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TRE

On November 5, 2013, Plano ISD held a Tax Ratification Election (TRE) that allowed voters to adjust the tax rates that fund their schools. The proposed increase will raise the current maintenance and operations (M&O) tax rate -- which funds salaries, utilities and day-to-day operations that directly support campuses -- by 13 cents. This amount will be offset by a decrease in the debt service tax rate of 5 cents, for a net tax rate increase of 8 cents. With this election, Plano ISD received a clear message from the school community reflecting its desire and expectations for educational programs and experiences for students.


[New] Combined Early & Election Day Voting Results

For: 12,236 (62.89%)
Against: 7,215 (37.11%)

Election results were canvassed on November 13. Election results are also posted on the Collin County Elections website.

 

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TRE Resources

Frequently Asked Questions

What is a tax ratification election (TRE)?

Texas state law requires school districts to calculate a rollback rate for property tax purposes. A rollback rate consists of two parts -- the highest allowable M&O (maintenance and operating) tax rate plus the actual debt service rate. Plano ISD's highest allowable M&O rate (without the election) is $1.04. Adoption of an M&O rate higher than $1.04 requires an automatic rollback election (TRE) to ratify the adopted rate. The adopted rate will either be ratified through the TRE or "rolled back" to the rollback rate.

As a result of the state’s equalized funding system, there are three ways to increase total formula funding per student: (1) legislative action to increase funding (beyond the district’s control), (2) increase in number of students (beyond the district’s control and comes with added expense) or (3) an increase in tax rate.


Why is Plano ISD holding a TRE?

In 2011, the Texas legislature reduced funding for Plano ISD by $59 million over a two-year period. In 2013, the legislature provided partial relief, returning 29% of Plano's funds, compared to the state average of 77%. The unrestored loss is $466 per student, leaving the district with a $20 million deficit. This reduction was a financial setback which placed the district below the 2007 level of funding. View 2012-13 budget information.

Recently, Plano ISD trustees agreed upon a solution -- let the taxpayers decide. In the upcoming November election, Plano ISD will be voting on a tax ratification. The TRE will allow voters of Plano ISD to adjust the tax rates that fund their schools. Plano ISD will use these funds to sustain enriched educational offerings while maintaining its track record for fiscal responsibility.


Does the tax bill that I am receiving in mid-October have the higher tax rate already included?

Yes. If voters approve the TRE, nothing else will be done to the tax bill that you are receiving in mid-October. Otherwise, the tax assessor will send a revised bill as soon as possible following the November 5 election.


What happens if voters do not pass the TRE?

Without a tax ratification election, Plano ISD will face the likely reduction of more than 300 staff members, equivalent to the staffing of eight elementary schools. These reductions would lead to an increase in classroom sizes and decrease students’ educational choices. The reductions would be in addition to the $26.5 million in cuts that the district made following the 2011 state legislative session which affected Plano ISD's 2011-12 budget. View 2011-12 budget information.


Watch video video (1:18:55) - August 20, 2013, school board meeting /
Budget and tax rate presentation, public hearing and vote
School Board Presentation pdf



How will the proposed TRE affect the tax rate?

Voters will decide on a tax ratification of 13 cents for the maintenance and operations (M&O) portion of the tax rate, which funds salaries, utilities and day-to-day operations that directly support campuses. Plano ISD will lower the interest and sinking rate (I&S) by 5 cents, resulting in a net tax increase of 8 cents. The total proposed tax rate would be $1.4530.

tax rate chart


How will the proposed TRE impact taxpayers financially?

The increase would be eight cents for every $100 dollars in property value. For a homeowner whose house is valued at $259,201 (the average home value in Plano ISD) this equates to an additional $194 dollars per year (based on the net taxable value). That cost translates to $3.73 per week -- about the cost of a gallon of gas. With this proposed change, Plano ISD would maintain the second lowest tax rate in Collin County. Homeowners age 65 and older who have filed for an over 65 tax freeze would not see a change in their school taxes.

Collin County school tax rates



How would recapture affect funding generated by a TRE?

