Southside ISD approves three budget amendments, cites $5.5M debt defeasance savings and staff pay increase

The Southside Independent School District Board of Trustees on Sept. 17 approved three budget amendments that district finance staff said will record planned defeasance activity, complete cafeteria renovation work and reflect a 4% salary increase for staff.

At the meeting, Finance Director Rolando (surname variously rendered in the record as Caralios/Carales/Corrales) told trustees that auditors will return in October to help close the fiscal year and that several accrual entries remain outstanding, including approximately $3,600,000 in payroll accruals. The month-to-date numbers presented showed roughly $65,000,000 in revenue and $65,000,000 in expenditures for the General Fund, with the district expecting to reconcile remaining accruals during closeout.

Debt service amendment: Board approval was requested to amend the 2025–26 Debt Service Fund to increase both revenue and expenditure estimates by $1,300,000 to allow for a scheduled defeasance in August 2026. Finance staff said the district’s prior defeasance on the 2015 series generated about $5,500,000 in principal savings and roughly $1,700,000 in interest savings. The board approved the amendment by roll call.

Child Nutrition amendment: Trustees approved a $180,000 budget amendment to the Child Nutrition Fund to move costs that were incurred late in the previous fiscal year into the current year and complete cafeteria renovations at a middle school. The amendment was presented as a reconciliation that will permit payment to finish work begun in the prior year.

General Fund amendment: The board also approved a General Fund budget amendment needed to record the districtwide 4% staff pay increase. Board members emphasized retention of staff as a priority and approved the amendment to align the adopted budget with the actual payroll commitments.

Other fiscal details reported: The food-services numbers included a budgeted $8.6 million and revenue received of approximately $8.8 million for the period; food-service expenditures were higher than revenue as part of an intentional plan to spend down prior-year encumbrances. Debt-service expenditures this period reflected roughly $12 million, including $5 million paid early as part of defeasance activity and funded from reserves.

Board action: Each amendment was moved and seconded on the record and passed by recorded roll-call votes with no objections; trustees who spoke in the roll-call answered “yes” for the amendments as read.

Why it matters: The Debt Service amendment advances a planned defeasance intended to reduce long‑term debt obligations; the Child Nutrition amendment enables completion of a capital project serving students; the General Fund amendment normalizes the budget to reflect the board‑approved staff pay increase.

Next steps: Finance staff will continue closeout work with auditors beginning Oct. 27 and will present the completed audit for board review, as scheduled. Staff also offered to provide a longer bond‑schedule report at a future meeting so trustees and the public can see the full debt repayment timeline and savings from defeasance.