Austin Public School District proposes 1.06% levy increase; audit returns clean opinion

Austin Public School District officials presented a proposed property tax levy of $11,546,212.28 at the district’s Truth-in-Taxation meeting, saying the figure represents a $121,531 increase — about 1.06% — compared with the prior year.

District leadership told the board the levy discussion is required by state timelines and that most district revenue (about 81%) comes from state aid tied to enrollment, with roughly 9% of total revenue covered by local property taxes. Superintendent-level presenters and finance staff explained that the small levy increase mostly reflects a shift in fund allocations — decreases in the general fund and long-term facility maintenance and an increase in debt service — rather than a large new tax burden on operations.

The presentation included a breakdown of how an average $200,000 home’s school portion is allocated across voter-approved operating levies, categorical state-directed components and voter-approved bonds; speakers emphasized that changes in state aid or valuation can shift who ultimately pays (state vs. local). The district noted it expects market values to rise and that shifts from state aid to property taxes can leave total district revenue unchanged while raising local tax bills.

Auditor Sterling Chadick of CLA reported the FY25 audit produced an unmodified (clean) opinion with no findings and no material weaknesses in internal controls. Chadick said the district saw positive operating margins driven in part by record enrollment growth (~88 ADMs) and that the district’s unassigned fund balance at audit was about 16.1% (roughly two months of expenditures), within commonly cited peer ranges.

Finance staff also recommended creating two assigned-fund earmarks from the unassigned fund balance: $3,000,000 for district facility needs and $1,000,000 for Westcott facility needs (the district cited turf replacement as the anticipated Westcott expense). Officials said the earmarks are one-time designations to be drawn down for approved projects and that the balances would not grow unless the board later reallocated funds.

Board members asked clarifying questions about how the state equalization formula and referendum market value affect taxpayers, differences between referendum market value and net tax capacity, and how the district determines fund-balance targets. A motion to approve the levy amount was made and seconded during the meeting record; the transcript does not include a roll-call tally or a final recorded vote on that motion.

What happens next: the board heard public comment and was presented the formal recommendation to adopt the levy. The agenda indicated the levy adoption will be finalized according to the Truth-in-Taxation schedule and the board will return to related work-session items (facility planning and assigned-fund implementation) in January.