Montgomery Co. Budget: Appraisals Raise Tax Bills

Montgomery County officials are navigating a contentious budget cycle as they finalize a proposed $520 million spending plan for fiscal year 2024. The budget, a $64 million increase over the current $456 million budget, is being driven by a surge in property valuations that has left both county leadership and residents grappling with the economic impact of rapid local growth.

During a budget workshop held Tuesday, August 8, at the Lone Star Convention and Expo Center, County Judge Mark Keough and County Auditor Rakesh Pandey presented the figures to the Commissioners Court. While the proposal includes a reduction in the property tax rate—dropping from 37.5 cents per $100 valuation to 36.37 cents—officials warn that the lower rate will likely not prevent an increase in the bottom-line tax bill for most property owners.

The discrepancy stems from the county’s total taxable value, which has spiked by 14 percent to reach $125 billion. According to data provided by the Montgomery Central Appraisal District, average residential property values in the county have climbed approximately 16 percent, while some commercial sectors have experienced valuation hikes approaching 25 percent.

County Auditor Rakesh Pandey noted that the influx of property tax revenue, projected at $450 million, will be directed toward maintaining essential operations and servicing the county's debt. A substantial $220 million of that revenue is earmarked specifically for debt service, a figure tied to previous infrastructure bond packages aimed at supporting the county’s booming population.

The proposed budget prioritizes significant personnel expansion and wage adjustments. The plan includes the creation of 104 new full-time positions across various departments. Public safety remains a priority in the proposal, with the Montgomery County Sheriff’s Office requesting 35 new deputies and the District Attorney’s office seeking nine additional staffers. Furthermore, the budget includes a general five percent salary increase for all county employees, alongside a potential two percent merit-based raise.

These expenditures have sparked debate within the Commissioners Court. Commissioner Charlie Riley, representing the heavily developed Precinct 3, expressed reservations about the scale of the spending. Riley noted that his constituents are struggling with the financial burden of rapid growth, with some facing valuation increases exceeding 20 percent. He cautioned his colleagues that even a modest rate reduction does little to soften the blow for homeowners already strained by the current cost of living.

The tension between financing necessary public services and alleviating the tax burden on residents is expected to dominate the upcoming public hearings. County leaders maintain that the budget is a reflection of the resources required to support the needs of a county that continues to attract thousands of new residents annually.

The public is invited to provide feedback on the proposed tax rate at two upcoming hearings scheduled at the Commissioners Court, located in the Alan B. Sadler Commissioners Court Building. The hearings will take place on Tuesday, August 22, and Tuesday, August 29, both beginning at 9:30 a.m.

The Commissioners Court is scheduled to officially adopt the tax rate on Tuesday, September 5. Once finalized, the new budget will take effect on October 1, the start of the 2024 fiscal year. Residents can review the full budget proposal and supporting documents on the official Montgomery County website at mctx.org.