Hewitt approves tax hike that will cost average homeowner $137

The council voted unanimously to raise the tax rate from 54.01 cents per $100 valuation to to 54.67 cents. The average homeowner will see a tax increase of $137.29, or 13.2%, according to city of Hewitt calculations.

The approved rate is equal to the “de minimis” rate calculated by the state of Texas, meaning it is the highest rate possible without voter approval.

Mayor Pro Tem Erica Bruce spoke in favor of the new rate, saying Hewitt must plan ahead so it can afford capital projects and pay the salaries of the nine additional firefighters at a planned fire substation. “When we think about the rates tonight, if we don’t adopt the de minimis rate, in my opinion, we’re setting ourselves up for failure,” Bruce said.

Bruce said the council works with the many department heads within the city of Hewitt to create five-year strategic plans every year in order to plan ahead for future expenses.

“We ask them to be good stewards of their budget to stretch every dime,” Bruce said. “We ask them to not just maintain the services that they provide, but to improve them. So if we are not doing the same thing, if we don’t consider a tax rate that’s appropriate for them to meet those needs … I think we owe it to them to plan ahead to make sure we’re providing for what they need.”

Council Member Michael Bancale agreed with Bruce, and pointed out that due to inflation and increasing property values, even if the tax rate was kept the same, residents would pay more money in taxes.

“We’re not just talking about this year’s budget, we’re talking about next year’s budget as well,” Bancale said. “I’m proud of our council, our staff, our city manager for the effort they go through to make sure that we’re not spending money that we shouldn’t spend. So I want everybody to understand that we are stewards of your money. We want to be good stewards of your money. And we take all these things into consideration.”

A public notice by the city of Hewitt shows that the combination of increased tax base and increased tax rate will bring in $8.05 million, an increase of $1.12 million or 16.1% from last year.

With an average taxable value of $215,367, the average homeowner in Hewitt can expect to pay $1,177 in property taxes during the upcoming year. Last year, the average taxable value for homeowners was $192,539, resulting in a tax bill of about $1,040.

State property tax reforms that took effect in 2020 required voter approval for municipal tax rate increases that exceed 3.5%, but gave smaller cities such as Hewitt flexibility to exceed that amount when budgeting for large expenses.

Cities with a population of less than 30,000 can pass a de minimis rate that exceeds the 3.5% rate by the increment needed to raise up to $500,000, without voter approval, according to the Texas Comptroller.

In the case of Hewitt, the de minimis rate of 54.67 cents per $100 exceeds the voter approval rate, which is about 53 cents.

Hewitt council members pointed to firefighting needs as a driver of new costs.

Earlier this month, the council voted to issue $6 million in bonds to fund capital projects, including the new $4.5 million fire substation planned near Old Temple Road and Crestwood Drive.

Fire officials have said continued growth in Hewitt has led to more calls and the need for expansion.

In 2013, when the department last expanded its ranks, firefighters responded to 25 fire calls and a total of 804 calls. Last year, they responded to 61 fire calls and a total of 1,587 calls, officials said.

Bruce said nine new firefighters will need to be hired to staff the substation. The SAFER grant the city has applied for will fund the salaries of six new firefighters for three years, but the city needs to be financially prepared to pay them when that time runs out, Bruce said.

Last year, the council also authorized the purchase of an $841,133 fire engine, paid for by bonds.

Capital projects identified over the next five years in the budget totaled $27.3 million, with about $6.2 million budgeted for the next fiscal year. Ongoing projects include $4 million in improvements to the Commerce Park Water Plant, which consists of a new well and storage tank and is funded by coronavirus relief funds; and the $1.6 million street reconstruction projects at Chaparral Road, Crescent Drive, Will Boleman Drive and C Kay Drive, funded through bonds issued last year.

Castleman Creek Road will also see a $2.2 million street, drainage and utility improvement project, funded by the city’s utility fund.