The Hill County Commissioners Court continued discussing elected officials’ salaries and other budget matters in meetings held Tuesday, August 11 and Wednesday, August 12.
The previous week, commissioners voted to forego a cost-of-living increase for elected officials and only include employees in this year’s adjustment. At that time, County Treasurer Rachel Parker and others expressed concerns about closing the pay gap between department heads and employees, which was one of the issues addressed in the county’s recent salary studies.
County Judge Shane Brassell, who was originally in favor of the proposal, said that after spending more time with the numbers he wanted to make sure that commissioners were aware of the unintended consequences of that decision.
The judge said that leaving elected officials out of the adjustment would destroy the framework that was adopted after the last salary study.
Commissioners ultimately voted to propose a 3.5 percent cost-of-living increase across the board. The proposed salary schedule also includes the previously approved increase for constables and justices of the peace.
Another issue that may have to be addressed is the sheriff’s pay, as the department is looking at a raise for sworn deputies on top of the 3.5 percent cost-of-living adjustment. Because there is not a large gap between pay for sheriff’s office positions, that could result in some employees making more than the sheriff.
Brassell said that he also wanted to revisit the court’s discussion from the previous week about capping longevity pay for employees.
Auditor Amy Peavy reported that the county paid $254,600 in longevity pay last year, and the projected payout over the next year is $279,000. After a discussion during the August 4 meeting, Brassell said that a $4,000/20-year cap was being considered on longevity pay.
At the August 11 meeting, Brassell said that he had changed his mind, calling longevity pay a way to reward loyal employees. The judge said that he is open to reducing the payment slightly to lower how much the county is paying out, if commissioners opt to go that route.
The longevity pay policy is expected to be on a future agenda for discussion.
Commissioners revisited tax rate discussions after proposing the no-new-revenue tax rate for the general fund and the voter-approval rate for FM lateral (road and bridge) the previous week.
Precinct 4 Commissioner Martin Lake again said that he believes the county needs to consider a tax increase as costs continue to rise.
Precinct 3 Commissioner Martin Dudik also questioned whether the county needs to consider increasing the rate, noting that the proposed 3.5 percent cost-of-living adjustment for county employees would require the county to use some of its new-construction revenue. Both the county auditor and treasurer have advised against relying on new-construction revenue for recurring expenses.
Brassell said that he does not foresee new construction declining in the near future but agreed the county needs to be cautious about using the revenue for ongoing expenses.
Precinct 1 Commissioner Jim Holcomb said that while raising taxes is “unpalatable and unpopular,” there may come a point when increasing the rate becomes necessary, even if that point is not this year.
Brassell said that he was comfortable using some new-construction revenue this year but does not want the county to make it a recurring practice.
He also pointed to the Hubbard data center development, which he said is moving forward despite the county’s efforts to address data center development.
Brassell said that one benefit of the county not granting a tax abatement for the Hubbard project is that the full value of the development will be reflected on the county’s tax rolls. As the project is built in phases, portions of the property will move from new construction onto the regular tax rolls while additional phases are added as new construction.
Brassell said that growth could allow the county to lower its tax rate substantially while still maintaining revenue, particularly given state restrictions on how much the county can increase its revenue. He said that could put the county in a position where, even when an increase eventually becomes necessary, the rate would still be lower than it is today for other taxpayers.
The risk, he noted, is that if the new value were to disappear because of a bankruptcy or other major setback, the county’s no-new-revenue rate could increase significantly in a single year.
Brassell said that if commissioners wanted to revisit the proposed rate, they have a short window to do so.
Another meeting was set for Tuesday, August 18, to discuss the proposed tax rate and set public hearing dates.
Brassell was expected to file a proposed budget by the end of last week as commissioners continue working through the draft spending plan.
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