The Liberty Hill ISD board of trustees adopted a budget with a $1.9 million shortfall in its debt service fund during its Aug. 17 meeting.
Board members also approved the district's proposed tax rate at $1.2298 per $100 valuation, a less than 1% decrease from last year’s approved rate. However, due to increased median home values in the area, residents can expect to pay around $185 a month or $2,223 annually towards local school property taxes—up from $168 a month last year. Estimates are based on the area's median home valuation of $320,779, according to district documents.
By the numbers
Liberty Hill ISD’s budget for the 2026-27 school year is made up of three funds:
- The general fund, which pays for routine expenditures like salaries, academic programs, athletics and similar costs
- The debt service fund, which pays the district’s debt
- The food service fund, which pays for food, staff and equipment related to school meals
While the district’s general fund is projected to have a surplus of about $9 million, the district’s debt service fund is facing a $1.9 million shortfall.
Vallery Stone, the district’s chief financial officer, told Community Impact the district is meeting with its financial advisor to explore options. One solution the district is considering is a bond sale, which Stone expects will take place in November.
This sale would include $40 million worth of bonds which officials would allocate toward finishing the construction of Saddleback Elementary School.
LHISD officials expect to “lower” what the district owes through refinancing the debt, Stone said during the Aug. 17 meeting.
Measuring the impact
During the meeting, LHISD leaders also discussed and approved the district’s tax rate for the upcoming year. The adopted tax rate of $1.2298 per $100 valuation is made up of two tax rates.
The maintenance and operations tax rate—which pays for routine costs like payroll—fell by 1.23% from the previous year to $0.7298 per $100 valuation. Meanwhile, the interest and sinking rate—which raises money to pay off the district’s debt—remained flat at $0.5000 per $100 valuation.
Although the district’s combined tax rate is falling, property values in the district are increasing. Stone said the Williamson County Appraisal District assessed that property value growth within the district increased by 5.5%.
Zooming in
With a general fund surplus, LHISD is bringing back programs that were cut, such as its gifted and talented program and bilingual program.
“What we're trying to do as we've added back positions and as we look at our growth going forward is really think about what is sustainable,” Superintendent Travis Motal said.
The district plans to create a “shared” gifted and talented program that considers each campus student population, Motal said. Prior to cuts, LHISD had one gifted and talented teacher at each elementary and middle school.
“We really want to make sure that we are being smart with the trust that the community has given us with their tax dollars, and really think about sustainably going forward,” Motal said.
Last year, voters approved a tax rate increase for fiscal year 2025-26 that increased the M&O tax rate to $0.7389 per $100 valuation, raising revenue that could be spent on staff pay, programs and other operating expenses.
