The Hill County Commissioners Court opted not to amend the proposed county tax rate after further budget discussions Tuesday, August 18. The court also set public hearings on the county budget and tax rate for September 1.
At an August 4 meeting, the court proposed a combined county tax rate of $0.467890 per $100 valuation. That is an increase of about 3.4 percent over last year’s rate.
The combined rate consists of the general fund rate, used for county operations, and the FM lateral (road and bridge) rate, designated for road and bridge operations. The no-new-revenue rate, which would raise the same amount of revenue on existing properties as last year, was proposed in the general fund. The voter-approval rate, which is the rate that generally triggers an election if exceeded, was proposed for FM lateral.
The average taxable value of a homestead in the county rose over 6 percent this year. With the proposed increase in the tax rate, taxes paid on the average homestead with a taxable value of $207,293 would rise about 10 percent, from $882 to $969.
County Judge Shane Brassell said that he filed the proposed budget the previous week and encouraged commissioners to review it thoroughly as budget discussions continue. He said that the budget was built on the proposed tax rate, and while there are minor corrections that need to be made, it will be a balanced budget at the proposed rate.
The proposal includes some pay adjustments that were recommended during recent budget hearings and a 3.5 percent cost-of-living adjustment for all employees. Brassell said that while not everyone got all of their budget requests, he feels it is a decent give and take in the budget.
Commissioners have been discussing their desire to increase salaries to recruit and retain employees as surrounding counties and employers continue to raise wages. The county has struggled to keep up as a rural county, although it has been pointed out that the county offers substantial benefits.
That, combined with rapidly rising costs of heavy equipment and other county supplies, led to discussions after the tax rate was proposed about whether a tax increase should also be considered in the general fund.
Tax Assessor-Collector Krissi Hightower pointed out that even without a tax increase, the county is bringing in about $3.5 million more than the amount the voter-approval rate would have brought in last year, thanks to new construction in the county. She also noted that whatever tax rate the county sets is the baseline for calculating the no-new-revenue rate next year.
Precinct 1 Commissioner Jim Holcomb said that would be a dangerous precedent to set. Hightower agreed, adding, “We’re getting quite a bit more money this year than in previous years, and I suspect it will be the same thing next year.”
Brassell, who voted against the tax increase proposal earlier in the month, said that he is against raising taxes as residents are struggling in the current economy.
“This is more money than the county has ever gotten,” he said. “I think we’ve budgeted wisely with this proposed budget and there’s not a bunch of fat. I’ve made my position clear on raising taxes.”
Precinct 4 Commissioner Martin Lake said that he wanted to get the county’s salaries up to be competitive and said that while he will not be on the court soon, he does not think the county needs to leave $4 million on the table that could be used to help the county meet these goals.
Lake made a motion to increase the proposed general fund rate to the voter-approval rate, but there was no second, and the motion died.
Commissioners will hold a public hearing on the proposed budget and tax rate Tuesday, September 1, at 8:30 a.m. in the county courtroom of the courthouse.
The Lakelander 