The Plano ISD recapture payment has been as high as 31.2% of M&O taxes in 2005-06, and for 2013-14 will be 6% without the TRE and 8.9% with the TRE. The following graph illustrates Plano ISD's twenty-year history of recapture payments to the state, including the 2013-14 recapture amount with and without a TRE. Follow this link PDF for a detailed listing of the district's recapture and debt service payments.

Recapture chart


How do Plano ISD construction projects affect the tax rate?

School budgets are comprised of two major funds – the general fund or M&O and the debt service fund, which is sometimes called the I&S (Interest & Sinking) fund. The general fund is used for teacher and support staff salaries, supplies, utilities and contracted services, for example. The debt service fund is used to finance capital projects such as school construction, renovations, and facility security improvements. Each fund has a separate tax rate, and state law prohibits tax rates/collections from being exchanged. Therefore, no funds from current or future construction projects can be used for general fund expenditures such as salaries. The TRE impacts the M&O fund.


How can Plano ISD lower its debt service (I&S) tax rate while increasing the maintenance and operations (M&O) tax rate?

Plano ISD's main reason for lowering the debt service tax rate by 5 cents is the desire to reduce the impact of the TRE on taxpayers. The 2014 obligation, if we do nothing, would require the same tax rate we have now instead of the 5-cent drop. Plano ISD's past excellent debt management practices allow our school district flexibility that a lot of school districts don't have to restructure debt. The plan is to restructure debt payments due within the next five years. This restructuring will not extend the final debt payment and taxpayers will realize an immediate tax benefit. Absent the opportunity to restructure the debt, the backup plan is to fund the five-cent drop from the available operating fund balance.


Why does Plano ISD have debt?

In the last 25 years, Plano ISD has added more than 27,000 students and opened 34 new campuses during that time of rapid growth. School districts cannot use their maintenance and operations (M&O) tax rates to build facilities, so we borrow money through bond sales.

All of our debt has been approved by taxpayers through bond elections and subsequent bond sales. Prior to a bond election -- the most recent being the 2008 facilities & technology bond program -- Plano ISD informs the public of what we believe the impact will be on the tax rate. We've managed to keep that tax rate debt impact less than what was predicted.

The chart below shows how conservative our debt service practices have been in the past. Many other fast-growth districts have balloon notes at the end; they count on tax base growth, so they have an escalating debt payment each year. Plano ISD is committed to aggressively paying off debt. 34% of the principal will be paid off in the next five years; 59% will be paid off in the next 10 years; 76% in the next 15 years, so this represents a quick amortization schedule. The district has made its maximum maturity 25 years, which has not increased.

Debt Payment chart

The district was set to experience a considerable drop in the debt tax rate in 2016 and then again in 2017. We are proposing accelerating that drop so that taxpayers realize the savings now -- in 2014 and 2015. The principal payoff over the next five years remains at 34%, and the final maturities of the restructured debt will not be extended.

Plano ISD has recently lowered the debt service rate by restructuring a portion of its bonds without extending the date of the final payment. By law, a district cannot sell debt if it will cause its tax rate to exceed 50 cents.Plano ISD’s rate for 2013-14 is 28.3 cents—slightly more than half of the maximum allowed. Plano and Farmersville ISDs are the only two Collin County school districts with debt tax rates below 30 cents. The other twelve districts have debt rates above 40 cents.

Moody’s and Standard & Poor’s, two national bond rating agencies, give Plano ISD their highest rating for any school district in the state of Texas. These ratings enable the district to borrow money cheaper, in much the same way a higher credit rating or FICO score benefits individuals. These high credit ratings reflect a significant savings to Plano ISD taxpayers over the life of the bonds. Plano ISD also received the State Comptroller’s Leadership Circle Award for efficiency and value, a Superior Rating in the State’s Financial Integrity Rating System of Texas (FIRST) since the program’s inception in 2001, and a Certificate of Achievement for Excellence in Financial Reporting from the Government and Financial Officers Association of the United States and Canada for the past 30 consecutive years.



Watch video video (00:9:45) - August 20, 2013, school board meeting
Issuance and sale of Plano ISD Tax Refunding Bonds, Series 2013


Have other Collin County school districts held TRE’s?

Yes. Here is a list of all of the districts in Collin County that proposed TREs and their election outcome.

