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Gatesville ISD trustees adopt 2025-26 operating budget, set tax rates and pass related fiscal resolutions
Summary
At a Gatesville ISD board meeting, trustees approved final budget amendments, adopted the 2025-26 operating budget and passed tax ordinance and fund-balance resolutions; trustees also retained campus activity accounts and set an interest-and-sinking tax rate.
Gatesville ISD trustees at a meeting approved a set of fiscal measures including final budget amendments for the just-ended year, adoption of the 2025-26 operating budget and a tax ordinance that sets the district's tax rates.
The board adopted an operating budget set at $37.7 million for 2025-26, showing an $871,000 surplus that the district said is primarily tied to debt service. Trustees also set the maintenance-and-operations tax rate at 0.6969 and the interest-and-sinking (I&S) rate at 0.20; the board adopted tax ordinance No. 49 to formalize those rates.
The board approved final budget amendments for the prior year that move existing appropriations to cover overspends and to reflect higher-than-projected revenues. The district reported roughly $600,000 in additional state revenue tied to attendance, a $305,000 shortfall in federal-program revenue related to Medicaid payments that did not materialize, and additional maintenance and utility costs that the district said ran an estimated $100,000 to $200,000 over budget. Payroll exceeded projections in part because the district provided a thirteenth paycheck to new employees, producing an $8,000 increase for teachers that will be paid in the next fiscal year.
Trustees adopted a fund-balance resolution that commits and assigns portions of the district's fund balance, including a $100,000 residential placement set-aside, $500,000 committed for property-and-casualty loss deductibles, and approximately $2,000,000 assigned to specific purposes. The district reported an unassigned fund-balance level around $12 million at the end of the prior year. The board also adopted a resolution allowing campus activity accounts to retain their separate bank accounts and balances.
Board members discussed the district's options for using assigned fund balance for planned capital projects, including an upcoming architect update on turf and auditorium scenarios expected at the next meeting. Trustees said they would consider applying available debt-service surplus toward an extra bond payment, but several members said they want to wait to confirm property-tax collection results before using those funds.
Votes at a glance
- Final budget amendments for FY (02/24-25): Motion carried (motion recorded; mover and seconder recorded in minutes). Outcome: approved. - Adopt 2025-26 operating budget (budget set at $37,700,000): Motion carried. Outcome: approved. - Maintenance & operations tax rate set at 0.6969: Motion carried. Outcome: approved. - Interest & sinking (I&S) tax rate set at 0.20 (sinking tax rate): Motion carried. Outcome: approved. - Tax Ordinance No. 49 (implements rates and appropriations): Motion carried. Outcome: approved. - Fund balance resolution (assignment/commitments as presented): Motion carried. Outcome: approved. - Resolution permitting campus activity funds to remain in campus accounts: Motion carried. Outcome: approved.
Why it matters
Adoption of the operating budget and related tax actions determine the district's funding allocations for instruction, maintenance and debt service for the coming year. The fund-balance commitments identify money set aside for potential capital needs and risk management. Trustees noted revenue uncertainty tied to statewide shifts, and some trustees asked for caution before using surplus debt-service funds for an extra bond payment.
Context and details
District staff said utilities and payroll pressures were the main drivers of overspending in the prior year. The district described the $871,000 surplus as largely tied to debt service and therefore not available for operating uses. Trustees and staff referenced recent statewide budget pressures and declining enrollment trends reported by regional education staff, noting many districts statewide expect deficits.
Board discussion was procedural for most items; when asked about timing for a potential extra bond payment, trustees said they prefer to wait to confirm tax collections. The board adjourned to an executive session following the fiscal business.
Ending
Trustees approved the package of budget and tax actions during the meeting and directed staff to provide additional cost estimates from architects and updated revenue figures at a subsequent meeting.
