Katy ISD reviews February financials, budget amendments and recommends Prosperity Bank as depository

Katy Independent School District trustees reviewed the district’s financial report through February and discussed a set of proposed budget amendments and banking arrangements during the April 14 work study meeting.

Jamie Hines, Assistant Superintendent for Finance, told trustees the district is about halfway through the fiscal year and payroll — the district’s largest expenditure — was at roughly 48 percent of budget through February. Hines explained the district makes principal and interest debt payments in February, which drove the debt function to about 80 percent of budget at that point in the year.

Why it matters: Trustees use the mid‑year report to assess whether spending is on track and to consider amendments before the end of the fiscal year.

Hines highlighted specific functions including social work services (about 57 percent spent after moving several positions in a recent budget amendment), data processing (about 54 percent, reflecting annual software contracts) and transportation (higher than average because of the 10‑month nature of the budget). Hines also noted three functions that typically remain at zero until year‑end settlements: payments to fiscal agents for shared services (deaf services), JJAE/JJAE P placements, and a small remaining tax increment fund legal budget.

Espenon Serrios, Director of Budget and Treasury, presented budget amendments tied to increased dual‑credit classes reimbursed by Houston Community College (HCC) — which reimburse Katy ISD for extra‑duty pay — and a $12,000 naming allocation for the Gary Dirks tract at Cinco Ranch High School approved by the board in September. Serrios said approval of the amendments would decrease the general operating fund balance by $12,000 and that capital funds for a Beckendorf Junior High furniture retrofit would come from 2021 bond savings with no net capital‑fund impact.

On banking, staff recommended awarding the 2025–2027 depository contract to Prosperity Bank. Serrios said the recommendation was supported by tabulated interest income projections, customer service, proximity of a vault in Cinco Ranch and the bank’s ability to meet district needs. Trustee Fox and others praised Prosperity Bank’s partnership with the district.

Trustees asked follow‑up questions. Trustee Cozella asked why two new elementary projects showed under/over variances; Hines said the projects were currently expected to come in under the initial bid amounts though change orders could occur. Trustee Champagne asked whether the HCC reimbursement covers extra‑duty pay for Katy ISD teachers teaching dual‑credit; Serrios said it reimburses the district for that extra duty and that the district had already received a first payment of roughly $104,000 with a second payment expected.

No formal approvals were recorded in the work study meeting; staff presented reports and recommendations for future board action at a regular meeting.

Bottom line: Finance staff signaled the district’s expenditures are generally tracking as expected for mid‑year, presented a small set of budget amendments and recommended Prosperity Bank as the district’s depository for the coming biennium; trustees asked for clarifications on construction variances and dual‑credit reimbursement timing.