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Board keeps tax rate, adopts 2025 resolution tied to higher homestead exemptions; approves budget amendment
Summary
Castleberry ISD trustees voted 7–0 to adopt a tax-rate resolution (legal language reflecting a 13–13.5% comparison to the no-new-revenue rate), while staff said the effective tax burden for homeowners will fall because homestead exemptions increased; the board also approved Budget Amendment #2, 7–0.
The Castleberry Independent School District Board of Education voted unanimously to adopt the district’s proposed tax-rate resolution and to approve a budget amendment for 2025–26.
Tax-rate resolution
Chief Financial Officer William Wooten presented the proposed 2025–26 tax rate and legal adoption language. Wooten said the district is proposing a tax rate of “1.2469 per $100 valuation” (presented as “1.2469 out of a 100” in the meeting) consisting of a maintenance-and-operations portion of 0.7469 and an interest-and-sinking portion of 0.50. Wooten explained that recent state legislation increasing the standard homestead exemption (cited as Senate Bill 4 and Senate Bill 23 in the presentation) lowered the “no-new-revenue” (effective) calculation; state-required legal language therefore shows an apparent percentage increase (Wooten and the district’s tax attorney described the statutory comparison as effectively a 13%–13.5% increase) even though the board’s adopted rate was unchanged in practice.
Board action: A motion to adopt the tax-rate resolution carried 7–0. Board President Tolliver read the statutory motion on the record before the vote.
Why the legal wording appears to show an increase
Wooten and trustees discussed the difference between the “no-new-revenue” legal comparison and the practical effect on homeowners. Wooten emphasized that while the statute requires the comparison and the percentage language, the increase shown in the statutory sentence results from higher homestead exemptions that reduce taxable assessed values. Wooten said the district’s calculation indicates average homeowners will see lower tax bills in the 2025 tax year because the standard homestead exemption rose (in the presentation, the standard exemption was described as increasing from $100,000 to $140,000 and an additional $60,000 exemption for those 65 and older was noted).
Budget amendment
After the tax-rate vote, the board considered “Budget Amendment Number 2” for 2025–26. A motion to approve the amendment was made and seconded; trustees discussed impacts across functions and staff said the amendment balanced functions within Fund 199 with no impact to the fund balance. The motion to approve the amendment carried 7–0.
Votes at a glance
- Adopt 2025–26 tax-rate resolution (motion read by Board President Tolliver): Passed 7–0. Motion text (as read): “I move that the property tax rate be increased by the adoption of a tax rate of 1.2469 out of a 100 consisting of an M&O rate of 0.7469 out of a 100 and a debt rate of 0.5 out of a 100, which is effectively a 13.5% increase.” The board’s discussion and the CFO’s presentation clarified the statutory wording reflects homestead-exemption changes, not an actual rise in the district’s assessed tax rate for homeowners. - Approve 2025–26 Budget Amendment No. 2: Passed 7–0. Staff said the amendment reallocated previously held funds into the correct functions following approval of a replacement plan and that the amendment did not reduce the fund balance.
What’s next
Wooten said staff will continue monthly financial monitoring, will present a school FIRST (financial accountability) discussion in the coming months, and will finalize the audit process in October with the auditor debrief and audit presentation scheduled for November.
Ending
Trustees voted unanimously on both items; district staff emphasized the distinction between statutory disclosure language and the practical tax impact on homeowners, which staff said will be reduced by increased homestead exemptions.
