A proposal of raising the tax rate from $0.586126 to $0.604974 per $100 valuation elicited conflicting emotions among the Pilot Point City Council members on Aug. 28.
In her financial report, Michele Sanchez, assistant city manager and CFO, explained that with the $0.58 rate, the average tax on a homestead would be $13.55 or 0.78% higher than last year for an average home value.
For the fiscal year that starts Oct. 1, $1.2 million were moved from the Public Safety Fund to balance salaries and benefits.
“The added operational costs of having to bring on so many additional positions have obviously depleted our ability to function,” Sanchez said. “And every year we’re increasing the amount of revenue we’re bringing in from property taxes, and this year … we were able to capture and offset about $1.4 million of that total financial impact of those additional positions.”
To keep the tax rate at $0.586126 would require more money from the Public Safety Funds.
The balance is expected to be in the negatives by the end of the 2026 fiscal year, leading to more debt in the years ahead.
There will still be a “funding gap” that will need to be addressed, Sanchez added.
“The smartest way to do it, I guess, is to keep the tax rate at what we have at 60 cents,” Sanchez said. “Yes, we can put it down to 58, but in two years we’re going to have to put it back up again.”
The proposed $0.60 tax rate would increase annual property taxes by $69.99 or 4.02% on an average homestead.
“It’s not just about property taxes,” Sanchez said. “You want to have balanced building revenue streams from property tax, sales tax and fines. Through these additional sources of income, they will aid in the balance of the budget.”
By raising the tax rate, the hope is to make progress on the Pilot Point Master Plan, including by investing in the city’s growth through renovations and making improvements to the parks.
That process, the city officials hope, would attract investors to full economic growth, which would eventually lower the tax rate, Sanchez explained.
“So, what you’re basically saying is we shouldn’t walk over dollars to pick up pennies?” council member Brian Murrell said.
Mayor Chad Major agreed that the 60-cent rate makes sense.
“Everybody would love to see the lower rate,” Major said. “… I’m just going to be bold. I’m in favor of going with the 60cent rate and going and investing in the future.”
Council members Andrew Ambrosio and Mike Wilson expressed their concerns about the proposed tax rate.
“I’m just very torn,” city council member Ambrosio said, which was a shared sentiment from across the dais.
Wilson expressed his hesitancy about raising the tax rate.
“I’m not totally negative about the tax increase, but I am without something to show for it,” he said.
The discussion came to an amicable resolution.
“We may disagree with the majority when it comes to it, but we are all still united together,” Wilson said.
In the Sept. 11 city council meeting, the residents will have the chance to voice their opinion on the budget and tax rate before the final decision will be made.
Mayor Chad Major and council member Brian Murrell discuss the tax rate at the Aug. 28 Pilot Point Council meeting. Paisley McGee/ The Post-Signal
