The appraisal district submitted the certified Milam County tax roll and it clearly pointed out what I think we all know by now is happening.
We lost a significant portion of our tax base with the closing of Luminant.
Industrial/Personal property values overall dropped from $789 million to $323 million (-$466 million), when you subtract out the drop in environmental exemptions of $177 million that the Luminant plants had claimed, the net loss is $289 million which coincides with the final valuation in the Luminant lawsuit settlement.
This loss in value was partially offset by a significant increase in home values which increased by over $80 million and other structures that went up almost $50 million for a whopping increase of over $130 million in the value of improvements throughout the county.
Land values stayed the same at $294 million taxable. Although market values went up by $200 million, this was offset by an equivalent increase in ag exemptions.
So the result was a drop in overall net taxable value from $1.67 billion to $1.50 billion and a drop in the freeze adjusted taxable value from $1.47 billion to $1.27 billion.
Calculating this last year’s (2017/2018) tax at 70 cents: $1.47 billion times 70 cents plus $1.035 million (tax on freeze properties) equals $11.3 million estimated total county tax that we will collect for use this year.
Calculating the 2018/2019 county tax at 73 cents: $1.50 billion times 73 cents plus $1.113 million (tax on freeze properties) equals $10.3 million which is the estimated tax we will collect for use in 2019. So, we are expecting one million less in county ad valorem tax revenue for use in 2019 even with a 3 cent increase in the tax rate.
We are accounting for this loss in the proposed 2019 budget planning by reducing the tax revenue allocation to the four commissioner precinct accounts by $125,000 each (a total of $500,000), we have cut expenditures in General Fund accounts by a total of some $340,000, and we are expecting an increase in revenue from other sources to cover the other $160,000.
Community communication meetings to explain and discuss the proposed 2019 county budget and tax rate will be held at 6:30 p.m. in the following locations
• Monday, Aug. 20, Milam County Courthouse, Cameron.
• Tuesday Aug. 21, in Thorndale Area Chamber of Commerce,.
• Wednesday, Aug. 22, in Buckholts Community Center.
• Thursday, Aug. 23, Rockdale One-Stop Center.
• Tuesday Aug. 28 in Milano Fire Station. A video of my presentation will be posted on the county website at www.milamcounty.net.
Public hearings will be held at 9 a.m. at the courthouse in Cameron on Aug. 30 and Sept. 5.
These two sessions are for public feedback only and will not include explanations of the budget.
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