On Tuesday, September 3, the Smith County Commissioners Court held a public hearing before adopting the Proposed Fiscal Year 2025 Budget and Tax Rate. The budget includes an increase in the tax rate by 1.6967 cents, bringing the total rate to 36.4231 cents per $100 valuation.
Smith County Judge Neal Franklin attributed the tax increase to the Courthouse and Parking Garage Bond approved by voters in November 2022. The balanced budget, effective October 1, is themed “Breaking Ground” to reflect ongoing construction and new business relationships.
Key elements of the FY 2025 budget include:
-
Employee Investment – The county will raise its monthly contribution to the health insurance fund from $722 to $822 per employee. A 2.5% Cost of Living Adjustment (COLA) for all employees and elected officials is also included.
-
Indigent Defense – An increase in the Indigent Defense Contract Attorney Rates from $95,000 to $120,000 for all five district courts aims to retain current attorneys and attract new ones.
-
Jail Operations – To address detention officer vacancies, the budget adds ten new officers while reducing overtime costs. This adjustment aims to cover the cost of additional positions without significantly increasing the overall budget.
-
Debt Service – The debt service portion of the tax rate has been adjusted over the past three years. For FY 2025, it has increased by 1.6 cents to 7 cents. The county plans to issue two more voter-approved infrastructure bonds.
-
Road and Bridge Funding – Phase 2 of the Road and Bridge Bond continues into FY 2024, with a goal of a 5-cent contribution from the M&O portion of the tax rate by the end of the Road Bond Plan. The new Road and Bridge Facility construction is nearly complete and paid for in cash.
Despite inflation challenges, Smith County’s overall financial position remains strong, with a Bond Rating of AA+ from Standard & Poor’s.
