Lake Travis Independent School District trustees voted to approve a budget amendment to the district's 2024–25 general operating fund after staff outlined revenue adjustments and expenditure changes that increased the district's projected deficit for the year.

Pam (staff presenter) told the board the amendment reflects updated tax collections, state funding adjustments and changing investment yields. Staff said the amendment shows a net revenue decrease of about $2.34 million driven by lower-than-expected tax collections and interest income; the presenter said year-to-date investment income for all funds totaled about $13 million and the district's average investment yield had declined to roughly 4.33 percent.

After the revenue adjustments, the district reported an estimated operating deficit for 2024–25 of a little over $8.6 million. Trustee remarks at the meeting urged district leadership to address the structural gap. A motion to approve "the 2024–25 budget amendment to the general operating fund as presented" carried; the motion was made by Trustee Keeley and seconded by Trustee Phil (motion passed, no roll-call tally published in the meeting minutes).

Pam also presented a preliminary defeasance and debt management update prepared with the district's financial advisor, Dusty Traylor of RBC Capital Markets. The district reported roughly $522 million in outstanding bond principal across six series and described historical early redemptions totaling about $414.7 million that yielded an estimated $128.7 million in net interest savings. Staff said the board would be asked to consider a formal defeasance resolution next month that would authorize up to $22 million in defeasance and could produce roughly $6 million in interest savings; staff emphasized the defeasance would be brought back as a formal action item in a future meeting.

Trustees discussed the 2023 bond program and a newly recorded potential positive arbitrage liability. Staff explained that under federal rules the district could owe the government any positive arbitrage (the excess interest earned on bond proceeds retained past certain thresholds); staff showed a conservative potential liability calculation included in the capital projects display and said the figure will be recalculated annually and could fall to zero if the district spends the proceeds within the permitted time window.

The board also received the monthly financial reports, including balance sheet and capital projects updates. Staff highlighted that construction permits for the high school science addition had been issued and that several capital projects were underway. No additional board votes on debt defeasance or bond projects were taken at this meeting; staff said formal resolutions or requests for approval will be returned to the board for action.