Manor ISD keeps total tax rate at $1.0814; board approves budget amendment, new FTEs and 1% raises

The Manor Independent School District Board of Trustees on Aug. 18 adopted a total property tax rate of $1.0814 per $100 valuation (maintenance and operations 0.7113; interest and sinking 0.3701) and approved several budget and personnel actions, each by recorded voice vote of 7-0.

District finance staff presented the tax proposal and revenue projections during the statutorily required property tax public hearing. Moises Santiago summarized certified and taxable values, noting a 2.38% decline in certified value for 2025 after the homestead exemption grew from $100,000 to $140,000. Santiago said the district projects a net taxable value of about $11.2 billion, a total tax levy near $122 million and is assuming a 98.5% collection rate. He told the board the proposed tax rate would raise less maintenance-and-operations revenue than last year and estimated the typical homeowner would pay about $240 less than the prior year under the unchanged rate.

The board also considered the district’s monthly financial report and a recommendation on borrowing and debt management. Santiago reported year-end fund balance pressure: fiscal 2024–25 revenues collected were about $94.1 million against expenditures that reduced the fund balance by about $23 million; cash operations at the June close were about $13.7 million and the district had drawn about $30 million in loan proceeds in June. He said the district may need to borrow again in the fall and that the district’s financial advisers had identified interest savings from recent refinancing and defeasance activity; staff included a $29 million defeasance line in bond planning to remove old principal from the books.

Votes at a glance

- Executive-session item 7.2: motion that the board "make a finding that there is not good cause to support Victor Moreno's resignation from his position at Manor ISD." Moved: Trustee Patterson. Second: Trustee Rodriguez Barnett. Outcome: approved, 7-0.

- Consent agenda (items 10.1–10.1): Motion to approve as presented. Moved: Trustee Rodriguez Barnett. Second: Trustee Martinez. Outcome: approved, 7-0.

- Action 11.1: Approve new FTEs for 2025–26 as submitted. Moved: Trustee Howard. Second: Trustee Lowery. Outcome: approved, 7-0.

- Action 11.2: Adopt 2025–26 budget amendment No. 1 as presented. Moved: Trustee Lowery. Second: Trustee Thomas. Outcome: approved, 7-0.

- Action 11.3: Adopt 2025 property tax rate (total $1.0814 per $100 valuation; M&O 0.7113; I&S 0.3701). Motion (resolution referencing Texas Education Code §11.184 and Texas Tax Code §26.08(a)): mover not specified on the record; second: Trustee Howard. Outcome: approved, 7-0.

- Action 11.4: Approve updates to the 2025–26 compensation plan — a 1% increase and a 1% midpoint raise for other employees; allow administration to make necessary adjustments. Moved: Trustee Rodriguez Barnett. Second: Trustee Lowery. Outcome: approved, 7-0. District staff said pay adjustments will be paid retroactively (effective Sept. 30) and applied to all employees.

Why this matters

Keeping the total tax rate unchanged shifts some tax burden from local revenue to state funding because the larger homestead exemption reduced certified local values; staff told the board that House Bill changes moved revenue sources between local and state funds. At the same time the district faces tighter cash flow and reduced fund balance, which drove staff recommendations to use short-term loan proceeds and to include debt defeasance planning in the bonding strategy.

Supporting details and next steps

Santiago told the board the district’s calculated maximum compressed rate for the year is $0.63 and explained components of maintenance-and-operations and the “golden penny” without recapture. He presented comparative scenarios for homeowners at different market values showing estimated decreases in local tax bills. On cash flow, he said July operations produced roughly $1.2 million in revenues and $8.2 million in expenditures and that the district earned about $80,000 in interest on loan proceeds.

On debt management, staff reported about $164 million of refinancing over five years and estimated more interest savings may be achievable if market conditions remain similar; staff included an estimated $29 million in planned defeasance in the bond proposal to remove older principal and create capacity for new projects. The board approved the budget amendment and FTE changes the same night and directed administration to proceed with the adopted rates and plans.

Quotes from the meeting

"We are proposing a dollar 8," Moises Santiago said when summarizing the proposed total tax rate and the board’s presentation during the public hearing.

"This is great for our employees," Superintendent Dr. Sarmani said after the board approved the compensation update, noting the retroactive pay and that the district used some state HB2 funding plus local funds to cover the increases.

Ending

The board approved the package of fiscal and personnel actions by unanimous voice vote and confirmed its next regular meeting for Sept. 15. Some budget and debt actions (including possible additional borrowing and definitive defeasance decisions) will return to the board for later consideration as staff finalizes cash-flow timing and bond planning.