Stafford's City Council and school board will vote Monday, Aug. 24, on a $45.1 million budget that holds the property tax rate flat for a second straight year.
The joint adoption meeting begins at 7 p.m. at the Scarcella Administration Building, 1633 Staffordshire Road. The city's official calendar lists the session as the "Joint City Council/SMSD Budget & Tax Rate Adoption Meeting." Residents can attend in person or watch the livestream at staffordtx.gov.
The proposed tax rate is $1.002121 per $100 of assessed value, split between $0.7869 for maintenance and operations and $0.215221 for debt service. Both bodies approved that same rate unanimously, 14-0, in August 2025 under Board President Ash Hamirani and Mayor Ken Mathew.
Stafford remains the only city in Texas that operates a municipal school district and levies no separate city property tax.
What the budget includes
The proposed general fund budget of $45,113,178 balances revenues and expenditures with no projected surplus or deficit, according to budget workshop documents. As we reported Aug. 11, CFO Dovran Ovezov presented the spending plan across two joint workshops this summer.
Key numbers:
- Certified taxable property values fell 3.16%, from roughly $4.32 billion to $4.18 billion, cutting projected local tax collections by about $1.2 million.
- State funding is expected to rise from $8.67 million to $10.74 million, filling much of that gap through increased Foundation School Program dollars and Teacher Retention Allotment funds.
- Classroom instruction accounts for 54% of spending, up from 53% the prior year. Payroll makes up 77% of total expenditures.
- Teachers will receive step increases costing $101,996. No general pay raises are included.
- The district is boosting its employer health insurance contribution from $250 to $280 per month per employee, at an estimated cost of $96,480.
- SMSD will send $1,573,469 in "Robin Hood" recapture payments to the state.
Bond ordinance also on deck
Monday's agenda also includes a bond ordinance authorizing up to $4 million in SMSD Unlimited Tax Refunding Bonds, Series 2026. The bonds carry a $500,000 gross savings floor as a condition of issuance. Mayor Mathew and Superintendent Dr. Adam Stephens are designated as pricing officers, with RBC Capital Markets underwriting and a scheduled close date of Sept. 15.
What's next
The vote is required under Texas Education Code Section 11.303, which governs the joint budget process between Stafford's city council and school board. The state deadline to adopt the budget is Aug. 31, one day before the new fiscal year begins Sept. 1.
Both bodies must approve the rate for it to take effect. The City of Stafford said the meeting agenda and livestream are available at staffordtx.gov.
