Staff Report
SAN MARCOS — Following a final public hearing Tuesday, Sept. 16, the Hays County Commissioners Court voted 4-1, with commissioner Morgan Hammer dissenting, to adopt a tax rate of $0.3999 per $100 valuation and a balanced budget for fiscal year (FY) 2026.
Hammer voted against the items due to the concern of how the county would maintain financial sustainability in the future. She stated that the best place to cut back and save approximately half a cent on taxes was by cutting several new positions that are set to begin in April. Despite announcing this, the other four commissioners were comfortable with the proposal.
In the FY26 budget, funds were approved at a total of $373,849,226, comprising operating funds of $248,226,263, debt funds of $55,300,195 and construction funds of $70,322,768. The FY26 budget focuses on key initiatives to address capital infrastructure needs, including road improvements and county facilities, as well as funding to continue essential judicial services. Additionally, it allocates funds to partner with local municipalities and nonprofits for enhanced animal welfare services.
The budget is expected to raise more revenue from property taxes than last year’s budget by $16.9 million, representing an 11.27% increase.
The property tax revenue to be raised from new property added to the tax roll this year is $6.9 million. According to Vickie Dorsett, Hays County budget officer, the average home value is $460,169, representing an annual property tax increase of $225.87 for the Hays County tax portion only. This affects property owners younger than 65, as county taxes are frozen to the amount paid the year a resident turns 65, as long as they file the appropriate exemption, said Hammer.
“Property taxes are the primary source of revenue for counties in Texas, and our Commissioners Court is dedicated to maintaining a low tax rate while balancing the growing infrastructure needs and providing superior services to the citizens of Hays County,” Dorsett said.
One of the key indicators of the tax rate is population, she said. Since 2010, the population in Hays County has grown by 93%, while the tax rate has consistently decreased during that period. Since 2000, the population has increased by 210%. These are the drivers for the need for additional services.
“While the tax rate has gone down consistently over the years, the recent [tax rate] increases are directly attributed to the addition of services the county is now providing – additional judicial services related to pre-trial services, additional magistration, the Public Defender’s Office, animal welfare services and more — which alone account for a $0.0125 increase on the tax rate,” Dorsett said. “The judicial aspect of this is essential in reducing recidivism in Hays County. These are programs for which we haven’t had to tax citizens in the past due to available American Rescue Plan Act funds.”
This budget reflects both the challenges and opportunities of a rapidly growing county,” said Hays County Judge Ruben Becerra. “We are delivering essential services — from judicial and public safety programs to public infrastructure and mental health support — while keeping the tax rate among the lowest in the region. Our responsibility is to balance fiscal accountability with the needs of our community and I believe this budget strikes that balance for the people of Hays County.”
Following the budget hearing, the court also voted unanimously to approve the FY26 salaries and allowances for elected officials.
For more information or to view budget documents, visit www.hayscountytx.com/budget-office.
