Jersey Village residents to pay more in property tax

Jersey Village is increasing its tax rate amid concerns of a projected loss in sales-tax revenue resulting from the U.S. 290 expansion.

City Council voted 4-1 in favor of the increase, with Councilman C.J. Harper dissenting.

“The citizens who voted me into office have made one thing abundantly clear: Don’t vote in favor of the proposed 17 percent increase in the tax rate. Without question, these citizens support our fire and police departments as well as city services and recognize that goods and services increase in cost. But they don’t believe costs increased 17 percent over last year,” Harper said.

Council increased tax revenue by 17.23 percent after approving a tax rate of 74.25 cents per $100 valuation, which includes an increase in the debt service tax rate from 15.997 per $100 valuation to 21.615 per $100 valuation.

Staying at 74.25, the same rate since 2009, will generate roughly $8.2 million in tax revenue in 2016.

The city considered lowering the rate to the effective rate of

63.33 cents per $100 valuation, but City Manager Mike Castro indicated that such a move would reduce property tax revenue by $1.2 million, which is not good considering the city’s largest taxpayer — Goodman/Daiken — will move to a new facility in Fairfield in mid-2016. The effective rate generates the same amount of revenue in the new fiscal year on taxable property that was on the tax roll the prior year.

“It sounds like a lot, and really is,” said Councilman Andrew Mitcham. “We have a lot on our plate though. We have worked for over a year on the comprehensive plan, and I’d be hesitant about this big of a tax increase, as far as revenue goes, if we didn’t have an articulated plan on how we are going to go forward in this city.”

Mitcham, who served on the comprehensive planning advisory committee before being appointed to the council seat left vacant when Justin Ray was elected mayor in May, said he agreed with a lot of what Harper had to say, but felt the increase would be in the city’s best interest.

The average home value in Jersey Village is $246,000, up from $226,000 in 2014. Communities throughout Harris County saw a marked increase in property values when they received their appraisals from the Harris County Appraisal District this year.

Based on that average value, a homeowner would pay $1,832.68 in 2016 taxes.

Council held Oct. 5 and Oct. 12 public hearings to allow residents to express concerns about the hike.

John McCaskill, who spoke at the Oct. 12 hearing, said council should reconsider raising the rate.

“A revenue increase of 17.23 percent or $1.4 million is something that should not happen,” he said. “You need to be talking about reducing the tax rate…17.23 percent is too much and it’s not money we should be spending.”

Councilman Greg Holden said taxpayers in Jersey Village “see results” when it comes to what they pay in city taxes, as opposed to those paid to the county or school district.

He added that decreasing the rate could affect services.

“If you have a suggestion on reducing taxes, then tell us what you don’t want. Tell us you want less fire (protection), less police (protection), less water system innovation,” he said. “It looks higher than what it is.”

Approximately 70 percent of the budget is used to pay salaries and benefits to staff. Traditionally, the city has paid a 3 percent to 4 percent merit raise each year. It paid 2 percent in 2009 and 2010 in the recession.

Mark Maloy, who previously served on council, also expressed reservations about the tax hike.

Maloy said the tax hike will increase city revenue by nearly 33 percent.

“When is the taxpayer going to get a break from the money they give their city government? Apparently, the answer is never,” he said.

Jersey Village resident Bill Schuster said he didn’t have a problem paying, as long as he understood where the money was being spent.

“I’m just a little disappointed,” he said. “There is not a single thing that says what this money will be used for. Maybe we do need the money, but it would be nice to know what we need the money for. Don’t keep us in the dark.”

Meanwhile, the mayor, who responded to Schuster’s comments, said residents are encouraged to attend council meetings and work sessions, and that the funding allocation can be found in the budget that is posted on the city website at http://www.jerseyvillage.info/

“The budget is available and clearly outlines all the expenditures of the city,” Ray said. “I just want to clear up the misconception that city council and city government has not been transparent or forthcoming about how funds will be allocated.”