The Smith County Commissioners Court voted to approve the Fiscal Year 2023 Budget and Tax Rate on Tuesday, September 6, after it held its final public hearing on both the budget and tax rate.

The approved tax rate of 33 cents per $100 valuation is a half penny less than the current tax rate of 33.5 cents. This new 33 cent rate is about 3.3 cents below the Voter Approval Rate of 36.3047 cents, and about 3.1 cents above the No New Revenue Rate of 29.8786 cents. The approved budget and tax rate will go into effect on October 1, 2022, which starts the County’s new fiscal year.

The theme for the budget is “Stay the Course,” underscoring the County’s dedication to long-term strategic planning and steady, consistent financial planning. 

“I am proud that during just the past three fiscal cycles, the County has reduced the property tax rate from 34.5 cents to 33 cents, and proud that I will be able to end my term as County Judge at the same property tax rate as when I started as County Judge in 2016, all the while significantly increasing needed funding for roads and bridges, law enforcement, and our judicial system along the way,” Smith County Judge Nathaniel Moran said. 

Moran’s budget overview included four primary areas of focus: the new 475th District Court; law enforcement staffing; Road and Bridge funding; and increases to the Judicial Support Services and Clerk Pay Scale. It can be found here: www.smith-county.com/government/departments/auditor/financials/adopted-budgets

“By planning ahead, prioritizing various needs each budget year, and tackling issues systematically over time, the County’s fiscal condition and the value and quality of services provided to its citizens has improved significantly over the past several years — all because each of you were willing to stay the course, stay steady, and often times remain patient. Thank you for that,” Moran wrote in a letter to Smith County Officials and Department Heads.

Major items included in the FY23 budget include:

• New District Court - The creation of the 475th District Court, which will go into effect in January 2023, will include about $1.5 million in new expenses, related to additional personnel and operating expenses.
• Road and Bridge - As in past years, the County will continue to increase the dedicated amount of property tax revenue to Road and Bridge Department activities. The County has sought to increase that dedicated amount every year for the last four years, toward a goal of 5 cents by the time the Road and Bridge Bond Plan is complete. The County is also transferring $11 million in FY23 from its general fund reserves to the Road and Bridge fund to supplement the $45 million in bonds that were approved by the voters in 2021, bringing the total amount funded for Phase 2 of the Road and Bridge Plan to a full $56 million, which is the total estimated cost of the program. Additionally, construction has begun on renovations to the property purchased for the new Road and Bridge facility.
• Investments in County employees - At a bare minimum, all employees (other than elected officials) have been provided a 5 percent cost of living increase in their salary for FY23. Some additional targeted increases have been provided above that 5 percent, including for those in judicial support services positions, those on a clerk pay scale, and workers in the Road and Bridge Department based on skill proficiency with certain equipment. These investments were intended to recruit and retain the skilled workforce necessary to provide the level of services needed to the public.
• Law enforcement staffing - During FY22, the County focused much of its personnel investment on salary increases for detention officers. During FY23, the focus is on the law enforcement side of the Sheriff’s Office. This budget adds five patrol deputies, a digital forensic technician, a training deputy, and a part-time training assistant. It also reclassifies a crime scene technician to a criminalist position.

Smith County’s overall financial position remains strong. Smith County recently received an AA+ bond rating. The County’s reserves are strong, and sales revenues continue to grow at all-time highs, Moran said. Because of a potential for a national economic slow-down, FY23 conservatively assumes no growth over the estimated actual sales tax revenue from FY22.

“I want to thank each of you … and encourage you to ‘Stay the Course’ in the future as a new budget officer, new county judge and significantly new county Commissioners Court continues its mission to provide the highest value of service at the lowest possible cost for the citizens of Smith County. It has been a pleasure to serve each of you,” Moran wrote.