PRESIDIO COUNTY — Over the summer, local governments diligently worked their way through the grueling process of setting their tax rates and budgets for the coming fiscal year. Crunching the numbers is not a charismatic process, but the fluctuations in property owners’ tax bills have enormous implications for lower-income earners, from teacher salaries to emergency services to whether or not the courthouse lawn gets mowed.

Presidio County

In Presidio County — one of the poorest in the state — the considerations are never simple. Texas lawmakers tightened the county’s coffers even further a few years ago with the passage of SB 2, which limited annual tax revenue growth. Before the law passed in 2019, local governments could increase their tax revenues by 8% each year without automatically triggering an election, but the law lowered the threshold to 3.5%.

The revenue caps were not intended to reduce the tax burden. Rather, supporters of the law hoped they would force local governments to rein in spending and demystify the property tax process. But critics pointed to the excessive influence they would have on smaller government entities already struggling to survive.

Each year, property taxes are assessed, estimated and collected according to a schedule that involves assessment districts, local tax offices and tax authorities. At the beginning of each year, assessment districts go to work, sending out notices of assessed value in April and May. Independent assessment review boards hear protests through July.

Tax rates are set by city councils, county courts, school boards and special units in August and September, and bills are issued in the fall applying the new tax rates to the assessed values ​​set at the beginning of the year.

Even if the tax rate goes down, it doesn’t necessarily mean property owners’ bills will go down, as assessed values ​​are rising across the tri-county area.

City of Presidio

Last Thursday, the City of Presidio approved its proposed property tax rate for the coming year. All council members voted in favor except Nancy Arevalo, who was unable to attend the meeting.

The tax rate proposed for this year represents an infinitesimal decrease from last year – $0.58126 per $100 of value, compared to $0.581577 last year. The owner of a home valued at $100,000 will see a reduction of less than a dollar.

Last year, homeowners enjoyed a tax cut of about $13 from the previous year, but the price of a few cups of coffee could have a big cumulative impact on the budget. There is a loophole in the state tax code that allows small towns to register as “special districts” and set their tax rates at the 8% growth cap instead of the pre-HB 2 3.5%.

City Administrator Pablo Rodriguez said the city is trying everything it can to fill the gaps – without burdening the city’s already cash-strapped residents. “We don’t want to overburden our taxpayers,” he said.

Property taxes alone are not nearly enough to keep the city in the black. Each year, the money the city collects from its landfill goes beyond its contribution to filling the gaps in other parts of the budget. “At this point, the city is forced to do this,” Rodriguez said.

That’s a concern because the landfill is expected to reach capacity within the next decade. To get ahead of the problem, Rodriguez said he has sent out a request for proposals to engineering and architectural firms for the new landfill.

In the short term, the city has yet to present its proposed budget to the public, but Rodriguez expects there will be little change from last year and spending will remain about the same. The hearing to approve the proposed tax rate will be held next Tuesday, September 3.

Presidio ISD

At last Wednesday night’s board meeting, Presidio ISD approved its proposed tax rate and budget for the coming year. This year’s budget will again be in deficit, albeit a smaller one than in previous years — over the past five years, the district reached a maximum deficit of around $3.5 million in the 2021-22 fiscal year. Last year’s deficit was around $3.1 million; this year’s will be around $2.3 million.

This year, the school district’s property tax will be about 80 cents per $100 of value for maintenance and operations and about 18 cents per $100 of value for debt service – a decrease of about 2.5% and 0.16%, respectively, from last year. The average homeowner will see a bill about $14 lower.

The district’s board met with financial adviser Doug Karr over the summer to set priorities and make cuts where possible. Presidio ISD Superintendent Carmen Rubner described the group as “very collaborative” and working together to make difficult decisions as efficiently as possible.

As a district in an extremely rural, impoverished area, Presidio ISD faces its own challenges. Teacher salaries are, on average, lower than those of comparable positions in nearby districts that are benefiting from the boom in the oil industry.

Those low wages exacerbate the district’s chronic struggle to recruit teachers to live and work in the remote border town. Although teachers from the Philippines bring new perspectives to the district and passionate former Blue Devils have come home to fill key positions, Rubner would like to see more equal opportunity among districts. “If I could wave a magic wand, I would say we need to be able to take care of our people,” she said. “I really think the state should do everything in its power to pay teachers a professional wage.”

As a case in point, Presidio ISD Police Chief Joel Nuñez told the board of trustees that he was short an officer, complicating increasing pressure from the state to take on additional administrative duties and complete additional training. While his officers received a small raise this year, he felt it was not enough to compensate for the demanding job — and his district is not eligible for Border Security grants that have boosted police officer salaries elsewhere in the district. “School districts are on their own,” he explained.

While the wishes of Nuñez and other district leaders will likely go unfulfilled without comprehensive legislative reforms, Rubner wanted to emphasize that everyone in the community is welcome to participate in the budget-drafting process. Ultimately, it’s about making the most of every dollar. “We all need to work together as a community and as a school district to make sure our children get the best education possible,” she said.

Marfa ISD

The Marfa ISD school board met Tuesday night for public hearings on its budget and tax rate — without members of the public in attendance. The council praised district staff for their work over the past week combing through the budget for potential cuts in various programs, resulting in $109,643 in savings and bringing the district’s deficit to just under $1 million at $992,924.

While board members literally applauded this success, board chair Teresa Nuñez lamented that it was “sad” that the district had to be “happy” about this status.

“Someone out there has to listen to us and do something about this,” said board member Rene Gonzales, commenting on Marfa ISD’s ongoing efforts to meet student needs and care for facilities despite inadequate state funding.

Interim Superintendent Arturo Alferez said the latest round of cuts were minor in many places and did not impact instruction. “There were no cuts on the student side,” he said. The cuts included $125,000 saved by using remaining state pandemic funds to pay for a new air conditioning system for the cafeteria. The board recently rejected all bids for a new HVAC system – all of which totaled around $300,000 – and will issue a new request for proposals and look at a new system next fiscal year.

The board discussed the possibility of slightly raising the interest and principal tax rate to raise about $20,000 in revenue to pay off bond debt. However, district finance chief Rosela Rivera said the district is in good shape as far as paying off debt goes and the board can reevaluate the situation next year to see if an increase is needed.

The board approved a budget with revenues of $5.2 million and expenses of $6.3 million, which includes an estimated $1.65 million in repayment, money the district is sending to the state because it is considered a district with “excess assets” per pupil due to the combination of low enrollment numbers and high property values.

The Board ultimately adopted the same tax rates as last year – 0.15465 for I&S and 0.6692 for M&O (maintenance and operations), giving a total rate of 0.82385.

Alferez said the district has not yet made a decision on how to cover the $992,924 shortfall. Normally, the district would have to tap into its fund balance or savings account, which is about $2 million and was boosted by $530,000 from the sale of the Blackwell School to the National Park Service. The district could also generate additional revenue if it is successful in attracting additional students from the early childhood education centers — something the interim superintendent is currently pursuing.

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