Navarro County cities and schools have some working numbers as they start their budget planning, but the numbers aren’t as encouraging as last year’s. In 2007, the appraisal district was making big adjustments to pull property values in line with market values. This year, the changes are relatively small, a few percentage points here and there, which could be wiped out by the appeals.

The figures were released to the local governments in early June to give them something to plan with. However, the appraisal district conservatively took off 5 percent, to allow for changes as property owners protest their appraisals.

Even taking into account the possibility for 5 percent increases, most cities and school districts won’t see the same percent of increases they saw last year. It could present challenges because prices to operate — particularly the price of gas — are higher than in 2007. The upshot may mean increases in city/county tax rates, or cutting back on some services.

School districts, which are the largest tax bills for all property owners, won’t change except to reflect the appraisals or new debt. School districts across the state are locked into their tax rates for day-to-day spending, a part of the budget called maintenance and operations or “M&0” on the tax bill. In 2005, the legislature changed the funding system to kick in more state money to local districts on the condition that they lower tax rates to a consistent $1.04 for each $100 in property value. School districts can raise that part of their tax rates, but only with voter approval through a special election.

A school’s debt rate, called interest and sinking or I&S; on the tax bill, can change if the school district took on new projects, such as Mildred’s new elementary school, or Dawson’s upgrades. Rice has a tentative new middle school project, but if the school district doesn’t get state aid with the debt, it will cancel the project and not build now, according to school officials.

Still, fuel costs will affect how schools make up their budgets, as they try to work with flat incomes and higher gas and diesel prices.

If cities and the county goverment go above an 8 percent increase it triggers a rollback election, where voters get to decide if they want higher taxes. The 8 percent can come through higher appraisals or through a rate increase. However, most local governments are careful not to tempt voters with a rollback.

The county’s values are expected to go up at least 5 percent, but it could be as much as 10 percent after the appeals shake-out. Even if it’s only 5 percent, County Judge H.M. Davenport said the county officials aren’t thinking about a tax rate increase until they have certified numbers.

“We will not know how much money we’re going to have to work with until the certified tax rolls come in and we have absolute numbers,” he said. “We don’t have the official list until the end of July, and that’s the reason we won’t be going into actual budget hearings and our decisions won’t be made until August.”

He’s already looking ahead to the problem with fuel prices, though.

“Fuel prices are what’s going to be our biggest kicker because of the road and bridge, and the sheriff’s department,” Davenport said. “I feel like it’ll level off at some point, but we can’t count on that. We can’t continue to provide the same level of critical services if we can’t pay for our fuel.”

The City of Corsicana’s values are up less than the county’s, at least according to preliminary numbers. Even if protests don’t lower the values too much, the city can only hope for an increase of 6.4 percent, maximum.

Still, it’s too early to tell if the City of Corsicana will need to ask for a rate increase, according to City Manager Connie Standridge. The departments have made their 2009 requests, but they’re still being compiled into the whole document, she said.

The earliest draft will go before the city council later in the summer, with the vote on the final budget expected on Sept. 16.

Some of the departments’ 2008 gas budgets have gone higher than expected, but the departments have been cutting back to help balance that out, Standridge said.

“So long as the bottom line equals out, that’s what we’re concerned about,” she said.

The smaller cities and towns haven’t begun the budget process yet, waiting until later in the summer to start, according to city secretaries across the county. Still, most are already worried about fuel prices because their budgets have so little room for flexibility either way.

Although these early numbers have been adjusted down slightly, to allow for protests, most cities will have some small increases when the final numbers are posted, said Karen Morris, chief appraiser.

The increases reflect actual market changes, which is required by law. If the appraisals aren’t within 5 percent of what the state claims are real market values, the state will punish the school districts by taking away money.

“We’re trying to get it so that the school districts won’t be in jeopardy of losing funding,” Morris said.

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Janet Jacobs may be reached via e-mail at jacobs@corsicanadailysun.com