001All right. So, it's 10:00 a.m. We have a quorum president. We'll start with the pledge of allegiance led by Mr. Chopper and then Leo will do the board mission statement. I pledge algiance 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. >> All right. Board mission statement. Through high expectation and equity opportunity, TMISD will focus on the whole child while provided a safe environment, high quality curriculum with diverse and enriching experiences. Thank you. Any public comments? I'm going to go here. Public hearing. Public hearing. Uh 2025 2026 budget. Before Philip gets started, I just want to thank the board
002uh for taking time out of your busy busy schedule to meet with us. It's very very much appreciated. Thank you. >> Of course. >> Got to get it done so we can spend money, right? >> People are waiting for their money. >> And and you're going to feel like deja vu cuz you've heard you've heard 99.9% of this before. Uh but we have to do it to uh jump through all the hoops and cross all the tees and dot all the eyes so we can adopt our uh historical enrollment. See where we are. We've included that uh and then our property values. You see the separation that we used to have when we had NG and they got their tax break not uh CC polymers now. Uh now, uh we only have one value now
003because they they no longer have their tax exemption. And we're still looking at we're right under 4 billion uh about 3.8 3.9 billion. Here's what our taxes are proposed uh to meet our budget needs. uh tier one tax rate which is the compressed tax rate that's set by the state stays at 61.92 because we did the TR back in 2010 we uh have golden and copper pennies which uh the voters increased back then so that increases our tax rate our middle tax rate to 7575 that doesn't change this year but we'll talk about the debt service later but you'll see the INS rates go up to cover our our debt payments because we're starting to uh borrow money for the new bond rate. So, total tax rate will be uh the lower dollar five. Okay,
004I haven't figured out why this slide doesn't work, but uh the graphic doesn't show, but there's the total tax rate. Uh you can see how it's been compressed back since 1617 when it was. Here's the effect on the average residents. Uh this is from the uh from the appraisal district and uh using our our proposed tax rates on the average on the average residents with the new homestead exemption the additional 40,000 um it reduces the average taxpayer a little over $87. But that's that's completely average. In the general fund, our factor is no change in the tax rate. Uh we're using uh I have to estimate the current certified values from the controller, but I'm use I'm using historical trends to do that. And once again, we won't find that out until this time next
005year, how we settle up uh with the state. like right now I'm finding out uh we just we just found out that uh the controller values are the preliminary controller values for last year uh are the final values. So a year from now we'll find out if u the certified value I'm using here will uh accurately reflect what we're going to get estimated ad the same as 2425 which is creep slowly creeping back up and I use 98% collection rate uh and then um once again tax collections do impact us now so we want to make sure that that we collect all our taxes that will if we if we don't collect taxes it also means that we lose money from the state, which sounds ridiculous. Uh, and then uh the the only risk, like
006I said, is that the state controller certified values at this time next year uh won't be in align with what the appraisal district says. Uh revenue factors, big changes from House Bill 2, an additional, we're estimating over $1 million for the regional insurance aotment to offset our property insurance. The basic cost aotment, uh, almost $400,000 estimated additional revenue. The big one, teacher retention aotment, $4,000 for three and four year teachers and $8,000 for uh teachers with five or more years of experience. Estimated almost seven almost $1.8 million. And then they gave us a small amount for uh increasing pay for all the other people in the district that are not teachers. That was only a little over 140,000 estimated. And then we do have some decreases because our values did drop a little bit. Uh
007I'm lowering property tax revenue a little bit because of that decrease. Uh investment earnings, we lowered it because uh I don't have as much cash to invest. Rates are still pretty good, but uh we just we just have a little bit less cash in the bank. And um I just adjusted the 313 payment a little bit. That's based on our ADA and we're only going to get that for two more years and then the then the uh 313 agreement will be done with CC polymer state revenues. Here's where uh big increase uh which includes the the the retention aotment and all those things that I mentioned. Uh a little over $4.2 million increase the recapture. I'm projecting it to go down a little bit about 40,000. you're still going to fall below 20,000 and then
008the TRS is going to go up a little bit because of the increased salaries. The TRS is going to go up but this cost is not a true cost to us. There's an expense that matches it. That's just an accounting entry that doesn't affect the bottom line. Uh federal revenues max continues to decline. So I've reduced those those revenues a little over $100,000. And then when we looked at the program budgets, uh, campus local budgets, like I said, the process we did this year was we I determined what our positions were, uh, uh, what our proposed what we wanted to do for raises, we calculate that first and then whenever we were short, we went back and looked and see where we could trim and and get a balanced budget. So, we went back to
