August 21, 2025 at 6:00 PM - Budget Meeting

Description:  Sections 44.002 through 44.006 of the Texas Education Code establish the legal basis for budget development in Texas School districts.  The President of the Board of Trustees must call a public hearing of the Board of Trustees, giving ten (10) days public notice in a newspaper, for the adoption of the district budget.  Any taxpayer in the district may be present and participate in the meeting.  

Description:  Priority #5: Optimize All Available Resources
Consider/Approve Financial Reports for the Month Ended June 30, 2025
This report includes the following items:

1.    Budget Amendments Year-to-Date as of August 21, 2025
    a.  Proposed Budget Amendments for Official Budgets

2.  Budget Summary Year-to-Date as of June 30, 2025
        a.  Unaudited Revenue Summary including:
        i.    Adopted Budget
        ii.    Current Amended Budget
        iii.    Realized to-date Revenue
        iv.    Unrealized Revenue
        v.    Percentage Revenue Realized
        b.  Unaudited Expenditure Summary including:
        i.    Adopted Budget
        ii.    Current Amended Budget
        iii.    Cumulative to-date Expenditures
        iv.    Unencumbered Balance
        v.    Percentage of Budget Expended for the following funds:
                1.  General Funds
                2.  Special Revenue Funds
                3.  Debt Service Funds
                4.  Capital Projects Funds
        c.  Construction Summary including:
        i.    Remaining Project Plan
        ii.    2024-25 Expenditures
        iii.    Encumbrances
        iv.    Balance w/ Encumbrances
        v.    Percentage of Budget Expended

3.  Outstanding Investments as of June 30, 2025

4.    Tax Office Reports for the month of June 2025
        a.  Year-to-Date Collection 2024-2025 Report for June
        b.  Refunds of over $500 for Board Approval for June - None


Recommendation: It is recommended that the Board of Trustees approve the Financial Report as presented.

Description:  Priority #5: Optimize All Available Resources
The Texas Property Tax Code, under Section 26.04(a) and (b), requires the District’s Registered Texas Assessor/Collector to submit to the Board of Trustees each year the sworn certified appraisal rolls from the Dallas Central Appraisal District and the Denton Central Appraisal District.  The Certification of Appraisal Rolls summary sheet will include the total appraised, assessed and taxable value of all property by the school district, as well as the total taxable value of new property in the District.
The Board of Trustees is to adopt a resolution to approve the 2025 Tax Roll calculated from the District’s Tax Assessor/Collector's previously presented report.

Senate Bill 4 provides for an increase in the residential homestead exemption from $100,000 to $140,000.  Senate Bill 23 provides for an increase in the over-65 and disabled persons exemption from $10,000 to $60.000.  These bills were signed into law this year, pending voter approval in November, and require appraisal districts to generate provisional rolls after certification to reflect the newly approved property tax exemptions.  The district is submitting both rolls for Board approval.

The District’s Registered Texas Assessor/Collector is also required to estimate the debt collection rate for the tax year.  This total includes current taxes, delinquent taxes, rollback taxes, penalties, interest, and the additional penalty under Sections 33.07 and 33.08, Property Tax Code.   The Board is to adopt a resolution to approve the District’s Tax Assessor/ Collector certification of the anticipated collection rate previously presented report.

Recommendation: It is recommended that the Board of Trustees approve the report and resolutions, as presented.
 

Description:  The adopted budget provides authority to expend funds for the purposes indicated in accordance with state law, Board Policy, and the District’s approved purchasing procedures.

Public funds of the District may not be spent in any manner other than as provided for in the budget adopted by the Board of Trustees, but the Board may amend a budget or adopt a supplementary emergency budget to cover necessary unforeseen expenses. Texas Education Code 44.006(a)

Each year in August, the Business Office performs a final review of estimated expenditures and proposes a final budget amendment for Board consideration and approval.  

Recommendation: It is recommended that the Board of Trustees approve the 2024-2025 Final Budget Amendment Report, as presented.
 

Description:  The District has met all notice requirements as prescribed in Texas Education Code Sections 44.004 and 44.0041. On August 21, 2025, the District held a meeting at which the public had an opportunity for comment.

The Board of Trustees, at a meeting called for that purpose, shall adopt a budget to cover all expenditures for the school district for the next succeeding fiscal year for the following funds:

•    Maintenance and Operations;
•    Debt Service; and
•    Food Service.

The Maintenance and Operations (General Fund) results in a deficit of $6,171,537M.  The Debt Service and Student Nutrition both result in a balanced budget.

Recommendation: It is recommended that the Board of Trustees approve the adoption of the proposed 2025-2026 budget, as presented.

Description:  The Governmental Accounting Standards Board ("GASB") has adopted
Statement No. 54 ("GASB 54"), which announced a standard for governmental fund balance reporting and governmental fund type definitions that became effective in governmental fiscal years starting June 15, 2010. The District committed an initial $26M as a State Revenue Stabilization fund in the fiscal year ended August 30, 2020. Another $1M was contributed the following year for a total committed fund balance of $27M reserved for fluctuations in enrollment or legislative changes that affected revenue. 
Conditions exist to release the commitment of $11M for the 2024-2025 fiscal year ended August 31, 2025. A resolution is presented to the board for consideration to release the commitment.

The General Fund will be utilized for this expenditure.

Recommendation: It is recommended that the Board of Trustees approve the Resolution on the Release of Committed Fund Balance as presented.

Description:  Priority #5: Optimize All Available Resources
The District has met all notice requirements as prescribed in Texas Education Code Section 44.004 and 44.0041.  On August 21, 2025, the District held a meeting at which the public had an opportunity to comment.

The proposed Resolution sets the 2025 tax rate in two (2) component parts:

     Maintenance and Operations (M&O) tax rate of $0.74810
     Interest and Sinking (I&S) tax rate of $0.20000

This vote will be recorded, listing those voting for and against this Resolution. 

Recommendation: It is recommended that the Board of Trustees approve and adopt the tax rate and execute the resolution setting the tax rate for tax year 2025.