The property tax rate could increase less than a cent after a 6-1 vote at the Board of Trustees’ Aug. 20 meeting.
The proposal would raise the property tax rate from $0.11228 to $0.12 per $100 of taxable value, meaning an increase of $26.37 annually for a house valued at $341,599, the current average taxable value in Tarrant County. A public hearing and the final vote are scheduled for Sept. 10.
Board members and TCC officials highlighted how they are facing budget challenges due to a state tuition freeze, the reversal of a student fee increases and a reduction in anticipated funding from the Texas legislature.
Board President Jeannie Deakyne said she understands taxpayers’ frustration over property tax increases. The board has worked to find sources of revenue through other means, but she said their options are limited.
“I want to be clear that TCC’s recommended tax increase is not the result of unchecked spending or poor financial management,” Deakyne said. “It is the result of a convergence of state policies that have restricted virtually every major source of revenue available to the college at the same time that the cost of serving our students continues to rise.”
Multiple trustees spoke in favor of the property tax rate increase while Laura Forkner Pritchett said the board needed more time to consider other revenue sources.
“I recognize that the board might ultimately approve of the proposed rate, and I respect the perspective of my fellow trustees,” Pritchett said. “However, consistent with my commitment to fiscal responsibility, transparency and protecting taxpayers, I do not plan to vote for a tax rate that exceeds the no-new-revenue threshold.”
Board member Shannon Wood said that a “perfect storm” has been made by low revenue, withheld state funding and Gov. Greg Abbott’s tuition freeze.
“The TCC rate will need to be raised only slightly,” Wood said. “The board of trustees will continue to cut the budget where we can. However, this is the only viable decision TCC can make at this time.”
Veronica Chavez Law said she asked the public for comments and was surprised by the positive feedback on raising the property tax rate.
“I had one individual contact me that said he was not in support of it, but I had several people tell me that they were,” Chavez Law said. “They said, ‘We get it. We understand, and we support that.’”
Two Tarrant Appraisal District candidates spoke in defense of the board’s proposal to raise tax rates. Ambika Sharma said TAD did not impose fair and uniform property appraisals.
“I disagree with the appraisal freezes which … caused downstream impact that created chaos and distress because now you have the agenda item to increase the tax rate,” Sharma said.
John Adams, Texas Bank’s senior vice president of mortgage operations, said the board was making an understandable decision, and it was not the result of any mismanagement of funds.
“No one is ever excited at the specter of an increase in taxes, but I want to say that I understand the need for it in this case,” Adams said.
A budget proposal of $425.7 million also passed by a 6-1 vote. The increase is driven by a 2% salary increase for full-time employees, an 8% increase in staff insurance, purchases of instructional equipment and new buildings involving custodial and maintenance costs.
Pritchett voted against the proposed budget after asking Chief Financial Officer Pamela Anglin why the board could not utilize money from its reserve funds to cover the budget increase.
“It would show that we spent more than we took in that year and then that’s gonna raise flags on the college with our accrediting agency,” Anglin said. “It also would mean that we don’t meet all of the standards for the financial ratios for a community college at the state level.”
