the District shall develop and implement a capital improvement projects budget or a capital budget. The capital budget shall be essential to ensure the proper planning, funding, and implementing of major projects. The capital budget shall be adopted as part of the annual budget process and shall incorporate the appropriate year of the multi-year capital plan. DATE ISSUED: 3/28/ of 2 LDU CE(LOCAL)-X

9 ANNUAL OPERATING BUDGET CE (LOCAL) Capital projects shall be considered different from programs adopted in the operating budget since they will often represent very large financial obligations that may span two or more fiscal years. Therefore, the processes for preparing, prioritizing, and presenting them to the Board may be different from the operating budget. NON-ROUTINE PROJECTS REVIEWING AND REPORTING The District shall provide a greater level of detail and information for non-routine capital projects. For non-routine projects, the capital budget shall describe the impact on the operating budget, number of additional positions required, tax or fee implications, and other financial or service impacts. When developing the capital budget, the District shall consider measures to mitigate risk related to undertaking major non-routine projects. Based on the size of the capital budget and the complexity of the capital projects, it may be necessary for the District to budget additional reserves for project overruns or insurance coverage. All stakeholders shall have the ability to review the status and expected completion of approved capital projects. Periodic reports shall be discussed with the Board regarding ongoing capital projects. These reports shall compare actual expenditures with those in the original budget, identify the level of completion of the project, enumerate any changes in the scope of the project, and alert the Board to any concerns with the completion of the project on time or on schedule. DATE ISSUED: 3/28/2012 ADOPTED: 2 of 2 LDU CE(LOCAL)-X

10 PLANNING AND DECISION-MAKING PROCESS BQ (LEGAL) PLANNING AND DECISION-MAKING PROCESS EVALUATION ADMINISTRATIVE PROCEDURE FEDERAL REQUIREMENTS The Board shall adopt a policy to establish a District- and campuslevel planning and decision-making process that will involve the professional staff of the District, parents of students enrolled in the District, business representatives, and community members in establishing and reviewing the District s and campuses educational plans, goals, performance objectives, and major classroom instructional programs. Education Code (b) The planning and decision-making requirements do not: 1. Prohibit the Board from conducting meetings with teachers or groups of teachers other than the District-level committee meetings. 2. Prohibit the Board from establishing policies providing avenues for input from others, including students or paraprofessional staff, in District- or campus-level planning and decision making. 3. Limit or affect the power of the Board to govern the public schools. 4. Create a new cause of action or require collective bargaining. Education Code (g),.252(e) At least every two years, the District shall evaluate the effectiveness of the District s decision-making and planning policies, procedures, and staff development activities related to District- and campus-level decision making and planning to ensure that they are effectively structured to positively impact student performance. Education Code (d) The Board shall ensure that an administrative procedure is provided to clearly define the respective roles and responsibilities of the Superintendent, central office staff, principals, teachers, Districtlevel committee members, and campus-level committee members in the areas of planning, budgeting, curriculum, staffing patterns, staff development, and school organization. The Board shall ensure that the District-level planning and decision-making committee will be actively involved in establishing the administrative procedure that defines the respective roles and responsibilities pertaining to planning and decision making at the District and campus levels. Education Code (d) The District policy must provide that all pertinent federal planning requirements are addressed through the District- and campus-level planning process. Education Code (f) DATE ISSUED: 3/2/ of 6 UPDATE 93 BQ(LEGAL)-A

11 PLANNING AND DECISION-MAKING PROCESS BQ (LEGAL) REQUIRED PLANS SHARED SERVICES ARRANGEMENT FOR DAEP SERVICES DISTRICT IMPROVEMENT PLAN The Board shall ensure that a District improvement plan and improvement plans for each campus are developed, reviewed, and revised annually for the purpose of improving the performance of all students. The Board shall annually approve District and campus performance objectives and shall ensure that the District and campus plans: 1. Are mutually supportive to accomplish the identified objectives; and 2. At a minimum, support the state goals and objectives under Education Code Chapter 4. Education Code (a) A district participating in a shared services arrangement for disciplinary alternative education program (DAEP) services shall ensure that the District improvement plan and each campus-level plan include the performance of the DAEP student group for the District. The identified objectives for the improvement plans shall include: 1. Student groups served, including overrepresentation of students from economically disadvantaged families, with ethnic and racial representations, and with a disability who receive special education and limited English proficiency services; 2. Attendance rates; 3. Pre- and post-assessment results; 4. Dropout rates; 5. Graduation rates; and 6. Recidivism rates. 19 TAC (b) The District shall have a District improvement plan that is developed, evaluated, and revised annually, in accordance with District policy, by the Superintendent with the assistance of the Districtlevel committee. The purpose of the District improvement plan is to guide District and campus staff in the improvement of student performance for all student groups, including students in special education programs under Education Code Chapter 29, Subchapter A, in order to attain state standards in respect to the student achievement indicators. Education Code (a) [See AIA] The District improvement plan must include provisions for: 1. A comprehensive needs assessment addressing performance on the student achievement indicators, and other appropriate DATE ISSUED: 3/2/ of 6 UPDATE 93 BQ(LEGAL)-A

12 PLANNING AND DECISION-MAKING PROCESS BQ (LEGAL) measures of performance, that are disaggregated by all student groups served by the District, including categories of ethnicity, socioeconomic status, sex, and populations served by special programs, including students in special education programs under Education Code Chapter 29, Subchapter A. 2. Measurable District performance objectives for all appropriate student achievement indicators for all student populations, including students in special education programs under Education Code Chapter 29, Subchapter A, and other measures of student performance that may be identified through the comprehensive needs assessment. 3. Strategies for improvement of student performance that include: a. Instructional methods for addressing the needs of student groups not achieving their full potential. b. Methods for addressing the needs of students for special programs, including: (1) Suicide prevention programs adopted by the District, if any, in accordance with Health and Safety Code Chapter 161, Subchapter O-1 [see FFB]; (2) Conflict resolution programs; (3) Violence prevention programs; and (4) Dyslexia treatment programs. c. Dropout reduction. d. Integration of technology in instructional and administrative programs. e. Discipline management. f. Staff development for professional staff of the District. g. Career education to assist students in developing the knowledge, skills, and competencies necessary for a broad range of career opportunities. h. Accelerated education. 4. Strategies for providing to middle school, junior high school, and high school students, those students teachers and school counselors, and those students parents information about: DATE ISSUED: 3/2/ of 6 UPDATE 93 BQ(LEGAL)-A

13 PLANNING AND DECISION-MAKING PROCESS BQ (LEGAL) a. Higher education admissions and financial aid opportunities. b. The TEXAS grant program and the Teach for Texas grant program. c. The need for students to make informed curriculum choices to be prepared for success beyond high school. d. Sources of information on higher education admissions and financial aid. 5. Resources needed to implement identified strategies. 6. Staff responsible for ensuring the accomplishment of each strategy. 7. Time lines for ongoing monitoring of the implementation of each improvement strategy. 8. Formative evaluation criteria for determining periodically whether strategies are resulting in intended improvement of student performance. Education Code (a) 9. A discipline management program providing for prevention of and education concerning unwanted physical or verbal aggression, sexual harassment, and other forms of bullying in schools, on school grounds, and in school vehicles. Education Code (a) 10. A dating violence policy that must: a. Include a definition of dating violence that includes the intentional use of physical, sexual, verbal, or emotional abuse by a person to harm, threaten, intimidate, or control another person in a dating relationship, as defined by Family Code ; and b. Address safety planning, enforcement of protective orders, school-based alternatives to protective orders, training for teachers and administrators, counseling for affected students, and awareness education for students and parents. Education Code [See FFH] 11. A policy addressing sexual abuse and other maltreatment of children that must include: DATE ISSUED: 3/2/ of 6 UPDATE 93 BQ(LEGAL)-A

14 PLANNING AND DECISION-MAKING PROCESS BQ (LEGAL) CAMPUS-LEVEL PLAN a. Methods for increasing staff, student, and parent awareness of issues regarding sexual abuse and other maltreatment of children, including prevention techniques and knowledge of likely warning signs indicating that a child may be a victim of sexual abuse or other maltreatment, using resources developed by TEA. These methods must include the staff training described at Education Code (c) [see DMA]; b. Actions that a child who is a victim of sexual abuse or other maltreatment should take to obtain assistance and intervention; and c. Available counseling options for students affected by sexual abuse or other maltreatment. The policy must be included in any informational handbook provided to students and parents. Education Code The District s plan for the improvement of student performance is not filed with TEA, but the District must make the plan available to TEA on request. Education Code (b) Each school year, the principal of each school campus, with the assistance of the campus-level committee, shall develop, review, and revise the campus improvement plan. The purpose of the campus-level plan is to improve student performance for all student populations, including students in special education programs under Education Code Chapter 29, Subchapter A, with respect to the student achievement indicators and any other appropriate performance measures for special needs populations. Education Code (c) Each campus improvement plan must: 1. Assess the academic achievement for each student in the school using the student achievement indicator system. 2. Set the campus performance objectives based on the student achievement indicator system, including objectives for special needs populations, including students in special education programs under Education Code Chapter 29, Subchapter A. 3. Identify how the campus goals will be met for each student. 4. Determine the resources needed to implement the plan. 5. Identify staff needed to implement the plan. 6. Set time lines for reaching the goals. DATE ISSUED: 3/2/ of 6 UPDATE 93 BQ(LEGAL)-A

15 PLANNING AND DECISION-MAKING PROCESS BQ (LEGAL) 7. Measure progress toward the performance objectives periodically to ensure that the plan is resulting in academic improvement. 8. Provide for a program to encourage parental involvement at the campus. 9. Include goals and methods for violence prevention and intervention on campus. 10. If the campus is an elementary, middle, or junior high school, set goals and objectives for the coordinated health program at the campus based on: a. Student fitness assessment data, including any data from research-based assessments such as the school health index assessment and planning tool created by the federal Centers for Disease Control and Prevention; b. Student academic performance data; c. Student attendance rates; d. The percentage of students who are educationally disadvantaged; e. The use and success of any method to ensure that students participate in moderate to vigorous physical activity; and f. Any other indicator recommended by the local school health advisory council. Education Code (d) DATE ISSUED: 3/2/ of 6 UPDATE 93 BQ(LEGAL)-A

16 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) SECTION I SECTION II SECTION III SECTION IV SECTION V SECTION VI This introductory page outlines the contents of the ad valorem taxes policy. See the following sections for statutory provisions on: Maintenance Taxes pages Tax Rate Cap 2. Appraisal Roll 3. Disaster Area 4. Meeting on Budget and Proposed Tax Rate 5. Tax Rate 6. Effective Tax Rate 7. Maintenance and Operations Tax Rate Election to Ratify Taxes pages Proposition 2. Approval of Proposition 3. Tax Information to County Payment Options pages Discounts 2. Split Payments 3. Performing Services in Lieu of Paying Taxes 4. Installment Payments 5. Partial Payments Delinquent Taxes pages Delinquency Date 2. Delinquent Tax Collection 3. Additional Penalties Exemptions pages Homestead Exemptions 2. Veteran Exemptions 3. Optional Exemptions 4. Goods-in-Transit Economic Development pages Tax Increment Financing Act 2. Property Redevelopment and Tax Abatement Act 3. Texas Economic Development Act DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

17 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) TAX RATE CAP APPRAISAL ROLL SECTION I: MAINTENANCE TAXES The Board may levy, assess, and collect annual ad valorem taxes for the maintenance of the District s schools. Education Code If authorized by a majority of qualified voters of the District voting at an election held for that purpose, the District may impose a maintenance tax rate at a rate not to exceed the rate stated in the proposition. For any year, the maintenance tax rate per $100 of taxable value adopted by the District may not exceed the rate equal to the sum of $0.17 and the product of the state compression percentage, as determined under Education Code , multiplied by $1.50. A rate that exceeds this maximum rate for the year in which the tax is to be imposed is void. A district with a tax rate that is void under this subsection may, subject to requirements imposed by other law, adopt a rate for that year that does not exceed the specified maximum rate for that year. Notwithstanding any other law, a district that levied a maintenance tax for the 2005 tax year at a rate greater than $1.50 per $100 of taxable value in the District as permitted by special law may not levy a maintenance tax at a rate that exceeds the rate per $100 of taxable value that is equal to the sum of $0.17 and the product of the state compression percentage, as determined under Education Code , multiplied by the rate of the maintenance tax levied by the District for the 2005 tax year. Education Code (a), (d) (f) By August 1 or as soon thereafter as practicable, the District s tax assessor shall submit to the Board the District s appraisal roll, showing the total appraised, assessed, and taxable values of all property and the total taxable value of new property. Note: The Texas comptroller of public accounts annually publishes Truth in Taxation: A Guide for Setting School District Tax Rates. School districts should consult the Truth in Taxation guide, available in print form or through the comptroller s website at /taxinfo/proptax/tnt/pdf/ pdf, for detailed guidance on setting local property tax rates. By August 1 or as soon thereafter as practicable, the District s tax collector shall certify to the Board the estimates and amounts required by law. Tax Code 26.04(b) DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

18 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) CERTIFIED ESTIMATE DISASTER AREA MEETING ON BUDGET AND PROPOSED TAX RATE PUBLISHED NOTICE FORM OF NOTICE TAXPAYER INJUNCTION DISTRICTS WITH JULY 1 FISCAL YEAR By April 30, the chief appraiser shall prepare and certify an estimate of the taxable value of District property. Tax Code 26.01(e) If the District is located partly or entirely inside an area declared by the governor to be a disaster area, the Board may authorize the reappraisal of all property damaged in the disaster at its market value immediately after the disaster. Tax Code 23.02(a) The Board shall call a public meeting to discuss and adopt its budget and proposed tax rate. The Board must provide notice of the budget and proposed tax rate meeting, as described below. The budget must be adopted before the adoption of the tax rate for the tax year in which the fiscal year covered by the budget begins. [See CE] The Board President shall provide for publication of notice of the budget and proposed tax rate meeting in a daily, weekly, or biweekly newspaper published in the District. If no daily, weekly, or biweekly newspaper is published in the District, the President shall provide for publication of notice in at least one newspaper of general circulation in the county in which the District s central administrative office is located. The notice shall be published not earlier than the 30th day or later than the tenth day before the date of the hearing. The published notice of the public meeting to discuss and adopt the budget and the proposed tax rate must meet the size, format, and content requirements dictated by law. The notice is not valid if it does not substantially conform to the language and format prescribed by the comptroller. If the District has not complied with the published notice requirements in the FORM OF NOTICE described above, and the requirements for DISTRICTS WITH JULY 1 FISCAL YEAR below, if applicable, and the failure to comply was not in good faith, a person who owns taxable property in the District is entitled to an injunction restraining the collection of taxes by the District. An action to enjoin the collection of taxes must be filed before the date the District delivers substantially all of its tax bills. A district with a fiscal year beginning July 1 may use the certified estimate of the taxable value of District property in preparing the published notice if the District does not receive the certified appraisal roll on or before June 7. A district that uses a certified estimate may adopt a budget at the public meeting designated in the published notice prepared using the estimate, but the District may not adopt a tax rate before the District receives the certified appraisal roll for the District. DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