009the campuses and decreased their local budget 7%. That was a total this is across all five campuses $42,000. Uh debt service went down because we paid off a note, a maintenance tax note that we no longer have to make a payment on. And we did reduce our cost when we uh redid the copier program. And then overall we went back to the departments. Those those cost cuts range from four to 7%. Uh and the reason some of the departments were a little less than 7% was because some of those costs. Some of those have fixed costs like the in the uh uh electricity utilities. That budget is spot on that that I can't cut that. We we have utility expense of about a million dollars. I can't cut that. And then there's fixed cost. There's
010fixed costs that uh can't be cut. But overall, we cut a little over $100,000 from all the other uh campus departments. That means maintenance, transportation, finance, uh y'all's budget, uh everybody's budget got cut a little. >> And I was just going to ask like when you were saying that y'all did some changes like the on all campuses that that y'all cut their budget like or the programs, what programs were you talking? >> Every campus gets a local allocation based upon their enrollment. And so we just reduce the per capita like they get x amount of dollars per kid and high school gets more per kid because they've got way more programs and then it goes down a little bit. Primary and intermediate have a little bit less of a per student rate. We just lowered
011that rate um a little bit. But that covers that's that's their local budget. That's their they can decide where they want to put that money. They can put it in uh staff development. they can put it in uh uh special programs that they do. You know, this doesn't count. This doesn't include all the special programs. It doesn't include GT bilingual state comp. It's just it's basically what the principles control and it they they allocate money to the counselors. They allocate money to the nurse. They allocate money to their budget to run their office, their principal's office. And then they run that's the majority of the instructional supplies that are for the campus for all the core all the core subjects and some of the um and some of the extracurricular the band the choir the
012drill team they they have their budgets to that's 100% local what they control and so and it's based upon a per student per capita and we lowered that a little bit so their so their their allocation went went down a little >> so all the programs got some sort of a budget cut >> some sort of cut yes now then then those special ones I tal told you about, GT, uh, State Comp, Education, all those other ones. They weren't cut maybe as much, but they all were cut some percentage. >> What about the special education programs? Did they get a budget cut? >> They they probably got the smallest cut of all because we've got required expenses. they have some fixed costs that I cannot I can't reduce them because we know that we have
013these fixed costs and we know we're going to have these evaluations and the others things but one good thing we do have some we are getting some we are getting some more money from the state to cover some of the special ed evaluation costs that we have to pay when a parent request evaluation >> I just don't want for like to be honest I mean I'm going to be a voice for these kids so we need to make sure that they don't get their budgets cut too much because >> they they do need a lot of extra Oh, you know, >> well, I will give an example. Special ed is uh they're in the same category. Well, there's a lot of things that are in this category, but we always talk about maintenance. Um if
014something breaks that, you know, could affect the safety or you know, you know, we need electricity, we need there's certain things, you know, we have to have if something breaks, we're going to fix it. And you know, and if it's if it's big and if we have to go into fund balance to pay for it, that's we're going to pay for it. There are required costs for special education. If we have required costs for special education and we need to increase come back and say we've got increased special ed costs, we're going to have to do it. In other words, we're legally bound for those costs and so if we have to incur them, then we'll figure out a way to to cover them. So, uh, special ed is one thing that we we cannot
015not do what we're required to do for special ed. >> Okay. So, what about like also like non- requirements, you know, cuz special ed has um you know, they have their special Olympics as well. We want to make sure that they have that we have it in the budget for them to have their uniforms just like all the other >> discussions. I've had discussions with uh Miss Booker. We figured out a way to uh we've come up with a plan. It involved uh kind of also asking for some help from outside entities, but our plan is to provide new uh uniforms every year for Special Olympics. >> Okay, >> let let me tell you, and I think this will make you feel a little easier. Many times uh the campus budgets um are spent not
