Schulenburg to Raise Property Taxes

The Schulenburg City Council voted Monday night to propose a 4.14 percent property tax increase next year.

The rate will go from $0.21 per $100 of property value to $0.2187, which is the highest the Council could have set it before triggering a voter approval tax election.

Property taxes are estimated to bring the City about $624,215 next year, which makes up about a quarter of the City’s projected revenue. The Fayette County Appraisal District calculated an average home value of $138,423 in 2021 (up from $126,606 in 2020). According to that number, the average homeowner in Schulenburg will pay $302 in property taxes next year (up from $290 this year).

Council voted unanimously to propose the $0.2187 property tax rate. Council has not yet set a public hearing on the proposed rate. City Administrator said Council will set the date at a special meeting on Sept. 23. Walker said she would propose the hearing to take place at 5:45 p.m. before the regular Council meeting on Tuesday, Sept. 7.

According to the City’s finance department, property taxes make up just six percent of the City’s revenue portfolio. Another five percent comes from sales tax. The bulk, 89 percent, comes from fees for utilities.

“We feel like we are behind some of the surrounding towns our size or bigger,” said Schulenburg City Administrator Tami Walker when asked about the tax rate increase. “We hear from citizens who want some of the fun things, like a better swimming pool or splash pad. The fun stuff comes with a price tag. Our service departments have trouble funding themselves. We’re focusing on core services. We have a failing lift station and we’re redoing a ground storage tank. Property tax plays a small role in budget.”

Besides the ground storage tank and lift station, Walker said other expensive projects the City hopes to complete next year include road work on Keuper Street, replacing 71 utility poles, a new roof for the police station, a new patrol vehicle for the police department, an eight-inch sewer line replacement at Hilje Ave. and S. Main, and new timekeeping software to replace time clocks for employees.

“We’re behind the eight ball in keeping up with our infrastructure,” she said.

In addition, Walker said next year’s budget would include a four percent raise for employees.

“We’re seeing about a 3.6 percent increase in the budget next year,” Walker said.

Expenses exceed revenues by about $195,000 in next year’s budget. Walker said the City would pay for the deficit with reserves.