19 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) After receipt of the certified appraisal roll, the District must publish a revised notice and hold another public meeting before the District may adopt a tax rate that exceeds: 1. The rate proposed in the notice prepared using the estimate; or 2. The District s rollback rate determined under Tax Code using the certified appraisal roll. DECREASE IN DEBT SERVICE RATE TAX RATE EXCEPTION EFFECTIVE TAX RATE If the debt service rate calculated under Education Code (c)(5)(A)(ii)(b) decreases after the publication of the notice required by this section, the Board President is not required to publish another notice or call another meeting to discuss and adopt the budget and the proposed lower tax rate. Education Code Before the later of September 30 or the 60th day after the date the certified appraisal roll is received, the Board shall adopt a tax rate for the current tax year that reflects the two components, maintenance and operations expenditures and the debt service rate calculated under Education Code (c)(5)(A)(ii)(b), and shall notify the assessor of the tax rate adopted. The two components shall be approved separately. Tax Code 26.05(a) The Board may not impose property taxes in any year until it has adopted a tax rate for that year, and the annual tax rate must be set by ordinance, resolution, or order. The vote on the ordinance, resolution, or order setting the tax rate must be separate from the vote adopting the budget. The budget shall be adopted before the adoption of the tax rate. Tax Code 26.05(b); Education Code (g) The District may adopt a budget after the District adopts a tax rate for the tax year in which the fiscal year covered by the budget begins if the District elects to adopt a tax rate before receiving the certified appraisal roll for the District. The Board may adopt a tax rate for the current tax year before receipt of the certified appraisal roll if the chief appraiser of the appraisal district in which the District participates has, by April 30, certified to the assessor for the District an estimate of the taxable value of property in the District as provided by Education Code 26.01(e). If the District adopts a tax rate before the adoption of the budget, the effective tax rate and the rollback tax rate of the District shall be calculated based on the certified estimate of taxable value. Education Code (j); Tax Code 26.01(e),.05(g) The vote on the ordinance setting a tax rate that exceeds the effective tax rate must be a record vote. A motion to adopt an ordinance DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

20 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) setting a tax rate that exceeds the effective tax rate must be made in the following form: I move that the property tax rate be increased by the adoption of a tax rate of (specify tax rate), which is effectively a (insert percentage by which the proposed tax rate exceeds the effective tax rate) percent increase in the tax rate. MAINTENANCE AND OPERATIONS TAX RATE INTERNET POSTING If the ordinance sets a tax rate that, if applied to the total taxable value, will impose an amount of taxes to fund maintenance and operation expenditures of the taxing unit that exceeds the amount of taxes imposed for that purpose in the preceding year, the Board must include in the ordinance in type larger than the type used in any other portion of the document the following statement: THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR S TAX RATE ; and if the tax rate exceeds the effective maintenance and operations rate, the following statement: THE TAX RATE WILL EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE TAX RATE EX- CEEDS THE EFFECTIVE MAINTENANCE AND OPERATIONS RATE) PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $(Insert amount). The District shall also include on the home page of any Internet website operated by the District the following statement: (Insert name of unit) ADOPTED A TAX RATE THAT WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR S TAX RATE ; and if the tax rate exceeds the effective maintenance and operations rate, the following statement: THE TAX RATE WILL EFFECTIVELY BE RAISED BY (INSERT PER- CENTAGE BY WHICH THE TAX RATE EXCEEDS THE EFFEC- TIVE MAINTENANCE AND OPERATIONS RATE) PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $(Insert amount). Tax Code 26.05(b) SECTION II: ELECTION TO RATIFY TAXES If the Board adopts a tax rate that exceeds the District s rollback tax rate as defined in Tax Code 26.08, the registered voters of the District at an election held for that purpose must determine whether to approve the adopted tax rate. When increased expenditure of money is necessary due to a natural disaster and the governor has requested federal disaster assistance, an election is not required. Tax Code 26.08(a) The Board shall order that the election be held in the District on a date not less than 30 or more than 90 days after the date on which it adopted the tax rate. The election need not be held on a uniform DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

21 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) election date unless a uniform election date falls within the day time period. Tax Code 26.08(b) PROPOSITION APPROVAL OF PROPOSITION CALL FOR ELECTION EXCEPTIONS NOTICE TO COUNTY CLERK EXCEPTION TAX INFORMATION TO COUNTY In addition to any other requirement imposed by law for a proposition, including a provision prescribing the proposition language, a proposition submitted to the voters for approval of the imposition or increase of a tax shall specifically state the amount of or maximum tax rate of the tax or tax increase for which approval is sought. Education Code (e) If a majority of votes cast in the District favor the proposition, the tax rate for the current year is the rate that was adopted by the Board. If the proposition is not approved, the Board may not adopt a tax rate for the current year that exceeds the District s rollback tax rate. Tax Code 26.08(c) (d) A call for an election shall be made not later than the 62nd day before election day. For an election to be held on the date of the general election for state and county officers, the November uniform election date of even-numbered years, the election shall be called not later than the 78th day before the election day. For an election to be held on a uniform election date other than the date of the general election for state and county officers, the election shall be called not later than the 71st day before election day. An election under Tax Code to ratify a tax rate adopted by the Board under Tax Code 26.05(g) shall be ordered not later than the 30th day before election day. Election Code 3.003,.005, [See BBB] The Board shall deliver notice of the election to the county clerk of each county in which the District is located not later than the 60th day before election day. If the Board orders an election under Tax Code to ratify a tax rate adopted by the Board under Tax Code 26.05(g), the Board shall deliver notice of the election to the county clerk of each county in which the District is located not later than the 30th day before election day. Election Code The District shall provide to the county assessor-collector for each county in which all or part of District territory is located the District s adopted tax rate, maintenance and operations rate, debt rate, effective tax rate, effective maintenance and operations rate, and rollback tax rate for posting on the county s Internet website. The DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

22 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) District shall provide the information annually following the adoption of a tax rate by the District for the current tax year. Tax Code 26.16(a) (b) SECTION III: PAYMENT OPTIONS DISCOUNTS OPTION 1 OPTION 2 BOTH OPTIONS RESCISSION SPLIT PAYMENTS The Board may adopt one or both of the following discount options for early payment of District taxes. Tax Code 31.05(a) If the Board adopts Option 1, the following apply regardless of the date on which the District mails its tax bills. 1. Three percent if the tax is paid in October or earlier. 2. Two percent if the tax is paid in November. 3. One percent if the tax is paid in December. Tax Code 31.05(b) This discount does not apply to taxes that are calculated too late for it to be available. Tax Code 31.04(c) If the Board adopts Option 2, the following discounts apply only when the District mails its tax bills after September 30: 1. Three percent if the tax is paid before or during the next full calendar month following the date on which the tax bills were mailed. 2. Two percent if the tax is paid during the second full calendar month following the date on which the tax bills were mailed. 3. One percent if the tax is paid during the third full calendar month following the date on which the tax bills were mailed. Tax Code 31.05(c) If the Board adopts both discount options, the discounts described at Option 1 apply unless the District mails its tax bills after September 30, in which case only the discounts described at Option 2 apply. Tax Code 31.05(a) The Board may rescind a discount lawfully adopted by the Board. The rescission of a discount takes effect in the tax year following the year in which the discount is rescinded. Tax Code 31.05(d) The Board may provide for split payment of taxes. If a person pays one-half of the taxes before December 1, he or she may pay the remaining one-half of the taxes without penalty or interest at any time before July 1 of the following year. This payment option does not apply to taxes that are calculated too late for it to be available. Tax Code 31.03,.04(c) DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

23 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) PERFORMING SERVICES IN LIEU OF PAYING TAXES PERSONS 65 AND OVER TEACHING SERVICES BY INDIVIDUAL TEACHING SERVICES BY EMPLOYEE OF BUSINESS ENTITY INSTALLMENT PAYMENTS CERTAIN HOMESTEADS DISASTER AREA In accordance with the provisions below, the Board may permit certain individuals or business entities to provide certain services to the District in lieu of paying the District property taxes. While performing services for the District, the individual is not an employee of the District and is not entitled to any benefit, including workers compensation coverage, that the District provides to its employees. Subject to the requirements contained in Tax Code , the Board by order or resolution may permit an individual who is at least 65 years of age to perform services for the taxing unit in lieu of paying taxes imposed by the District on property owned by the individual and occupied as the individual s residence homestead. Tax Code Subject to the requirements contained in Tax Code , the Board by resolution may permit qualified individuals, who are not employed by the District, to perform teaching services for the District at a junior high school or high school of the District in lieu of paying taxes imposed by the District on property owned and occupied by the individual as a residence homestead. Tax Code Subject to the requirements contained in Tax Code , the Board by resolution may authorize a corporation or other business entity to permit a qualified individual employed by the business entity to perform teaching services in a high school or a junior high school for the District in lieu of paying taxes imposed by the District on property owned by the business entity. Tax Code An individual who qualifies for a homestead exemption under Tax Code 11.13(c),.132, or.22 may pay taxes on the residence homestead property in installments without penalty or interest. To do so, the individual must pay in four equal installments, with the first installment paid before the delinquency date. This payment must be accompanied by notice that the individual will pay the remaining taxes in three equal installments. The second installment must be paid before April 1, the third before June 1, and the fourth before August 1. An individual may also pay the taxes in four equal installments if the first installment is paid and the required notice is provided before March 1. If the individual fails to make a payment, including the first payment, before the applicable date, the unpaid amount is delinquent and incurs a penalty and interest as provided by law. Tax Code Owners of certain property in a disaster area are permitted to pay taxes in installment payments. This option applies to: 1. Real property that: DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

24 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) a. Is the residence homestead of the owner or consists of property that is used for residential purposes and that has fewer than five living units, or is owned or leased by a business entity that had not more than the amount calculated as provided by Tax Code (h) in gross receipts in the entity s most recent federal tax year or state franchise tax annual period, according to the applicable federal income tax return or state franchise tax report of the entity; and b. Is located in a disaster area and has been damaged as a direct result of the disaster; 2. Tangible personal property that is owned or leased by a business entity described above at number 1(a); and 3. Taxes that are imposed on the property by a taxing unit before the first anniversary of the disaster. If the owner of such property pays at least one-fourth of the taxes imposed on the property before the delinquency date, accompanied by notice that the person will pay the remaining taxes in installments, the owner may make the remainder of the payments in three equal installments. Such installment payments shall not incur penalty or interest if paid by the applicable dates provided for in Tax Code Tax Code (a) (b) PARTIAL PAYMENTS DELINQUENCY DATE The tax collector may decide to accept partial payments of District property taxes. Acceptance of a partial payment does not affect the delinquency date, but penalties and interest are incurred only by the portion of tax that remains unpaid on the date the tax becomes delinquent. The discounts described above do not apply to any portion of a partial payment of District taxes. Tax Code 31.07(c) SECTION IV: DELINQUENT TAXES Taxes are delinquent if not paid before February 1 of the year following the year in which imposed, except as provided below: 1. The District has provided for split payments. Tax Code The District s tax bills are mailed after January 10. Tax Code 31.04(a) DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

25 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) 3. The District s tax bills are mailed after September 30 and the Board has adopted discounts provided by Tax Code 31.05(c). Tax Code 31.04(d) Tax Code DELINQUENT TAX COLLECTION ADDITIONAL PENALTIES HOMESTEAD EXEMPTIONS PERSONS 65 OR OLDER OR DISABLED PERSONS The Board may contract with any competent attorney to represent the District to enforce the collection of delinquent taxes. The attorney s compensation is set in the contract, but the total amount of compensation provided may not exceed 20 percent of the amount of delinquent tax, penalty, and interest collected. Tax Code 6.30(c) If the District or the tax collector for the District has contracted with a private attorney for the collection of delinquent taxes, the Board may impose, by official action, an additional penalty on taxes that become delinquent on or after February 1 but not later than May 1 and remain delinquent on July 1 of the year in which they become delinquent. This penalty may not exceed the amount of compensation specified in the contract with the attorney to be paid in connection with the collection of the delinquent taxes and shall be secured by a tax lien. The District s tax collector shall deliver notice to the property owner of the delinquency and the penalty 30 to 60 days before July 1. Tax Code If the District or the tax collector for the District has imposed the penalty described above and has contracted with a private attorney for collection of delinquent taxes, the Board may impose, by official action, an additional penalty on all taxes that become delinquent on or after June 1 under Tax Code 26.15(e), 31.03,.031,.032,.04, or This penalty may not exceed the amount of compensation specified in the contract with the attorney to be paid in connection with the collection of the delinquent taxes and shall be secured by a tax lien. The District s tax collector shall send notice of the delinquency and the penalty to the property owner. The penalty is incurred on the first day of the first month that begins at least 21 days after the date the notice is sent. Tax Code SECTION V: EXEMPTIONS An adult is entitled to exemption from taxation of $15,000 of the appraised value of his or her residence homestead. To receive the residence homestead exemption, the person claiming the exemption must apply for the exemption. Tax Code 11.13(b),.43 An adult who is disabled or 65 or older is entitled to an additional $10,000 exemption of the appraised value of his or her residence homestead. Tax Code 11.13(c) DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

26 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) TAX CEILING IMPROVEMENTS PORTABILITY OF TAX CEILING SURVIVING SPOUSE OF PERSONS 65 OR OLDER HOMESTEADS RENDERED UNINHABITABLE OR UNUSABLE VETERAN EXEMPTIONS 100 PERCENT DISABLED The District shall not increase the total annual amount of ad valorem tax it imposes on the residence homestead of an individual 65 years of age or older, or on the residence homestead of an individual who is disabled as defined by Tax Code 11.13, above the amount of the tax it imposed in the first tax year in which the individual qualified that residence homestead for an applicable exemption. Tax Code 11.26(a) The District may increase the taxes if improvements are made to the property, but that tax amount is then frozen. Tax Code 11.26(b) If an individual subject to a limitation on tax increases subsequently qualifies a different residence for the residence homestead exemption, the tax limitation on the new residence is calculated to give the individual the same percentage of tax paid as the limitation on the former home in accordance with Tax Code 11.26(g). Tax Code 11.26(g) If an individual who qualifies for the exemption for an individual 65 years of age or older dies, the surviving spouse of the individual is entitled to the limitation applicable to the residence homestead of the individual if the surviving spouse is 55 years of age or older when the individual dies, and the residence homestead of the individual is the residence homestead of the surviving spouse on the date that the individual dies and remains the residence homestead of the surviving spouse. Tax Code 11.26(i) If a qualified residential structure for which the owner receives a homestead exemption under Tax Code is rendered uninhabitable or unusable by a casualty or by wind or water damage, the owner may continue to receive the exemption for the structure and the land and improvements used in the residential occupancy of the structure while the owner constructs a replacement qualified residential structure on the land in accordance with Tax Code and 11.26(n) (o) and 34 Administrative Code Tax Code ,.26(n) (o); 34 TAC A disabled veteran who receives from the U.S. Department of Veterans Affairs or its successor 100 percent disability compensation due to a service-connected disability and a rating of 100 percent disabled or of individual unemployability is entitled to an exemption from taxation of the total appraised value of the veteran s residence homestead. A person who qualifies for an exemption after January 1 of a tax year may receive the exemption for the applicable portion of that tax year immediately on qualification for the exemption. Tax Code ,.42(e) DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

