Gatesville ISD adopts 2025–26 budget, tax ordinance and fund-balance assignments

Gatesville ISD trustees on Aug. 31 approved the district’s 2025–26 operating budget, adopted tax ordinance No. 49 and agreed to a set of fund-balance assignments intended to preserve reserves for debt service and potential drops in state aid. The board voted to adopt the operating budget after a motion from Mary Ann Lee and a second from Charles Alderson.

District financial staff told trustees the budget anticipates roughly $38.6 million in revenues and sets expenditures at about $37.7 million, yielding an $871,000 surplus the staff said is concentrated in debt service and therefore not available for regular operating use. “Remember last year we paid an extra $500,000 because we had extra money in our bonds,” a district staff speaker said, noting the apparent surplus primarily reflects bond-related cash rather than free operating funds.

The staff also presented final budget amendments that reallocated overspent and underspent line items. Officials said the district collected about $600,000 more revenue than originally budgeted but also faced higher-than-expected costs, including a utilities overrun they estimated at roughly $100,000–$200,000 and additional payroll timing costs related to a one-time 13th paycheck and an $8,000 payroll timing issue for some staff.

On revenue variances, the staff reported a shortfall in a federal revenue stream described in the transcript as “Federal grama revenue” (the district said it received about $305,000 less than expected) and an increase of about $650,000 in state revenue. The board approved the final budget amendments and then adopted the operating budget.

Trustees also kept the maintenance-and-operations tax rate unchanged at 0.6969 (including the district’s three “golden pennies”), and retained an interest-and-sinking (sinking) tax rate at 0.20 after staff said they had consulted the district’s financial advisor. The board adopted tax ordinance No. 49, which formalizes the rates and the budget framework; staff noted the district’s total taxable valuation declined about 16%, largely attributed in the meeting to an increase in the homestead exemption to $140,000.

The board approved a fund-balance resolution that assigns $100,000 to a residential-placement set-aside, $500,000 toward property and casualty loss deductibles, $2,000,000 to offset potential future fluctuations or delays in state aid, and $500,000 for major capital acquisitions. The resolution also reaffirmed that campus activity accounts may retain separate checking and fund balances.

The meeting record shows the board then adjourned to executive session. There were no roll-call vote tallies reported in the transcript beyond the chair’s call for “All in favor” and the subsequent announcement that motions passed.