016100% but a lot on morale um polo shirts uh lunches that type of teacher appreciation type things. Those things will be hit first. >> Yes. >> But with that being said because they are important too. they are important. >> Um when we start to to get healthier, >> right, budgetly, um I would like to see money going back in to to all of those groups. >> Absolutely. >> Um so we're headed in that direction. So I I believe so, >> but we're not we're not going to allow u services to kids to be cut. >> Okay. Okay. And definitely I stress if if there's any expenditure that has anything to do with student safety or with anything like that because I do not want to hear someone say, "Well, I didn't take care of it
017because Mr. Carol cut my budget or because I tell the principles all the time. I tell the departments all the time." And it's like, yes, we we have to tighten our belts and we have to watch what we spend, but if there's something that comes up that you feel, especially if it impacts student safety or anything, the operation of the building or, you know, so we can conduct instruction safely and the way we need to, you know, I need you have to speak up and we will figure out a way to take care of it. So, uh, uh, don't don't be silent. It doesn't hurt to ask and I don't always say no, especially if if it involves sta safety or uh if it's something important. Yes, >> we're very critical. Uh good things uh
018starting pay teacher salary zeroyear teachers 545 increase and you can see the increases that we did for step one and two which weren't funded by the state. Um and then the 4,000 to 8,000 that was funded by the state. So average increase double digits over 12%. There are some teachers that are getting 14 14 15% increases depending on what step they're um and then the goal was also to work at go across the board with every every division of employee arrays. And so we went with uh 5% of the paygrade midpoint for all our clerical and pair professional staff. Uh and then uh maintenance and transportation we did 3% of their pay grade plus 50 cents and the range of all that is minimum 5% to 7.3% increase uh across the board for all of
019those categories of employees. And then uh looking at uh if you kind of put it all together certified staff that includes teachers but that also includes all the people that aren't teachers, admin and all the other staff. uh diags, all the other special ed staff and all the other people that we have that have what we call certified positions but they're not teachers almost 1.4 clerical and para maintenance and transportation increases and then stipens uh like I said they went down a little bit because we rolled them uh we took a lot of people that we took off the teacher pay scale we rolled their stipens into their into their uh salary. So nobody lost it. No one lost any money. We just reallocated the salaries and included it in their in their uh salary.
020We reallocated the stipens and included in their salary. Um this total, it looks a little low, but it's almost $1.6 million, but remember this is also comparing to last year's base budget. So there's a lot it's a little bit of an apples to orange. We got to remember I'm starting I I go back and start at the base budget and build it back up to what we need to. >> Philip, I have a question. >> Yes, sir. Uh so if you roll back to the general fund uh the factors HB2 funding uh for the earmark for teacher retention and support staff totals just shy of 1.9 million >> and this is you know you said 1.6 so it's about $300,000 different. Is that money that we get from the state is that exclusively earmarked for
021payroll? Well, techn technically whatever we get a word from the state, I know there's going to be some factor. I'm going to have to prove to them that we did however many teachers we report in October, they're going to they're going to there's going to be some mechanism because this has happened before where they've given us money for teachers, we have to prove to them that whatever we did report as teachers and how much money that calculates that they gave us, I got to prove to them that we did turn around and give that as salaries. What's really helping us, remember we were 2.5 in the negative. >> And so we've raised we've raised expenses, but now we've gotten more money. What's really helping us out is that regional insurance aotment, that million we got
022for that. And then the other increases in the per capita rate and those other increases. That's what's that's what's enabled us to to come up and and be at least on sea level uh uh with a balanced budget, >> right? I'm just concerned that we've got we've got those funds rolled into this state money of 13 million, right? Okay. >> So, is that we don't want to if they're telling us that's for that's for payroll. Yes. >> We don't want to include that to offset other expenditures. That's that's kind of buffering >> that zero basy budgeted for what our teachers are and what our positions are. So the expense side is going to cover everything and and >> Okay. So we're matching. >> Okay. >> It was close to about 900,000 we had to match
