Southwest ISD trustees adopt 2024–25 budget, set $1.1598 tax rate and approve bond defeasance

The Southwest Independent School District Board of Trustees approved the 2024–25 district budget, set a total tax rate of $1.1598 and authorized the defeasance of a portion of outstanding bonds to reduce interest costs.

Scott, a district staff presenter, told trustees the district proposes estimated general fund revenue of $162,000,000 against personnel costs of $143,000,000 and non-personnel costs of roughly $32,000,000, producing total expenditures of about $175,000,000 and ‘‘a deficit of almost $13,000,000.’’ The district reported payroll accounts for roughly 83% of total spending.

Staff said state revenue is expected to rise modestly under recent law changes while federal funding is lower than in prior years. The budget presentation noted projected enrollment used for staffing was 14,702, with the district projecting state funding based on an average daily attendance (ADA) of about 13,560.

Trustees approved the child nutrition and debt service budgets as part of the package; staff said child nutrition revenue is about $15,000,000 with planned expenditures near $17,000,000 that will draw on fund balance. Debt-service revenue was shown at about $33,400,000 to cover scheduled bond payments and to enable an additional defeasance (prepayment) of a portion of bonds.

Deputy Superintendent and chief financial officer Brandon and outside finance advisers from Samco briefed the board on defeasance. Samco representatives said paying a small portion of bonds early would save interest (Samco estimated savings in the low six figures) and create capacity for remaining authorized bonding. The board approved a defeasance resolution and directed staff to finalize amounts after tax collections are confirmed.

The board also adopted the district’s tax rates required for truth-in-taxation calculations: a no-new-revenue tax rate of $1.1337 and a voter-approval tax rate of $1.1598 (M&O $0.7217; I&S $0.4381). Staff noted that any levy above the voter-approval rate would require a voter tax ratification election.

Votes at a glance - Final 2023–24 budget amendment (Budget Amendment 14): approved. - Starbase Kelly memorandum of agreement (MOU): approved. - 2024–25 district budget: approved. - Designation of officers (deputy superintendent and CFO for truth-in-taxation duties): approved. - Resolution authorizing defeasance of certain bonds (series 2016 noted): approved; exact defeasance amount to be finalized. - Resolution setting 2024–25 tax rate (total $1.1598): approved.

The board approved the package by voice vote; no opposition was recorded on the motions taken. The district will post budget documents online and return to the board for any required follow-up amendments or to finalize defeasance amounts once collections are known.