Following an Aug. 22 public hearing on the FY 2025 budget and an Aug. 26 public hearing on the tax rate, Village of Salado aldermen unanimously adopted the budget and set the tax rate at $0.4860 per $100 valuation. The tax rate is composed of $0.3019 for maintenance and operations and $0.1841 for debt service costs.

Aldermen unanimously adopted the FY budget on a motion by alderman Jasen Graham that received a second from Zach Hurst.

The budget raises more total property taxes by $604,467 than the 2024 FY budget, an increase of 48.47%. Of that, $205,031.98 is tax revenue from new properties added to the tax rolls this year.

Aldermen also voted unanimously for the $0.4860 per $100 valuation property tax rate. Graham made the motion, which received a second from Hurst.

The tax rate is composed of $0.3019 for maintenance and operations and $0.1841 for debt service costs.

The adopted tax rate is $0.0913 higher than last year’s rate of $0.3947 per $100 valuation. Of last year’s tax rate, $0.1786 was for maintenance and operation and $0.2160 was for debt service.

The average homestead taxable value increased by 12.% to $350,015, up from $312,263.

The taxes payable on the average homestead last year was $1,232, while the taxes payable on the average homestead in 2024 will be $1,701, an increase of 38.01%.

The total tax levy on all properties in 2024 will be $1,851,555, an increase of 48.47% over last year’s total levy of $1,247,088.

A petition to force an election to rollback the tax rate to the Voter Approved Tax Rate of $0.3711 per $100 is currently being circulated. If the petition is determined valid, a May 3 election will be called because the deadline to be put on the Nov. 5 ballot passed on Aug. 19.

If the election passes, the Village will then have to payback the difference between the amount of taxes paid at $0.4860 and the amount of taxes that would be due at the Voter Approve Rate of $0.3711.

For the average homestead value of $350,015, it would be the difference between paying $1,299 and $1,701.

If the petition receives enough signatures to be put on the ballot and if voters vote to rollback the tax rate, the Village would face repayment of those taxes when the fiscal year is three-quarters of the way over.

The Voter Approved Tax Rate of $0.3711 is composed of $0.1798 in maintenance and operations taxes and $0.1841 in debt service.

The adopted tax rate of $0.486 raises $1.15 million in operating revenues, according to the adopted budget. If the election rolls back the tax rate to $0.3711, it would generate $684,894 in operating revenues, a loss of more than $465,000 in operating revenues.

How will the Village pay taxpayers back the $465,000 and meet its escrow obligation of more than $950,000? 

The Village would likely see a mass exodus or lay off of administration and police as a starting point as the Village could find itself unable to make payroll. Where would it end?