Thursday, October 1, 2026
Tolar’s property values are growing faster than those of any other Hood County city, bringing in revenue Mayor Matt Hutsell said is helping pay for the booming small town’s overdue sewer plant replacement. Though a few improvements, some more aspirational than others, remain beyond the city’s budget.
The city council adopted the budget and kept its tax rate at 50 cents per $100 of taxable property value Sept. 21. Neither measure drew comments, questions or discussion during a meeting lasting less than 10 minutes.
The city expects its property tax levy to increase $69,762, or 10.05 percent, to $763,637. New property accounts for roughly three-quarters of the additional revenue.
Tolar’s total market value rose 12.9 percent this year to $208.8 million, more than double its 2021 value, according to the Hood Central Appraisal District. Residential growth helped drive the increase, with homesite land values rising 27 percent and homesite improvement values climbing 19.3 percent.
Even with the unchanged rate, the city tax on the average $264,000 homestead, for example, will rise $36.12 to $1,324.05, according to the city’s tax notice.
Hutsell said growth has helped Tolar afford a roughly $7 million sewer treatment facility that entered service about two months ago. Its predecessor dated to 1978 and had an expected lifespan of 20 years, he said.
“We were able to do the plant because of growth, not due to growth,” Hutsell said.
Although new development pushed the sewer load, it also brought enough customer revenue to avoid several anticipated water and sewer rate increases, including this year, he said. Property taxes also subsidize the plant.
The budget for the fiscal year beginning Oct. 1 includes $1.19 million in general fund spending, up by about 6.8 percent, and $1.54 million in expenses.
The general fund draws on $234,811 in reserves, about one-fifth of its spending, compared with $269,254 budgeted last year.
Sales tax receipts are projected to rise from $230,000 to $250,000. Hutsell hopes eventual extra commercial development, potentially a grocery store, will reduce reliance on property taxes. He recalled that Dollar General’s arrival nearly doubled the city’s sales tax revenue.
Still, Hutsell said the budget leaves some priorities unmet. It maintains $50,000 for street repairs and signs but doesn’t provide for road replacement, he said.
The city also wants to give residents other amenities such as, say, a park, though no such project is yet budgeted. Pending grant applications could still help make one possible, Hutsell said.
Down the line, “we really want to give people some parks, and something just to show, ‘Hey, here’s some amenities to live in Tolar,’” the mayor said, “instead of just billing for things.”