023if I can remember from also what's really helping is the the personnel cuts that we've made over the last couple years. That's that's significant. >> That was a great question though. And then those summarize the general fund. Uh our our total revenues, our total expenditures. Uh we have a balanced budget, but like I said, uh if you look at um we're still we're still majority locally funded by taxpayers, almost 70% and only 30% of our our general fund comes from the state. Most of the districts I've worked at have been opposite of that. they've been very property poor and the majority of their uh budget and that's where our recapture comes in if it helps a little bit we're helping our neighbors throughout the state >> and so uh once again I'm optimistic that the
0242425 year that's ending basically today because the 31st is on Sunday uh when the dust settles uh we will the initial 2.5 million dollar deficit that we budgeted for. I did luck out. I got an extra $1.4 million from the state that I wasn't counting on. I take no credit for that, but thank God that came in this year. So, that helped wipe out almost half of it. But then with the cuts that we've made and the belt trimming, but we're not gonna we're not gonna not pay for something that we're required to pay for. But I'm very optimistic that when when you see the audit that we will not be taking I I can't promise that it's going to be zero, but it is not going to be 2.5 million. We're not going to
025take $2.5 million. >> Well, you're also selling yourself short. Uh we wouldn't have gotten the 1.4 4 million if you wouldn't have asked for an audit of that school year. So, Philip does that a lot. He he Philip is responsible for that 1.4 million. >> Great job. >> So, uh if you look if you look at what our what we're uh saying our expenditures are next year, uh if if we maintain it, we'll we'll have 2.3 months of operating expense. Once again, you know, we talked about this. There is no legal requirement. We do not we do not have a forward policy that that mandates what our fund balance has to be. General the general rule is you have three months of operating expense. I we are trending back up and that is also one
026of my long-term goals is to always get that number back up above 3 months. We are we are going to take a hit though from the when we were having $3.5 million deficits and 2.5 on first. So that's coming up in a couple of months. Um we're not going to be an A. Looks like we're going to be a C because it lags. It's not current, but then it you'll start seeing it go back up to where it should be. >> Uh then the debt service fund, we talked about that. uh our total outstanding debt principal uh at the end of this year is a little over 153 million because we've start we've already done two bond sales for the current bond program that we're in. Uh our scheduled principle and interest payments a little
027over $1 million for next year. So we're increasing the the INS tax rate to just under 30 cents to cover those payments. Uh we do have a really healthy fund balance in our in our debt service fund. I estimate the fund balance. Oh man, there's a number missing there that should say 25. Um we're almost $3.5 million. I use the same uh collection rate 98% uh to budget for for this fund. And if you look at that, uh we do get uh I do get some investment income. That's what the other local sources is, the 200,000. I do get a little bit of money from the state uh because we get held harmless. Every time they increase the homestead exemption, that affects the INS collections, too. So, we get a little bit of money from
028the state. They pay us back a little bit money to take to take in account those additional homestead exemptions, but we're I'm still I'm still sewing a surplus for next year. So, we will maintain that that fund balance at uh a little over $3.7 million. The food service fund, that's the other legally uh uh adopted fund that you're going to propose that you adopt uh today. Uh this one we're keeping the same. Uh, everybody eats for free. Uh, we do get reimbursed uh, for the elig for a certain percentage of the eligible meals that we serve, but we do have a healthy fund balance and TDA wants us to spend it down. It we are I am showing a deficit budget again, but that's because we we are required to spend this fund balance down
029and we are working to make sure the kitchens we replace equipment. We do uh because we can only spend this money on food service things. We can't spend it on anything else. But um we I am we are required to spend that that fund balance down. And so the fund balance right now I'm estimating it's going to be a little bit over $3 million. That's 10 over 10 months of operating expense. TDA does not like that. I got to we got we got to stay. >> And so is that 2.9 uh including the $600,000 deficit or is that >> No, this is just what I'm predicting the fund balance is going to be at the end like today at the end of this fiscal year. So, if you take it out, it'll drop it back
030down uh probably to less than 2.9 if if if we truly spend this money down like we need to. >> How long do we have to spend it down? >> Well, they want you to do it within a year. And of course, I argue with them. It's like, well, it's almost I'm not going to spend money just to spend money. We I don't think there if if the kitchens need something, we we make sure that they have it. Uh they do uh they do uh tell you you're supposed to do it within a year, but it is logistically impossible for me to spend $2 million in a year. I mean, there's just no need for it. But every year I have to I have to justify to them that we're planning on it. We're working
