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Jacksboro City Council votes in favor of carrying the current tax rate into the new fiscal year, though it may not generate enough revenue to balance the budget. Council is expected to adopt the tax rate and final budget at 5:30 p.m. Monday, Sept. 8 at City Hall. Photo/Ashley Anderson
The Jacksboro City Council voted on the tax rate for the next fiscal year, opting to maintain the current rate as city staff continues to balance the proposed budget.
Council took a record vote on a tax rate of $0.695901 per $100 valuation, insisting they did not want to raise the tax rate this year. Still, City Manager Mike Smith said the city may need to at least consider a no new revenue rate of $0.698844 per $100 valuation to balance the new budget, an increase of 0.3%.
“That’s going to be tough to do,” Smith said. “The proposed budget still needs some work.”
Smith was also concerned about Senate Bill 10, currently under review by the Texas Legislature in its second special session, which would reduce the amount of increase a city or county could apply towards ad valorem taxes each year. The bill in question would lower the cap from 3.5% to 2.5% and Smith said he heard that number could be reduced even further, to 1%.
If SB10 were to become law, Smith said it could be detrimental to future budgets. If the city made no changes from the FY 2025-2026 budget to the FY 2026-2027 budget, they’d already be short about $80,000, with prior obligations coming due.
“That’s why my recommendation is we go with at least the no new revenue rate versus the current rate,” Smith said. “If we keep it at the current rate, and next year you can’t raise it more than 1%, we’re already in the hole and it’s going to continue to escalate.”
But even raising the rate to the no new revenue rate would not balance the proposed budget, and the city would need to make cuts or expand revenue sources.
Smith recommended the city increase the capital improvement fee from $3 to $6 per month per water customer, which would help fund payment for new water or sewer lines.
“We’re also going to have to look at our water rates and adjust them once we start trying to pay off the water plant,” Smith said. “There are some pretty tough decisions we’re going to have to make on this budget.”
Council voted in favor of the proposed rate—the same as the current rate—and will adopt the final tax rate and budget Monday, Sept. 8 at City Hall.
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