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Brenham ISD adopts balanced $65.7M budget, sets M&O rate at $0.6884 and calls voter-approved election
Summary
Trustees approved a balanced $65.7 million budget for fiscal 2025–26, set a maintenance-and-operations rate of $0.6884 per $100 valuation (an effective increase that triggers a voter-approved tax-rate election) and authorized the board to place a VADER and bond measure on the November ballot.
The Brenham Independent School District board on Tuesday approved a balanced budget of $65,698,457 covering the general fund, debt service and child nutrition for fiscal 2025–26 and set a proposed maintenance-and-operations tax rate of $0.6884 per $100 of taxable value.
Chief Financial Officer Daryl St. Clair told the board the proposed general fund total is $58,272,914 and that the combined funds produce a modest projected surplus. He said recent state changes — including a proposed increase to the homestead exemption to $140,000 — require districts to plan conservatively and that the district’s revenue picture depends chiefly on enrollment and property-value growth. "The proposed revenue for the general fund is 58,000,002 set $272,914," St. Clair said when reviewing the packet totals.
The board voted to adopt the tax rate that includes the three additional “golden pennies” beyond the five the board may adopt without voters’ approval; because the adopted rate exceeds the board-authorized maximum-plus-five, state law requires a voter-approved tax-rate election (VADER). St. Clair estimated the three golden pennies would produce about $2.5 million in combined local and state revenue. "The approximate value of these 3 additional golden pennies is about $2,500,000," he said.
Board members discussed the published "effective tax-rate" percentage and the mechanics of comparing the new proposed rate with last year’s rate and the state-compressed rate. After debate a motion to set the M&O rate at 0.6884 passed; trustees then voted to place the VADER question before voters in November. The board also held a separate vote to maintain the interest-and-sinking (I&S) tax rate at $0.0800 per $100 valuation.
The board approved a defeasance resolution to continue paying down bond principal when possible and adopted a reimbursement resolution that allows the district to recoup qualifying operating expenditures from future bond proceeds if bonds are later issued. Those steps were presented as routine financial-management moves to reduce long-term interest costs and protect the district’s fund balance.
