Fort Bend County faces a financial nightmare
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The Texas Legislature has imposed a 3.5 percent revenue cap on the counties.
In the proposed county budget, various departments have placed their wish list, resulting in a potential increase of $15 million to $20 million over the current year’s budget of $373 million.
The Fort Bend County Commissioners Court has flipped from a Republican majority to 3-2 Democratic Party majority.
What is in store for Fort Bend County taxpayers next year is uncertain. But, if one goes by the discussions in the commissioners court, a financial nightmare is likely, especially with the existing and future liabilities.
First, even to keep the tax rate at the current level, not to speak of any decrease, the commissioners court must have the discipline to prune down the budget and may have to deal with a tax increase, not exceeding the revenue cap.
In the aftermath of Hurricane Harvey, the county commissioned a study and peoples’ expectations are high. The county is banking on peoples’ desire for flood control projects and will likely bring a huge flood control bond.
How much it will cost the taxpayers will depend on the size and scope of the future bond issue.
As if this is not enough, the county judge and the commissioners are talking about a $140 million facility bond.
The discussion involves a $25 million Emergency Operations Center as desired by the county judge, a $28 million multipurpose facility at the Fair Grounds, proposed by Pct.1 Commissioner Vincent Morales, a list of yet to be identified projects by Pct. 2 Commissioner Grady Prestage, and $3.5 million for a museum for the Sugar Land 95, the burial ground unearthed in the Fort Bend ISD school property.
Pct. 3 Commissioner Andy Meyers is not in favor of a facilities bond at this time and his priorities are mobility projects. These projects are in preliminary discussion stage and the commissioners will have a workshop on this topic shortly.
Commissioner Meyers says the county has $400 million in healthcare liability for county employees and the county must find a solution to bring down this liability.
Meanwhile, some of the newly-elected judges are asking for new associate judges and they even got the legislature to approve the creation of new magistrates.
The county budget is already under strain and it is doubtful if commissioners court will be able to add the additional burden to the burgeoning budget.
The budget, the facility bond or the flood control bond will be discussed in public and subject to public hearings.
But the majority of the court may use its election as a mandate from the people for doing these projects, even if it means higher taxes.
The bottom line: Elections have consequences.
Story in contrast
Last week the commissioners court took an action that was in total contrast to the scenario discussed above. It was a measure to save taxpayers substantially.
Pct. 4 Commissioner Ken DeMerchant presented an inter-local agreement between Fort Bend County and Levee Improvement District 14, which was unanimously passed.
The agreement enables Fort Bend County Tax Assessor/Collector to collect the LID tax from residents living in LID 14 and it means a 98 percent savings over the exiting contract.
“Saving taxpayers money through LID reform is very important to me. I will be working with other entities in my precinct to offer the same reform,” DeMerchant said.
The cost-saving initiative was proposed by LID 14 president, Sujeet Draksharam. Earlier, the three-member LID board unanimously voted for tax collection contract to the county tax-assessor.
Most of the LIDS and MUDs engage private tax collection firms. Some have a contract with the county.
LID 14 was paying as much as $26,000 to the outside tax collecting agency and the county would do the same job for less than $400, Draksharam said.
The county tax assessor is already collecting taxes from these residents on behalf of the county, school district and the city. All that the tax office has to do is plug in the LID tax rate in the system.
Commissioner Andy Meyers explained that the private entities have costs to set up the account and maintain it. But, under state law, the county tax assessor can only charge the “incremental costs” of adding the tax base and that amounted to $360 in this particular case.
Recently, LID 14 also hired a new legal counsel, Robert A. Eckels, Partner, Husch Blackwell, LLP, to save costs. Previously, the LID was using Allen, Boone, Humphries & Robinson for legal services.
For the 2018-19 financial year, LID 14 paid about $129,000 for legal services. Under the new contract, the legal services cost should drop by 35 percent, if the same amount of time is billed this year, Draksharam said.
In the proposed county budget, various departments have placed their wish list, resulting in a potential increase of $15 million to $20 million over the current year’s budget of $373 million.
