(Seguin) – Today is the day to sound off on Guadalupe County’s proposed 2027 fiscal year budget.
The county’s annual budget process is expected to wrap up with a public hearing and the adoption of both the budget and property tax rate.
In his letter accompanying the proposed budget, County Judge Kyle Kutscher, describes the “financial environment” facing the county as one of its most challenging in recent years.
He says the proposed budget comes as the county deals with slowing revenue growth, a declining taxable property base, additional state-authorized exemptions and rising costs for mandated services.
Commissioners on Aug. 11 voted to propose a property tax rate of 35.49 cents per $100 of property valuation.
That rate is higher than both the county’s no-new-revenue rate of 33.59 cents and last year’s tax rate of 33.04 cents.
The proposed rate includes 28.08 cents for maintenance and operations, 2.12 cents for interest and sinking and 5.29 cents for lateral roads. The lateral road portion represents a 5.65 percent increase.
At the same time, his letter explains how the county’s taxable value has declined.
According to the proposed budget, taxable value dropped from approximately $21.98 billion in 2025 to $20.90 billion in 2026. New property added to the tax roll also declined, from about $921.5 million last year to approximately $864.2 million this year.
Kutscher says the proposed tax rate is intended to address the county’s revenue shortfall while allowing the county to continue providing essential services.
He cautions that failing to generate sufficient revenue now could result in a larger property tax revenue shortfall in the next budget cycle, potentially creating pressure for deeper cuts, reduced financial flexibility or larger tax increases in the future.
“Choosing not to generate sufficient revenue this year could likely create an even greater property tax revenue shortfall in the next budget cycle,” wrote Kutscher.
The proposed budget also does not include any new county positions or employee reclassifications.
Eligible county employees would continue receiving the county’s regular longevity pay, while a 3 percent cost-of-living adjustment is also included for eligible employees.
The county is also anticipating higher health insurance expenses, with costs projected to increase by approximately 8 percent.
Kutscher says the budget attempts to balance maintaining core county operations with the need to remain mindful of the financial burden on taxpayers.
“Taking measured action now allows the county to meet today’s obligations responsibly, protect critical services, and minimize the risk of more significant tax increases or service reductions in the years ahead,” wrote Kutscher.
Today’s meeting gets underway at 10 a.m. in the Guadalupe County Courthouse.
Those unable to attend are invited to participate in the public hearing via phone or zoom. They may also watch the meeting by visiting https://www.guadalupetx.gov/page/commcourt.agendas
The county’s budget process comes as taxpayers face the proposed 5.6 percent increase in the property tax rate, which county officials say is needed to maintain roughly the same level of operating revenue as last year despite declining taxable values and other changes affecting county revenue.