Schertz-Cibolo-Universal City ISD adopts 2025-26 budgets, approves higher M&O tax rate and calls voter election

The Schertz-Cibolo-Universal City Independent School District Board of Trustees on Tuesday adopted the district—s fiscal 2025-26 budgets, approved a higher maintenance-and-operations (M&O) tax rate paired with a reduced interest-and-sinking (I&S) rate, authorized continued early payoff (defeasance) of outstanding bonds, and called a voter ratification election on the tax rate.

The actions came at a special meeting that included a public hearing on the budget and proposed tax rates and several public comments in support of the district.

Brian Moyer, the district—s chief financial officer, told the board the budget package includes three legally required budgets: the general fund, the debt-service fund and the child nutrition fund. Moyer said the general fund budget totals about $178 million and that child nutrition revenue is projected at about $8.7 million with expected expenditures that will reduce the child nutrition fund balance as part of a previously filed spend-down plan. He described an expected drop in taxable property values of roughly 10.5 percent (about $900 million) and said the budget models assume potential constitutional homestead-exemption amendments on the November ballot.

"If we go for all 12 available pennies to us, 3 have a very large match from the state," Moyer said, explaining that state matching "golden pennies" raise state aid and local revenue together. He told the board and audience that the district—s projection for capturing the full available 12 pennies produces roughly $16 million to $17 million in additional ongoing revenue in his model.

Nut graf: The board approved a bundled set of fiscal measures intended to stabilize district finances, fund deferred capital and program needs, and secure state matching revenue that is only available if the district adopts the higher M&O rate and takes the proposal to voters. The measures passed unanimously and trigger a local election asking voters to ratify the higher tax rate.

Most important facts: The board voted 7-0 to adopt the fiscal year 2025-26 budgets for the general fund, child nutrition services fund and debt-service fund; to adopt a total tax rate that raises the M&O component (with a net property tax rate presented as $1.1969 per $100 valuation and described in the meeting as a 9.02% increase); to designate the chief financial officer as the official to calculate the no-new-revenue and voter-approved tax rates; and to call a voter-approval election on the tax ratification question. Trustees also approved a defeasance resolution that authorizes early redemption of outstanding district obligations in a not-to-exceed range described in the agenda and presentation.

During the public hearing, four residents and district employees urged support for the budget and the election. Dr. Irene Petruski, a longtime district resident, told the board she supported asking voters for local funds and urged the trustees to emphasize the district—s financial stewardship and student outcomes when seeking voter support: "Put it out there how much money you have saved the district," Petruski said. Veronica Goldhorn and Carla Barnes announced an intention to form a political-action group, "Students First," to support the election. Allison Miller, a principal, thanked trustees and staff for prioritizing student safety and programs.

Board discussion emphasized that the budget package is the product of months of workshops. Trustee comments repeated that the district has adopted deficit budgets in recent years but historically has not realized large deficits; trustees said the combination of state formula changes, rising costs (retirement system contributions, insurance and other mandates) and falling taxable values prompted the request for additional local revenue.

On debt, trustees approved a defeasance resolution authorizing officials to redeem certain outstanding district obligations with an indicated not-to-exceed range (the presentation referenced a $9 million defeasance figure used in modeling and an agenda range of roughly $8.5 million to $12.9 million). CFO Moyer said prior defeasance steps had saved taxpayers substantial interest and that the district will finalize the exact defeasance amount closer to the escrow setup in February.

Votes at a glance: - Accept certified appraisal rolls for tax year 2025 (Guadalupe and Bexar counties): Passed 7-0. - Designate the chief financial officer as officer to calculate the no-new-revenue and voter-approved tax rates: Passed 7-0. - Approve defeasance resolution authorizing redemption of certain outstanding obligations (agenda range $8,500,000 to $12,900,000; presentation model used $9,000,000): Passed 7-0. - Accept no-new-revenue tax rate and voter-approved tax rate calculations (comptroller schedules): Passed 7-0. - Adopt fiscal year 2025-26 budgets for general fund, child nutrition services fund, and debt-service fund: Passed 7-0. - Adopt 2025-26 maintenance & operations (M&O) and interest & sinking (I&S) tax rates; motion presented as adopting a total property tax rate of $1.1969 per $100 (described in meeting as a 9.02% increase): Passed by record vote 7-0 (roll call recorded). - Adopt order to hold a voter-approval tax ratification election: Passed 7-0. - Approve joint election contract with Guadalupe County Elections Administrator for November general election services: Passed 7-0.

What the actions mean: District leaders said the proposed M&O increase is designed to capture state matching dollars ("golden pennies"), invest in one-time capital and safety projects (fire-alarm upgrades, playgrounds, equipment, technology/device replacements, band and CTE equipment), and provide multi-year compensation planning. CFO Moyer said the proposal is modeled as multi-year revenue (not a one-time infusion) and would preserve or enhance the district—s ability to fund ongoing compensation and program needs.

Budgetary details and clarifications: The child nutrition program shows about $8.7 million in revenue, roughly $11.2 million in expenditures and a planned drawdown of about $2.5 million to a remaining fund balance near $2.0 million as part of a previously filed spend-down plan. The general fund budget cites roughly $178 million in revenue and expenditures with compensation increases embedded: a district decision to provide $2,500 to $5,000 increases to teachers with 3+ years of experience (matching state-directed funding formulas), 3% across-the-board for staff with 0-2 years of service, and absorption of approximately $1.4 million in health insurance cost increases by the district for the upcoming plan year.

Board members and staff repeatedly noted that several items in the budget are one-time capital or deferred projects and that failure of the voter-approved tax ratification in November would require revisiting many of those planned expenditures and possibly freezing or consolidating vacant positions, delaying instrument and technology replacements, or re-evaluating the district—s school security model.

Ending: The board completed its agenda after the votes, set the tax ratification election in November and approved the joint election contract with Guadalupe County. Trustees said they will continue outreach and public information in the coming weeks ahead of the local election.