Wednesday, September 11, 2024
For the first time in several years, the Hood County Commissioners Court proposed an increase to its tax rate for fiscal year 2025 during a regularly scheduled meeting Aug. 13.
The proposed rate is 0.309524 per $100 valuation, marking a one-and-a-half cent increase from last year’s tax rate of 0.282622.
During the meeting, Hood County Judge Ron Massingill highlighted the extensive discussions that took place in previous workshops, where various scenarios were explored to cover increased costs across the county.
“Everybody realizes that there is increased costs and that we're going to really have to increase the tax rate,” Massingill said, adding that the court has worked to lower the tax rate in previous years. “This would kind of give us enough room with the sources of income that the county has to try to keep a balanced budget."
Hood County Auditor Stephanie Matlock confirmed the proposed tax rate would adequately fund the county’s needs, but she emphasized that a few adjustments will still be necessary.
"There's still some more conversations that need to happen, but I think that's a great starting point,” she said.
Precinct 1 Commissioner Kevin Andrews echoed this sentiment, noting the tax rate needs to align with the proposed budget to ensure financial stability.
“We still have a lot of work to do on the budget, and there’s plenty of opportunity for this rate to go down,” he explained. “It makes more sense to propose the rate high and then come down than to propose the rate low and come in a little bit later and have to raise that up. Right now, this matches the budget that we have, and that seems like the best place to start."
However, concerns were raised about the proposed rate, with Precinct 2 Commissioner Nannette Samuelson emphasizing the need for careful scrutiny of expenses. She expressed her desire to find ways to lower the tax rate through finding potential savings and evaluating vendor contracts.
"I'm not really comfortable with this number, and I'm really looking forward to working, getting our pencils out, and figuring out how to get it lowered,” she said.
Precinct 4 Commissioner Dave Eagle emphasized that the rate is preliminary and that the county is establishing a proposed rate, not setting a final rate.
“We may end up at the end of the day with a little disagreement on what we think the rate ought to be, but this right now is just to get something on paper,” he said, adding that he wasn’t comfortable with the particular rate being discussed.
Eagle noted that if costs rise due to hiring additional employees or acquiring new equipment — potentially exceeding last year’s budget — the county will have to either identify areas for cuts or consider raising taxes.
"That's always the dilemma that an elected official is in — setting tax rates," he said. “Please don't take this one as a solid number today, because this is preliminary. I just want you to know that coming from this seat of the commissioners court.”
“This is preliminary,” Precinct 3 Commissioner Jack Wilson added. “But it’s also required by state statute that we establish the preliminary rate in a certain timeline, so that’s the reason it has to be established today.”
Samuelson pointed out this marks the first year the 10% homestead exemption has been implemented, which is expected to lower taxable amounts. She emphasized that this development necessitates greater scrutiny of expenses, which she described as being a “good thing” for the taxpayers.
"This is the first year that the taxable value for the general fund is impacted by that 10% homestead exemption, so it's good for the taxpayers, because they've got the 10% homestead exemption, and it makes us work harder to make sure that we are doing the best that we can with the funds that are in the tax rate. We had a really good session yesterday, but we've got some work to do to get this lower,” she said, referring to the budget workshop held the day before.
Samuelson also provided a comparison of last year's average home value, which was $330,687 at a tax rate of 0.282622 — resulting in a tax of $934.59. With the proposed rate of 0.30952 and an increase in average home value to $334,000, the tax would rise to $1,033.80, reflecting an increase of $99.20.
"We're working on that," she added, highlighting the ongoing efforts to address these changes.
Wilson then made a motion to set the proposed tax rate for the 2024 fiscal year at 0.309524, which was seconded by Andrews and passed unanimously with a 5-0 vote.
Additionally, the commissioners scheduled a public hearing for Aug. 27, to discuss the proposed budget and tax rate for 2025, as required by state law. Eagle entered a motion to hold the hearing, which was seconded by Wilson and also approved unanimously.