Allen ISD October 8, 2011 Approved
Blue Ridge ISD November 6, 2007 Approved
Celina ISD September 4, 2010 Approved
Community ISD August 13, 2011 Not Approved
Community ISD (2nd election) October 13, 2012 Approved
Farmersville ISD September 14, 2010 Approved
Lovejoy ISD September 29, 2009 Approved
McKinney ISD September 21, 2013 Approved
Prosper ISD November 6, 2007 Approved
Wylie ISD November 4, 2008 Approved


Are persons with green cards eligible to vote?

Green card holders are not U.S. citizens and are not eligible to vote.

If you have a Plano address but are zoned for Frisco ISD, are you eligible to vote in this election?

Voters must be registered to vote in Plano ISD. City of Plano residents who are zoned to attend Frisco ISD schools are not eligible to vote in Plano ISD elections.



When is the tax ratification election? Where do I vote?

Early voting dates & times

Dates Days Times
October 21-25 Monday - Friday 8:00 a.m. to 5:00
October 26 Saturday 7:00 a.m. to 7:00 p.m.
October 27 Sunday 1:00 to 6:00 p.m.
October 28-November 1 Monday - Friday 7:00 a.m. to 7:00 p.m.

Early voting locations

Polling Place Address

City

Collin County Elections
(Main Early Voting Location)

2010 Redbud Blvd. St 102

McKinney

Allen Municipal Courts Facility

301 Century Pkwy.

Allen

Carpenter Park Recreation Center

6701 Coit Road

Plano

Celina ISD Administration Building

205 S. Colorado

Celina

Christ United Methodist Church

3101 Coit Road

Plano

Collin College - Central Park Campus

2200 W. University Drive

McKinney

Collin College - Preston Ridge Campus

9700 Wade Blvd.

Frisco

Collin College - Spring Creek Campus

2800 E. Spring Creek Pkwy.

Plano

Collin College – Higher Education Center

3452 Spur 399

McKinney

Frisco Senior Center

6670 Moore Street

Frisco

Haggard Library

2501 Coit Road

Plano

Harrington Library

1501 18th Street

Plano

John and Judy Gay Library

6861 W. Eldorado Parkway

McKinney

Lovejoy ISD Administration Bldg.

259 Country Club

Allen

Lavon City Hall

120 School Road

Lavon

Maribelle Davis Library

7501 Independence Parkway

Plano

McKinney Fire Station #7

861 S. Independence Pkwy.

McKinney

Murphy City Hall

206 North Murphy Road

Murphy

Old Settlers Recreation Center

1201 E. Louisiana

McKinney

Parker City Hall

5700 E. Parker Road

Parker

Parr Library

6200 Windhaven Pkwy.

Plano

PISD Administration Center

2700 W. 15th Street

Plano

Princeton City Hall

123 W. Princeton Drive

Princeton

Prosper Municipal Chambers

108 W. Broadway

Prosper

Renner-Frankford Library

6400 Frankford

Dallas

Wylie Municipal Complex Library

300 Country Club

Wylie

 

Temporary early voting locations

Farmersville City Hall, 205 South Main, Farmersville, Precinct 3
Josephine City Hall, 108 West Hubbard, Josephine, Precinct 2

Oct 21
Early Voting
8am – 5pm

Oct 22
Early Voting
8am – 5pm

Oct 23
Early Voting
8am – 5pm

Oct 24
Early Voting
8am – 5pm

Oct 25
Early Voting
8am – 5pm

Lucas City Hall, 665 Country Club Road, Lucas, Precinct 3
Texas Star Bank, 402 W. White, Anna, Precinct 3

Oct 28
Early Voting
7am – 7pm

Oct 29
Early Voting
7am – 7pm

Oct 30
Early Voting
7am – 7pm

Oct 31
Early Voting
7am – 7pm

Nov 1
Early Voting
7am – 7pm

Important Note: Eligible Collin County registered voters (with an effective date of registration on or before November 5, 2013) may vote at any of the above early voting locations.


Election Day - November 5, 2013

7:00 a.m. to 7:00 p.m.

Voters can go to any of the following polling locations regardless of precinct assignment.

