Although the tax rate is set to stay the same in Pilot Point, the real impact should have a small impact on property tax bills.
The chief financial officer and elected officials discussed the proposed budget and the proposed fiscal year 2027 property tax rate of $0.604974 per $100 valuation at the Aug. 13 Pilot Point City Council meeting.
“If we keep the tax rate flat, this is actually an annual decrease of $23.17 on the average homeowner,” said Michele Sanchez, the assistant city manager and CFO.
The city is likely to stay at the flat rate for the next three or four years, she added.
In fiscal year 2026, the average home value in the city was $299,447; in fiscal year 2027, it dropped to $295,614.
“You have to think of the city limits as a whole,” Sanchez said. “If we have more homes come into the tax rolls that are at a lower value, that's going to artificially decrease … everyone's values, so that's an average. Our median home values probably went up, but our average home value went down.”
Sanchez then broke down the impact on a typical taxpayer.
“When you look at our total services year over year, you're looking at a financial impact of $21.93,” Sanchez said. “If you account for the loss in value, assuming your home value went down, and you're paying the same tax rate.”
The financial impact would be less than a 1% increase for residents.
“The total revenue projected in the general fund for next fiscal year is $4.5 million,” Sanchez said. “The largest portion of that is coming from transfers and interest.”
Some proposed general fund revenues include an increase in sales tax, projected to rise because of the number of people moving into Pilot Point and online shopping.
The city’s new waste contract with Republic Services will bring more revenue in franchise fees, Sanchez added.
Development services fees are expected to increase largely because of infrastructure inspections for the new developments.
“The next highest form of revenue the city has is ad valorem taxes; that is your property taxes, ' Sanchez said. “The proposed property tax revenue in the general fund for next year is just over $3 million.”
Public safety accounts for over half of the general fund expenditures, which Sanchez said is common, with sewer being the highest water fund expenditure.
She also shared budget highlights, including a 2% cost of living adjustment for all employees, along with market-rate adjustments for all tech 1, tech 2 and crew leader employees.
“We've had significant issues staffing those positions because they are well under market,” Sanchez said.
Other highlights include implementing the step plan for the police and fire departments on April 1, creating an engineering department intended to save the city money, and adding an employee in the streets and water department in the middle of the year.
The proposed budget also included increasing the number of classes offered at the community center.
The council had no major feedback on the budget and tax rate except to add a sign maker, which will save the city money in the long run.
Another budget discussion is scheduled for Thursday, and then the public hearing and adoption will happen on Sept. 10.
Resident William Harrison thanked council, staff and others for their contributions and work.
Library Director Jenna Glass revealed the top three candidates from the eight applicants who submitted applications for the City Hall Mural Project.
The candidates were evaluated on “artistic quality, their connection to Pilot Point, the level of interaction and engagement that's present in the mural idea, their ability to collaborate, their experience, and then the durability and feasibility of the project,” Glass said.
The highest score went to local artist Justine Scott, with an average score of 88 out of 100 points.
City Manager Britt Lusk shared that the project will align with the city’s downtown master plan.
He added that the council does not currently have the funds to move or build another city hall for the foreseeable future, which Harrison raised as a concern about putting the mural there if that were the case.
The design will need approval from the Library and Cultural Arts Board, the Main Street Board, and a Certificate of Appropriateness from the Historic Review Board.
Then, the final design will be sent to council for approval.
“It will really enhance the Square, and I think that your selection of Justine is an excellent suggestion,” council member Mike Wilson said.
The council agreed, and unanimously selected Scott as the muralist.
During public comment, resident Cindy Farris spoke about the influx of stray cats in her neighborhood; the number has grown to about 150.
She said that a couple of her neighbors now have a flea infestation in their yards, and she worries about the health risks.
“It's a serious problem when fleas infest our yards,” Farris said.
