Hays County presents proposed 2026 tax rate increase; commissioners highlight growth and service restorations

Hays County staff presented a proposed tax rate for fiscal year 2026 and summarized drivers behind the change during a public hearing at the Commissioners Court.

Nut graf: County budget staff said the proposed rate of 39.99 cents per $100 valuation would fund restored and new services while reflecting population growth and reduced federal grant revenues; the court opened the required public hearing and scheduled a final vote on Sept. 16.

Budget officer Vicki Dorsett told the court that Hays County’s population has grown substantially since 2000 and that some services added with American Rescue Plan Act (ARPA) funding have been folded into the county’s general fund. She noted three main factors affecting the tax rate: voter-approved debt (bond and CO issuances), restored services and program additions (including judicial and behavioral-health services), and a drop in budgeted grant revenue compared with 2025.

Dorsett said the court’s February baseline had been 45.39 cents; the court is proposing 39.99 cents for 2026. She explained the components behind that figure, noting that restoring judicial and behavioral-health services to the general fund equates to roughly 1.25 cents of the rate, while debt service for roads and vertical infrastructure accounts for about 2.75 cents.

The county presented an illustrative household impact example: on a median/representative home value, the increase equates to roughly $19 per month (about $228 per year) under the proposed rate.

Commissioners framed the proposed change as a balance between keeping rates reasonable and funding services required by state law or priorities the court had adopted. Several commissioners stressed the role of population growth and prior reliance on value growth and one-time grant/ARPA funding to keep rates lower in recent years; they said those temporary supports were ending and some program costs must be funded by the general fund going forward.

Ending: The court held the required public hearing and set a final public hearing and adoption vote for Sept. 16 at 1 p.m. Staff provided historical tax-rate charts and documentation to support public outreach in advance of the adoption vote.