If all goes according to plan, there will be no tax increase for residents of the Tomball Independent School District for the third consecutive year.

Tomball ISD Chief Financial Officer Jim Ross presented to the board of trustees last week a proposed budget that maintains the district’s $1.36 tax rate. The board is expected to vote on the proposed budget for approval next month.

Although the $1.36 rate will again remained unchanged, Ross explained an increase will almost certainly be coming next year. Since 2007 when Tomball ISD voters approved a $198 million bond project, the district has undertaken an aggressive construction campaign, resulting in two new schools, several new district administrative and educational facilities and a myriad of upgrades to several district campuses.

In order to help finance the bonds, the district has stated a tax increase would be in the works. But at least for 2010, the rate will remain unchanged.

“I think this shows that we’re working very hard to help people through this difficult time,” Ross said.

In fact, Ross explained the district was prepared for the eventuality that many expected this year: a budget deficit.

While this year’s General Fund Budget, funded by a $1.01 Maintenance and Operation Tax, is balanced at just over $79 million, the district’s Debt Service Fund, maintained by the $.35 Interest and Sinking Tax, comes up $1 million short.

Debt Service revenues are projected at $17,405,230, with expenditures set for $18,405,230.

However, rather than raise the I&S rate, Ross explained the district was prepared for the potential deficit, leaving $1 million in last year’s reserve fund.

“We put that money aside to do exactly what we wanted it to do,” he said.

The proposed budget also presents a balanced Food Service Fund at just over $3.1 million.

This year’s $79 million General Fund is projected to get an increase in revenue of 5.3 percent over 2009-2010, when the district took in $75 million. Of the $79 million the district expects in take in, $50.2 million of that is projected to come from local property taxes, a $55,000 increase over 2009-10. That increase is the smallest in at least four years.

In order to make up the difference, Ross explained, state assistance is increasing for the first time in the same time frame.

“The state is required to make up any losses in the taxable base,” he said. “If it goes up, they get the money. If it goes down, they pay.”

This year, that base went down, resulting in an expected state payment of $27.8 million, an increase of more than $4.5 million over this year.

Prior to the board’s approval of the budget, the district has set a public hearing for July 12 at 5:30 p.m. prior to that evening’s board meeting.

For more information, and to view the complete proposed budget, visit tomballisd.net.

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