State law requires the rate to be set after the board adopts the district budget.
May. However, because certified property tax rolls are not available until the end of July, the district must forecast its property tax revenue for budget purposes. These projections must be monitored throughout the process to ensure that they are as accurate as possible before they are finalized. The effective rate is the rate needed to generate the same amount of revenue as the previous year, based upon the current value of properties taxed the previous year. The effective rate allows taxpayers to understand the relationship between last year's tax revenue and current-year property values. The debt service component is used to pay principal and interest on the district's debt obligations.