27 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) PARTIALLY DISABLED WITH DONATED RESIDENCE EXEMPTION FOR SURVIVING SPOUSE SURVIVING SPOUSE OF INDIVIDUAL KILLED IN ACTION A disabled veteran who has a disability rating of less than 100 percent is entitled to an exemption from taxation of a percentage of the appraised value of the disabled veteran s residence homestead equal to the disabled veteran s disability rating if the residence homestead was donated to the disabled veteran by a charitable organization at no cost to the disabled veteran. An exemption is effective as of January 1 of the tax year in which the person qualifies for the exemption and applies to the entire tax year. Tax Code ,.42(c) The surviving spouse of a disabled veteran who qualified for an exemption when the veteran died is entitled to the same exemption from taxation of the same property to which the disabled veteran s exemption applied if: 1. The surviving spouse has not remarried since the death of the disabled veteran; and 2. The property: a. Was the residence homestead of the surviving spouse when the disabled veteran died; and b. Remains the residence homestead of the surviving spouse. If a surviving spouse who qualifies for an exemption subsequently qualifies a different property as the surviving spouse s residence homestead, the surviving spouse is entitled to an exemption from taxation of the subsequently qualified homestead in an amount equal to the dollar amount of the exemption of the former homestead in the last year in which the surviving spouse received an exemption for that homestead if the surviving spouse has not remarried since the death of the disabled veteran. Tax Code (c) (d),.132(c) (d) The surviving spouse of a member of the armed services of the United States who is killed in action is entitled to an exemption from taxation of the total appraised value of the surviving spouse s residence homestead if the surviving spouse has not remarried since the death of the member of the armed services. An exemption is effective as of January 1 of the tax year in which the person qualifies for the exemption and applies to the entire tax year. Tax Code ,.42(c) A surviving spouse who receives an exemption for a residence homestead is entitled to receive an exemption from taxation of a property that the surviving spouse subsequently qualifies as the surviving spouse s residence homestead in an amount equal to the DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

28 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) dollar amount of the exemption from taxation of the first property for which the surviving spouse received the exemption in the last year in which the surviving spouse received that exemption if the surviving spouse has not remarried since the death of the member of the armed services. Tax Code DISABLED VETERAN OPTIONAL EXEMPTIONS GOODS-IN-TRANSIT EXCEPTION A disabled veteran is entitled to an exemption from taxation of a portion of the assessed value of a property the veteran owns and designates under Tax Code This exemption can be, but is not required to be, applied to a residence homestead. Tax Code The Board may grant additional tax exemptions for transitional housing, homesteads, historic sites, community land trusts, certain water conservation initiatives, certain tax-exempt corporations, and charitable organizations, as provided by law. If the District adopts, amends, or repeals an exemption that the District by law has the option to adopt or not, the District shall notify the appraisal office of its action and of the terms of the exemption within 30 days after the date of its action. Tax Code 6.08, ,.13,.1827,.184,.24,.32; Tex. Const. Art. VIII, Sec. 1-b A person is entitled to an exemption from taxation of the appraised value of that portion of the person s property that consists of goods-in-transit. In accordance with Tax Code , the Board may provide for the taxation of goods-in-transit that are otherwise exempt from taxation. The official action to tax the goods-in-transit must be taken before January 1 of the first tax year in which the governing body proposes to tax goods-in-transit. Before acting to tax the exempt property, the Board must conduct a public hearing as required by Texas Constitution Article VIII, Section 1-n(d). The goods-in-transit remain subject to taxation by the District until the Board rescinds or repeals its previous action to tax goods-in-transit, or otherwise determines that the exemption will apply to the District. Notwithstanding official action that was taken before October 1, 2011, to tax goods-in-transit, the District may not tax such goodsin-transit in a tax year that begins on or after January 1, 2012, unless the Board takes official action on or after October 1, 2011, to provide for the taxation of the goods-in-transit. If the Board, before October 1, 2011, took action to provide for the taxation of goods-in-transit and pledged the taxes imposed on the goods-in-transit for the payment of a debt of the District, the District tax officials may continue to impose the taxes against the goods-intransit until the debt is discharged, if cessation of the imposition DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

29 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) would impair the obligation of the contract by which the debt was created. Tax Code (b), (j) (j-2) SECTION VI: ECONOMIC DEVELOPMENT TAX INCREMENT FINANCING ACT BOARD OF DIRECTORS COLLECTION AND DEPOSIT OF TAX INCREMENTS The governing body of a municipality or county may designate a geographic area as a reinvestment zone to promote development or redevelopment of the area if the governing body determines that development or redevelopment would not occur solely through private investment in the reasonably foreseeable future, in accordance with the Tax Increment Financing Act, Tax Code Chapter 311. Tax Code (a) The Board may appoint one member of the reinvestment zone s board of directors if the District has approved the payment of all or part of the tax increment produced by the District into the tax increment fund for the zone or may waive that right. Tax Code (a) In certain reinvestment zones, the Board may be entitled to appoint more than one member of the reinvestment zone s board of directors. Tax Code (a) (b) When the reinvestment zone has been designated upon petition of property owners under Tax Code (a)(4), the Board may appoint a member or members, as appropriate, of the reinvestment zone s board of directors only if it has approved the payment of all or part of the tax increment produced by the District into the tax increment fund for the zone. Tax Code (b),.0091(c) The District shall provide for the collection of its taxes in the zone as for any other property tax and shall pay into the zone s tax increment fund the amount specified by law. Notwithstanding any termination of the reinvestment zone and unless otherwise specified by an agreement between the District and the municipality or county that created the zone, this payment shall be made no later than 90 days after the later of the delinquency date for District property taxes or the date the municipality or county that created the zone submits to the District an invoice specifying the tax increment produced by the District and the amount the District is required to pay into the tax increment fund for the zone. The District is not required to pay the portion attributable to delinquent taxes until those taxes are collected. The District shall not be required to pay a tax increment into the zone s tax increment fund beyond three years from the date the zone was created, except as provided by law. Tax Code DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

30 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) The District is not required to pay into the tax increment fund any of its tax increment produced from a reinvestment zone created upon petition of property owners under Tax Code (a) unless it enters into an agreement to do so with the governing body of the municipality or county that designated the zone. Tax Code (f) The District is not required to pay into the tax increment fund any of its tax increment produced from property located in an area added to a reinvestment zone under Tax Code unless the Board enters into an agreement to do so with the governing body of the municipality or county that created the zone. Tax Code (k) A district that participates in a zone is not required to increase the percentage or amount of the tax increment to be contributed by the District because of an amendment to the project plan or reinvestment zone financing plan for the zone unless the Board by official action approves the amendment. Tax Code (g) A district whose taxable value is reduced under Government Code (d)(4) shall pay into the tax increment fund, in addition to the amount otherwise required to be paid, the amount by which the amount of taxes the District would have been required to pay into the fund in the current year if the District levied taxes at the rate the District levied in 2005 exceeds the amount the District is otherwise required to pay into the fund in the year of the reduction. This additional amount may not exceed the amount the District receives in state aid for the current tax year under Education Code The District shall pay the additional amount after the District receives the state aid to which the District is entitled for the current tax year under Education Code Tax Code (n) Notwithstanding the designation of a later termination date under Tax Code (a), a district that taxes real property located in the reinvestment zone is not required to pay any of its tax increment into the tax increment fund for the zone after the termination date designated in the ordinance or order creating the zone unless the Board enters into an agreement to do so with the governing body of the municipality or county that created the zone. Tax Code (a-1) If the governing body of the municipality or county that designated a reinvestment zone extends the term of all or a portion of the zone, the District is not required to participate in the zone or portion of the zone for the extended term unless the District enters into a written agreement to do so. Tax Code (c) DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

31 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) PROPERTY REDEVELOPMENT AND TAX ABATEMENT ACT DISTRICT DESIGNATED TEXAS ECONOMIC DEVELOPMENT ACT On or after September 1, 2001, the District may not enter into a tax abatement agreement under Tax Code Chapter 312. Tax Code (f) Notwithstanding any other provision of Tax Code Chapter 312 to the contrary, the Board, in the manner required for official action and for purposes of Tax Code Chapter 313, Subchapter B or C [see TEXAS ECONOMIC DEVELOPMENT ACT, below], may designate an area entirely within the territory of the District as a reinvestment zone if the Board finds that, as a result of the designation and the granting of a limitation on appraised value, for property located in the reinvestment zone, the designation is reasonably likely to: 1. Contribute to the expansion of primary employment in the reinvestment zone; or 2. Attract major investment in the reinvestment zone that would: a. Be a benefit to property in the reinvestment zone and to the District; and b. Contribute to the economic development of the region of this state in which the District is located. The Board may seek the recommendation of the commissioners court of each county and the governing body of each municipality that has territory in the District before designating an area as a reinvestment zone. Tax Code In order to attract large-scale capital investments, create new jobs, strengthen the economy, and expand the property tax base, districts may offer certain ad valorem tax benefits and financial benefits in accordance with the Texas Economic Development Act. Tax Code 313 Districts should strictly interpret the criteria and selection guidelines and approve only those applications for an ad valorem tax benefit that: 1. Enhance the local community; 2. Improve the local public education system; 3. Create high-paying jobs; and 4. Advance the economic development goals of Texas. Tax Code (3) DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

32 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) Note: For complete information regarding the Texas Economic Development Act, refer to Tax Code Chapter 313 and 34 Administrative Code Chapter 9, Subchapter F. DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

33 Property Value Comparison Exhibit A 2015 Certified Values Vs 2014 Certified Values Tax Year Market Value Productivity Loss [Ag. Use] Appraised Value Homestead Cap Assessed Value Exemptions Net Taxable Value (before Over '65 Freeze) Over '65 Freeze Taxable Value Taxable Value Adjusted for Over '65 Freeze Values ,017,430, ,330 3,017,172,344 1,568,621 3,015,603, ,534,938 2,082,068, ,237,646 1,939,830, ,981,288, ,280 2,981,034, ,402 2,980,243, ,852,891 2,147,390, ,233,685 1,964,156,764 variance 36,142,652 5,050 36,137, ,219 35,360, ,682,047 (65,321,664) (40,996,039) (24,325,825) % change 1.21% 1.99% 1.21% 98.21% 1.19% 12.09% -3.04% % -1.24% * Exhibit B For Information Only: Tax Year Market Value Productivity Loss [Ag. Use] Appraised Value Homestead Cap Assessed Value Exemptions Taxable Value before Over '65 Freeze Over '65 Freeze Taxable Value Taxable Value Adjusted for Over '65 Freeze Values 2008 Property Values 2,927,332, ,340 2,927,078,952 9,459,667 2,917,619, ,666,047 2,265,953, ,727,885 2,048,225, Property Values 3,022,624, ,190 3,022,371,121 4,976,420 3,017,394, ,895,605 2,219,499, ,180,740 2,043,318, Property Values 3,029,288, ,690 3,029,076,190 3,261,284 3,025,814, ,280,160 2,210,534, ,753,380 2,016,781, Property Values 3,036,824, ,180 3,036,571,284 1,417,528 3,035,153, ,719,588 2,208,434, ,520,404 2,024,913, Property Values 3,019,502, ,160 3,019,249,181 1,233,628 3,018,015, ,751,893 2,184,263, ,407,568 1,984,856, Property Values 2,978,758, ,250 2,978,505, ,660 2,978,061, ,819,674 2,152,242, ,333,197 1,965,909,030 Exhibit C Exhibit D Downtown Value Comparison 2015 vs 2014 Downtown Value Comparison 2014 vs 2013 Improvement Total Appraised Tax Year Land Value Value Value Tax Year Land Value Improvement Value Total Appraised Value ,604,268 74,884, ,489, ,649,565 77,866, ,516, ,649,565 77,866, ,516, ,772,213 83,501, ,273,450 Variance -45,297-2,981,995-3,027,292 Variance -1,122,648-5,634,382-6,757,030 % Change -0.08% -3.83% -2.20% % Change -1.85% -6.75% -4.68%

34 Chapter 4. The Appraisal Process This chapter is designed to provide an overview of the activities of the appraisal district. In this chapter, we will review identification, recording, and valuing; the procedures for deciding whether the property can be taxed. When any exemptions or special appraisal procedures apply will be discussed in later chapters. Types of Taxable Property The term PROPERTY is defined by the Property Tax Code as anything that is capable of private ownership. There are three distinct types of property -- real property, tangible personal property, and intangible personal property. The Property Tax Code defines each of these. REAL PROPERTY refers to: (1) land; (2) mines or quarries; (3) standing timber; (4) minerals in place; (5) improvements; and (6) any other ownership interest in real property unless that ownership secures a lender's or contractor's lien. For the purposes of this textbook, land, improvements, and minerals in place are the most commonly encountered types of real property. LAND refers to the surface of the earth, along with everything below the surface. An IMPROVEMENT is "a building, structure, fixture, or fence erected on or affixed to land." In most cases, this means a man-made structure that is more or less permanently attached to land. A MINERAL IN PLACE is a mineral - such as oil, gas, or coal -that is still in the ground and has not yet been removed. Minerals in place may belong to the person who owns the land, or they may be separately owned. Real property is generally taxable unless a specific exemption applies to it. All property that is not real property is PERSONAL PROPERTY. There are two types of personal property. If you can perceive personal property through the senses (seeing, weighing, measuring, feeling), it is TANGIBLE. If you cannot perceive the property, it is INTANGIBLE. Stock in a corporation is intangible. Even though you can see the piece of paper (the share of stock) that provides legal evidence of ownership, you cannot see the corporation itself or the ownership interest in it. Intangible personal property is almost never taxable. Tangible personal property is only taxable if it is used for the production of income. For the most part, appraisal districts don't really have to worry about intangible personal property. Under certain circumstances, the intangible property of insurance companies and savings and loans may be taxed. Otherwise, intangibles are exempt.

35 Market Value In most cases, the appraisal district will appraise taxable property at its MARKET VALUE. Market value is defined by law as: the price at which a property would transfer for cash or its equivalent under prevailing market conditions if: (A) exposed for sale in the open market with a reasonable time for the seller to find a purchaser; (B) both the seller and the purchaser know of all the uses and purposes to which the property is adapted and for which it is capable of being used and of the enforceable restrictions on its use; and (C) both the seller and the purchaser seek to maximize their gains and neither is in a position to take advantage of the exigencies of the other." Except for property that qualifies for appraisal on a different basis, all property is taxed in proportion to its market value. The Code uses several tens for value that have subtly different meanings. Market value: The Code uses the term "market value" to refer to market value as defined above. Appraised value: Appraised value means the value that will be used in calculating the taxes. When property qualifies for special appraisal at a standard other than market value, its appraised value will be different from its market value. In these cases, the will calculate both an "appraised value" and a "market value," and one might be very different from the other. Assessed value: This term is a holdover from the days before the Code. In the days before the Code was enacted, taxing units could adopt an "assessment ratio." If they did so, the appraised value was multiplied by the assessment ratio to get the assessed value, which would be less than the appraised value. This is only important for very old delinquent taxes. By law, the assessment ratio is now 100%, so for most purposes, assessed value means appraised value. Taxable value: Taxable value means appraised value minus any applicable exemptions. For example, if a property's appraised value is $1 00,000 and it qualifies for an exemption of $5,000, its taxable value is $100,000 less $5,000, or $95,000. As an example of the differences, assume you have a residence homestead that qualifies for the cap on increases in appraised value. Last year, the property's market value was $100,000, and its appraised value was also $100,000. This year, the market has been very active, and the property's market value has increased to $1 15,000. The cap law provides that the property's appraised value can't increase by more than 10%. The appraised value is therefore $1 10,000. The property's assessed value is also $110,000. If the property qualifies for a $10,000 exemption, its taxable value will be $110,000 less $10,000, or $100,000.

36 Market value: $115,000 Appraised value: $110,000 Assessed value: $110,000 Taxable value: $100,000 It is very important in reading a Code section that deals with value to be sure which value you are talking about. The property owner would be very unhappy, for example, if in the above case the assessor calculated taxable value by subtracting the exemption from the market value instead of the appraised value.

