Georgetown concerns over bill reducing voter-approval tax rate
AUSTIN (KXAN) — The Texas Legislature is considering a bill that would reduce the voter-approval tax rate multiplier for counties and municipalities with a population over 75,000.
The voter-approval tax rate is a set rate that plays a key component in determining if a local municipality has to seek voter approval before increasing property taxes. The current voter-approval rate in Texas is 3.5%, so if a local municipality wanted to adopt a rate that’s higher than that threshold, voters must approve it through an election.
Senate Bill 10 in the second special session looks to reduce the voter approval rate from 3.5% to 2.5% for counties and municipalities with a population over 75,000. Texas Sen. Paul Bettencourt, R-Houston and 16 other Texas state senators were authors on this bill.
“[It will be] providing more property tax relief starting next year,” Bettencourt said on the Texas Senate floor on Tuesday.
Georgetown Fire Chief John Sullivan, who joined the department in 2013, said he worries that lowering the voter-approval tax rate will hinder his department’s ability to serve the community.
“It raises some concerns regarding the challenge that we have already with keeping pace with the growth,” Sullivan said. “I’ve been here since 2013 — so a little over 12 years in that time period — we’ve only added one fire engine in that 12-year period for a [city] that went from a population serving about 60,000 people to 140,000 today.”
Data provided by the Georgetown Fire Department shows that since 2011, there has been an increase in Calls for Service (CFS) by almost 280%. The population in comparison has only grown by almost 200%.
Sullivan said at the 3.5% voter approval rate, the fire department would have the ability to hire six firefighters per year and open a new station in the next three years.
“By taking that 3.5% down 2.5%, that puts in jeopardy our ability to be able to respond, and a very likely scenario where it’s going to continue to take us longer to get to those calls,” Sullivan said. “No one likes taxes, and no one likes to have to call 911, but both of them are necessary.”
Georgetown City Manager David Morgan said if SB 10 passes, it would impact Georgetown from having several 100 thousand dollars a year.
“Georgetown has stayed within that [3.5%] threshold. We haven’t had to go to the voters to go beyond that threshold,” Morgan said. “We’re trying to explain what the impacts would be of staying within that 2.5% threshold [instead]. There may be instances where we have to go to the voters based on, just based on growing service needs and adding a fire station or adding a significant number of people in patrol.”
Bettencourt on the floor Tuesday did mention that jails, indigent defense/support services are exempt in the bill. Such indigent services do not include fire, police and general emergency services according to the Texas Comptroller and Indigent Defense Commission. He added that the legislature has already helped fund first responders in Texas other ways.
“I also want to point out that this year — for the first time — we put $90 million into rural ambulances, $331 million into sheriff’s departments,” Bettencourt said.
Senate Bill 10 passed through the Senate on Tuesday. As of Wednesday night, it has been referred to a House Committee.
