Crockett council posts proposed de minimis tax rate to fund pay increases, sets public hearings

The Crockett City Council voted to post a proposed de minimis tax rate and schedule public hearings after a staff presentation showing the change would let the city direct more revenue toward employee pay and retention.

An unidentified presenter (Speaker 6) told council the city’s top priority is "to attract and retain our employees," and explained Crockett’s revenues are roughly split among sales tax, utilities and property tax. Using figures presented to council, the speaker said the de minimis option could raise up to about $500,000 in additional annual revenue without triggering an automatic election and would increase the city portion of the average annual property tax bill by about $86.89.

The presenter showed comparative tax-rate data for about 23 peer cities, noting the city’s current ad valorem rate sits near 56 cents per $100 assessed value and that adopting the de minimis rate would move the city closer to the mid-range of those communities. He also told council the average City of Crockett tax bill (city-only) is $351.83 under current values and that public hearings will be posted and held before the council adopts a final rate at its next meeting in August.

Councilors asked several follow-up questions about assumptions used in the calculations and about alternative revenue options. Concerns included the cost of health insurance and rising fuel costs; the presenter said those two items alone are projected to add roughly $200,000 to the budget. Council members emphasized they prefer the additional revenue be used solely for personnel costs and not to fund unrelated capital projects.

During discussion, members raised utilities issues as well: staff outlined a modest water-rate adjustment tied to increased chemical and treatment costs, and noted capital needs such as a settling pond and lake-valve/dam work with multi-hundred-thousand-dollar estimates.

After discussion, a council member moved to adopt the proposed de minimis tax rate for posting and public hearings; the motion was seconded and carried. Staff said the proposal will be published and hearings held to give taxpayers an opportunity to comment before final adoption.

Next steps: the council will hold the posted public hearings and is expected to consider final adoption at its August meeting.