37

38 WEBB COUNTY APPRAISAL DISTRICT 3302 CLARK BOULEVARD LAREDO, TEXAS PHONE: (956) FAX: (956) CERTIFICATION OF YEAR 2015 APPRAISAL ROLL FOR LAREDO INDEPENDENT SCHOOL DISTRICT "I, MARTIN VILLARREAL, CHIEF APPRAISER FOR WEBB COUNTY APPRAISAL DISTRICT, SOLEMNLY SWEAR THAT THE ATTACHED IS THAT PORTION OF THE APPROVED APPRAISAL ROLL OF THE WEBB COUNTY APPRAISAL DISTRICT WHICH LISTS PROPERTY TAXABLE BY LAREDO INDEPENDENT SCHOOL DISTRICT AND CONSTITUTES THE APPRAISAL ROLL FOR WEBB COUNTY APPRAISAL DISTRICT PER, PTC, SECTION " YEAR 2015 APPRAISAL ROLL INFORMATION: TOTAL APPRAISED VALUE $ 3,017,172,344 TOTAL ASSESSED VALUE $ 3,015,603,723 TOTAL NET TAXABLE VALUE $ 2,082,068, '------< <----<--- NUMBER OF ACCOUNTS dd l~(~ MAR~ IN VILLARREAL CHIEF APPRAISER JULY 24, 2015 DATE 28,213

39 WEBB COUNTY APPRAISAL DISTRICT 3302 CLARK BOULEVARD LAREDO, TEXAS PHONE: (956) FAX: (956) CERTIFICATE OF VALUATIONS UNDER PROTEST THE STATE OF TEXAS COUNTY OF WEBB I, THE UNDERSIGNED, THE DULY SELECTED CHIEF APPRAISER OF WEBB COUNTY APPRAISAL DISTRICT, DO HEREBY CERTIFY THAT TO THE BEST OF MY KNOWLEDGE AND BELIEF, THE FOLLOWING IS A TRUE AND CORRECT STATEMENT OF THE VALUATION FOR TAXABLE PROPERTY UNDER PROTEST, PENDING BEFORE THE APPRAISAL REVIEW BOARD AND NOT INCLUDED ON THE FINAL CERTIFIED APPRAISAL ROLL WITHIN FOR: LAREDO INDEPENDENT SCHOOL DISTRICT FOR THE YEAR 2015, AFTER BEING SUBMITTED TO AND APPROVED BY THE APPRAISAL REVIEW BOARD FOR THE FINAL TIME. TOTAL NET TAXABLE VALUE UNDER PROTEST AND NOT INCLUDED ON THE CERTIFIED APPRAISAL ROLL $ 13,626,031 -MARTIN VILLARREAL CHIEF APPRAISER

40 WEBB COUNTY APPRAISAL DISTRICT 3302 CLARK BOULEVARD LAREDO, TEXAS PHONE: (956) FAX: (956) CERTIFICATE OF CERTAIN TAXABLE PROPERTIES NOT INCLUDED ON THE APPRAISAL ROLL THE STATE OF TEXAS COUNTY OF WEBB I, THE UNDERSIGNED, THE DULY SELECTED CHIEF APPRAISER OF WEBB COUNTY APPRAISAL DISTRICT, DO HEREBY CERTIFY THAT TO THE BEST OF MY KNOWLEDGE AND BELIEF, THE FOLLOWING IS A TRUE AND CORRECT STATEMENT OF THE VALUATION FOR TAXABLE PROPERTY, PURSUANT TO H.B. 2226, REASONABLY LIKELY TO BE ADDED TO THE APPRAISAL ROLL AND TAXABLE BY THE TAXING UNIT BUT THAT WAS NOT INCLUDED ON THE FINAL CERTIFIED APPRAISAL ROLL WITHIN: LAREDO INDEPENDENT SCHOOL DISTRICT FOR THE YEAR 2015, BEFORE BEING SUBMITTED TO AND APPROVED BY THE APPRAISAL REVIEW BOARD FOR THE FINAL TIME. TOTAL NET TAXABLE VALUE OF CERTAIN TAXABLE PROPERTIES NOT INCLUDED ON THE CERTIFIED APPRAISAL ROLL $ 0 SIGNED THIS 24th DAY OF JULY, ~ MARTIN VILLARREAL CHIEF APPRAISER

41 WEBB COUNTY APPRAISAL DISTRICT 3302 CLARK BOULEVARD LAREDO, TEXAS PHONE: (956) FAX: (956) THE STATE OF TEXAS COUNTY OF WEBB CERTIFICATE OF CERTAIN RENDITION RELATED PENALTIES I, THE UNDERSIGNED, THE DULY SELECTED CHIEF APPRAISER OF WEBB COUNTY APPRAISAL DISTRICT, DO HEREBY CERTIFY THAT TO THE BEST OF MY KNOWLEDGE AND BELIEF, THE FOLLOWING IS A TRUE AND CORRECT STATEMENT FOR THE IMPOSITION OF A RENDITION RELATED PENALTY, PURSUANT TO H. B AMENDING SEC OF THE TEXAS PROPERTY TAX CODE, WHICH ESTABLISHES THAT THE ASSESSOR SHALL ADD A 100/0 PENALTY OF THE TOTAL AMOUNT OF TAXES IMPOSED ON THE PROPERTY FOR THAT YEAR AND INCLUDE THE PENAL TV IN THE TAX BILL (S) FOR: LAREDO INDEPENDENT SCHOOL DISTRICT FOR THE YEAR 2015, THE PENALTY IMPOSED AND APPROVED BY THE CHIEF APPRAISER FOR PROPERTY OWNERS WHO FAILED TO TIMELY FILE A RENDITION STATEMENT OR PROPERTY REPORT REQUIRED BY CHAPTER 22, TEXAS PROPERTY TAX CODE ARE ESTABLISHED ON THE LISTING INCLUDED ON THE CD #1. SIGNED THIS 24th DAY OF JULY, I () ((--- J ---h/--1,, '-~/ --.\ MARTIN VILLARREAL CHIEF APPRAISER

42 WEBB County Property Count: 28, CERTIFIED TOTALS S 1 - LAREDO ISD ARB Approved Totals As of Certification 7/21/2015 1:00:45PM lliiid Homesite: Non Homesite: Ag Market: Timber Market: "'1 278,714, ,850, ,890 0 Total Land (+) 1,031,824, Homesite: Non Homesite: I... "'1 452,848,835 1,270,872,444 Total Improvements --I 1,723,721,279 Personal Property: Mineral Property: Autos: IJi 3,158 1 o 261,873,446 11,170 0 Total Non Real Market Value I!iIiIiIIi I (+) 261,884,616 3,017,430,674 Total Productivity Market: Ag Use: Timber Use: Productivity Loss: 259,890 1,560 o 258, Productivity Loss 0 Appraised Value 0 Homestead Cap (-) (-) 258,330 3,017,172,344 1,568,621 Assessed Value 3,015,603,723 Total Exemptions Amount (Breakdown on Next Page) (-) 933,534,938 Net Taxable 2,082,068,785 I"'" DP OV65 Total Tax Rate '1111 II i' 26,417, ,590, ,007, ,731, ,505, ,237, , ,376, ,502, QIaiij tiiiiiii I 167, ,672, ,533 1,839, ,972 Freeze Taxable (-) 142,237,846 Freeze Adjusted Taxable 1,939,830,939 APPROXIMATE LEVY = (FREEZE ADJUSTED TAXABLE' (TAX RATE /100» + ACTUAL TAX 28,869, = 1,939,830,939 ( / 100) + 1,502, Tax Increment Rnance Value: Tax Increment Finance Levy: o 0.00 S1/104 Page 103 of 144 True Automation, Inc.

43 WEBB County Property Count: 28,213.~~ 2015 CERTIFIED TOTALS As of Certification S 1 - LAREDO ISD ARB Approved Totals 7/21/2015 1:00:51PM Exemption Breakdown ph I I C I I AS DP ,112,431 4,112,431 DPS DV , ,065 DV1S ,340 50,340 DV , ,290 DV2S ,494 19,494 DV , ,930 DV3S ,000 60,000 DV , ,840 DV4S , ,280 DVHS ,734,312 5,734,312 DVHSS , ,120 EX-XA ,451,040 35,451,040 EX-XD 2 0 1,265,700 1,265,700 EX-XG , ,580 EX-XI , ,090 EX-XD 5 0 4,686,830 4,686,830 EX-XU , ,480 EX-XV 1, ,324, ,324,035 EX-XV (Prorated) , ,937 EX ,430 28, ,786 70,311, ,870, ,182,277 DV65 4, ,837,324 38,837,324 DV65S ,545,113 5,545,113 Totals 70,311, ,222, ,534,938 S1/104 Page 104 of 144 True Automation, Inc.

44 WEBB County Property Count: CERTIFIED TOTALS Sl-LAREDOISD Under ARB Review Totals As of Certification 7/21/2015 1:00:45PM ILiiiI Homesite: Non Homesite: Ag Market: Timber Market:,..., I I I ViIIIi 1 328,000 3,911, Total Land ViIIIi I (+) 4,239,530 Homesite: Non Homesite: I-WiiiJ 750,460 8,482,860 Total Improvements ViIIIi I (+) 9,233,320 Personal Property: Mineral Property: Autos: Iii Total Productivity Market: Ag Use: Timber Use: Productivity Loss: 12 o o o o o o 492, Total Non Real Market Value Productivity Loss 0 Appraised Value 0 Homestead Cap (+) (-) (-) 492,450 13,965, ,965,300 22,253,,,... OV65 Total Tax Rate h. j 257, , , , fii 2, , Assessed Value Total Exemptions Amount (Breakdown on Next Page) Net Taxable caij co.ii I 2, , Freeze Taxable (-) (-) 13,943, ,016 13,626, ,038 Freeze Adjusted Taxable 13,463,993 APPROXIMATE LEVY: (FREEZE ADJUSTED TAXABLE * (TAX RATE /100)) + ACTUAL TAX 192,100.68: 13,463,993 * ( /100) + 2, Tax Increment Finance Value: 0 Tax Increment Finance Levy: 0.00 S1/104 Page 105 of 144 True Automation, Inc.

45 WEBB County Property Count: CERTIFIED TOTALS S 1 - LAREDO ISD Under ARB Review Totals 7/21/2015 As of Certification 1 :00:51 PM Exemption Breakdown I F 5 j DP H8 OV65 t LiiiIit 0 104,516 0 SiIii 5, ,500 20,000 5, ,016 20,000 Totals 104, , ,016 81/104 Page 106 of 144 True Automation, Inc.

46 WEBB County Property Count: 28, CERTIFIED TOTALS S 1 - LAREDO ISD Grand Totals As of Certification 7/21/2015 1:00:45PM IliIiiI Homesite: Non Homesite: Ag Market: Timber Market: I iiijila ViIiIi 1 279,042, ,761, ,890 0 Total Land --I (+) 1,036,064,309 Homesite: Non Homesite:, ,599,295 1,279,355,304 Total Improvements --I 1,732,954,599 Personal Property: Mineral Property: Autos: 3,170 1 o 262,365,896 11,170 0 Total Non Real Market Value EiiIIiji I (+) 262,3n,066 3,031,395,974 Total Productivity Market: Ag Use: Timber Use: Productivity Loss: 259,890 1,560 o 258, Productivity Loss 0 Appraised Value 0 Homestead Cap (-) 258,330 3,031,137,644 (-) 1,590,874 Assessed Value 3,029,546,nO,.-., 11111' 'tiia DP 26,417,146 9,731,888 OV65 320,847, ,667,996 Total 347,265, ,399,884 Tax Rate iici1111iit 125, ,379, ,504, Total Exemptions Amount (Breakdown on Next Page) Net Taxable C6I 5IIii I 167, ,674, ,535 1,841, ,974 Freeze Taxable (-) 933,851,954 2,095,694,816 (-) 142,399,884 Freeze Adjusted Taxable 1,953,294,932 APPROXIMATE LEVY = (FREEZE ADJUSTED TAXABLE (TAX RATE /100» + ACTUAL TAX 29,061, = 1,953,294,932 ( /100) + 1,504, Tax Increment Finance Value: Tax Increment Finance Levy: o 0.00 S1/104 Page 107 of 144 True Automation, Inc.

47 WEBB County Property Count: 28, CERTIFIED TOTALS... State Category Breakdown,.. CidI be. Ie t c As of Certification S 1 - LAREDO ISD ARB Approved Totals 7/21/2015 1:00:51 PM 1IiIIiiii 1IiIIiiii..., A SINGLE FAMILY RESIDENCE 18,051 $11,370,717 $1,264,055,703 B MULTIFAMILY RESIDENCE 854 $2,796,380 $182,317,817 C1 VACANT LOTS AND LAND TRACTS 1,240 $0 $37,430,334 D1 QUALIFIED OPEN-SPACE LAND $0 $259,890 D2 IMPROVEMENTS ON QUALIFIED OPEN SP $0 $13,440 E RURAL LAND, NON QUALIFIED OPEN SPA $0 $31,210 F1 COMMERCIAL REAL PROPERTY 2,524 $7,327,600 $682,984,069 F2 INDUSTRIAL AND MANUFACTURING REAL 5 $0 $2,237,870 G1 OIL AND GAS $0 $11,170 J2 GAS DISTRIBUTION SYSTEM 7 $0 $6,167,420 J3 ELECTRIC COMPANY (INCLUDING CO-OP) 4 $0 $22,959,440 J4 TELEPHONE COMPANY (INCLUDING CO-O 22 $0 $12,990,130 J5 RAILROAD 190 $0 $21,242,420 J7 CABLE TELEVISION COMPANY 14 $0 $8,192,630 J8 OTHER TYPE OF UTILITY 7 $0 $2,261,430 L1 COMMERCIAL PERSONAL PROPERTY 2,818 $388,430 $174,629,746 L2 INDUSTRIAL AND MANUFACTURING PERS 18 $0 $5,770,970 M1 TANGIBLE OTHER PERSONAL, MOBILE HO 1,236 $96,860 $13,243,233 0 RESIDENTIAL INVENTORY 13 $0 $176,570 S SPECIAL INVENTORY TAX 152 $0 $8,793,060 X TOTALLY EXEMPT PROPERTY 1,766 $327,968 $571,662,122 Totals $22,307,955 $3,017,430,674 S1/104 Page 109 of 144 True Automation, Inc.

48 WEBB County Property Count: CERTIFIED TOTALS S 1 - LAREDO ISD Under ARB Review Totals As of Certification 7/21/ :00:51 PM I Iii COdiI DiiClijiIiiii State Category Breakdown _Vliliii Vi1iIi I A B C1 F1 J5 L1 l2 S SINGLE FAMILY RESIDENCE 25 MUL TlFAMIL Y RESIDENCE 8 VACANT LOTS AND LAND TRACTS 3 COMMERCIAL REAL PROPERTY 19 RAILROAD 2 COMMERCIAL PERSONAL PROPERTY 10 INDUSTRIAL AND MANUFACTURING PERS SPECIAL INVENTORY TAX $60,220 $0 $0 $0 $0 $0 $0 $0 $2,663,750 $3,016,400 $196,820 $7,465,140 $130,740 $484,720 $6,360 $1,370 Totals $60,220 $13,965,300 S1/104 Page 110 of 144 True Automation, Inc.

