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Nueces County staff propose tax rate above effective rate; presentation forecasts $3.63 million in added revenue
Summary
At an Aug. 11 budget workshop, county staff presented a proposed 2014–15 tax rate that would be about 1.5 cents above the effective tax rate and — counting new-growth value — yield roughly $3.63 million in additional revenue; the court set an Aug. 20 vote and two public hearings in September.
NUECES COUNTY — County budget staff told the Commissioners Court at an Aug. 11 budget workshop that a proposed 2014–15 county tax rate would be modestly above the statutory “effective tax rate” and would increase overall county revenues once new growth is counted.
The presenter identified in the record as Steve described the effective tax rate for 2014–15, as shown in staff materials, as about 0.319622 and said the county’s proposed rate was presented at roughly 0.33513. “So we are increasing the taxes, above the effective tax rate,” Steve said during the briefing. Staff reported that adopting the proposed rate would translate to a $3,629,487 increase in total revenue; adopting the effective tax rate alone would capture an estimated $342,000 from new growth, staff said.
Why it matters: county officials must publish a Truth in Taxation notice and hold hearings when a proposed rate will raise taxes above the effective rate. Staff told the court they will post a notice and that two public hearings will be scheduled on Friday, Sept. 5 and Friday, Sept. 12. The court is scheduled to take a roll-call vote on the proposed tax rate at its regular meeting on Aug. 20.
What staff told the court: the presentation separated three components — general fund, debt service and roads — and compared the current adopted rate, the computed effective tax rate, and the proposed rate. Staff cautioned that even where a proposed rate appears a penny lower than the prior year’s adopted rate, individual taxpayers can still face higher bills if their property appraisals rose.
Hospital district and combined rate: staff said the hospital district intends to adopt its effective tax rate (not the county’s proposed rate), which staff presented as lower (about 0.137). Because of that difference, staff said the combined county-plus-hospital rate would be lower by roughly two cents from last year (presented as 0.473 proposed vs. 0.493 last year).
Clarifications and packet corrections: a commissioner pointed out a numeric error in the distributed packet (an average-home-value column listed as $105,018 where staff agreed it should read $108,000). Staff acknowledged the mistake and said corrected sheets would be provided.
Next steps: staff said they will send letters to elected officials this week about the package, publish the required notice, and proceed with the Aug. 20 vote and the two September public hearings. The court’s final action on the tax rate will be the governing body’s formal vote.
