Stafford's City Council and school board met the evening of Tuesday, Aug. 11, to work through a $45.1 million spending plan for 2026-27 and take up an ordinance authorizing up to $4 million in refunding bonds, moving both items toward a final vote on Monday, Aug. 24.
The joint workshop at the Scarcella Administration Building, held on the first day of school, was the second of three scheduled budget sessions for the Stafford Municipal School District. CFO Dovran Ovezov was set to present the proposed general fund budget of $45,113,178, which holds the tax rate essentially flat at $1.00212 per $100 valuation despite a 3.16% decline in certified taxable property values.
That property value drop, from $4.32 billion to approximately $4.18 billion, means local tax collections are projected to fall by about $1.2 million. State funding is expected to fill much of the gap, rising from $8.67 million to $10.74 million through increased Foundation School Program dollars and Teacher Retention Allotment funds.
As we reported Aug. 6, the budget dedicates 54% of spending to classroom instruction, up from 53% the prior year. Payroll accounts for 77% of the total. Staff will not receive general pay raises, though teachers will get step increases costing an estimated $101,996, and the district is boosting its employer health insurance contribution from $250 to $280 per month per employee.
Bond authorization
The Aug. 11 agenda called for a formal vote on an ordinance authorizing SMSD Unlimited Tax Refunding Bonds, Series 2026, with a maximum principal of $4 million. The ordinance, drafted by bond counsel Marcus Deitz of Orrick, Herrington & Sutcliffe in Houston, includes a $500,000 gross savings floor as a condition of issuance. If the refinancing cannot hit that threshold, the bonds cannot be sold.
Mayor Ken Mathew and Superintendent Adam Stephens are designated as pricing officers authorized to finalize sale terms. RBC Capital Markets is serving as underwriter, with The Bank of New York Mellon Trust Company in Dallas acting as escrow agent. The bonds are scheduled to close Sept. 15.
Stafford is the only city in Texas that operates a municipal school district. The city levies no property tax for its own operations; the school tax rate covers both city and district debt service.
Enrollment and attendance
The district estimates 3,532 students for 2026-27, down slightly from 3,560 as of April 29. Districtwide attendance fell to 94.7% in 2025-26, a half-point decline that cost an estimated $121,000 in state revenue.
That matters.
High school 10th-graders saw the steepest drop at 1.57 percentage points. Each percentage point of attendance equals roughly $238,000 in state funding.
What's next
An optional third budget workshop is scheduled for Tuesday, Aug. 18. Final adoption of the budget and tax rate is set for Monday, Aug. 24. In August 2025, both bodies approved the tax rate unanimously, 14-0, under Board President Ash Hamirani and Mayor Mathew.
