Commissioners adopt proposed budget and tax rate

SMITH COUNTY – On Tuesday, September 3, the Smith County Commissioners Court held another public hearing before adopting the Proposed Fiscal Year 2025 Budget and Tax Rate. The budget increases the actual tax rate by 1.6967 cents, to a total of 36.4231 cents per $100 valuation. The tax increase is caused by the Courthouse and Parking Garage Bond approved by voters in November 2022, Smith County Judge Neal Franklin said. The balanced proposed budget, which will go into effect on October 1, can be found here: http://www.smith-county.com/government/departments/auditor/financials/adopted-budgets.

This year’s budget theme is “Breaking Ground.”

“Of course, this is due to all the construction taking place, but it also represents some new business relationships we have forged,” Judge Franklin said. “My promise when I ran for county judge was to make this county a better place for the citizens and the employees of Smith County. For the citizens, my goal is always to keep the taxes at a reasonable level while providing the high level of services the citizens expect and demand. For the employees, my goal is to provide them with a living wage and benefits in addition to a work environment in which they feel appreciated and respected.”

Franklin said this year’s budget focuses on the following areas:

Employee Investment – The county will increase its monthly contribution to the health insurance fund, from $722 per employee per month to $822 per employee per month. A 2.5% Cost of Living Adjustment (COLA) for all employees and elected officials is also included in this budget. These increases reflect the county’s continued commitment to its employees.
Indigent Defense – An increase in the Indigent Defense Contract Attorney Rates, from $95,000 to $120,000, is included for all five district courts. The increase is intended to retain the current contract attorneys while attracting new attorneys to the Smith County court system.
Jail Operations – Detention officer vacancies in the Smith County Jail have been an issue for years. Overtime was increased in FY 2024 to aid in the retention of the detention officers and has reduced the number of vacancies significantly. Ten additional officers are added to this budget with a reduction in overtime to cover the cost of the additional positions with no significant increase to the overall budget.
Debt Service – The debt service portion of the tax rate has been strategically applied over the past three years to smooth the voter approved impact. The FY25 debt service portion has increased by 1.6 cents to a 7-cent level. The county has two more issuances of voter approved infrastructure bonds to issue.
Road and Bridge Funding – Phase 2 of the Road and Bridge Bond continued into FY 2024. Smith County’s goal remains to reach the goal of a 5-cent contribution of the M&O portion of the tax rate by the completion of the Road Bond Plan. The construction and renovation of the new Road and Bridge Facility is nearly complete, and all paid for in cash.

The County’s overall financial position remains strong, despite the challenges of inflation. The County’s Bond Rating remains strong at AA+ from the Standard & Poor’s rating service.