South San Antonio ISD adopts balanced 2025–26 budget, keeps tax rate at 1.1959 and authorizes bond defeasance

The South San Antonio Independent School District Board of Trustees on Aug. 18 adopted a balanced 2025–26 budget, approved a tax rate of 1.1959 per $100 of assessed value and authorized a defeasance plan to use surplus debt-service funds to prepay callable bonds.

The action, taken after a public hearing and financial presentation, keeps the maintenance and operations (M&O) rate at 0.6969 and the interest and sinking (debt service) rate at 0.499, for a total rate of 1.1959. Tony Kingman, the district finance presenter, said the rate is the same as 2024–25 and that the district is proposing to “capitalize on the disaster penny” available under Texas law to help balance the budget.

Board adoption followed Kingman’s presentation of the proposed budget and tax calculations and a staff recommendation from Superintendent Dr. Hinojosa. Kingman told trustees the district is proposing a balanced general fund ($84,000,000 total revenue and expenditures), a balanced food-service fund ($7,900,000), and a surplus in the debt-service fund (approximately $15,000,000 in revenue and $12,500,000 in expenditures). He said the district’s certified property value for tax year 2025, after a larger homestead exemption, is $2,600,000,000.

Why it matters: the budget and tax-rate actions determine school operations, pay debt service and affect property taxpayers in Bexar County. Kingman noted that for many homeowners the increase tied to the district’s use of a temporary disaster penny would be small; he said a 3-cent increase would add about $30 per year for a home valued at $100,000 under the old exemption rules, and he described a state matching effect that multiplies local disaster pennies with additional state aid.

Key details from the presentation: district membership used for the budget remains at the 2024–25 membership figure of 7,468 and average daily attendance (ADA) at 6,506 (91.6 percent attendance). Kingman said 76 percent of general-fund revenue is expected from the state (tied to ADA) and 23 percent from local property taxes. He also presented the district’s July 2025 financials showing year-to-date general-fund revenue of about $76.5 million and expenditures of about $70.5 million.

Trustees also accepted the certified appraisal roll submitted by the Bexar County Appraisal District showing the net taxable value noted above. As part of the district’s debt-management strategy trustees approved a resolution authorizing defeasance and early redemption of callable bonds, which Kingman said would reduce future debt-service requirements and help stabilize long-term obligations.

Votes at a glance: - Consent agenda (items 1–10): approved unanimously (roll call: Raymond Tijerina, Carla Gomez Sanchez, Daryl Balderrama, Aurelina Prado, Jesus Rendon III, Adrian Guerra, Dr. Kelly Murguia — all Yes). - Accept certified appraisal roll for tax year 2025: approved unanimously (same roll-call Yes votes). - Adopt 2025–26 annual budget (general fund $84,000,000; food service $7,900,000; debt service revenues ≈ $15,000,000): approved unanimously. - Approve defeasance resolution and escrow arrangements to prepay callable bonds: approved unanimously. - Accept no-new-revenue tax rate and voter-approval tax rate (informational acceptance): approved unanimously. - Adopt tax rate of 1.1959 per $100 (M&O 0.6969; I&S 0.499): motion to adopt carried unanimously.

What the board said: Superintendent Dr. Hinojosa recommended adoption of the budget and the tax resolution. Kingman summarized revenue and expenditure assumptions and explained that the district is relying in part on a temporary disaster penny allowed under section 26.042(e) of the Texas Tax Code following a governor’s disaster proclamation for Bexar County on March 4, 2025. Kingman also noted the district received a preliminary “A – Superior” financial accountability rating for 2024–25 based on 2023–24 data, to be finalized later in the year.

Next steps: With the tax rate adopted and the budget approved, staff will implement the 2025–26 spending plan and proceed with the defeasance escrow steps for callable bonds as authorized by the board. Audit work on 2024–25 will continue, with the audit report expected in January.