EDIE ZUVANICH
Special to the Press
HUTTO — With the deadline for declaring a tax rate in sight, Hutto’s City Council seems no closer to finding a solution. Three members are standing resolute against anything higher than the no-new-revenue rate. The other four members have said they are willing to cut the budget, but the cuts everyone agrees on so far do not bring the budget low enough to support an NNR rate.
“If we adopt any rate less than 42.29 cents, we are the lowest taxing city in Central Texas,” said Council Member Randal Clark at the Sept. 5 council meeting. “We’re being right in line with responsible numbers. I would argue that no-newrevenue is actually fiscally irresponsible for long-term growth of a fast growing city.”
Hutto’s 2023 tax rate was 42.2114 cents per $100 of assessed taxable property value. An NNR rate would be 39.9553. The rate proposed by the city, and the rate on which the fiscal year 2025 budget is based, is 45.9347 cents — the highest rate the city can set without voter approval.
“The way this is set up is geared, in my mind, for us to argue. We start off in June with a budget that has all the great stuff in it, and then it’s our seven jobs to cut something out of that and no one ever wants to cut anything out because then you make someone upset,” said Mayor Mike Snyder. “I don’t understand
See TAX • page 2 why we always spend more. Just one time try to be more efficient with what we have.”
Snyder, along with council members Dan Thornton and Evan Porterfield, have said their determination to vote against anything other than the NNR rate is intended to invoke discussion that will cut unnecessary spending. The other four members of council have said the tactic subverts the democratic process and is an unrealistic position.
“Last year road maintenance was funded at $1.2 million when we know we need $2.1 million a year based on the independent audit. In addition, the ice storm caused major road repairs not anticipated. That puts a shortfall of $1 million going into the next year with the no-new-revenue,” Clark said.
He added that the fee for 9-1-1 emergency services dispatch provided by the county has increased by $400,000 and that the city promised salary “parity” for employees this year, which would be roughly $789,000 more.
Because of the addition of new properties to the tax rolls, the NNR rate would generate about $2.14 million more in taxes for the city than last year. According to Clark, that additional revenue doesn’t keep up with rising costs the city faces.
“Just adding those three up, you’ve already exceeded the no-new-revenue. We haven’t added any new services we need for the city. We haven’t taken care of inflation. At NNR, you basically stay a bare-bones city without the ability to do the things we want to do, the projects we need to do as a city as we grow,” Clark said.
The no-new-revenue rate would lower the yearly tax bills of residents with homestead exemptions by $3.48 on average. Residents without homestead exemptions would see a drop of $79.64 on average. The voterapproved rate would increase the yearly tax bill for residents with homestead exemptions by $191.35 on average and $123.62 for those without homestead exemptions.
Snyder said that while Hutto’s tax rate is lower than neighboring cities, the comparisons are not valid because different cities support different services and programs. As an example, he pointed out that Hutto does not have its own fire department, as other cities do.
The mayor said he intends to bring a proposal with $4 million in cuts to the Sept. 12 council meeting, with the intention council can begin adding a few items back in rather than sit through another meeting debating which items to remove. He said his proposal would not cut employee pay and benefits or existing infrastructure.
“There ought to be a list of things and (a recommendation) of what you guys spend the extra money on and we have a debate on what to add to the budget as opposed to always what’s taken away. When we’re adding, we’re the heroes because we’re adding, but we’ll argue less. I’m almost positive we’d argue less. Instead we’re at odds every year how to carve something out to get to a level everybody is acceptable with,” Snyder told council.
City Council will continue its budget discussions at 7 p.m. on Sept. 12. The approved tax rate must be submitted to the county by Sept. 15. The city has until Sept. 30 to adopt a final budget.