Polling Place Address City
Akin Elementary School 1100 Springwood Wylie
Aldridge Elementary School 720 Pleasant Valley Richardson
Allen Municipal Courts Facility 301 Century Parkway Allen
Armstrong Middle School 3805 Timberline Plano
Benton Staley Middle School 6927 Stadium Drive Frisco
Blue Ridge ISD Administration Building (Old) 10688 CR 504 Blue Ridge
Bowman Middle School 2501 Jupiter Road Plano
Boys and Girls Club - Douglass Branch 1111 H Avenue Plano
Brinker Elementary School 3800 Clark Parkway Plano
Carpenter Middle School 3905 Rainier Road Plano
Carpenter Park Recreation Center 6701 Coit Road Plano
Celina ISD Administration Building 205 S. Colorado Celina
Christ United Methodist Church 3101 Coit Road Plano
Clark High School - Plano 523 Spring Creek Plano
Clark Middle School 4600 Colby Drive Frisco
Collin College - Higher Education Center 3452 Spur 399 McKinney
Collin College Central Park Campus 2200 University McKinney
Collin College Preston Ridge Campus 9700 Wade Blvd. Frisco
Collin College Spring Creek Campus 2800 Spring Creek Parkway Plano
Collin County Elections Office 2010 Redbud Blvd, Ste. 102 McKinney
Community ISD Technology and Conference Center 615 FM 1138 Nevada
Cooper Fitness Center at Craig Ranch 7910 Collin McKinney Parkway McKinney
Cox Elementary School 7009 Woodbridge Pkwy. Sachse
Dr. Pepper Star Center at Craig Ranch 6993 Stars Ave. McKinney
Eldorado Country Club 2604 Country Club Drive McKinney
FC Dallas Stadium 9200 World Cup Way Frisco
Fire Station #7 - McKinney 861 Independence Pkwy. McKinney
First Baptist Church - Branch 7011 FM 546 Princeton
First Baptist Church Farmersville, Youth Building 201 Farmersville Pkwy. Farmersville
Ford Middle School 630 Park Place Drive Allen
Fowler Middle School 3801 McDermott Road Plano
Frisco Senior Center 6670 Moore Street Frisco
Harrington Library 1501 18th Street Plano
Hunt Middle School 4900 Legendary Drive Frisco
John and Judy Gay Library 6861 W. Eldorado Parkway McKinney
John Q. Hammons Center - Courtyard Marriott 210 East Stacy Road Allen
Josephine City Hall 108 West Hubbard Josephine
Lavon City Hall 120 School Road Lavon
Liberty High School 15250 Rolater Road Frisco
Lovejoy ISD Elementary School Gym 256 Country Club Allen
Lowry Crossing City Hall 1405 S. Bridgefarmer Road Lowry Crossing
Lucas City Hall 665 Country Club Road Lucas
Maribelle Davis Library 7501 Independence Parkway Plano
McKinney Senior Recreation Center 1400 S. College McKinney
Melissa City Hall 3411 Barker Ave. Melissa
Mitchell Elementary School 4223 Briargrove Dallas
Murphy City Hall 206 N. Murphy Road Murphy
Old Settlers Recreation Center 1201 E. Louisiana McKinney
Parker City Hall 5700 E. Parker Road Parker
Parr Library 6200 Windhaven Pkwy. Plano
PISD Administration Center 2700 W. 15th Street Plano
Plano Senior Center 401 W. 16th Street Plano
Princeton High School 1000 E. Princeton Drive Princeton
Renner-Frankford Library 6400 Frankford Road Dallas
Reynolds Middle School 700 N. Coleman Prosper
Roach Middle School 12499 Independence Pkwy. Frisco
Rose Haggar Elementary School 17820 Campbell Road Dallas
Ruth Cherry Intermediate School 1400 FM 1777 Royse City
Ruth Dowell Middle School 301 Ridge Road McKinney
Seis Lagos Community Services Association 222 Seis Lago Trail Wylie
Shepton High School 5505 Plano Pkwy. Plano
Stonebridge United Methodist Church 1800 S. Stonebridge Drive McKinney
Suncreek United Methodist Church 1517 W. McDermott Drive Allen
Texas Star Bank 402 W. White Street Anna
Weston Community Center 117 Main Street Weston
Woodcreek Church 3400 E. Renner Road Richardson
Wylie Municipal Complex Library 300 Country Club Wylie

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