001Good afternoon. Like to call this public hearing on the budget uh to order at 5:30 Wednesday, August 26 propos. Yes, sir. So, Scott tonight's going to go over his public hearing 2526 budget and also set the 2526 tax rate. I want to thank him and the team uh especially the committee that worked with our budget trying to cut the deficit. We worked really hard and with legislation I think we're going to be in a good place going forward. So he's going to kind of go over those numbers and introduce the budget and also the text that we're going to try to bring to you at the board meeting right after. >> Thank you. Good evening board members. Dr. ball senior staff. Tonight we will have a public hearing on the proposed tax rate and the
002proposed budget that we will approve later on tonight. All right. Tonight we will uh visit about the proposed budget of the general fund, the child nutrition fund and the debt service fund as well as look at the proposed tax rate. Right. All right. So, as we've worked through this process, we know that we are writing a budget that will have a projected enrollment of 15,216 students with an average daily attendance of 13,668. We are hoping that these combined um assumptions yield us a net revenue of 182 million 46,935. And so within that uh revenue we have um a tax collection of a M rate of 72 cents that we're looking to recommend for approval as well as an INS rate of 43810. All right. So our total expenses will be 185 million with a deficit
003that we're recommending um $3.4 million deficit that we're looking at tonight. Any questions on that? All right. As well as the uh budget tonight, um we also have some projects that weren't quite finished and that we'll bring back to you guys in September for our budget amendment. And those are our purchase order rollovers. We just want to bring those to you tonight so you kind of have an idea of what to expect next >> month. And then in September, we're going to do a budget. So these are items like Scott said that we purchased or they've worked on and we haven't received invoices or we haven't received the actual product. So we weren't able to close them out. So we don't want that to impact next year's budget. So that money will go in general
004fund but we will ask for it back to cover those expenses and his general fund and child nutrition. >> Yeah. >> All right. >> As stated earlier, the expected revenue is 182 million with a majority of that coming from state revenue. about 1% comes from federal revenue and 30% comes from local revenue including tax collections. Conversely, we have our expenses. We have 83% of our expenses are for salaries and personnel while 17% of our expenses are for operations. All right. And if we look at those same expenses by function um the next page you can see that our uh most of our most of our budget is put into the function 11 which goes towards direct student expenses and the rest of the budget goes to supporting those student expenses. So we have a whole
005budget dedicated to supporting the students. Any questions on the function? And this is how you all will be approving the budget tonight by the way fund and function. All right. We also break it down by objects. You can kind of see the different um objects object codes that the budget is is written with. Um as you can see, 83% of it is is personnel. The rest goes to various categories. Um we do a lot of professional services and contracted services and so that's the second largest category. And any questions on that? It just depends on like this year I think we're going to spend maybe $30 or less. >> Yeah. >> Some years been more. So we kind of budget 100 and if we don't use it sometimes when we clean up our budgets we'll
006move it out but we can't number. So we we start with 100 and if it goes more then we bring a budget to change that for more or we bring a budget in and move it somewhere else to use some else. >> And then would you say historically the amount has been low? >> It's lower. We haven't had we haven't gone over 100. I've never had usually it's like tonight when we do our final budget I'm moving money out of it to go cover some expenses somewhere else. >> Yeah. >> All right. The next slide we have our campus budget allocations and this is our non-payroll allocation by campus and it's based on the uh 15,216 student enrollment. And just wanted to let you all see that. Moving along, we have the department discretionary budgets.
007Um and those are separated by senior staff who oversee those specific departments. And we have several of those and they are all on these next few slides. Any questions on those? Any questions on the general fund budget before we move on to the child nutrition and debt service budget? So the so the child nutrition budget is the next budget that we will recommend for approval tonight. And tonight we are looking at a $19 million revenue as well as $19 million expenditure. So we're looking to break even. child nutrition budget, as we stated last last week, is um looking to increase their budget based on doing the the supper program as well as some projects they have going on. So, and finally, the third budget we're recommending tonight for approval is the debt service budget and
008our entrance and seeking budget. And for that, we have $33 million revenue with $33 million expenditures. So, and that will cover our bond payment as well as a a diffusance that was approved last week. Any questions on on that one? >> Sure. I'm sorry. >> No, no problem. Aubrey, what is MSG? >> MSG was the um billing organization that we used for Medicaid previously and we're using onboard now. >> That should just say char. >> Yeah. So when we so when we submit for our SHs this company that we contract out gets a percentage and previously we were getting pretty large reimbursements. Uh so that number was a lot higher so we decreased that with some things that are out there in charge but that the company now is on >> insurance is that has
009to do with the Medicaid piece that we were talking about. So we provide services that are covered by Medicaid bill and then they they correct and the the guidelines have changed in terms of what is eligible for billing at this point which is kind of what Brandon is talking about that it's reduced what we're able to actually um be reimbured for. About three years ago, we probably got reimbured about three to four million less than >> due to the new regulations and the changes. >> So that number is kind of high right now, but we don't know. We're starting a new company. We think we get a some better service, some better reimbursements. So we're hoping for a larger reimbursement. So that's why that budget is budgeted there. But then that would be moved like