031on it. Yes, sir. >> Can can money be spent for air conditioning in the cafeteria? So slowly I mean just in the cafeteria >> only anytime you do any kind of capital improvements you have to get it preapproved and you have to uh they will not un unless we could prove that we had a unit that only air conditioned the kitchen because even the commons anything we do in the commons I can't 100% charge to the food service fund because they know that we use that area for other things. It's not just used for the cafeteria. For instance, when we renov we renovated those bathrooms around the corner uh from the commons, I did I was able to charge a percentage of that, but I had to come up with this I had to come
032up with the school schedule and like, well, how how many hours a day is the commons used for food service? And only that percentage could I charge uh for renovating those bathrooms because we said those are the bathrooms that the kids use when they're when they're uh eating lunch or if they're there for breakfast. So they're very very particular about capital outlay and you've got to be able to prove that 100% of what you're spending is only for the cafe really the kitchen part the where they where they prepare the meals it has to be for that area if you do anything outside it it's only a percentage and you have to like not you what's the right word I we uh we uh happily argue with them about I state my case it's like
033well it should be this and then they come back and go. No, you can only do this. So, I try to get as much, but uh dealing with TDA is very very um exhaustive and uh tedious. >> This may sound like a dumb question, but I seriously am wondering why do why do they want you to spend a certain amount of money within a certain amount of time that you have to like I don't understand. The bas the basic the basic rule about this is we have the free and reduced lunch program. And so we've decided to we went on we went on uh C which means every kid eats for free. We were eligible before we were really it wasn't really cost effective for us to do that before because we're we're property wealthy
034and our ecois numbers they were about 60% districtwide but we still it wasn't economically feasible for us to do that. But after Hurricane Harvey, all the districts in in this region, we were eligible for to do to do that. So we did it for four and it's in a four-year cycle to be on C. So we elected to do that. And so what that in effect did is it it allowed us to build up our fund balance because even though every kid was eating for free, every reimburseable meal that we were selling, we were we were getting reimbursed for that 100%. So what they don't what they don't want you to do, you're not supposed to be making money off the federal government. And so then they came in with these rule they've always had
035these rules that said you cannot build up your fund balance from your federal income. Uh and you and you're required to have if you do charge, you're required to make sure that you're charging the same amount as what you're getting reimbursed from the from the feds if you give a free meal to an eligible student. So that's why their rule is you you can't build up your fund balance off the federal government. But in effect, that's what happened with Hurricane Harvey and we were on C for four years. But then uh Mr. Vitri came here and said, "Well, since we built up a fund balance, we can afford to keep feeding everybody for free and try to spend that money down even though that we're still on C, even though it's technically not economically feasible,
036because that's what I can tell you. In the future, in the long-term future, once we spin this fund balance down, we may not be able to offer free lunch to everybody, universal free lunch to everybody because we'll have that we'll be in danger of the fund balance having to be supplemented by the general fund, which a lot of districts that that uh their food service fund loses money every year and the general fund has to make the fund come back into the to the black because they lose money because they don't they they're not able to to sustain the fund uh economically keep it balanced. So in the future we may not be able to to sustain C but for now we've got the fund balance and we can do that. But TDA does not
037allow that expenditure when I when I do the report to say well I'm going to spend the fund balance down. I'm not allowed to say that well I'm going to lose money because I'm still letting everybody eat for free. That's not an eligible That's not an eligible deduction to prove that I'm going to spend the fund balance down, but we are that's one way we are trying to spend the fund balance down. They don't It's They're saying it's not right to make money off the federal government. That's why. >> Okay. Thank you. >> Too bad we can't add a coffee bar. >> I know. >> And then just some future taxation regulations. Uh the MCR, that's the maximum compressed rate. That's what the state says we have to do. And then we have local option
038tax rates. That's the golden and the copper penalties because we passed the TR back in 2010. So we get to add to what the state says we have to compress to. So uh that's our voter approved tax rate. But then I have to do this calculation called the no new revenue tax rate which the controller requires us to do. But since we are completely regulated by the state how we calculate our tax rate, it's kind of this to me it's this feudal exercise that we have to do. But um I have to go through that. I still have to fill out that paperwork uh with the tax assessor collector's office to show that we are following what the state controller wants us to do even though TEA and the state controls what our tax rate