49 WEBB County.property Count: 28, CERTIFIED TOTALS As of Certification S 1 - LAREDO ISD Grand Totals 7/21/2015 1:00:51PM State Category Breakdown,a.CCIde Destllji Ca. AcIa 1Iiii.... '... 1 A SINGLE FAMILY RESIDENCE 18,076 $11,430,937 $1,266,719,453 B MULTIFAMILY RESIDENCE 862 $2,796,380 $185,334,217 C1 VACANT LOTS AND LAND TRACTS 1,243 $0 $37,627,154 D1 QUALIFIED OPEN-SPACE LAND $0 $259,890 D2 IMPROVEMENTS ON QUALIFIED OPEN SP 1 $0 $13,440 E RURAL LAND, NON QUALIFIED OPEN SPA $0 $31,210 F1 COMMERCIAL REAL PROPERTY 2,543 $7,327,600 $690,449,209 F2 INDUSTRIAL AND MANUFACTURING REAL 5 $0 $2,237,870 G1 OIL AND GAS 1 $0 $11,170 J2 GAS DISTRIBUTION SYSTEM 7. $0 $6,167,420 J3 ELECTRIC COMPANY (INCLUDING CO-OP) 4 $0 $22,959,440 J4 TELEPHONE COMPANY (INCLUDING CO-O 22 $0 $12,990,130 J5 RAILROAD 192 $0 $21,373,160 J7 CABLE TELEVISION COMPANY 14 $0 $8,192,630 J8 OTHER TYPE OF UTILITY 7 $0 $2,261,430 L1 COMMERCIAL PERSONAL PROPERTY 2,828 $388,430 $175,114,466 L2 INDUSTRIAL AND MANUFACTURING PERS 19 $0 $5,777,330 M1 TANGIBLE OTHER PERSONAL, MOBILE HO 1,236 $96,860 $13,243,233 0 RESIDENTIAL INVENTORY 13 $0 $176,570 S SPECIAL INVENTORY TAX 153 $0 $8,794,430 X TOT ALLY EXEMPT PROPERTY 1,766 $327,968 $571,662,122 Totals $22,368,175 $3,031,395,974 S1/104 Page 111 of 144 True Automation, Inc.

50 2015 CERTIFIED TOTALS WEBB County As of Certification S 1 - LAREDO ISD.property Count: 28,213 ARB Approved Totals 7/21/2015 1:00:51PM CAD State Category Breakdown I Stl C8IIe CD II 1Iiiii' l "''''_1 A REAL RESIDENTIAL 3 $582 $164,260 A1 REAL RESIDENTIAL SINGLE FAMILY 17,193 $9,885,584 $1,223,702,431 A2 REAL RESIDENTIAL MOBILE HOME 1,027 $94,490 $32,584,842 A5 REAL RESID_BLDG INCOMPLETE 124 $1,390,061 $7,604,170 B1 REAL RESIDENTIAL MULTI FAMILY 854 $2,796,380 $182,317,817 C1 REAL VACANT RESIDENTIAL 1,087 $0 $27,228,524 C4 VACANT, RIGHT OF WAY EASEMENTS 1 $0 $7,760 C5 REAL VACANT COMM & INDUSTRIAL 153 $0 $10,194,050 D1 ACREAGE QUALIFIED AGR LAND $0 $259,890 D2 IMPROVEMENTS ON QUALIFIED LAND 1 $0 $13,440 E1 REAL IMPROVEMENTS 2 $0 $27,500 E3 RURAL LAND, NON QUALIFIED LAND 2 $0 $3,710 F1 REAL, COMMERCIAL 2,524 $7,327,600 $682,984,069 F2 REAL, INDUSTRIAL 5 $0 $2,237,870 G1 PRODUCING OIL, GAS AND MINERAL RES 1 $0 $11,170 J2 GAS COMPANIES 7 $0 $6,167,420 J3 ELECTRIC COMPANIES 4 $0 $22,959,440 J4 TELEPHONE COMPANIES 22 $0 $12,990,130 J5 RAILROADS 190 $0 $21,242,420 J7 CABLE TV 14 $0 $8,192,630 J8 COMPR, PUMP, MTR STA& DEHYD 7 $0 $2,261,430 L1 TANGIBLE PERSONAL, COMMERCIAL 2,818 $388,430 $174,629,746 L2 BUSINESS INDUSTRIAL 18 $0 $5,770,970 M1 TANGIBLE PERS, MOBILE HOMES 1,236 $96,860 $13,243, REAL ESTATE INVENTORY 13 $0 $176,570 S SPECIAL INVENTORY TAX 152 $0 $8,793,060 X TOTALLY EXEMPT PROPERTY 1,766 $327,968 $571,662,122 Totals $22,307,955 $3,017,430,674 S1/104 Page 112 of 144 True Automation, Inc.

51 WEBB County Property Count: CERTIFIED TOTALS S 1 - LAREDO ISD Under ARB Review Totals CAD State Category Breakdown As of Certification 7/21/2015 1:00:51 PM A1 A5 B1 C5 F1 J5 L1 L2 S REAL RESIDENTIAL SINGLE FAMILY REAL RESID_BLDG INCOMPLETE REAL RESIDENTIAL MULTI FAMILY REAL VACANT COMM & INDUSTRIAL REAL, COMMERCIAL RAILROADS TANGIBLE PERSONAL, COMMERCIAL BUSINESS INDUSTRIAL SPECIAL INVENTORY TAX $45,450 $14,770 $0 $0 $0 $0 $0 $0 $0 $2,421,860 $241,890 $3,016,400 $196,820 $7,465,140 $130,740 $484,720 $6,360 $1,370 Totals $60,220 $13,965,300 S1/104 Page 113 of 144 True Automation, Inc.

52 WEBB County Property Count: 28, CERTIFIED TOTALS As of Certification S 1 - LAREDO ISD Grand Totals 7/21/2015 1:00:51PM I 91' CCIIIII oe.a... CGIMI... CAD State Category Breakdown Riiii YIiIII8 _... _"" 1 A REAL RESIDENTIAL 3 $582 $164,260 A1 REAL RESIDENTIAL SINGLE FAMILY 17,215 $9,931,034 $1,226,124,291 A2 REAL RESIDENTIAL MOBILE HOME 1,027 $94,490 $32,584,842 A5 REAL RESID_BLDG INCOMPLETE 129 $1,404,831 $7,846,060 B1 REAL RESIDENTIAL MULTI FAMILY 862 $2,796,380 $185,334,217 C1 REAL VACANT RESIDENTIAL 1,087 $0 $27,228,524 C4 VACANT, RIGHT OF WAY EASEMENTS 1 $0 $7,760 C5 REAL VACANT COMM & INDUSTRIAL 156 $0 $10,390,870 D1 ACREAGE QUALIFIED AGR LAND $0 $259,890 D2 IMPROVEMENTS ON QUALIFIED LAND 1 $0 $13,440 E1 REAL IMPROVEMENTS 2 $0 $27,500 E3 RURAL LAND, NON QUALIFIED LAND 2 $0 $3,710 F1 REAL, COMMERCIAL 2,543 $7,327,600 $690,449,209 F2 REAL, INDUSTRIAL 5 $0 $2,237,870 G1 PRODUCING OIL, GAS AND MINERAL RES 1 $0 $11,170 J2 GAS COMPANIES 7 $0 $6,167,420 J3 ELECTRIC COMPANIES 4 $0 $22,959,440 J4 TELEPHONE COMPANIES 22 $0 $12,990,130 J5 RAILROADS 192 $0 $21,373,160 J7 CABLE TV 14 $0 $8,192,630 J8 COMPR, PUMP, MTR ST A & DEHYD 7 $0 $2,261,430 L1 TANGIBLE PERSONAL, COMMERCIAL 2,828 $388,430 $175,114,466 L2 BUSINESS INDUSTRIAL 19 $0 $5,777,330 M1 TANGIBLE PERS, MOBILE HOMES 1,236 $96,860 $13,243, REAL ESTATE INVENTORY 13 $0 $176,570 S SPECIAL INVENTORY TAX 153 $0 $8,794,430 X TOT ALLY EXEMPT PROPERTY 1,766 $327,968 $571,662,122 Totals $22,368,175 $3,031,395,974 S1/104 Page 114 of 144 True Automation, Inc.

53 WEBB County Property Count: 28, CERTIFIED TOTALS S 1 - LAREDO ISD Effective Rate Assumption New Value As of Certification 7/21/2015 1:00:51 PM TOTAL NEW VALUE MARKET: TOTAL NEW VALUE TAXABLE: $22,368,175 $21,321,283 I'.. EX-XG EX-XO EX-XV I E I DP DV1 DV1S DV2S DV3 DV4 DV4S DVHS HS OV65 OV65S,I. New Exemptions 0-!pI I Ca.i Primarily performing charitable functions Motor vehicles for income production and 5 Other Exemptions (including public property, rei 10 ABSOLUTE EXEMPTIONS VALUE LOSS 0- il 5iIi DISABILITY 12 Disabled Veterans 10% - 29% 4 Disabled Veterans Surviving Spouse 10% - 29% 3 Disabled Veterans Surviving Spouse 30% - 49% 1 Disabled Veterans 50% - 69% 5 Disabled Veterans 70% - 100% 2 Disabled Veterans Surviving Spouse 70% - 100% 4 Disabled Veteran Homestead 2 HOMESTEAD 164 OVER OVER 65 Surviving Spouse 2 PARTIAL EXEMPTIONS VALUE LOSS Market Value 2014 Market Value 2014 Market Value NEW EXEMPTIONS VALUE LOSS $301,500 $22,780 $793,490 $1,117,no r "..., $n,751 $38,500 $15,000 $7,500 $45,860 $24,000 $24,000 $39,933 $4,746,025 $491,079 $8,002 $5,517,650 $6,635,420 Increased Exemptions iij5itii ,n~--.c'~,~tii~ lciii~ir ~iu.~.. iit~'~iittill... iiii~1 HS HOMESTEAD 9,244 $87,211,485 INCREASED EXEMPTIONS VALUE LOSS 9,244 $87,211,485 TOTAL EXEMPTIONS VALUE LOSS $93,846,905 New Ag I Timber Exemptions New Annexations New Deannexations Average Homestead Value Category A and E c.iiiglashle I C_ IIiiiiIiiii AS',I 9,561 $75,364 $31,678 $43,686 Category A Only c.iiiglash F W IIiiiiIiiii AS' " IIiiiiIiiii SiIIiIi I 9,561 $75,364 $31,678 $43,686 S1/104 Page 115 of 144 True Automation, Inc.

54 WEBB County 1r ,caii~~anK~s.. s~a~p~.up&.. ri&s.. ~ ~t~ai 2015 CERTIFIED TOTALS SI - LAREDO ISD Lower Value Used.. ~.. ~v... As of Certification ~ ~Tai~V... ~~u.a&;r_ ~ 65 $13,965, $10,510,142 81/104 Page 116 of 144 True Automation, Inc.

55 WEBB COUNTY APPRAISAL DISTRICT 2015 CERTIFIED VALUES July 24, 2015 MARKET # ACCTS VALUE WEBB COUNTY 143,419 23,562,758,563 PARTIAL AGRICULTURE TOTAL FREEPORT ABATEMENTS EXEMPTIONS VALUE LOSS EXEMPT IEeo 489,555,158 1,567,332,723 1,509,713, ,513, ,354,956 POLLUTION GOODS TAXABLE SOLAR CAP LOSS IN TRANSIT VALUE 17,719,244 9,134, ,527,435,743 LAREDO I. S. D. 28,213 3,017,430, ,872, , ,662,122 1,568, ,082,068,7851 WEBB CONS. I. S. D. M&O 16,715 1,136,573,887 WEBB CONS. I. S. D. I &S 16,715 1,136,573,887 UNITED I. S. D. 98,527 19,408,754,032 6,598, ,976,093 27,400, ,849,950 6,598, ,976,093 27,400,417 1,241,603,122 1,203,098, ,553, , ,531, , ,381,067 17,719,244 7,347, ,028,432,0681 LAREDO COMM. COLLEGE 85,695 13,984,961, ,809, ,978,657 1,328,903, ,513,270 10,048,860 6,972, ,837,735,796 CITY OF LAREDO 85,695 13,984,961, ,751, ,978,657 1,328,927, ,513,270 69,938,700 10,048,860 6,972,035 10,128,840 11,787,701,524 CITY OF RIO BRAVO 1,764 81,583,575 CITY OF EL CENIZO 1,091 41,987,187 5,620,237. 7,818,425 2,689,021. 5,180, , ,258, , ,591,104 WEBB COUNTY DRGE DIST 3, ,087,918 4,386,218 42,582,562 20,010,538 1,062, ,046,033

56 WEBB COUNTY APPRAISAL DISTRICT 2015 UNCERTIFIED VALUES July 24, 2015 # MARKET ACCTS VALUE PARTIAL AGRICULTURE TOTAL FREEPORT EXEMPTIONS VALUE LOSS EXEMPT ABATEMENTS POLLUTION TAXABLE GIT CONTROL CAP LOSS VALUE WEBB COUNTY ,169, ,490 3,313,120-1,826,450-1,803,884 22, ,968,903 LAREDO I. S. D ,965, , ,253 13,626,031 WEBB CONS. I. S. D. 6 4,010, , ,096-3,805,944 UNITED I. S. D ,192, ,657 3,176, ,735, ,315,195 LAREDO COMM. COLLEGE ,903, , ,760-1,826, ,253 83,781,917 CITY OF LAREDO ,903, , ,760-1,826,450 2,136,530-22,253 81,660,387 CITY OF RIO BRAVO CITY OF EL CENIZO I WEBB COUNTY DRAINAGE , ,900 I

57 2015 TAX RATE WORKSHEET CERTIFICATION TOTALS 07/24/2015 LAREDO INDEPENDENT SCHOOL DISTRICT \words\nolice_subm_cerl\subm\ Taxable value lost because court appeals of ARB decisions reduced 2014 appraised value. A. Original Value _1,685,420_ -B. Adjusted Value - _1,184,430 = 500, Taxable value of property in territory the unit de-annexed after January 1, taxable value lost because property first qualified for an exemption in Absolute Exempt 1, 117,770_Partial Exempt_5,517, taxable value lost because property first qualified for agricultural appraisal (1-d or 1-d-1), timber or restricted timber appraisal, recreational/scenic appraisal or public access airport special appraisal in Market 0 ; Ag Use Total 2015 taxable value on the 2015 CERTIFIED appraisal roll today. A. CERTIFIED values only $ _2,082,068,785_ b. Pollution control exemption (deduct value of property exempted for the current tax year for the first time as pollution control property. -$ Total 2015 taxable value of properties under protest. A taxable value of properties under protest. $ 13,626,031_ B value of properties not under protest or included on certified appraisal roll +$ SCHOOL DISTRICTS: 2015 tax ceilings and Chapter 313 limitations. A. Enter 2015 Total taxable value of homesteads with tax ceilings. These include the homesteads of homeowners age 65 or older or disabled $ _142,399,884-:--_::- B. Enter 2015 total taxable value of applicable Chapter 313 limitations when calculating effective maintenance and operations taxes. Enter zero when calculating effective debt service taxes $ 0 C. Add A and B = 19. Total 2015 taxable value of properties in territory annexed after January 1, Total 2015 taxable value of new improvements and new personal property located in new improvements. o 6,635,420 o 2,082,068,785 13,626, ,399,884 o 21,321,283 - Data being provided above is to facilitate filling of tax rate worksheet. Please verify data with total reports attached. WCAD

58

59 Chapter 4. The Appraisal Process This chapter is designed to provide an overview of the activities of the appraisal district. In this chapter, we will review identification, recording, and valuing; the procedures for deciding whether the property can be taxed. When any exemptions or special appraisal procedures apply will be discussed in later chapters. Types of Taxable Property The term PROPERTY is defined by the Property Tax Code as anything that is capable of private ownership. There are three distinct types of property -- real property, tangible personal property, and intangible personal property. The Property Tax Code defines each of these. REAL PROPERTY refers to: (1) land; (2) mines or quarries; (3) standing timber; (4) minerals in place; (5) improvements; and (6) any other ownership interest in real property unless that ownership secures a lender's or contractor's lien. For the purposes of this textbook, land, improvements, and minerals in place are the most commonly encountered types of real property. LAND refers to the surface of the earth, along with everything below the surface. An IMPROVEMENT is "a building, structure, fixture, or fence erected on or affixed to land." In most cases, this means a man-made structure that is more or less permanently attached to land. A MINERAL IN PLACE is a mineral - such as oil, gas, or coal -that is still in the ground and has not yet been removed. Minerals in place may belong to the person who owns the land, or they may be separately owned. Real property is generally taxable unless a specific exemption applies to it. All property that is not real property is PERSONAL PROPERTY. There are two types of personal property. If you can perceive personal property through the senses (seeing, weighing, measuring, feeling), it is TANGIBLE. If you cannot perceive the property, it is INTANGIBLE. Stock in a corporation is intangible. Even though you can see the piece of paper (the share of stock) that provides legal evidence of ownership, you cannot see the corporation itself or the ownership interest in it. Intangible personal property is almost never taxable. Tangible personal property is only taxable if it is used for the production of income. For the most part, appraisal districts don't really have to worry about intangible personal property. Under certain circumstances, the intangible property of insurance companies and savings and loans may be taxed. Otherwise, intangibles are exempt.

