County property tax cut likely
A property tax rate decrease appears in the future for county residents, pending action by the Johnson County Commissioners Court on Sept. 9.
Commissioners on Wednesday discussed the tax rate and budget for the county’s upcoming fiscal year, which begins Oct. 1.
The proposal for now is to decrease the property tax rate — 38.5 cents per $100 of property valuation — to 37.9 cents per $100.
Commissioners the year before lowered the tax rate from 41.5 cents per $100 to 38.5.
Commissioners plan to take a non-binding record vote on their intention to adopt the proposed rate during Monday’s 9 a.m. meeting. The rate will remain proposed until their official vote on Sept. 9
The proposed rate equals the county’s no new revenue rate based on data collected from the Johnson County Central Appraisal District’s property valuation rolls, County Tax Assessor/Collector Scott Porter said.
“Under the no new revenue rate, when you compare properties from both years you should bring in roughly the same amount of revenue as the year before,” Porter said.
Projected county growth, however, should actually increase county revenues by about $4.5 million, County Judge Chris Boedeker said.
The upcoming year’s budget, while not yet official, appears to be fairly straightforward, Boedeker said.
“I don’t think there are any major surprises or issues this year and everything seems to be going smoothly so far, which is a good thing,” Boedeker said.
Commissioners, as they do each budget year, reminded that while the court sets the tax rate, the CAD determines property values.
Boedeker commended those in attendance during Wednesday’s meeting.
“It’s good to see so many people here,” Boedeker said. “About half of what we do this year happens this week during budget talks. This is where we get our budget priorities in line and discuss a proposed tax rate and I know everybody cares about that. This is where we find a way to fund the services for the people of Johnson County.”
Boedeker quoted former County Judge Roger Harmon in explaining the budget’s big picture.
“Judge Harmon said the goal of this office and this process is to take care of the taxpayers, take care of the residents and take care of our employees,” Boedeker said. “It’s hard to do all three of those and something you just have to find a balance for, but that’s what we hope to do this week as we move into budget season.”
It’s about meeting needs while budgeting conservatively, Boedeker added.
Work on the budget began in February, long before commissioners received tax roll numbers in July. Those early months involved setting priorities and learning budget needs from county department heads and elected officials.
“We look at those things before we know the rolls,” Boedeker said. “Once we know what kind of revenue we can expect, we’re not looking to just spend all that money. It’s not revenue and then find a way to spend it. It’s find out what kind of expenses we need to take care of, take care of our citizens and take care of our employees and find a way to fund that. Fortunately, the numbers have come together pretty effectively this years Ind I’m proud of what we were able to put together.”
The No. 1 priority early on was to have no new tax rate increase, Boedeker said.
In addition to the proposed lower tax rate, commissioners earlier this year increased the local homestead exemption from 3% to 5%.
The budget as proposed invests in existing county employees and facilities and maintains healthy fund balances in case of economic downturn.
The budget addresses infrastructure needs to address growth and upkeep. The budget calls for limited hiring of new employees and includes opportunities to reduce recurring expenses where possible.
The budget increases infrastructure spending by 7.5% and includes a COLA increase for county employees as well as a 2.1% market adjustment.
Commissioners spend much of Wednesday’s meeting discussing proposed pay adjustments for various county positions, increased county funding for Meals on Wheels North Central Texas, the Hope Medical Clinic, new vehicle and equipment purchases and other needs.
Budget discussions are scheduled to continue during the court’s Monday meeting.