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Council debates returning roads to county; question raised about losing road-targeted sales-tax increment

City Council of the City of Coffee City ยท May 12, 2025
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Summary

Councilmembers discussed returning city roads to Henderson County. Jeff Blackstone said only 0.25 percentage points of the city's sales tax go to roads and warned the comptroller would not grant an additional 0.25% if the city relinquished road responsibility because that increment is restricted to road use.

Councilmembers discussed the possibility of transferring control of some city roads back to Henderson County and debated how that would affect Coffee City's sales-tax allocations. Jeff Blackstone told the council that only 0.25 percentage points of the city's sales tax are dedicated to roads and warned that if the city surrendered its road responsibilities "the comptroller office wouldn't give us the additional .25% because it would only be allowed to be used on roads." He said council should confirm the implication with the Texas Municipal League and the Comptroller's office.

Mayor Marquis Castleberry said he had spoken with City Secretary Mary McDonald and expressed concern that the county, which is geographically large and "really spread out," may not have the personnel to speed up repairs, so transferring roads might not shorten repair timelines. Council did not take formal action and asked for confirmation from TML or the Comptroller.