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Harris County Dept. of Education Tax Rate Presentation 1 Truth uth-In In-Taxa axation tion Calcula Calculation tion FY 2 FY 2019 019-2020 2020 Boar Board d Pr Presenta esentation tion Se Sept ptem embe ber r 18 18th th, ,

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SLIDE 1

1 Harris County Dept. of Education Tax Rate Presentation

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SLIDE 2

Truth uth-In In-Taxa axation tion Calcula Calculation tion FY 2 FY 2019 019-2020 2020 Boar Board d Pr Presenta esentation tion

Se Sept ptem embe ber r 18 18th th, , 20 2019 19

2

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SLIDE 3

Property Values Growth

Last Six Fisc Six Fiscal l Years

$393 Billion in FY 2016

$55 Billion

$422 Billion in FY 2017

$29 Billion

$437 Billion in FY 2018

$15 Billion

$450 Billion in FY 2019

$13 Billion

FY 2015

$338 Billion

FY 2020

$483 Billion

Certified plus under protest estimate

$33 Billion

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SLIDE 4

$.005999

Effective Tax Rate

Property Tax Rate $.01 Maximum

Six Six Year Hist History

16 17 19 18 $.005190

Below the ETR

$.005195

Below the ETR

$.005200

Below the ETR

$.005422

Bellow ETR

5th year in a row to recommend BELOW the Effective Tax Rate (ETR) Lowering the tax rate Last Six Fiscal Years 4% 4% .1% .1% $.005029 Proposed

Below the ETR

20 15

$338 Billion $393 Billion $422 Billion $437 Billion $450 Billion $483 Billion

11%

4

3.2%

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SLIDE 5

Truth uth-In In-Taxa axation tion

2019 Tax Rate

Definitions

Nominal Rate – Tax rate to generate revenues to support last year’s approved budget; [ .005190] Effective Tax Rate – A calculated rate that provides the taxing unit with the same amount of revenue it received in the year before--on property taxed in both years. TY18 [ .005279 ] TY19 [.005030] Rollback Tax Rate – A calculated maximum rate allowed by law without voter

  • approval. The rollback rate provides the taxing unit with about the same amount
  • f tax revenue it spent the previous year for day-to-day operations, plus an extra

eight percent increase for those operations plus sufficient funds to pay debts in the coming year. [ .005432] Maintenance & Operations (M&O) Rate – Tax rate to generate revenues to support general operating expenditures. [ .005029 ] Debt Service Rate (Sometimes referred to as Interest & Sinking or I&S) – Tax rate to generate revenues obligated for repayment of indebtedness. HCDE currently does not have an I&S rate. All debt is backed by M&O taxes and revenues and not I&S. N/A [ .000000 ] Total Tax Rate – The M&O and I&S tax rates combined. (Proposed) [ .005029 ] 5

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SLIDE 6

0.005840 0.006050 0.006581 0.006581

0.006617 0.006358

0.005999 0.005422 0.005200 0.005195 0.00519 0.005029 0.004000 0.004500 0.005000 0.005500 0.006000 0.006500 0.007000 $0 $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $600,000,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Tax Rate Assessed Value Fiscal Year

HCDE Property Values and Taxe Rates

Assessed Value Tax Rate

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SLIDE 7

Mon Month thly y Tax ax Collect Collection ion Rep epor

  • rt

Aug ugus ust t 20 2019 19

BUDGET CURRENT MONTH Y-T-D BALANCE (OVER) / UNDER Y-T-D % OF BUDGET

Current Tax 23,310,040 $ (741) $ 22,805,829 $ 504,211 $ 97.8% Deliquent Tax 150,000 13,754 (29,342) 179,342

  • 20%

Penalty & Interest

  • 14,006

188,341 (188,341) 0% 15,000 1,185 13,023 1,977 87% 23,475,040 $ 28,204 $ 22,977,851 $ 497,189 $ 97.9%

BUDGET CURRENT MONTH Y-T-D BALANCE (OVER) / UNDER Y-T-D % OF BUDGET

LESS: HCAD Fees 180,000 $

  • $

170,178 $ 9,822 $ 95% LESS: HCTO Fees 475,000 694 448,879 26,121 95% 655,000 $ 694 $ 619,057 $ 35,943 $ 95% 22,820,040 $ 27,510 $ 22,358,793 $ 461,247 $ 98.0% EXPENDITURES: Subtotal Expenditures: Net Tax Collections: TAX YEAR 2018 COLLECTION SUMMARY

DESCRIPTION

REVENUES: Subtotal Revenues: Special Assessments and Miscellaneous

DESCRIPTION

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SLIDE 8

Estimated Tax Rate

8

A B C D

Tax Year 2019 Tax Year 2019

Comparative Analysis of Property Values

Tax Year 2018 Tax Year 2018

If Proj at $461 Bil Final Values $483 Bil

Adopted July BUDGET PRELIM with Under Protest Total ADOPTED ADOPTED

Including NEW Improvements Including NEW Improvements

TAX RATE TAX RATE Estimated TAX RATE Estimated TAX RATE Proposed Collections

0.005190 0.005190 0.005190 0.005029

Certified Taxable Value per HCAD *

412,526,038,722 $ 445,338,264,373 $ 426,609,240,021 $ 427,549,758,437 $

Values under protest or not certified

37,168,447,726 627,849,275 34,802,332,739 55,586,576,260 449,694,486,448 445,966,113,648 461,411,572,760 483,136,334,697

/ Rate per Taxable $100

4,496,944,864 4,459,661,136 4,614,115,728 4,831,363,347

X Tax Rate

23,339,144 23,145,641 23,947,261 24,296,926 99.88% 99.88%

X Estimated collection rate

23,311,137 23,117,867 23,707,788 24,267,770 23,311,137 $ 23,117,867 $ 23,707,788 $ 24,267,770 $

+Delinquent Tax Collections

  • +Special Assessments

15,000 15,000 15,000 15,000

+ Penalty & Interest

150,000 150,000 150,000 150,000

Estimated Current Tax Available for Operations:

23,476,137 $ 23,282,867 $ 23,872,788 $ 24,432,770 $

Harris County Department of Education

DRAFT # 4

Note: $483 B includes $9.9 B of New Improvements

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SLIDE 9

NEXT STEP Motion to approve the tax rate of $0.005029 for Tax Year 2019

Current Tax Rate (Nominal) .005190 Effective Tax Rate .005030 Recommended (M&O) Tax Rate .005029 Rollback Tax Rate .005432 9