Friday, September 27, 2024
The Hood County Commissioners Court voted 3:1 to adopt a no new revenue tax rate of $0.267258 during a regularly scheduled meeting Sept. 24. This rate will essentially decrease the average homeowners’ county taxes by approximately $38.83 compared to last year.
During the meeting, County Auditor Stephanie Matlock provided an update on the financial implications of the proposed tax rates, using a median home value of $335,167. She explained that while the no new revenue rate would reduce taxes, the modest increase option, set at a rate of $0.282622, would only raise taxes by approximately $12. In contrast, the highest proposed rate of $0.309524 would lead to an increase of $102.83.
Hood County Republican Chair Greg Harrell addressed the court during public comments and urged the commissioners to take into account the financial pressures on families in Hood County. While he advocated for the no new revenue rate, he also acknowledged, based on Matlock's updates, that the middle option for the tax rate — a $12 increase — was "pretty modest" as well.
He expressed that he was there to represent many Hood County residents who cannot attend public meetings. Harrell also emphasized the importance of supporting community members facing difficulties in making ends meet — especially during these challenging economic times.
"Times are tough, and so as you consider what to do to move forward, I would just ask you to consider that and keep that in the forefront of your mind,” he said. “There are a lot of people out there who are truly struggling, and I know that responsibility weighs heavy on each of you as well.”
Harrell emphasized that he is not suggesting a delay in decision-making but believes the economy will improve once President Donald Trump is back in office. He expressed optimism that policies implemented after the election will boost the national economy and, in turn, positively impact Hood County’s economy. As a result, he thinks next fiscal year might be a more appropriate time to consider a tax rate increase.
Hood County Judge Ron Massingill agreed with Harrell, stating that a modest $12 increase in taxes would likely go unnoticed by most residents. Massingill explained that the increase would generate around $1.4 million, which he said was “a small price to pay” for extra funding amidst uncertainty about the future.
He then proposed a motion to set the tax rate at $0.282622, but the motion failed for lack of a second.
Precinct 2 Commissioner Nannette Samuelson said she appreciated Harrell’s comments, but that the county has an opportunity to “do something” for the taxpayers.
She noted that recent resolutions require the Hood Central Appraisal District (HCAD) to return excess funds to taxing entities, as they are not allowed to maintain a fund balance. Samuelson pointed out that, similar to the state's surplus of $34 billion during the 88th legislature, Hood County has a fund balance that exceeds its policy limits based on the county’s recent audit. She argued that this money should not be held unnecessarily.
"Our annual audit states that we have a fund balance well above our fund balance policy, so we have an opportunity here to give that money back to the taxpayers,” Samuelson said. “We shouldn't be holding on to money that is the taxpayers just for the purpose of holding on to it.”
Samuelson then moved to adopt the no new revenue rate of $0.267258, and Precinct 4 Commissioner Dave Eagle seconded the motion.
"I would like to see us even go lower than that, but I can live with the no new revenue rate,” Eagle said. “To echo what Commissioner Samuelson said, we passed a resolution not too long ago admonishing the Hood Central Appraisal District for overfunding themselves and then having money left over in a fund balance for a rainy day, so to speak. We did vote on a policy to have about four months into a fund balance that's unallocated, which even making up the difference with the no new revenue rate fund balance, we're still going to be well above that number. I think the prudent thing to do right now is to keep it down as low as we can.”
The motion passed 3:1 with Massingill voting “No.” Precinct 3 Commissioner Jack Wilson was absent from the meeting.
