Nueces County commissioners could be looking to reduce the tax rate in the coming fiscal year, while also raising salaries for all county employees.

During a budget workshop on Tuesday, commissioners went back forth on a pair of proposals that are being considered for the upcoming fiscal year. County Auditor Dale Atchley is proposing the county adopt a lower tax rate than the one currently in place, which would still fund items like salary increases and new positions.

It would also put up to $500,000 back into the county's reserve fund, which furthers the county's goal of increasing that amount to ease concerns from bond rating agencies. The county was dinged last year after rating agencies expressed concern that the county's reserves continued to be below a self-imposed 25 percent level (the fund is at about 22 percent now).

"The rating agencies, they drill us every year (on) why our fund balance is below our target," Atchley said on Tuesday.

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His proposal is to set the tax rate at $0.308987 per $100 valuation, lower than the proposed rate of $0.313088, which is also the rate currently in place. That is also one cent higher than the effective rate, meaning it would generate more revenue for the county next fiscal year.

Commissioners are looking to implement a living wage increase, which would bring employees who currently earn below $30,000 a year to that threshold at a cost of $1.4 million. A cost of living adjustment of 2 percent would be put into effect for all other county employees not part of that group.

Elected officials and law enforcement are not included in the proposed 2 percent cost of living adjustment, Atchley said. He said that cadets in the sheriff's office — who are not part of the collective bargaining agreement — would receive an increase in pay, as well.

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The starting salary for those cadets would be $34,000, he said, and is intended to better recruitment for the sheriff's office.

Nueces County Judge Barbara Canales applauded the approach that was taken in looking at ways to build up the county's reserves and bring county employees up to a living wage.

"This is a nice compromise for a conservative county who wishes to see a major change in the way we do business," she said.

Canales also said she was looking at a three-year salary plan to "lift all boats, but to do so in a way that's fiscally responsible," she said. That would look at improving pay starting with those on the lower end of the pay scale, and then working on up over the following two years to culminate with department heads and supervisors.

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Canales differed from Atchley, though, in that she wants to leave the tax rate unchanged from the proposed $0.313088 amount so that the county's reserves can be built up at a greater level (by up to $1 million), as well as improving the county's health insurance plan and raising pay for all county employees.

"The major difference is the cushion that it provides for next year," Canales said, referring to the larger amount being put into reserves.

County Commissioner Brent Chesney, long a staunch opponent to tax increases, said he would have a hard time supporting Canales' plan because he felt it would burden the taxpayers. Canales said she was concerned that a new law passed by the Legislature, which takes effect in September, will affect budgets next fiscal year by limiting the maximum a tax rate can increase to 3.5 percent, down from 8 percent.

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"I just can't, with respect, support the judge's proposal," he added. "To do it just for a cushion, and just because we're looking at a 3.5 percent (revenue cap), I can't get there."

"It's not a cushion. It's a fund balance that is a policy decision looking into the future that we feel is needed," Pct. 3 county Commissioner John Marez later replied.

Chesney said he could possibly support Atchley's proposal, because it would be a lower rate than what is currently in place, and accomplish a lot of the goals the court has for the coming fiscal year. But he and other commissioners will continue discussions during a public hearing on Aug. 23, beginning at 9 a.m., at the Nueces County Courthouse.

The budget will then go before the court on Aug. 28 for a final vote.

Tim Acosta covers the Port of Corpus Christi, county and city government stories for the Corpus Christi Caller-Times. Consider supporting local journalism with a digital subscription to the Caller-Times.