The five member Board of Directors for the McLennan County Appraisal District (MCAD) in Texas approved a 2016 budget that is nearly 13 percent less than what the district is spending this year. The new budget for $3,913,850 is $584,314 less than 2015, and the biggest part of that is a $550,000 reduction in the contingency fund after the district paid losses and legal fees in a lawsuit it lost to Hoppenstein Properties over an office lease.
The MCAD sets the taxable values for property in the county, while 43 taxing entities set tax rates and those two figures determine how much property owners pay in taxes each year. Those entities include 20 school districts, 18 cities, the county and four other entities, according to Chief Appraiser Andrew Hahn.
Those entities, according to Newschannel 25 –Waco, then pay a percentage of their tax revenue to fund MCAD’s budget each year.
The biggest chunk of MCAD’s budget is nearly $1.9 million in salaries for 41 employees, including 21 appraisers. Benefits are the next largest amount, increasing more than 8 percent in 2016 to nearly $700,000.
The appraisal district also is budgeting more than $210,000 for court costs and legal fees to defend itself in approximately 40 lawsuits filed by property owners over appraisals.
Taxing entities have 30 days to oppose the budget approved Wednesday and send the board back to the drawing board.
At least eight of those entities also have signed a resolution asking MCAD to increase its board from five to seven members, or submit to a forensic audit over management and operational policies, or both. Three-fourths of the taxing entities must sign that resolution by Oct. 1 to make those requests.