Council debates Hood Central Appraisal District budget; motion to disapprove proposed 2026 HCAD budget fails 1–5

The Granbury City Council on Sept. 2 debated whether to disapprove the Hood Central Appraisal District’s proposed 2026 budget and to seek refunds for identified unapproved expenditures, but a motion to disapprove the HCAD proposal failed on a 1–5 vote.

Mayor Jim Jarrett Mayer introduced the item, citing prior years’ HCAD spending that he described as “questionable” and said the city should ask for refunds of money spent on projects the mayor said were not approved by taxing entities. The mayor read invoices from 2021–23 for architectural and site work connected with a proposed HCAD office building and said some funds were later reversed or refunded.

Several council members and HCAD representatives pushed back on the timing and on the scope of the mayor’s requested remedies. Councilmember Rodriguez said requests for refunds and for forensic conclusions were premature because the forensic audit is not complete. HCAD representatives and other councilmembers said HCAD has returned funds in prior years and that the district’s audit and final budget information were still being finalized.

Hood Central Appraisal District staff and a HCAD board representative asked council to defer action or said HCAD had already reduced personnel costs in its proposed budget. HCAD board member Richard Haif (as listed in the meeting record) and HCAD staffer Mr. Law were in the room; Mr. Law told the council he had tried to reduce the budget after earlier discussions.

After extended discussion about deadlines, the practical difficulty of convening all taxing entities to disapprove the HCAD budget within the statutory window, and the status of the forensic audit, the council voted. The motion to disapprove the proposed 2026 HCAD budget and to request refunds for identified unapproved ventures (and any such ventures identified in a forensic audit of the prior five years) received one aye and five nays and therefore did not pass.

Why it matters: The appraisal district administers property valuation and billing that underpins local property tax revenues. Council members raised concerns that some HCAD expenditures in recent years were not adequately justified to taxing entities; others argued the correct path is to wait for the forensic audit and for HCAD to provide its finalized budget to entities for review.

Councilmembers discussed practical constraints: the 30‑day window taxing entities have to disapprove a proposed HCAD budget, the challenge of coordinating multiple entities for a special meeting, and whether HCAD had provided the proposed or final documents in a timely fashion. The mayor asked staff to pursue copies of the forensic-audit reports and the HCAD final budget for further review.

Outcome and next steps: The council did not disapprove the HCAD proposed budget. Councilmembers asked staff to obtain the finalized HCAD documents and to report back. The discussion highlighted tensions between the city and the appraisal district over past expenditures and the timing of audits and budget disclosures.