The Fort Bend County Commissioners Court has flipped from a Republican majority to 3-2 Democratic Party majority.
What is in store for Fort Bend County taxpayers next year is uncertain. But, if one goes by the discussions in the commissioners court, a financial nightmare is likely, especially with the existing and future liabilities.
First, even to keep the tax rate at the current level, not to speak of any decrease, the commissioners court must have the discipline to prune down the budget and may have to deal with a tax increase, not exceeding the revenue cap.
In the aftermath of Hurricane Harvey, the county commissioned a study and peoples’ expectations are high. The county is banking on peoples’ desire for flood control projects and will likely bring a huge flood control bond.
How much it will cost the taxpayers will depend on the size and scope of the future bond issue.
As if this is not enough, the county judge and the commissioners are talking about a $140 million facility bond.
The discussion involves a $25 million Emergency Operations Center as desired by the county judge, a $28 million multipurpose facility at the Fair Grounds, proposed by Pct.1 Commissioner Vincent Morales, a list of yet to be identified projects by Pct. 2 Commissioner Grady Prestage, and $3.5 million for a museum for the Sugar Land 95, the burial ground unearthed in the Fort Bend ISD school property.
Pct. 3 Commissioner Andy Meyers is not in favor of a facilities bond at this time and his priorities are mobility projects. These projects are in preliminary discussion stage and the commissioners will have a workshop on this topic shortly.
Commissioner Meyers says the county has $400 million in healthcare liability for county employees and the county must find a solution to bring down this liability.
Meanwhile, some of the newly-elected judges are asking for new associate judges and they even got the legislature to approve the creation of new magistrates.
The county budget is already under strain and it is doubtful if commissioners court will be able to add the additional burden to the burgeoning budget.
The budget, the facility bond or the flood control bond will be discussed in public and subject to public hearings.
But the majority of the court may use its election as a mandate from the people for doing these projects, even if it means higher taxes.
The bottom line: Elections have consequences.
Story in contrast
Last week the commissioners court took an action that was in total contrast to the scenario discussed above. It was a measure to save taxpayers substantially.
Pct. 4 Commissioner Ken DeMerchant presented an inter-local agreement between Fort Bend County and Levee Improvement District 14, which was unanimously passed.
The agreement enables Fort Bend County Tax Assessor/Collector to collect the LID tax from residents living in LID 14 and it means a 98 percent savings over the exiting contract.
“Saving taxpayers money through LID reform is very important to me. I will be working with other entities in my precinct to offer the same reform,” DeMerchant said.
The cost-saving initiative was proposed by LID 14 president, Sujeet Draksharam. Earlier, the three-member LID board unanimously voted for tax collection contract to the county tax-assessor.
Most of the LIDS and MUDs engage private tax collection firms. Some have a contract with the county.
LID 14 was paying as much as $26,000 to the outside tax collecting agency and the county would do the same job for less than $400, Draksharam said.
The county tax assessor is already collecting taxes from these residents on behalf of the county, school district and the city. All that the tax office has to do is plug in the LID tax rate in the system.
Commissioner Andy Meyers explained that the private entities have costs to set up the account and maintain it. But, under state law, the county tax assessor can only charge the “incremental costs” of adding the tax base and that amounted to $360 in this particular case.
Recently, LID 14 also hired a new legal counsel, Robert A. Eckels, Partner, Husch Blackwell, LLP, to save costs. Previously, the LID was using Allen, Boone, Humphries & Robinson for legal services.
For the 2018-19 financial year, LID 14 paid about $129,000 for legal services. Under the new contract, the legal services cost should drop by 35 percent, if the same amount of time is billed this year, Draksharam said.
Reader Comments
CA Garcia • [email protected]JUN 13, 2019 • The comment "The bottom line: Elections have consequences" seem to somewhat suggest that electing dems to the county is causing these problems when in fact for the last 25 years the republicans have been leading this county and its the excess spending by them that is causing these crisis. $ 4oo million in medical future medical liabilities is a lot. It did not happen in the last 6 months. The people making all the money have been the contractors, financial firms, and law firms.