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District finance staff urge voter‑approved tax rate to close $7.5M shortfall
Summary
Del Valle ISD staff told trustees the district faces an early 2026–27 projected deficit of about $7.5 million and recommended voters be asked to approve a tax‑rate increase that would yield roughly $13.6 million annually; the board discussed calendar and outreach steps needed to place an election on the November ballot.
Del Valle ISD finance staff presented an early forecast for fiscal 2026–27 that shows projected revenue of $137,400,000 against projected expenditures of $145,000,000, leaving an estimated shortfall of roughly $7,500,000. The presentation, led by Ms. Edgar, highlighted major drivers of the deficit — chiefly salaries (about $127,500,000) — and key assumptions including average daily attendance and a 3% increase in property values to $17,100,000,000.
Ms. Edgar framed a voter‑approved tax‑rate election (referred to in the presentation as “VADER”) as the primary mechanism to generate recurring revenue. She said the district’s recommended Scenario 1 would net about $13,600,000 in additional recurring general‑fund revenue while keeping Del Valle among the lower taxing entities in the region. “We cannot afford to mistake temporary breathing room for a sustainable financial plan,” Ms. Edgar said, arguing recurring revenue is needed ahead of planned new costs such as opening North Dale Valley High School.
Trustees pressed staff on scenario mechanics and homeowner impact. Ms. Edgar explained that the board must adopt tax‑rate language before calling an election, that certified property values are expected after July 25, and that the board would need to vote on tax rates and call the election before August 17 to appear on the November 3 general election ballot. She also noted the district believes it may qualify for an efficiency‑audit exemption tied to an earlier county disaster declaration but said staff would confirm eligibility.
The presentation included a breakdown of the district’s tax base (66% commercial/industrial, 34% residential) and flagged concentration risks: the Tesla and Colorado River project together represent a substantial share of commercial value. Ms. Edgar told the board the VADER approach would allow the district both to increase compensation capacity and to maximize certain state funding formulas tied to local rates.
Next steps outlined by staff were refinement of compensation modeling, further scenario work, a plan for public engagement, and calendar checkpoints for formal board action ahead of an August tax‑rate adoption vote and a November election if the board decides to call it.