010we don't reimbursement. All right. >> All right. Moving on to the all budgets page. We have the three budgets that will be approved later on tonight. And a document similar to this will be posted on the website with our approved budget. And any questions on these numbers? Just to talk about this real quick. So just so the board understands. So when you see a like where we put board amendment and then Scott puts on there, okay, changes that we're making to to the actual budget, you all approve this by function. So like function 11. And right now we're asking the board going into next year to approve $13 million. If we decide or we get a request from a department or campus principal, they say they want to move a little bit more into instructional
011resources function 12 that is approved by you. So that's when we bring those board amendments. So y'all approve general fund, y'all approve changes to ch child nutrition fund uh and they really only have two functions and then you also approve that service. So those are the three budgets that we can't move money anywhere across functions without y'all. So that's the that's the key part to those budget amendments that we send everyone also general fund uh like fund balances for these groups are protected also. We cannot add fund balance without y'all's approval because we would be adding to these functions. So anytime we would ask for fund balance we need we seek your approval. Uh normally we do that formally and depending on the project and then we would bring in the budgets make those changes
012and so it be reflected in actual budget. >> All right, moving right along to the tax side of the tonight's presentation. We have the taxpayer notice that we are required to post in the express news as well as post on our website. It doesn't look that. >> Yes. If you look real closely, you can see it was a Oh, it's good. But yeah, I just >> I did that thing with the Apple iPad. Were you? Anyways, all right. So, moving right along, we have the tax rate for, drum roll, please. The tax rate that we are recommending tonight to be approved is a 7217 maintenance and effort tax rate as well as an interest in seeking tax rate of 4381 for a total tax rate of 1.1598 which is the same as last year. So
013>> So this year our our values actually went down. So we brought the certified values early this month for your approval with a new homestead of adding the 40,000 adding 140,000 our values actually dropped uh 2.6% 6%. Uh and so you can see over time starting from legislation back in 20 2018 that we've been compressed especially on the M side uh we've maintained the same tax rate that we asked the voters when we sold our bonds that 200 million. So we're able to make our debt payment. Uh we're also able to still maintain our operations and still work on cutting our deficit. Uh and so we feel like we're in a good good area in our tax rate especially on this side as we still have 50 million out there that we may need to
014borrow here in the future uh as we decide what we do next and then potential capacity. We always want to continue to build capacity a future bond down the road district continues to go. And so tonight we'll also we have the known revenue tax rate that we'll bring to y'all for approval. I'll I'll bring that deal and the voter tax rate voter approval tax rate that I'll bring to y'all at the next the next board meeting here at 545. We'll need to approve those first before we approve that. Y >> absolutely >> I guess you can do that. >> All right. >> That's it. >> Questions. Okay. Thank you. Okay. At this time, are there any public comments on the 2025 2026 budget proposed tax rate? Hearing none, this meeting is journed at 5:43. At
015this time, I'd like to call the special meeting to order. at 5:45 p.m. like to begin with. >> Thank you. Uh please rise if you're able. >> Lord, let us pause in gratitude for the students, staff, and community who we serve daily. And in return for the support that makes our mission possible. Grant us clarity of mind and of heart as we consider choices that shape classrooms, campuses, and futures. May our questions be thoughtful and may our decisions be based on what is best for our students. strengthen our resolve to champion equity, to invest wisely, and to plan not only for tomorrow's needs, but also for the need for the many students to come in the future. May our work tonight be guided by wisdom and compassion so that every decision creates opportunity for the
016young people of Southwest ISD. We ask all these things in your name. Amen. I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. Honor the Texas flag. I pledge allegiance to thee, Texas, one state under God, one and indivisible. >> Thank you, sir. >> Okay. No, sir. consider approval of purchase of Google Workspace licenses. >> Yes, sir. This is one action item we had to add because our Google licenses are coming up September 13th. Uh and so we negotiated uh with a vendor that handles this, the Google Workspace licenses, CWG. um our we were actually going to get an increase to 100,000 uh per year, but we were able to negotiate if we were
017able to sign up for a three-year contract. They reduced that to 63,000 a year, which is what less what we're paying this year. Uh so we're asking the board to approve approve the purchase of Google Worksp licenses on a three-year agreement with CDWG. >> I move. >> We have a motion to approve the purchase of Google space licenses and a three-year agreement with CDWG second. Any questions? Hearing none. All in favor, please say I. >> All opposed? Motion passes. Okay. Consider approval of 2425 final budget amendment. >> Yes, sir. Uh just like I talked about earlier with the the the budget, uh the district is required to get seek approval for y'all for each function. And so we're bringing the final uh budget amendment to show that how much we or it's not necessarily how
