Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Local Taxation topic
No spam. Unsubscribe anytime.
Montgomery ISD sets Aug. 25 tax-rate hearing, proposes slightly lower total tax rate
Summary
Montgomery ISD trustees approved a public hearing for Aug. 25 and authorized publication of a proposed total tax rate of 0.9583 (M&O 0.6657; I&S 0.2926). The board also approved purchasing attendance credits as its recapture strategy under state equalization rules.
Magnolia — The Montgomery Independent School District Board of Trustees set a public hearing for the proposed 2025 tax rate for 6:30 p.m. Monday, Aug. 25, and authorized publication of a proposed total tax rate of 0.9583 per $100 of taxable value (maintenance and operations 0.6657; interest and sinking 0.2926).
The board approved the public hearing date in a motion by Trustee Sonia, seconded by Trustee Dacia, and later approved putting the proposed tax rate on official notice; the motion to publish the proposed rate was made by Trustee Sonia and seconded by Trustee David.
District staff told trustees the proposed total rate is fractionally lower than last year and that the board is not adopting the tax rate at the meeting — the action was to set a hearing and authorize the proposed rate to be published for the Truth-in-Taxation process required by the Texas Comptroller’s office. Staff noted the district could legally set a higher I&S (interest and sinking) rate without voter approval to retire debt, but the board is proposing the lower figure based on current debt requirements.
As part of the truth-in-taxation discussion, staff presented the district’s recommended approach for state recapture or equalization (commonly called “recapture” or colloquially referenced as “Robin Hood”). For the fifth consecutive year, staff recommended purchasing attendance credits from the state as the district’s recapture strategy; the board approved the purchase agreement (Option 3) in a motion by Trustee Stacy, seconded by Trustee Jordan.
Staff explained there are two recapture thresholds: one tied to the district’s maximum compressed rate (MCR) and a second that applies if a district accesses MCR plus additional pennies. The staff presentation said the district is not taxing at rates that would require additional voter approval and that purchasing attendance credits is the recommended administrative option if recapture thresholds apply.
Board members asked for clarification about how the district’s proposed rate compared with maximum authorized rates and whether higher I&S rates could be used only to retire debt. Staff confirmed higher I&S could be used to retire debt early but not for other purposes. Trustees voted to publish the proposed rates and to schedule the Aug. 25 public hearing.
Motions recorded: approval of public hearing (Motion by Sonia; seconded by Dacia — motion passed), approval to publish the proposed rate (Motion by Sonia; seconded by David — motion passed), approval to purchase attendance credits, Option 3 (Motion by Stacy; seconded by Jordan — motion passed).
