In a special meeting Friday, April 24, Hill County commissioners passed a resolution on data center regulations and rescinded tax abatement guidelines in response to citizen feedback.
Hill County residents have turned out to speak at recent meetings with concerns about the number of solar, wind and now data center proposals in the area. They have described issues with county road damage, environmental concerns and other impacts.
The lengthy resolution passed by the court will be sent to state lawmakers and regulatory agencies. It asks for enhanced data center regulations, more research into their impacts on infrastructure and requests more county-level authority over the developments.
Commissioners also voted to rescind the county’s latest tax abatement guidelines, which are used to guide tax incentive negotiations. County Judge Shane Brassell said that the document needs to be revised based on citizen feedback.
While the revisions are being discussed, the county will not be in a position to enter into tax abatement negotiations with any company.
Brassell told the court that he’s not sold on the idea that abatements are a good move, and rescinding the current guidelines while discussions continue will hopefully slow down the number of inquiries he receives from companies on a weekly basis.
The judge pointed out that the current guidelines start negotiations for data centers at a 100% abatement. He said that is a bad negotiation tactic and questioned whether abatements are beneficial long term. He noted that without abatements, large developments that are locating in Hill County anyway would immediately add to the county’s tax base, potentially lowering property taxes for residents.
Precinct 1 Commissioner Jim Holcomb, who has consistently voted against tax abatements, said that large capital investments like data centers have been extensively modeled and would likely force the county to lower its tax rate due to the state’s 3.5% revenue cap. While that would reduce taxes for residents, he said it would leave county revenue flat even as population growth increases demand on roads and emergency services, creating a challenge in balancing taxpayer relief with infrastructure needs.
Precinct 2 Commissioner Larry Crumpton said that while large developments may lower taxes for residents, the county’s overall revenue would remain the same, eventually forcing incremental tax increases to cover roads and other needs. “The state put themselves in a position to say we lowered your taxes, and they’re putting it on us,” he said.
Precinct 4 Commissioner Martin Lake commented that the companies are also getting a state sales tax break. He and Precinct 3 Commissioner Scotty Hawkins also said that the projects are tearing up county roads. Hawkins said that he is dealing with a wind farm, solar farm and now data center construction in his precinct, and there is so much truck traffic that he is having trouble spreading rock on nearby roads.
Brassell said that in talking with other county judges, many of them suggest abatements as a tool to have the companies commit to county requirements. But the judge said that looking at the county’s past history and similar situations in other areas, abatements have not been very effective at offering those protections.
“The only way we should enter into an abatement is if the taxpayer wins,” Brassell said. “They’re coming anyway. I’m not in the business of attracting business. Your business needs to make it on your own. I’d rather fund 4-H programs.”
Holcomb presented other issues that he would like addressed in any future guidelines, including ensuring data centers do not use components from China and including language about fire protection, decommissioning and pre-construction road surveys.
County Attorney David Holmes commented that he hopes it is obvious to citizens who have attended recent meetings that the court is openly listening to their concerns. “You are responsive to those, and I applaud all five of you for listening and actually taking some action,” he said.
Holmes also explained that rescinding the tax abatement guidelines will not prevent the county from holding those already entered into tax abatement agreements to their commitments.
The judge asked commissioners to submit their suggested revisions, and the court will discuss a final draft of the new guidelines. Before they are adopted, the judge said he would like to hold a public meeting in the evening to give citizens a chance to provide feedback.
In other action, commissioners authorized Brassell to contact an architect to begin discussions about possibly building an emergency operations facility on land the county recently purchased near the sheriff’s office.
Brassell said that the county does not currently have an emergency operations center and is just exploring options at this point. No action will be taken without the court’s approval, but the vote will allow the judge to start exploring possibilities.
County Extension Agent for 4-H Youth Development Angie Nors presented an update on the county 4-H program.
She said that there are 14 clubs currently operating in the county, and enrollment is up by about 40 youth this year.
There have been 93 educational sessions held since last September, which reached 6,352 individuals. The program has had 118 volunteers assisting with activities since September, and a record number of youth participating in livestock projects at the county fair and other shows.
A wide range of activities continue to be offered, and a new veterinary science program will soon begin to provide training to youth who may want to pursue a career in that field.
The court approved the purchase of laundry equipment at the county jail due to the current machines being at the end of their useful life. The sheriff’s office will purchase washing machines for $24,406 from Ed Brown Distributors with funds already in the department’s budget.
Commissioners also approved the purchase of an asphalt reclaimer in Precinct 2 in the amount of $539,949, with a five-year financing agreement through Government Capital Corporation. The equipment will replace an old reclaimer that is in need of repairs with high maintenance costs.
Precinct 1 was authorized to purchase a 40-foot trailer to haul machine attachments in the amount of $13,500.
Commissioners approved an agreement with Lightstream Networks, which is expected to save the county over $500 per month on its fiber optic internal network system over the current AT&T contract. Information Technology Director Phillip Cantrell said that the company will also offer a 10-fold increase in speed.
The court approved the renewal of the agreement the sheriff’s office has with the U.S. Department of Defense that allows the county to access federal equipment, such as firearms, through the Texas LESO program.
The court also authorized the sheriff’s office to apply for $80,000 in grant funds as allowed by Texas Senate Bill 8. The sheriff’s office is eligible for the funding due to its agreement with Immigration and Customs Enforcement, which allows local agencies to receive state grant funding tied to cooperation with federal immigration enforcement.
The court also observed and recorded the judge’s proclamation declaring April Child Abuse Awareness and Prevention Month in the county and approved the sale of fireworks for Memorial Day in the absence of a burn ban.
The Lakelander 