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Council delays $27M budget vote following push from Rep. Gerdes and public opposition
Elgin’s proposed $27 million budget and potential tax rate increase were put on hold following public backlash and an appearance by Texas State Rep. Stan Gerdes during a packed council meeting Sept. 17.
Gerdes, a former Smithv i l le Cit y Council member, urged Elgin officials to reconsider the nearly 18% tot a l tax hike, citing the strain it would place on families already burdened by rising costs.
“As your state representative, I was proud of the significant strides we made last session, easing the financial burden on Texas families by providing an $18 billion property tax cut,” Gerdes said. “This historic relief was a direct effort to help families across the state and right here in Elgin.”
The loc a l leade r shared concerns from Elgin residents, stating “Whether it’s a family struggling to make ends meet, a senior on fixed income or the individual who has nothing left to give – they are begging for relief, not more financial hardship. Now is not the time to burden the citizens with a staggering tax hike.”
Gerdes emphasized that while Elgin had lowered its tax rate over the past five years, raising it now would give the city the highest rate in the surrounding area.
“To suddenly jack the rate back up… isn’t just wrong, it’s unacceptable,” he added, met with applause from the biggest crowd the hall has seen in several months.
The proposed budget had been presented by City Manager Tom Mattis, who explained that Elgin’s overall taxable revenue had decreased by 13% due to a $15,000 annual exemption and tax freeze for seniors adopted last year, requiring an increase in the tax rate to balance the budget.
“It ’s a very simple concept. If your overall taxable value goes down, then your tax rate has to go up just to stay even,” Mattis said, defending the need for the increase.
Gerdes suggested the city needed to make budget cuts rather than raise taxes.
“When we face shortfalls in the Texas Legislature, we don’t reach into the pockets of taxpayers first. We do the hard work, find what to cut, focus on what’s essential and figure out a way to make it work,” Gerdes said.
The representative pointed to budget items such as a $15,000 travel fund for the council, a 75% increase in planning and zoning expenses and $50,000 for community services programs, urging them to reconsider these allocations.
Many residents echoed Gerdes’ concerns.
Roland Silva voiced frustration that previous tax increases hadn’t resulted in significant improvements to public infrastructure, and Shirley Maxagamba spoke on behalf of local senior citizens, stating, “You are absolutely taxing our senior citizens out of their properties.”
In light of the public’s concerns, Mayor Theresa McShan suggested tabling the budget for further review.
“There may be things we need to go back and look at,” McShan said.
The council unanimously agreed to revisit the budget at a special workshop Sept. 24, with the final approval deadline set for the following Thursday.
Councilman Al Rodriguez supported the decision to reassess the budget, emphasizing the importance of addressing public concerns.
“Take a second look, give our citizens the benefit of the doubt regarding their concerns, and take them seriously,” Rodriguez said.
Despite the delay, Mattis stood by the proposed budget, which aims to balance the city’s growing service demands without cutting essential services.
“I feel really good about this budget that we’ve put together... we’ve come up with a very conservative and balanced budget that streamlines our proces ses and enables us to maintain existing service levels and staff,” Mattis said. “I don’t think we can go any lower than that and still meet the service demands we’re facing today. Elgin is not in a situation where we can keep things level from year to year and still respond appropriately to increasing demand. We have to grow operationally, or we’re going to get behind.”
He added that the city’s budget must keep pace with its operational needs to avoid setbacks in key areas, including public safety, parks and employee compensation.
“It’s important for the city to keep their budget up to where we can maintain those service levels, maintain law enforcement, maintain parks, increase salaries for our employees and provide health benefits,” Mattis said. “If we take steps backwards on that, then the whole operation is going to go backwards.”
Mattis was firm in his recommendation, making it clear that he supports the current budget proposal.
“I’ve recommended a budget, and I’m not going to change my mind about the budget I’ve recommended,” he added. “It’s up to City Council now to decide what budget we want to do. If council has ideas about the changes to be made, we need to understand that a cut on one side has to be balanced with a corresponding cut or revenue increase on the other side.”
The proposed budget includes appropriations for public safety, public works and administration, and ref lects a more conservative financial outlook as the city faces slower growth in development fees and rising operational costs, according to Mattis.
The city now faces a tight deadline, with the fiscal year set to begin Oct. 1.
“Now is not the time to burden the citizens with a staggering tax hike.”
— Rep. Stan Gerdes
“Elgin is not in a situation where we can keep things level from year to year and still respond appropriately to increasing demand.”
— City Manager Tom Mattis
