The tax rate would be the same rate that was approved by voters as part of the November 2024 road bond election.
What’s happening
Hays County Commissioners unanimously voted July 29 to publish a notice of intent to increase the tax rate by $0.02 per $100 assessed home value in order to fund most of the road projects included in the 2024 road bond, according to agenda documents.
In November 2024, 55% of Hays County residents voted in support of the $440 million road bond, which also included a $0.02 increase to the tax rate.
The court approved to issue $240 million in certificates of obligation—a separate funding mechanism from a bond that funds projects without voter approval—to fund the projects initially approved by voters in the 2024 bond.
Commissioner Walt Smith told Community Impact that because the initial bond was approved by a majority of voters, the court feels “very confident” in the motion to approve the COs and the tax rate.
Commissioner Debbie Gonzales-Ingalsbe said that the decision to go for COs aligns with voter approval in the 2024 November election.
“We're upholding voters’ decision by their vote [on the bond],” Commissioner Ingalsbe said during the meeting. “They have asked us to move forward with those critical improvements.”
The Hays County Commissioners Court anticipates a vote to issue the COs Sept. 30, at the county court meeting. If the commissioners approve to issue the COs, property owners will see the increased tax rate.
Project budgets will be established once the COs are issued. Additionally, because COs are a shorter-term debt compared to a bond, the county must spend 85% of the funds over three years which would alter the initial project timelines on top of the delay from the Travis County court case, officials said.
The background
The $440 million Hays County road bond that would fund the 30 projects was overturned after a Travis County judge voided the election, ruling that Hays County failed to meet legal public notice requirements under the Texas Open Meetings Act, or TOMA.
Voters approved the November 2024 bond with more than 55% of votes in support at 64,422 ballots. There were 51,130 ballots, or 44.25%, cast against the proposition, as previously reported by Community Impact.
The bond included over 30 projects for safety, mobility and regional connectivity efforts. Some projects included upgrades to I-35’s east side, which has lacked road improvements in the past, and the SH 45 Southwest Extension project, according to previous Community Impact reporting.
The list of projects include improvements in all four precincts, but the project to extend State Highway 45 is not included.
Read more about how we got here through previous Community Impact coverage here.
Stay tuned
The county will hold a public hearing later in August regarding the tax rate, as well as budget workshops throughout the month.
- Budget workshops: Aug. 5, 12, and 19 at 11 a.m.
- Budget and tax rate public hearing: Aug. 19 at 1 pm.
