Wise County Commissioners will consider the fiscal year 2025 budget on August 26. The proposed budget includes a 1-cent property tax increase, the first increase the county has proposed in at least a decade. AUSTIN JACKSON | WCMESSENGER

A budget crisis caused by a sharp decline in local mineral prices could lead to the first property tax increase in Wise County in at least 17 years.

Wise County commissioners on Monday approved a proposal for a property tax rate of 27.5 cents per $100 for the county’s fiscal year 2025 budget, a 1-cent increase from the current property tax rate of 26.5 cents. Of the 27.5 cents, 22.75 is earmarked for the general fund and 4.75 for the county’s roads and bridges fund.

The proposed rate is still below the county’s tax rate of 28.1 cents without new revenue and its voter approval rate of 29.7 cents.

“This is the first time we’ve raised prices since I’ve been here,” said Wise County Judge JD Clark. “We couldn’t take such a big price drop and still meet our service needs. We’ve walked that fine line to find the right balance.”

With the average property value in Wise County rising to $256,939, the proposed tax rate would increase the county’s share of property owners’ tax bill to $706.58. Last year, the average property value was $233,323 and the average property tax bill was $618.30.

In recent years, Wise County’s growth and skyrocketing property values ​​have allowed county officials to lower or maintain property tax rates since at least 2008, when the county’s property tax rate was 41.1 cents. Yet Wise County’s taxable values ​​have fallen this year, even as the county’s tax revenues have increased by $741 million in new construction and the median value of homes has risen.

The primary reason for the decrease in total taxable value was the 55 percent decrease in mineral values ​​compared to the previous year’s certified values, resulting in a $1 billion decrease in county tax revenue.

“Mineral prices had a significant, drastic impact. Natural gas prices collapsed,” Clark said. “A big reason for that, to be honest, was the liquefied natural gas export ban imposed by the Biden administration.”

(In July, the Associated Press reported that a Louisiana judge had sided with Texas and 15 other states fighting federal measures that affected the export of liquid petroleum to countries without free trade agreements.)

Wise County’s taxable value in next year’s budget is $12.3 billion, compared to $12.5 billion in the current budget. The amount takes into account exemptions and minor refunds, which subtract $1.4 billion from the Wise County Appraisal District’s total of $13.8 billion in certified values.

The proposed rate would generate $33.9 million in general fund revenue next fiscal year, an increase of $641,000. The proposed budget for roads and bridges is $7.8 million, which will be split between the four districts (District 1: $1,981,700; District 2: $2,249,300; District 3: $1,765,000; District 4: $1,872,100). The fiscal year 2024 roads budget was $6.07 million when approved last year. In addition, the county is projecting $8 million in sales tax revenue, an increase from the $6.6 million in the current budget. The proposed budget is balanced with revenues and expenses of $47 million.

The Wise County Commissioners will review the budget and tax rate after a series of public hearings on August 26. The court will meet in the JP Courtroom at the Wise County Law Enforcement Center, 200 Rook Ramsey Drive. The first public hearing begins at 8:35 a.m.

The full draft budget is available online.

Budget highlights

Wise County’s proposed budget calls for a 3 percent raise for each department to be used for employee raises at the discretion of department heads. The budget also calls for separate raises for department heads and elected officials.

The county factored in a 5.4 percent increase in health insurance renewal costs in its proposed budget. Wise County participates in the Texas Association of Counties’ health and employee benefits pool, which Clark said has mitigated the impact of the premium increases.

The Wise County Sheriff’s Office would convert two deputies who previously worked as school police officers in Boyd ISD to full-time deputy sheriffs in the budget proposal. The county chose to enter into an agreement with the Boyd Police Department for that service, driving the change. Wise County will continue to participate in the Senate Bill 22 grant, which supports funding for rural law enforcement. SB-22 funds pay raises for deputies and jailers. The grant would give the WCSO an additional $500,000 for pay raises, and the county would contribute $115,000 to maximize performance pay. The Sheriff’s Office would also hire a full-time public records clerk in the proposed budget to handle an influx of public records requests. The clerk’s hourly pay would be $20. Clark said the budget also takes into account a request from WCSO to convert a part-time position at the Wise County Animal Shelter to a full-time position. The shelter would have a director and four full-time technicians, with some funding left over for part-time work.

The county is also considering increasing police officers’ salaries from $55,000 to $61,000 next year.

Another new addition would be a $6,500 standby allowance for Wise County justices of the peace. Clark said the four counties would rotate on an on-call schedule because the officers have been assigned jail judge duties due to new legislation, adding more responsibilities that the position is not required to fulfill by law.

For Wise County EMS, the proposed budget calls for transferring the last two of six EMS positions originally funded with American Rescue Plan Act funds. The county has absorbed the positions over several budget cycles, and these will be the last two to be transferred to the county’s general fund. While the Alvord EMS station is moving forward, the budget does not yet call for full-time staffing for the station. Wise County EMS plans to staff the station with part-time employees once it is completed. Clark said additional staffing for the new station will be a priority in the budget for the 2025-26 fiscal year.

Wise County is preparing to increase base funding for Wise County Fire Departments by $66,200, bringing the county’s total contribution to the 17 fire departments to $1,251,200.