039is. Uh and then voter approved tax rate. Currently, you know, it only affects the INS tax rate. We are allowed to set our tax rate for our INS fund to cover the voter approved debt that we have. Um, and then if we wanted to increase our M tax rate, we'd have to have now they call it a Vader, a voter approved tax, uh, ratification election. Uh, and then, uh, but we're, it's not advantageous for us to to do that at this time. And then we're not doing anymore. We have defeased debt in the past, but you can increase your INS tax rate if you decide to do a defe, but we're not we're not electing to do to defease or pay off some of our inest debt early for next year. And then talking about
040the no new tax rate uh calculation, it's a uniform calculation. All Texas taxing entities have to do it. Like I said, it does not consider that that public school districts in Texas have other tax rate requirements, but I still have to fill it out. Uh and um since technically we are adop we are adopting an M tax rate that is less than the no new revenue tax rate for the controller thing then we're good. But even if even if our M tax rate was higher than what the controller says it is, we still can we still can approve our tax rate what the TA says. Uh we just have to put different language in there. But this year we don't have to put the different language because our tax rate does our uh tax rate
041that we're proposing is less than what the controller says our no new tax rate calculation is. Any questions? Like I said, I know y'all have seen this before, and I appreciate y'all u uh going through all this information for these last two months. The budget process is always a um uh I'll use the word difficult, but it it is a strenuous process and and thanks for uh uh uh paying attention and uh helping us out. >> Thank you all for doing what you've been doing. >> Thank you. It's definitely a challenge. >> It is. Takes a team and y'all did a great job. >> Okay, I went two minutes over. Supposed to only go 15 minutes. >> Uhoh. >> All right. Next item is a German. >> It was my fault. I asked the question.
042>> No, no, no. Those are good questions, though, because there there is uh there's a lot of history behind the chairs that >> Okay. All right. So the next item here is a special call board meeting, right? That's where we're at next. >> And still no public comments. >> No public comments. >> Okay. So first action item here is discuss and consider approval of the 2024 2025 budget amendments. >> Mr. Cal. >> Yes. Um normally uh at the end when I'm when we adopt the budget, that's also my time to double check and make sure project how the year is going to finish. And once again, um I'm hoping that when the dust settles, we will not have a significant deficit budget for the 24-25 year. But I have to look at various functions cuz
043y'all adopt the budget all especially expenditures by function. And so I try to project we we have we have a bi-weekly payroll today and then we have another bi-weekly payroll in two weeks which actually covers the last two weeks of work for August that's going to get charged back to this year. So I project that. I have to project with the TRS. Uh a lot of the TRS expense doesn't get calculated till the end of the month. And then there's various things that have happened during the year. I've been able to cover it. Uh but this is what these amendments are just to cover. I just examined there was a few functions that I've realized we were going to be a little bit short on. Uh function 34 which is transportation. Function 36 which is
044extracurricular. And you know, the good thing about that is I predict we're going to be short on that because we have so many kids go beyond district in athletics and in academics uh to cover that cost. So I'm worried that function 36 might might not be covered. And then it's always a little I always try to keep the budget uh the JJAP we have to purchase two chairs from JJAP every year. Uh and that figure that that expenditure is in a budget all by itself. So I just need a little bit more money to cover that for the year. And so all I've done here is uh put a little bit money in the functions that I want to cover to make sure that I'm covered for the audit. But there is no increase in
045the bottom line. Uh whatever I increased on the expenditure side for a function, I've either reduced another expenditure or reduced revenue and and actually uh recognized some of the salary savings that that we're going to experience this year. So everything nets out to zero. Uh it this is just to increase a few functions. give me a little bit more uh breathing room in some of the functions that I' that I was worried that I might fall short once uh all the audit entries are done. >> Okay, >> questions. >> Mr. President, members of the board, it is the administration's recommendation that the board approve the budget amendments as presented. >> Have a motion. I move that we uh approve the budget amendments. It was me. Sorry, y'all. >> No worries. Second. Do you have a