60 Market Value In most cases, the appraisal district will appraise taxable property at its MARKET VALUE. Market value is defined by law as: the price at which a property would transfer for cash or its equivalent under prevailing market conditions if: (A) exposed for sale in the open market with a reasonable time for the seller to find a purchaser; (B) both the seller and the purchaser know of all the uses and purposes to which the property is adapted and for which it is capable of being used and of the enforceable restrictions on its use; and (C) both the seller and the purchaser seek to maximize their gains and neither is in a position to take advantage of the exigencies of the other." Except for property that qualifies for appraisal on a different basis, all property is taxed in proportion to its market value. The Code uses several tens for value that have subtly different meanings. Market value: The Code uses the term "market value" to refer to market value as defined above. Appraised value: Appraised value means the value that will be used in calculating the taxes. When property qualifies for special appraisal at a standard other than market value, its appraised value will be different from its market value. In these cases, the will calculate both an "appraised value" and a "market value," and one might be very different from the other. Assessed value: This term is a holdover from the days before the Code. In the days before the Code was enacted, taxing units could adopt an "assessment ratio." If they did so, the appraised value was multiplied by the assessment ratio to get the assessed value, which would be less than the appraised value. This is only important for very old delinquent taxes. By law, the assessment ratio is now 100%, so for most purposes, assessed value means appraised value. Taxable value: Taxable value means appraised value minus any applicable exemptions. For example, if a property's appraised value is $1 00,000 and it qualifies for an exemption of $5,000, its taxable value is $100,000 less $5,000, or $95,000. As an example of the differences, assume you have a residence homestead that qualifies for the cap on increases in appraised value. Last year, the property's market value was $100,000, and its appraised value was also $100,000. This year, the market has been very active, and the property's market value has increased to $1 15,000. The cap law provides that the property's appraised value can't increase by more than 10%. The appraised value is therefore $1 10,000. The property's assessed value is also $110,000. If the property qualifies for a $10,000 exemption, its taxable value will be $110,000 less $10,000, or $100,000.

61 Market value: $115,000 Appraised value: $110,000 Assessed value: $110,000 Taxable value: $100,000 It is very important in reading a Code section that deals with value to be sure which value you are talking about. The property owner would be very unhappy, for example, if in the above case the assessor calculated taxable value by subtracting the exemption from the market value instead of the appraised value.

62 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) SECTION I SECTION II SECTION III SECTION IV SECTION V SECTION VI This introductory page outlines the contents of the ad valorem taxes policy. See the following sections for statutory provisions on: Maintenance Taxes pages Tax Rate Cap 2. Appraisal Roll 3. Disaster Area 4. Meeting on Budget and Proposed Tax Rate 5. Tax Rate 6. Effective Tax Rate 7. Maintenance and Operations Tax Rate Election to Ratify Taxes pages Proposition 2. Approval of Proposition 3. Tax Information to County Payment Options pages Discounts 2. Split Payments 3. Performing Services in Lieu of Paying Taxes 4. Installment Payments 5. Partial Payments Delinquent Taxes pages Delinquency Date 2. Delinquent Tax Collection 3. Additional Penalties Exemptions pages Homestead Exemptions 2. Veteran Exemptions 3. Optional Exemptions 4. Goods-in-Transit Economic Development pages Tax Increment Financing Act 2. Property Redevelopment and Tax Abatement Act 3. Texas Economic Development Act DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

63 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) TAX RATE CAP APPRAISAL ROLL SECTION I: MAINTENANCE TAXES The Board may levy, assess, and collect annual ad valorem taxes for the maintenance of the District s schools. Education Code If authorized by a majority of qualified voters of the District voting at an election held for that purpose, the District may impose a maintenance tax rate at a rate not to exceed the rate stated in the proposition. For any year, the maintenance tax rate per $100 of taxable value adopted by the District may not exceed the rate equal to the sum of $0.17 and the product of the state compression percentage, as determined under Education Code , multiplied by $1.50. A rate that exceeds this maximum rate for the year in which the tax is to be imposed is void. A district with a tax rate that is void under this subsection may, subject to requirements imposed by other law, adopt a rate for that year that does not exceed the specified maximum rate for that year. Notwithstanding any other law, a district that levied a maintenance tax for the 2005 tax year at a rate greater than $1.50 per $100 of taxable value in the District as permitted by special law may not levy a maintenance tax at a rate that exceeds the rate per $100 of taxable value that is equal to the sum of $0.17 and the product of the state compression percentage, as determined under Education Code , multiplied by the rate of the maintenance tax levied by the District for the 2005 tax year. Education Code (a), (d) (f) By August 1 or as soon thereafter as practicable, the District s tax assessor shall submit to the Board the District s appraisal roll, showing the total appraised, assessed, and taxable values of all property and the total taxable value of new property. Note: The Texas comptroller of public accounts annually publishes Truth in Taxation: A Guide for Setting School District Tax Rates. School districts should consult the Truth in Taxation guide, available in print form or through the comptroller s website at /taxinfo/proptax/tnt/pdf/ pdf, for detailed guidance on setting local property tax rates. By August 1 or as soon thereafter as practicable, the District s tax collector shall certify to the Board the estimates and amounts required by law. Tax Code 26.04(b) DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

64 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) CERTIFIED ESTIMATE DISASTER AREA MEETING ON BUDGET AND PROPOSED TAX RATE PUBLISHED NOTICE FORM OF NOTICE TAXPAYER INJUNCTION DISTRICTS WITH JULY 1 FISCAL YEAR By April 30, the chief appraiser shall prepare and certify an estimate of the taxable value of District property. Tax Code 26.01(e) If the District is located partly or entirely inside an area declared by the governor to be a disaster area, the Board may authorize the reappraisal of all property damaged in the disaster at its market value immediately after the disaster. Tax Code 23.02(a) The Board shall call a public meeting to discuss and adopt its budget and proposed tax rate. The Board must provide notice of the budget and proposed tax rate meeting, as described below. The budget must be adopted before the adoption of the tax rate for the tax year in which the fiscal year covered by the budget begins. [See CE] The Board President shall provide for publication of notice of the budget and proposed tax rate meeting in a daily, weekly, or biweekly newspaper published in the District. If no daily, weekly, or biweekly newspaper is published in the District, the President shall provide for publication of notice in at least one newspaper of general circulation in the county in which the District s central administrative office is located. The notice shall be published not earlier than the 30th day or later than the tenth day before the date of the hearing. The published notice of the public meeting to discuss and adopt the budget and the proposed tax rate must meet the size, format, and content requirements dictated by law. The notice is not valid if it does not substantially conform to the language and format prescribed by the comptroller. If the District has not complied with the published notice requirements in the FORM OF NOTICE described above, and the requirements for DISTRICTS WITH JULY 1 FISCAL YEAR below, if applicable, and the failure to comply was not in good faith, a person who owns taxable property in the District is entitled to an injunction restraining the collection of taxes by the District. An action to enjoin the collection of taxes must be filed before the date the District delivers substantially all of its tax bills. A district with a fiscal year beginning July 1 may use the certified estimate of the taxable value of District property in preparing the published notice if the District does not receive the certified appraisal roll on or before June 7. A district that uses a certified estimate may adopt a budget at the public meeting designated in the published notice prepared using the estimate, but the District may not adopt a tax rate before the District receives the certified appraisal roll for the District. DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

65 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) After receipt of the certified appraisal roll, the District must publish a revised notice and hold another public meeting before the District may adopt a tax rate that exceeds: 1. The rate proposed in the notice prepared using the estimate; or 2. The District s rollback rate determined under Tax Code using the certified appraisal roll. DECREASE IN DEBT SERVICE RATE TAX RATE EXCEPTION EFFECTIVE TAX RATE If the debt service rate calculated under Education Code (c)(5)(A)(ii)(b) decreases after the publication of the notice required by this section, the Board President is not required to publish another notice or call another meeting to discuss and adopt the budget and the proposed lower tax rate. Education Code Before the later of September 30 or the 60th day after the date the certified appraisal roll is received, the Board shall adopt a tax rate for the current tax year that reflects the two components, maintenance and operations expenditures and the debt service rate calculated under Education Code (c)(5)(A)(ii)(b), and shall notify the assessor of the tax rate adopted. The two components shall be approved separately. Tax Code 26.05(a) The Board may not impose property taxes in any year until it has adopted a tax rate for that year, and the annual tax rate must be set by ordinance, resolution, or order. The vote on the ordinance, resolution, or order setting the tax rate must be separate from the vote adopting the budget. The budget shall be adopted before the adoption of the tax rate. Tax Code 26.05(b); Education Code (g) The District may adopt a budget after the District adopts a tax rate for the tax year in which the fiscal year covered by the budget begins if the District elects to adopt a tax rate before receiving the certified appraisal roll for the District. The Board may adopt a tax rate for the current tax year before receipt of the certified appraisal roll if the chief appraiser of the appraisal district in which the District participates has, by April 30, certified to the assessor for the District an estimate of the taxable value of property in the District as provided by Education Code 26.01(e). If the District adopts a tax rate before the adoption of the budget, the effective tax rate and the rollback tax rate of the District shall be calculated based on the certified estimate of taxable value. Education Code (j); Tax Code 26.01(e),.05(g) The vote on the ordinance setting a tax rate that exceeds the effective tax rate must be a record vote. A motion to adopt an ordinance DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

66 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) setting a tax rate that exceeds the effective tax rate must be made in the following form: I move that the property tax rate be increased by the adoption of a tax rate of (specify tax rate), which is effectively a (insert percentage by which the proposed tax rate exceeds the effective tax rate) percent increase in the tax rate. MAINTENANCE AND OPERATIONS TAX RATE INTERNET POSTING If the ordinance sets a tax rate that, if applied to the total taxable value, will impose an amount of taxes to fund maintenance and operation expenditures of the taxing unit that exceeds the amount of taxes imposed for that purpose in the preceding year, the Board must include in the ordinance in type larger than the type used in any other portion of the document the following statement: THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR S TAX RATE ; and if the tax rate exceeds the effective maintenance and operations rate, the following statement: THE TAX RATE WILL EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE TAX RATE EX- CEEDS THE EFFECTIVE MAINTENANCE AND OPERATIONS RATE) PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $(Insert amount). The District shall also include on the home page of any Internet website operated by the District the following statement: (Insert name of unit) ADOPTED A TAX RATE THAT WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR S TAX RATE ; and if the tax rate exceeds the effective maintenance and operations rate, the following statement: THE TAX RATE WILL EFFECTIVELY BE RAISED BY (INSERT PER- CENTAGE BY WHICH THE TAX RATE EXCEEDS THE EFFEC- TIVE MAINTENANCE AND OPERATIONS RATE) PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $(Insert amount). Tax Code 26.05(b) SECTION II: ELECTION TO RATIFY TAXES If the Board adopts a tax rate that exceeds the District s rollback tax rate as defined in Tax Code 26.08, the registered voters of the District at an election held for that purpose must determine whether to approve the adopted tax rate. When increased expenditure of money is necessary due to a natural disaster and the governor has requested federal disaster assistance, an election is not required. Tax Code 26.08(a) The Board shall order that the election be held in the District on a date not less than 30 or more than 90 days after the date on which it adopted the tax rate. The election need not be held on a uniform DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

67 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) election date unless a uniform election date falls within the day time period. Tax Code 26.08(b) PROPOSITION APPROVAL OF PROPOSITION CALL FOR ELECTION EXCEPTIONS NOTICE TO COUNTY CLERK EXCEPTION TAX INFORMATION TO COUNTY In addition to any other requirement imposed by law for a proposition, including a provision prescribing the proposition language, a proposition submitted to the voters for approval of the imposition or increase of a tax shall specifically state the amount of or maximum tax rate of the tax or tax increase for which approval is sought. Education Code (e) If a majority of votes cast in the District favor the proposition, the tax rate for the current year is the rate that was adopted by the Board. If the proposition is not approved, the Board may not adopt a tax rate for the current year that exceeds the District s rollback tax rate. Tax Code 26.08(c) (d) A call for an election shall be made not later than the 62nd day before election day. For an election to be held on the date of the general election for state and county officers, the November uniform election date of even-numbered years, the election shall be called not later than the 78th day before the election day. For an election to be held on a uniform election date other than the date of the general election for state and county officers, the election shall be called not later than the 71st day before election day. An election under Tax Code to ratify a tax rate adopted by the Board under Tax Code 26.05(g) shall be ordered not later than the 30th day before election day. Election Code 3.003,.005, [See BBB] The Board shall deliver notice of the election to the county clerk of each county in which the District is located not later than the 60th day before election day. If the Board orders an election under Tax Code to ratify a tax rate adopted by the Board under Tax Code 26.05(g), the Board shall deliver notice of the election to the county clerk of each county in which the District is located not later than the 30th day before election day. Election Code The District shall provide to the county assessor-collector for each county in which all or part of District territory is located the District s adopted tax rate, maintenance and operations rate, debt rate, effective tax rate, effective maintenance and operations rate, and rollback tax rate for posting on the county s Internet website. The DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

