Relating to the current debt rate and tax rate of a taxing unit for ad valorem tax purposes.

Contracts

• Municipal Engagement Letters: Law firms and financial advisors serving taxing units must amend engagement letters to include the additional scope of work required for calculating "minimum" rates and drafting specific "excess revenue" motions.
• Bond Covenants: While existing covenants remain valid, the interpretation of "required" payments within those covenants will now dictate the statutory tax rate cap.

Hiring/Training

• Finance Officers & Counsel: Staff responsible for tax rate calculations must be trained on the new distinction between "budgeted debt service" and "statutory minimum debt service."
• Board Education: School boards and city councils require training on the new voting thresholds; a simple majority is no longer sufficient to adopt a rate that allows for debt prepayment.

Reporting & Record-Keeping

• Meeting Minutes: If a taxing unit seeks to collect more than the minimum, the meeting minutes must explicitly record a motion stating the purpose of the excess revenue and the specific difference in tax rates.
• Website Postings: By August 7 annually, taxing units must post a debt obligation schedule reflecting the "minimum dollar amount" required, distinct from total budget figures.
• Public Notices: School districts must utilize revised statutory language in the "Notice of Public Meeting to Discuss Budget and Proposed Tax Rate."

Fees & Costs

• Administrative Costs: Municipalities may incur increased legal and advisory fees to ensure compliance with the stricter rate-setting formulas.
• Tax Liability: Commercial property owners may realize reduced tax liabilities if taxing units fail to garner the supermajority vote required to maintain higher debt rates.