018much we spend per function. This is to make sure that we have room that we don't spend more in each function. So I don't know if you remember in the last year's audit, we did have uh one function that we overspent. That was function 23 about like 20,000. Uh it's just something that we have to share with y'all. But we were trying to make sure that we don't do that. So we move money around to cover. We have our end of year expenditures. We make sure that each one of those functions is covered with enough money in those. So I'm asking the board to approve the final budget amendment for 2425. >> I move second. We have >> a motion second we approve the final budget amendment for the 2024 2025 school year. Questions anyone
019hearing? None. All in favor, please say I. I. >> All oppose. Motion passes. Consider approval of 2025 2026 district budget. >> Yes. We're ask recommend to the board to approve the 2526 uh district budget as presented tonight. You have a copy of it on your on on your in front of you on your desk and that will be the official budget going into next year. Will be posted online as soon as all I move a second. We have a motion and second that we approve the 2025 2026 district budget as presented. Questions? Anyone? >> I have a question. Um, last year we approved the budget. It was $12 million deficit. What is it ending now? >> We're still working through that right now because we still have revenue for August to come in. We have
020a settle up which we we're going to probably receive about another 8 million from the state >> due to our growth and we're still we're still getting tax money in. So we're hoping it's going to still be less than 10 million because last year at the end of the year we ended up being $9 million at the end of last year. >> I think it'll probably be either close to that or a little bit less than that. >> So we did it does show that we adopting a $15 million deficit but that is that's if we spent every dollar which we did. Uh and that's because also our revenue is coming in a lot higher just because of our growth in our AVA and our students. >> Any other questions? There's a motion and second
021approve the 2025 2026 district budget as presented. All in favor please say I. >> I. >> All opposed. Motion passes. Consider approval of the no new revenue tax rate and voter approval tax rate for tax year 2025 2026 for Southwest Independent School District. >> Yes. Before the board approves the the actual tax rate, uh property code requires the board to approve the no new revenue tax rate and the voter approval tax rate. The no new revenue tax rate would impose the same total taxes of last year. Uh and then the voter approval tax rate is the highest tax rate the district can set without causing evader or what we call a voter approval tax rate election. So this year's new re no new new no new revenue sorry tax rate is $123724 if per $100
022value and this year's voter approval tax rate is $1.15.98 uh per 100 value and so our maintenance operations uh M rate is 7217 and then interest syncing is 4381 which equals the voter approval tax rate so we approving a rate that meets the qualification So tonight we're asking the board to approve the no new revenue tax rate and the voter approval tax rate for 2526. I move >> a second. There a motion second to accept the no new revenue tax rate and order approval tax rate for the tax year 2025 2026 for Southwest Independent School District as recommended at 1.1598. Questions anyone? Hearing none all in favor please say I. I >> oppose. Motion passes. Thank you. Approval of a resolution setting the tax rate for the 2025 2026 tax year. >> Yes. So, uh
023there is a resolution that's required that needs to be posted on the website. Uh and so tonight we're asking the board to approve the tax rate to cover maintenance and operation expenses and the bond indebtedness which is the INS rate. Uh there is a recommended motion. [Music] >> The motion. >> Oh yes. So we're asking the board to approve the ML rate at 72 cent 17 and the INS tax rate of 43.81 for a total tax rate of $11598. There is a special motion. I move that the property tax rate be increased by the adoption of a tax rate of $1.1598 which is effectively a 3.21% increase in the tax rate. Second >> have a motion and second to approve the tax rate 2025 for the Southwest Independent School District. M tax rate of 7217
024and IMS ins tax rate of 4381 for a total tax rate of 1.1598. Questions anyone? Hearing none all in favor please say I oppose. Motion passes. Okay. At this time, as by sections 551.001 through 551.146 of Texas government code, pursuant to Texas code 551.071 071 attorney consultation regarding legal issues related to public complaint grievances and pursuant to Texas government code 51.074 074 here and consider level three public complaint grievances filed by community member and made against Southwest and board of trustees regarding issues including election concerns and receive conflicts of interest by board of trustes. We will now close session at 554. We come back into open session at 8:24. >> Take two. We come back into open session at 8:24 and go to item 11. Consider and take possible action regarding level three public complaint
025grievances. I move to deny the level three grievances followed by Mr. Bernol on the remedies requested specifically for items one through 13. >> A second motion and second. All in favor please say I. >> I. >> All opposed. Motion carries un. >> Is there any other motions? I move to deny the level three grievances specifically numbered 14 15 and 16 filed by Mr. for now and the remedies requested. >> A second. >> All in favor, please. >> I'd like to go on recording. >> All in favor, please say I. >> All oppose. Motion passes with one extension. Is there any other motion? I move to deny level three grievance number 17, 18, 19, 20, and 21 filed by Mr. Bernol and the remedies requested. >> I second motion second. All in favor? >> I. >>
026All oppose. Any extensions? I do. I abstain. Motion passes. Now we can go to superintendent. >> Excellent. Thank you. We have >> Oh, no. That's okay. We just like to remind the board that we have our very first football game uh this Friday versus Hardenale here at Fraser Field at 7:30. Um and this weekend we do have a volleyball tournament that's going to be held at Legacy. >> If anybody just a reminder to wear your passes if anybody needs any extra, please let me know. Okay. >> Anything else? carrying done this meeting at 8:26. Six.