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Nueces County judge urges holding tax rate steady to build reserves ahead of revenue caps
Summary
At an Aug. 12 budget workshop, the county judge argued for keeping last year’s tax rate steady rather than lowering toward the auditor’s recommendation, saying steady revenue now will help the county cover recurring obligations under an incoming 3.5% revenue-cap regime.
At a budget workshop on Aug. 12, Nueces County elected officials debated whether to keep the county’s current tax rate or adopt a lower rate recommended by county staff. The county judge said holding the rate at last year’s level would let the county bolster reserves and address multiple recurring needs—personnel reclassifications, jail and facilities maintenance, and an expected set of capital expenses—before a state-imposed 3.5% revenue growth cap constrains future budgeting.
County staff presented updated fiscal-year 2019–2020 schedules and projections. One model — a scenario of setting the levy at 1 cent above the effective tax rate — would generate an estimated $5.5 million in additional revenue; under staff assumptions of 100% revenue collection and 94% expenditure realization, that scenario would increase the county’s estimated fund balance by roughly $1.3 million. Auditor staff also showed that the county’s fund balance is currently estimated at about $22 million compared with a $24 million target.
The auditor, while conservative in his projection, proposed a slightly lower general-fund rate (0.262974 in the published scenarios). The judge said he favored maintaining last year’s general-fund rate (0.264913 in the workshop materials), arguing that a higher starting point gives the county flexibility when property values rise next year and the revenue cap takes effect. "If you take a lower floor now," the judge said, "that becomes your new floor under revenue caps and you lose the flexibility to respond to recurring needs."
Commissioners discussed trade-offs. Some members pushed to minimize tax increases and instead identify savings inside the budget; others said that one-time or phased revenues would be insufficient for the county’s immediate capital and personnel priorities. Commissioners also discussed shifting or escrowing budgeted dollars to cover positions that may not be filled immediately, and using monthly monitoring of sheriff overtime to reduce that line item if vacancies are filled.
The court did not adopt a tax rate at the workshop; staff said updated schedules and a final fiscal package would be prepared for the public hearings and regular calendar actions required under Truth in Taxation procedures. The court signaled it would weigh the competing priorities — protecting reserves and addressing infrastructure needs now versus limiting near-term tax increases for residents — before a scheduled vote.