68 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) District shall provide the information annually following the adoption of a tax rate by the District for the current tax year. Tax Code 26.16(a) (b) SECTION III: PAYMENT OPTIONS DISCOUNTS OPTION 1 OPTION 2 BOTH OPTIONS RESCISSION SPLIT PAYMENTS The Board may adopt one or both of the following discount options for early payment of District taxes. Tax Code 31.05(a) If the Board adopts Option 1, the following apply regardless of the date on which the District mails its tax bills. 1. Three percent if the tax is paid in October or earlier. 2. Two percent if the tax is paid in November. 3. One percent if the tax is paid in December. Tax Code 31.05(b) This discount does not apply to taxes that are calculated too late for it to be available. Tax Code 31.04(c) If the Board adopts Option 2, the following discounts apply only when the District mails its tax bills after September 30: 1. Three percent if the tax is paid before or during the next full calendar month following the date on which the tax bills were mailed. 2. Two percent if the tax is paid during the second full calendar month following the date on which the tax bills were mailed. 3. One percent if the tax is paid during the third full calendar month following the date on which the tax bills were mailed. Tax Code 31.05(c) If the Board adopts both discount options, the discounts described at Option 1 apply unless the District mails its tax bills after September 30, in which case only the discounts described at Option 2 apply. Tax Code 31.05(a) The Board may rescind a discount lawfully adopted by the Board. The rescission of a discount takes effect in the tax year following the year in which the discount is rescinded. Tax Code 31.05(d) The Board may provide for split payment of taxes. If a person pays one-half of the taxes before December 1, he or she may pay the remaining one-half of the taxes without penalty or interest at any time before July 1 of the following year. This payment option does not apply to taxes that are calculated too late for it to be available. Tax Code 31.03,.04(c) DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

69 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) PERFORMING SERVICES IN LIEU OF PAYING TAXES PERSONS 65 AND OVER TEACHING SERVICES BY INDIVIDUAL TEACHING SERVICES BY EMPLOYEE OF BUSINESS ENTITY INSTALLMENT PAYMENTS CERTAIN HOMESTEADS DISASTER AREA In accordance with the provisions below, the Board may permit certain individuals or business entities to provide certain services to the District in lieu of paying the District property taxes. While performing services for the District, the individual is not an employee of the District and is not entitled to any benefit, including workers compensation coverage, that the District provides to its employees. Subject to the requirements contained in Tax Code , the Board by order or resolution may permit an individual who is at least 65 years of age to perform services for the taxing unit in lieu of paying taxes imposed by the District on property owned by the individual and occupied as the individual s residence homestead. Tax Code Subject to the requirements contained in Tax Code , the Board by resolution may permit qualified individuals, who are not employed by the District, to perform teaching services for the District at a junior high school or high school of the District in lieu of paying taxes imposed by the District on property owned and occupied by the individual as a residence homestead. Tax Code Subject to the requirements contained in Tax Code , the Board by resolution may authorize a corporation or other business entity to permit a qualified individual employed by the business entity to perform teaching services in a high school or a junior high school for the District in lieu of paying taxes imposed by the District on property owned by the business entity. Tax Code An individual who qualifies for a homestead exemption under Tax Code 11.13(c),.132, or.22 may pay taxes on the residence homestead property in installments without penalty or interest. To do so, the individual must pay in four equal installments, with the first installment paid before the delinquency date. This payment must be accompanied by notice that the individual will pay the remaining taxes in three equal installments. The second installment must be paid before April 1, the third before June 1, and the fourth before August 1. An individual may also pay the taxes in four equal installments if the first installment is paid and the required notice is provided before March 1. If the individual fails to make a payment, including the first payment, before the applicable date, the unpaid amount is delinquent and incurs a penalty and interest as provided by law. Tax Code Owners of certain property in a disaster area are permitted to pay taxes in installment payments. This option applies to: 1. Real property that: DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

70 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) a. Is the residence homestead of the owner or consists of property that is used for residential purposes and that has fewer than five living units, or is owned or leased by a business entity that had not more than the amount calculated as provided by Tax Code (h) in gross receipts in the entity s most recent federal tax year or state franchise tax annual period, according to the applicable federal income tax return or state franchise tax report of the entity; and b. Is located in a disaster area and has been damaged as a direct result of the disaster; 2. Tangible personal property that is owned or leased by a business entity described above at number 1(a); and 3. Taxes that are imposed on the property by a taxing unit before the first anniversary of the disaster. If the owner of such property pays at least one-fourth of the taxes imposed on the property before the delinquency date, accompanied by notice that the person will pay the remaining taxes in installments, the owner may make the remainder of the payments in three equal installments. Such installment payments shall not incur penalty or interest if paid by the applicable dates provided for in Tax Code Tax Code (a) (b) PARTIAL PAYMENTS DELINQUENCY DATE The tax collector may decide to accept partial payments of District property taxes. Acceptance of a partial payment does not affect the delinquency date, but penalties and interest are incurred only by the portion of tax that remains unpaid on the date the tax becomes delinquent. The discounts described above do not apply to any portion of a partial payment of District taxes. Tax Code 31.07(c) SECTION IV: DELINQUENT TAXES Taxes are delinquent if not paid before February 1 of the year following the year in which imposed, except as provided below: 1. The District has provided for split payments. Tax Code The District s tax bills are mailed after January 10. Tax Code 31.04(a) DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

71 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) 3. The District s tax bills are mailed after September 30 and the Board has adopted discounts provided by Tax Code 31.05(c). Tax Code 31.04(d) Tax Code DELINQUENT TAX COLLECTION ADDITIONAL PENALTIES HOMESTEAD EXEMPTIONS PERSONS 65 OR OLDER OR DISABLED PERSONS The Board may contract with any competent attorney to represent the District to enforce the collection of delinquent taxes. The attorney s compensation is set in the contract, but the total amount of compensation provided may not exceed 20 percent of the amount of delinquent tax, penalty, and interest collected. Tax Code 6.30(c) If the District or the tax collector for the District has contracted with a private attorney for the collection of delinquent taxes, the Board may impose, by official action, an additional penalty on taxes that become delinquent on or after February 1 but not later than May 1 and remain delinquent on July 1 of the year in which they become delinquent. This penalty may not exceed the amount of compensation specified in the contract with the attorney to be paid in connection with the collection of the delinquent taxes and shall be secured by a tax lien. The District s tax collector shall deliver notice to the property owner of the delinquency and the penalty 30 to 60 days before July 1. Tax Code If the District or the tax collector for the District has imposed the penalty described above and has contracted with a private attorney for collection of delinquent taxes, the Board may impose, by official action, an additional penalty on all taxes that become delinquent on or after June 1 under Tax Code 26.15(e), 31.03,.031,.032,.04, or This penalty may not exceed the amount of compensation specified in the contract with the attorney to be paid in connection with the collection of the delinquent taxes and shall be secured by a tax lien. The District s tax collector shall send notice of the delinquency and the penalty to the property owner. The penalty is incurred on the first day of the first month that begins at least 21 days after the date the notice is sent. Tax Code SECTION V: EXEMPTIONS An adult is entitled to exemption from taxation of $15,000 of the appraised value of his or her residence homestead. To receive the residence homestead exemption, the person claiming the exemption must apply for the exemption. Tax Code 11.13(b),.43 An adult who is disabled or 65 or older is entitled to an additional $10,000 exemption of the appraised value of his or her residence homestead. Tax Code 11.13(c) DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

72 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) TAX CEILING IMPROVEMENTS PORTABILITY OF TAX CEILING SURVIVING SPOUSE OF PERSONS 65 OR OLDER HOMESTEADS RENDERED UNINHABITABLE OR UNUSABLE VETERAN EXEMPTIONS 100 PERCENT DISABLED The District shall not increase the total annual amount of ad valorem tax it imposes on the residence homestead of an individual 65 years of age or older, or on the residence homestead of an individual who is disabled as defined by Tax Code 11.13, above the amount of the tax it imposed in the first tax year in which the individual qualified that residence homestead for an applicable exemption. Tax Code 11.26(a) The District may increase the taxes if improvements are made to the property, but that tax amount is then frozen. Tax Code 11.26(b) If an individual subject to a limitation on tax increases subsequently qualifies a different residence for the residence homestead exemption, the tax limitation on the new residence is calculated to give the individual the same percentage of tax paid as the limitation on the former home in accordance with Tax Code 11.26(g). Tax Code 11.26(g) If an individual who qualifies for the exemption for an individual 65 years of age or older dies, the surviving spouse of the individual is entitled to the limitation applicable to the residence homestead of the individual if the surviving spouse is 55 years of age or older when the individual dies, and the residence homestead of the individual is the residence homestead of the surviving spouse on the date that the individual dies and remains the residence homestead of the surviving spouse. Tax Code 11.26(i) If a qualified residential structure for which the owner receives a homestead exemption under Tax Code is rendered uninhabitable or unusable by a casualty or by wind or water damage, the owner may continue to receive the exemption for the structure and the land and improvements used in the residential occupancy of the structure while the owner constructs a replacement qualified residential structure on the land in accordance with Tax Code and 11.26(n) (o) and 34 Administrative Code Tax Code ,.26(n) (o); 34 TAC A disabled veteran who receives from the U.S. Department of Veterans Affairs or its successor 100 percent disability compensation due to a service-connected disability and a rating of 100 percent disabled or of individual unemployability is entitled to an exemption from taxation of the total appraised value of the veteran s residence homestead. A person who qualifies for an exemption after January 1 of a tax year may receive the exemption for the applicable portion of that tax year immediately on qualification for the exemption. Tax Code ,.42(e) DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

73 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) PARTIALLY DISABLED WITH DONATED RESIDENCE EXEMPTION FOR SURVIVING SPOUSE SURVIVING SPOUSE OF INDIVIDUAL KILLED IN ACTION A disabled veteran who has a disability rating of less than 100 percent is entitled to an exemption from taxation of a percentage of the appraised value of the disabled veteran s residence homestead equal to the disabled veteran s disability rating if the residence homestead was donated to the disabled veteran by a charitable organization at no cost to the disabled veteran. An exemption is effective as of January 1 of the tax year in which the person qualifies for the exemption and applies to the entire tax year. Tax Code ,.42(c) The surviving spouse of a disabled veteran who qualified for an exemption when the veteran died is entitled to the same exemption from taxation of the same property to which the disabled veteran s exemption applied if: 1. The surviving spouse has not remarried since the death of the disabled veteran; and 2. The property: a. Was the residence homestead of the surviving spouse when the disabled veteran died; and b. Remains the residence homestead of the surviving spouse. If a surviving spouse who qualifies for an exemption subsequently qualifies a different property as the surviving spouse s residence homestead, the surviving spouse is entitled to an exemption from taxation of the subsequently qualified homestead in an amount equal to the dollar amount of the exemption of the former homestead in the last year in which the surviving spouse received an exemption for that homestead if the surviving spouse has not remarried since the death of the disabled veteran. Tax Code (c) (d),.132(c) (d) The surviving spouse of a member of the armed services of the United States who is killed in action is entitled to an exemption from taxation of the total appraised value of the surviving spouse s residence homestead if the surviving spouse has not remarried since the death of the member of the armed services. An exemption is effective as of January 1 of the tax year in which the person qualifies for the exemption and applies to the entire tax year. Tax Code ,.42(c) A surviving spouse who receives an exemption for a residence homestead is entitled to receive an exemption from taxation of a property that the surviving spouse subsequently qualifies as the surviving spouse s residence homestead in an amount equal to the DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

74 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) dollar amount of the exemption from taxation of the first property for which the surviving spouse received the exemption in the last year in which the surviving spouse received that exemption if the surviving spouse has not remarried since the death of the member of the armed services. Tax Code DISABLED VETERAN OPTIONAL EXEMPTIONS GOODS-IN-TRANSIT EXCEPTION A disabled veteran is entitled to an exemption from taxation of a portion of the assessed value of a property the veteran owns and designates under Tax Code This exemption can be, but is not required to be, applied to a residence homestead. Tax Code The Board may grant additional tax exemptions for transitional housing, homesteads, historic sites, community land trusts, certain water conservation initiatives, certain tax-exempt corporations, and charitable organizations, as provided by law. If the District adopts, amends, or repeals an exemption that the District by law has the option to adopt or not, the District shall notify the appraisal office of its action and of the terms of the exemption within 30 days after the date of its action. Tax Code 6.08, ,.13,.1827,.184,.24,.32; Tex. Const. Art. VIII, Sec. 1-b A person is entitled to an exemption from taxation of the appraised value of that portion of the person s property that consists of goods-in-transit. In accordance with Tax Code , the Board may provide for the taxation of goods-in-transit that are otherwise exempt from taxation. The official action to tax the goods-in-transit must be taken before January 1 of the first tax year in which the governing body proposes to tax goods-in-transit. Before acting to tax the exempt property, the Board must conduct a public hearing as required by Texas Constitution Article VIII, Section 1-n(d). The goods-in-transit remain subject to taxation by the District until the Board rescinds or repeals its previous action to tax goods-in-transit, or otherwise determines that the exemption will apply to the District. Notwithstanding official action that was taken before October 1, 2011, to tax goods-in-transit, the District may not tax such goodsin-transit in a tax year that begins on or after January 1, 2012, unless the Board takes official action on or after October 1, 2011, to provide for the taxation of the goods-in-transit. If the Board, before October 1, 2011, took action to provide for the taxation of goods-in-transit and pledged the taxes imposed on the goods-in-transit for the payment of a debt of the District, the District tax officials may continue to impose the taxes against the goods-intransit until the debt is discharged, if cessation of the imposition DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

75 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) would impair the obligation of the contract by which the debt was created. Tax Code (b), (j) (j-2) SECTION VI: ECONOMIC DEVELOPMENT TAX INCREMENT FINANCING ACT BOARD OF DIRECTORS COLLECTION AND DEPOSIT OF TAX INCREMENTS The governing body of a municipality or county may designate a geographic area as a reinvestment zone to promote development or redevelopment of the area if the governing body determines that development or redevelopment would not occur solely through private investment in the reasonably foreseeable future, in accordance with the Tax Increment Financing Act, Tax Code Chapter 311. Tax Code (a) The Board may appoint one member of the reinvestment zone s board of directors if the District has approved the payment of all or part of the tax increment produced by the District into the tax increment fund for the zone or may waive that right. Tax Code (a) In certain reinvestment zones, the Board may be entitled to appoint more than one member of the reinvestment zone s board of directors. Tax Code (a) (b) When the reinvestment zone has been designated upon petition of property owners under Tax Code (a)(4), the Board may appoint a member or members, as appropriate, of the reinvestment zone s board of directors only if it has approved the payment of all or part of the tax increment produced by the District into the tax increment fund for the zone. Tax Code (b),.0091(c) The District shall provide for the collection of its taxes in the zone as for any other property tax and shall pay into the zone s tax increment fund the amount specified by law. Notwithstanding any termination of the reinvestment zone and unless otherwise specified by an agreement between the District and the municipality or county that created the zone, this payment shall be made no later than 90 days after the later of the delinquency date for District property taxes or the date the municipality or county that created the zone submits to the District an invoice specifying the tax increment produced by the District and the amount the District is required to pay into the tax increment fund for the zone. The District is not required to pay the portion attributable to delinquent taxes until those taxes are collected. The District shall not be required to pay a tax increment into the zone s tax increment fund beyond three years from the date the zone was created, except as provided by law. Tax Code DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

