Texas Tax: Individual taxing entities are responsible for setting tax rates

A 2011 budget for the Hill County Appraisal District was reviewed by its board of directors last week and will now be sent to the taxing entities.

Under state law, the budget must be finalized and sent to the entities by June 15.

With taxing entities facing fiscal restraints in the coming budget year, Chief Appraiser Mike McKibben told board members that the staff had held the line and proposed the same budget amount as 2010.

The amount billed to the entities this past year totaled $955,700, which will remain the same.

In a letter to the entities, McKibben said, "Spiraling costs coupled with the current economy typically leads to budgeting nightmares.

"However, we have harnessed the effectiveness of our organization and were able to develop a budget with no increase from the 2010 budget."

The largest decrease came in the appraisal-review board line item, which dropped $2,500.

Looking at increases, group-health insurance is projected to go up $2,780, and postage was increased $2,590.

The chief appraiser pointed out that merit raises were eliminated from the budget, but it does include a two-percent cost of living increase for employees.

The budget includes a $125,000 contingency fund that is not billed to the entities for such items as legal fees and related services, technology or as emergency operating expenses in the event of unforeseen incident.

Entities are provided estimates on their share of the budget, but it is based on 2009 levies.

Once tax rates are set this fall, the amount of the budget paid by each entity can't be determined until all tax rates are set this fall.

An entities' percentage of the total levy established its share of the budget.

Using the estimate provided based on last year's levy would have Hill County paying the largest percentage of the budget at just over 23 percent, followed by the Hillsboro Independent School District at 18.6 percent and Whitney ISD at 15.5 percent.

The board is scheduled to adopt the budget at its August 16 meeting.

An executive session was held to conduct the annual evaluation of the chief appraiser.

The board commended McKibben for his work, but the evaluation didn't include a raise for 201, leaving his salary at $87,550.

An outline of responsibilities and policies for board members was reviewed.

President Don Ford noted that the general public doesn't know what the appraisal district is or what it does.

Board members said that they regularly are contacted by residents about their taxes or values.

Individual taxing entities are responsible for setting tax rates and sending out tax bills and the appraisal-district staff, not the board, set values which tax bills are based on.

Comprehensive board policies are currently being compiled, and McKibben anticipated presenting them in the fall.

The board was updated on recent successful appeals of the state Property Value Study for the Malone and Bynum independent school districts.

Reappraisal notices were put in the mail the first week in May. The deadline for protests to be filed by property owners is Tuesday, June 1.