046second? >> All those in favor? All right. Next item here is discuss and consider authorization for superintendent deputy second superintendent to make end of year budget amendment adjustments not to exceed $35,000 to close out the 2024 2025 budget. >> And then this just to kind of extend from the year-end budget amendments you just approved. This is kind of just like an insurance policy, giving me a little bit more leeway that when when the dust does settle, if another function happens to go over a little bit, I've kept it at 35,000. You're just giving me pre-approval. The auditors are okay with this. You're giving me pre-approval because we cannot adopt any budget change after August 31st. So, this is just like a little insurance thing, giving me a little bit of cushion in case I need
047to bump up another correct another function. And as always, if I do exercise this option, I will come back to you either at the September or the October meeting and I will show you that, hey, I I had to increase this budget by this much. And I'll show it to you just like I would at a regular amendment. It would just you wouldn't have to approve it. It would just be information to you to show that I did have to exercise the authority that you're that I'm asking for today. >> All right. Any questions? >> Mr. President, members of the board, it is the administration's recommendation that the board of trustees approve the authorization for the endofear budget amendments as presented. >> Motion that the board of trustees approve the authorization for endofear budget amendments
048as presented. >> Okay. Second, >> all those in favor. >> All right. Uh the next one here is discuss and consider the adoption of legally required budgets general fund debt service and food service and by major revenue and function category for 2025 2026. Mr. Carol uh all the discussions all the meetings that we have it all boils down to one single sheet of paper as presented that shows the three funds. Once once you adopt this then uh to change those categories that requires a budget amendment. uh for next year. So um this is the last step and we we have to we have to approve uh approve the budget before we can set the tax rate. Any >> questions? Any questions? >> And normally you do them both. You do the budget and then the
049next agenda items tax rate, but we're going to do the tax rate on the 15th. Okay, Mr. President, members of the board, um it is the administration's recommendation to adopt the proposed TLO Midway ISD 2025 2026 legally adopted budgets by major revenue and expenditure function category for the general fund debt service fund and food service fund as presented in the designated attachment. >> A motion. Do you have a motion to adopt the proposed budget for 2025 2026? >> All right, >> I'll second that. >> Second. >> All those in favor? Five. >> All right, the next one here we have is discuss and consider approval of consent agendaformational items July 2025 financial. >> And yes, uh I was able to I did give you a copy of the the July financials. I didn't have them
050ready for the regular board meeting, but I did uh they're there for you. Uh you can see as of through July, if you take out incumbrances, we're only at 85% of the expenditures. So that's where I'm telling you that uh I'm virtually assured that we will not take $2.5 million out of uh and then uh I have every intention at the September meeting, I will give you a preliminary August, uh financials. It won't be final because the audit won't be final by then, but I'll give you uh preliminary August financials next month. And then of course when the audit's done, that that's when that'll be the final um uh financial status of the district once the audit's done. >> Yeah. >> The percentages are so much help when you're looking at like the budget. >>
051It's greatly appreciated. >> Yes. So you're anticipating roughly about a1 and a half to $200,000 deficit Philip >> for the general fund. >> What? Well, I mean you because you has you said that your anticipated fund balance is going to be 8.3 million. Right. >> Right. >> So if you kind of just take the numbers that we have 2.6 six, >> right? Cuz uh if you look on the f first page, this this has encumbrance and encumbrances in it. But yeah, the 2.6 turned into a million because that's with some of the savings that I've recognized. And then that's also because of the 1.4 that we got from the because of the tax value on it and and and I'm and I'm anticipating that that million dollar deficit will get significantly reduced. Any questions? >>
052Mr. President, members of the board, it is the administration's recommendation that the board approve the consent agenda as presented. >> A motion motion. I'll >> second in favor 50. All right. Next item is future meeting September 15, 2025 regular board meeting. And that leads us to the next adjournment. I have a motion to >> I make a motion that we adjourn this meeting. >> I'll second that. >> Second. All those in favor. >> Five of them. Thank you everyone. >> Awesome job. >> Thanks so much for coming here at uh 10. >> Thanks for all you do, Phil. It's kind of historic. We'll never be able to have a meeting at 10 o'clock again after September 1. Why is that? >> Because the new the new requirements are board meetings have to be during uh
053non- workinging hours. So I don't >> September >> I don't starting September 1st. >> So >> we can all take a vacation day in man. Yes sir. Thank you everyone.