SALADO, Texas (KXXV) — The mayor of Salado told 25 News that a tax rate increase has been proposed, but will not last long.
BROADCAST TRANSCRIPT:
"Nobody wants a tax increase, nobody likes that, but its something that's necessary in order for us to move forward, " said Bert Henry, Salado Mayor.
After realizing the village of Salado was in the midst from a financial crisis, the community will see a new budget of more than $2 million dollars.
This will start with job cuts in-house to keep it down, but not touching the police department.
"We have 24-hour coverage now, seven days a week, they have some equipment that they need," Henry said.
There will also be a tax increase to 48.6 cents per $100 of home value starting October 1.
"This budget will raise more total property taxes than last year's budget by 604,000 dollars and of that amount 205,000 is tax evened to be raised from new property added," Henry said.
This falls just under the 3.5 percent threshold required to force a rollback election, but the mayor says his community of 2,400 people is pushing for a petition to see it on the ballot anyways, and he is in support because it's their right — Henry says no tax increase comes with more consequences.
"One we are going to have to pay back the extra money to the taxpayers in the village and also it leaves us open to a situation where we start defaulting on loans," he said.
"The state comes in here and they set their tax rate and it could be much high moving forward."
The mayor says this is a short-term issue —one, maybe two years and then back down, with a plan for new revenue.
"I'm all about protecting the integrity and charm of Main Street but on the West side that's prime opportunity there for commercial development that will drive some more revenue streams our way,” Henry said.