76 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) The District is not required to pay into the tax increment fund any of its tax increment produced from a reinvestment zone created upon petition of property owners under Tax Code (a) unless it enters into an agreement to do so with the governing body of the municipality or county that designated the zone. Tax Code (f) The District is not required to pay into the tax increment fund any of its tax increment produced from property located in an area added to a reinvestment zone under Tax Code unless the Board enters into an agreement to do so with the governing body of the municipality or county that created the zone. Tax Code (k) A district that participates in a zone is not required to increase the percentage or amount of the tax increment to be contributed by the District because of an amendment to the project plan or reinvestment zone financing plan for the zone unless the Board by official action approves the amendment. Tax Code (g) A district whose taxable value is reduced under Government Code (d)(4) shall pay into the tax increment fund, in addition to the amount otherwise required to be paid, the amount by which the amount of taxes the District would have been required to pay into the fund in the current year if the District levied taxes at the rate the District levied in 2005 exceeds the amount the District is otherwise required to pay into the fund in the year of the reduction. This additional amount may not exceed the amount the District receives in state aid for the current tax year under Education Code The District shall pay the additional amount after the District receives the state aid to which the District is entitled for the current tax year under Education Code Tax Code (n) Notwithstanding the designation of a later termination date under Tax Code (a), a district that taxes real property located in the reinvestment zone is not required to pay any of its tax increment into the tax increment fund for the zone after the termination date designated in the ordinance or order creating the zone unless the Board enters into an agreement to do so with the governing body of the municipality or county that created the zone. Tax Code (a-1) If the governing body of the municipality or county that designated a reinvestment zone extends the term of all or a portion of the zone, the District is not required to participate in the zone or portion of the zone for the extended term unless the District enters into a written agreement to do so. Tax Code (c) DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

77 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) PROPERTY REDEVELOPMENT AND TAX ABATEMENT ACT DISTRICT DESIGNATED TEXAS ECONOMIC DEVELOPMENT ACT On or after September 1, 2001, the District may not enter into a tax abatement agreement under Tax Code Chapter 312. Tax Code (f) Notwithstanding any other provision of Tax Code Chapter 312 to the contrary, the Board, in the manner required for official action and for purposes of Tax Code Chapter 313, Subchapter B or C [see TEXAS ECONOMIC DEVELOPMENT ACT, below], may designate an area entirely within the territory of the District as a reinvestment zone if the Board finds that, as a result of the designation and the granting of a limitation on appraised value, for property located in the reinvestment zone, the designation is reasonably likely to: 1. Contribute to the expansion of primary employment in the reinvestment zone; or 2. Attract major investment in the reinvestment zone that would: a. Be a benefit to property in the reinvestment zone and to the District; and b. Contribute to the economic development of the region of this state in which the District is located. The Board may seek the recommendation of the commissioners court of each county and the governing body of each municipality that has territory in the District before designating an area as a reinvestment zone. Tax Code In order to attract large-scale capital investments, create new jobs, strengthen the economy, and expand the property tax base, districts may offer certain ad valorem tax benefits and financial benefits in accordance with the Texas Economic Development Act. Tax Code 313 Districts should strictly interpret the criteria and selection guidelines and approve only those applications for an ad valorem tax benefit that: 1. Enhance the local community; 2. Improve the local public education system; 3. Create high-paying jobs; and 4. Advance the economic development goals of Texas. Tax Code (3) DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

78 LOCAL REVENUE SOURCES AD VALOREM TAXES CCG (LEGAL) Note: For complete information regarding the Texas Economic Development Act, refer to Tax Code Chapter 313 and 34 Administrative Code Chapter 9, Subchapter F. DATE ISSUED: 3/20/ of 17 UPDATE 99 CCG(LEGAL)-P

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83 Special Call Meeting August 10, :30 p.m.

84 Adoption of the Proposed Budgets in accordance to the Texas Education Agency, Financial Accountability System Resource Guide, Update 15, TEA Legal Process Overview and Timeline Child Nutrition Program Fund 101 ERATE Fund180 Athletics Fund181 Technology Fund 182 General Operating Fund 199 Debt Service Fund 511 1

85 Budget Preparation Cycle: September 2014 to August 2015 Budget Fiscal Year: September 1, 2015 to August 31, 2016 Budget Process Calendar: Board Workshop (10/30/14) Budget Workshop (1/29/15) Budget Process Meeting with Departments (3/5/15) Budget Work Sessions with Departments (3/23/15 3/25/15) Budget Process Meeting with Campuses (3/24/15) Budget Workshop (3/31/15) Budget Work Sessions with Campuses (4/27/15 4/30/15) Budget Workshop (4/30/15) Budget Workshop (6/18/15) Budget Workshop (7/23/15) Publication of Notice of Public Meeting (7/31/15) Public Meeting to Discuss Budget and Proposed Tax Rate (8/10/15) Board Meeting to Adopt Budget and Tax Rate (8/10/15) Budget Update (October 2015) 2

86 LAREDO INDEPENDENT SCHOOL DISTRICT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - CHILD NUTRITION PROGRAM (101) FOR THE FISCAL YEAR ENDING AUGUST 31, 2016, WITH COMPARATIVE DATA FOR PRIOR YEARS ACTUAL ACTUAL ACTUAL PROJECTED PROPOSED Revenues Local Sources $ 410,522 $ 415,038 $ 377,731 $ 233,822 $ 322,235 State Sources 98,247 95,325 97,022 98,786 99,000 Federal Sources 15,742,194 16,475,778 16,936,477 18,635,459 18,675,216 Total Revenues 16,250,963 16,986,141 17,411,230 18,968,067 19,096,451 Expenditures by Function Food Services 16,231,857 15,958,774 17,235,407 19,687,376 18,760,259 Plant Maintenance and Operations 255, , , , ,192 Facilities Acquisition and Construction , ,240 - Total Expenditures 16,487,736 16,272,599 17,656,757 20,932,651 19,096,451 Excess/(Deficiency) of Revenues Over/(Under) Expenditures (236,773) 713,542 (245,527) (1,964,584) - Net Changes in Fund Balances (236,773) 713,542 (245,527) (1,964,584) - Fund Balance, Beginning 4,536,530 4,299,757 5,013,299 4,767,772 2,803,188 Fund Balance, Ending $ 4,299,757 $ 5,013,299 $ 4,767,772 $ 2,803,188 $ 2,803,188 3

87 LAREDO INDEPENDENT SCHOOL DISTRICT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - ERATE FUND (180) FOR THE FISCAL YEAR ENDING AUGUST 31, 2016, WITH COMPARATIVE DATA FOR PRIOR YEARS ACTUAL ACTUAL ACTUAL PROJECTED PROPOSED Revenues Local Sources $ 567,357 $ 649,702 $ 906,370 $ 684,797 $ 300,000 State Sources Federal Sources Total Revenues 567, , , , ,000 Expenditures by Function Plant Maintenance and Operations 441, , , , ,400 Data Processing Services 497, , , , ,000 Facilities Acquisition and Construction 1,633,355 57, ,358 1,391,557 3,917,848 Total Expenditures 2,573,179 1,145,009 1,443,203 2,129,691 4,465,248 Excess/(Deficiency) of Revenues Over/(Under) Expenditures (2,005,822) (495,307) (536,833) (1,444,894) (4,165,248) Other Financing Sources (Uses) Transfers In: General Operating Fund , , , , ,000 ERATE Fund 480 1,605, Capital Projects Fund ,210 57, ,357 1,391,557 2,009,959 Total Other Financing Sources (Uses) 2,850, , ,357 1,846,557 2,464,959 Net Changes in Fund Balances 845,120 16, , ,663 (1,700,289) Fund Balance, Beginning - 845, ,102 1,298,626 1,700,289 Fund Balance, Ending $ 845,120 $ 862,102 $ 1,298,626 $ 1,700,289 $ - 4

88 LAREDO INDEPENDENT SCHOOL DISTRICT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - ATHLETICS FUND (181) FOR THE FISCAL YEAR ENDING AUGUST 31, 2016, WITH COMPARATIVE DATA FOR PRIOR YEARS ACTUAL ACTUAL ACTUAL PROJECTED PROPOSED Revenues Local Sources $ 276,998 $ 221,143 $ 214,201 $ 212,284 $ 202,000 State Sources Federal Sources Total Revenues 276, , , , ,000 Expenditures by Function Cocurricular/Extracurricular Activities 1,162,928 1,272,348 1,307,224 1,394,287 1,437,330 Plant Maintenance and Operations 18,145 18,684 15,705 37,997 36,000 Total Expenditures 1,181,073 1,291,032 1,322,929 1,432,284 1,473,330 Excess/(Deficiency) of Revenues Over/(Under) Expenditures (904,075) (1,069,889) (1,108,728) (1,220,000) (1,271,330) Other Financing Sources (Uses) Transfers In - General Operating Fund 904,075 1,069,889 1,108,728 1,220,000 1,271,330 Total Other Financing Sources (Uses) 904,075 1,069,889 1,108,728 1,220,000 1,271,330 Net Changes in Fund Balances Fund Balance, Beginning Fund Balance, Ending $ - $ - $ - $ - $ - 5

89 LAREDO INDEPENDENT SCHOOL DISTRICT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - TECHNOLOGY FUND (182) FOR THE FISCAL YEAR ENDING AUGUST 31, 2016, WITH COMPARATIVE DATA FOR PRIOR YEARS ACTUAL ACTUAL ACTUAL PROJECTED PROPOSED Revenues Local Sources $ - $ 892 $ 22,945 $ 1,500 $ 250 State Sources Federal Sources Total Revenues ,945 1, Expenditures by Function Instruction - 28,296 71,622 86,713 80,500 Curriculum Devpt. and Instructional Staff Devpt , , ,422 15,000 Instructional Leadership - 13,078 3,199 10,000 40,500 Data Processing Services - 181, , ,469 4,000 Total Expenditures - 372, , , ,000 Excess/(Deficiency) of Revenues Over/(Under) Expenditures - (371,509) (418,525) (437,104) (139,750) Other Financing Sources (Uses) Transfers In - Technology Allotment Fund 411-1,464, Total Other Financing Sources (Uses) - 1,464, Net Changes in Fund Balances - 1,093,307 (418,525) (437,104) (139,750) Fund Balance, Beginning - - 1,093, , ,678 Fund Balance, Ending $ - $ 1,093,307 $ 674,782 $ 237,678 $ 97,928 6

90 LAREDO INDEPENDENT SCHOOL DISTRICT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - GENERAL OPERATING FUND (199) FOR THE FISCAL YEAR ENDING AUGUST 31, 2016, WITH COMPARATIVE DATA FOR PRIOR YEARS ACTUAL ACTUAL ACTUAL PROJECTED PROPOSED Revenues Local Sources $ 24,207,314 $ 25,102,789 $ 24,684,702 $ 24,931,243 $ 22,822,891 State Sources 155,065, ,134, ,294, ,542, ,020,810 Federal Sources 4,182,892 5,762,148 2,615,544 2,524,201 3,880,000 Total Revenues 183,456, ,999, ,594, ,997, ,723,701 Expenditures by Function Instruction 101,802,997 99,982, ,456, ,401, ,473,983 Instructional Resources and Media Services 3,906,686 3,589,936 3,765,553 3,974,667 4,232,001 Curriculum Devpt. and Instructional Staff Devpt. 548, , , , ,260 Instructional Leadership 2,900,908 2,378,755 2,561,952 2,637,402 2,988,334 School Leadership 12,100,802 11,764,673 12,492,478 12,979,288 13,536,353 Guidance, Counseling, and Evaluation Services 5,715,091 5,671,633 6,259,346 6,518,266 6,812,981 Social Work Services 1,210,707 1,231,942 1,497,996 1,585,054 1,692,822 Health Services 1,773,145 1,603,296 1,818,173 2,161,505 2,302,462 Student (Pupil) Transportation 3,569,593 3,787,121 3,995,141 4,657,725 4,978,662 Cocurricular/Extracurricular Activities 2,543,649 2,648,633 3,165,593 3,330,116 3,758,646 General Administration 5,820,566 5,533,855 5,796,439 5,934,635 7,393,806 Plant Maintenance and Operations 21,198,860 19,137,682 20,430,089 20,888,318 23,181,966 Security and Monitoring Services 3,336,350 3,003,296 4,162,369 4,492,465 4,559,015 Data Processing Services 3,430,873 2,986,469 3,470,475 3,586,603 3,823,027 Community Services 276, , , , ,538 Facilities Acquisition and Construction 323,072 14,501,429 2,515,440 1,758, ,000 Juvenile Justice Alternative Education Program 58, , , , ,000 Total Expenditures 170,516, ,647, ,316, ,845, ,345,856 Excess/(Deficiency) of Revenues Over/(Under) Expenditures 12,939,572 5,352,058 8,278,131 4,152,662 4,377,845 Other Financing Sources (Uses) Transfers In: Capital Projects Fund ,410, Transfers Out: Athletics Fund 181 (904,075) (1,069,889) (1,108,728) (1,220,000) (1,271,330) Interest & Sinking Fund 511 (1,283,829) (477,647) (1,709,894) (726,434) (409,888) PFC Interest & Sinking Fund 512 (1,227,431) (1,319,644) Performing Arts Center Fund (722,207) (614,189) (614,189) ERATE Fund 180 (455,000) (455,000) (455,000) (455,000) (455,000) Capitla Projects Fund (20,410,472) - - Captial Projects Fund 616 (2,000,274) (7,999,726) - - (1,627,438) Captial Projects (PSF) Fund (10,932,234) Proceeds , Total Other Financing Sources (Uses) (5,870,609) (22,254,140) (3,885,980) (3,015,623) (4,377,845) Net Changes in Fund Balances 7,068,963 (16,902,082) 4,392,151 1,137,039 - Fund Balance, Beginning 80,400,937 87,469,900 70,567,818 74,959,969 76,097,008 Fund Balance, Ending $ 87,469,900 $ 70,567,818 $ 74,959,969 $ 76,097,008 $ 76,097,008 7

91 LAREDO INDEPENDENT SCHOOL DISTRICT STATEMENT OF REVENUES AND EXPENDITURES, AND CHANGES IN FUND BALANCE - DEBT SERVICE FUND (511) FOR THE FISCAL YEAR ENDED AUGUST 31, 2016, WITH COMPARATIVE DATA FOR PRIOR YEARS ACTUAL ACTUAL ACTUAL PROJECTED PROPOSED Revenues Local Sources $ 5,134,456 $ 5,181,042 $ 5,076,908 $ 7,737,374 $ 7,725,611 State Sources 12,959,996 12,086,854 14,572,358 19,045,629 19,395,549 Federal Sources Total Revenues 18,094,452 17,267,896 19,649,266 26,783,003 27,121,160 Expenditures by Function Debt Service 26,941,378 26,836,928 23,324,178 26,272,090 26,958,263 Total Expenditures 26,941,378 26,836,928 23,324,178 26,272,090 26,958,263 Excess/(Deficiency) of Revenues Over/(Under) Expenditures (8,846,926) (9,569,032) (3,674,912) 510, ,897 Other Financing Sources (Uses) Transfers In: General Operating Fund 199 1,283, ,647 1,709, , ,888 PFC Series 2004 Fund ,300, PFC Debt Service Fund Premium of Issuance of Bonds ,263,953 10,466,511 - Proceeds on Bonds ,425,000 68,560,000 - Payment to Escrow Agent - - (98,931,152) (78,337,968) - Total Other Financing Sources (Uses) 1,283, ,647 2,769,432 1,414, ,888 Net Changes in Fund Balances (7,563,097) (9,091,385) (905,480) 1,925, ,785 Fund Balance, Beginning 21,661,088 14,097,991 5,006,606 4,101,126 6,027,016 Fund Balance, Ending $ 14,097,991 $ 5,006,606 $ 4,101,126 $ 6,027,016 $ 6,599,801 Fund Balance Recap Reserve for QZAB Payments $ 10,532,451 $ 3,096,070 $ 3,597,249 $ 4,109,335 $ 4,638,223 Reserve for Debt Service 3,565,540 1,910, ,877 1,917,681 1,961,578 Total Fund Balance $ 14,097,991 $ 5,006,606 $ 4,101,126 $ 6,027,016 $ 6,599,801 8