Hill County Commissioners Court approved a budget and tax rate Tuesday, August 27, ahead of the start of the new fiscal year for the county that begins on October 1.
The adopted total tax rate of $0.405867 per $100 valuation is the calculated no-new-revenue rate and is a three-cent reduction from last year’s rate. While the tax rate is lower than last year, the county is expected to bring in almost 6% more property tax revenue from new property added to the tax rolls this year.
The total tax rate breaks down to $0.345807 for the general fund and $0.060060 for the FM lateral (road and bridge) portion of the tax rate.
There were no public comments on the tax rate, and the proposed rate was approved unanimously.
The court also approved the county budget, which has been discussed in depth at recent meetings and budget hearings with elected officials and department heads. The adopted budget includes estimated FY 2025 revenues of $30,553,618 and expenditures of $32,923,050. The complete document is available for public viewing at co.hill.tx.us, where it can be accessed through the “financial transparency” section of the county website.
There were no comments from the public during the hearing on the budget, but District Clerk Marchel Eubank and Chief Deputy Scott Robinson with the sheriff’s office each voiced concerns about their office’s budgets.
Eubank restated her request for an additional employee in her office due to the challenge of handling an increasing workload. County Judge Justin Lewis responded that she had a valid request and noted that the state continually pushes new requirements down to counties that add to the workload. The judge said that he wished there was a way to give Eubank an extra employee, but said that there are some holes that need to be plugged in the county budget to make funding extra positions possible.
Robinson expressed concerns about the judge’s proposal to have the sheriff’s office come to the commissioners court for approval of overtime expenditures, saying that it adds a burden to the office that he doesn’t believe is fair.
Lewis said that the county has contingency funds for overtime pay, but he wants the department’s overtime expenditures to come before the court. “I respect you and what you’ve done with what you’ve got, but the issue comes down to budget management,” Lewis told Robinson. “We’ve got to plug holes down there and get it under control,” the judge said.
During budget hearings in early August, Lewis said that he intends to vote against any expenditure that is not in the sheriff’s budget beginning October 1. He said that the vast majority of the county’s new revenue is being put into the sheriff’s office to correct budgetary issues.
After closing the hearing, the court unanimously approved the budget.
Commissioners discussed the future of the county’s hotel occupancy tax collection program. Hill County adopted a hotel occupancy tax in 2008, with proceeds supporting efforts to attract tourism. The county has taken several approaches to this in the past, including funding a Lake Whitney tourism website and advertising campaigns.
In 2022, the county contracted with GovOS, a company that identifies locations that should be collecting occupancy taxes and then works to collect and remit the taxes to the county. The court entered into the GovOS agreement in an effort to address the rising number of private property owners opening homes to guests through services like Airbnb and Vrbo.
Lewis said that the court needs to have a conversation about how to structure the program — or whether it should even be continued — due to the administrative costs of collecting the tax exceeding the revenue.
Precinct 1 Commissioner Jim Holcomb said, “I would say if there’s a way to make it efficient and lower the admin costs where they don’t exceed the revenues, we should move forward. If we can’t, we should scrap it.”
The judge asked commissioners to speak to hoteliers in their precincts and collect feedback. The issue is expected to be discussed at the court’s next meeting.
The court approved a previously proposed tax abatement agreement with Hubbard Energy Storage II for a battery energy storage facility after there were no comments during a public hearing on the matter. The motion was approved in a 4-1 vote, with Holcomb voting against the agreement. Hubbard Energy Storage estimates a $115 million capital investment for the project, which is located east of Bynum.
Commissioners proposed the form of a tax abatement agreement for Elawan Pitts Dudik Solar II, which involves a small extension of the company’s solar project. The reinvestment zone includes approximately 21 acres south of Malone adjacent to the first phase of the project.
The company’s proposed capital investment for the second phase is $32 million, which qualifies the project for a six-year abatement that starts at 30% in the first two years, followed by 20% in the third and fourth year and 10% in the final two years of the agreement. The proposal includes the county’s road use agreement and other requirements, such as the $100,000 that the company must set aside with the county for any road damages.
The court approved the reinvestment zone and the proposed form of the agreement, with Holcomb voting against the motions. There were no public comments on either agenda item.
Commissioners discussed a possible interlocal agreement with Emergency Services District (ESD) 1, which has requested to utilize a portion of the county’s Precinct 1 Annex in Huron. The district plans to store fire apparatus at the location due to the convenient location of the annex in Precinct 1. The proposal includes the ESD leasing a 2,500 square-foot area of the property for $500 per month, and the district would cover the expense of any necessary modifications. The court is expected to take action on an agreement at an upcoming meeting.
In other action, the court approved the annual list of residential, non-residential and interagency agreements utilized by the Hill County Juvenile Probation Department, approved allowing Lewis to sign a grant agreement with the Rural Law Enforcement Salary Assistance Program and approved a purchase order for Precinct 2 Commissioner Larry Crumpton to purchase two 2025 Western Star trucks in the amount of $275,716 in the coming fiscal year.
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