Potter County’s elected leaders faced a long and challenging Monday as the Commissioners’ Court met for a marathon budget discussion, wrestling with a sizable funding gap and the prospect of a property tax rate increase for the 2025–2026 fiscal year.
The tone of the meeting was set early when County Judge Nancy Tanner underscored the financial realities confronting the county. Unlike neighboring Randall County and the city of Amarillo, Potter County has not seen significant population or tax base growth in recent years. That lack of growth, she said, leaves the county with fewer resources to meet rising needs.
“Our tax base is low, so we have to keep that in mind as we try to raise taxes and try to raise the funds for the people that need the raises, or the equipment that they need, and it’s just hard to do when our tax base is shrinking,” Tanner said.
The Numbers Behind the Shortfall
County Auditor Brandon Boston outlined the financial picture in concrete terms. The county is beginning the budget cycle with about $1.3 million less in recurring revenue compared to last year. That shortfall comes before factoring in roughly $2 million in funding requests from county departments, leaving an estimated $3.3 million gap if the county aims to maintain current service levels.
Boston told commissioners that even with significant cuts already built into the proposed budget, the court would still need to adopt a tax rate increase somewhere between 4.9% and 5% to cover the gap.
The conversation quickly turned to whether such an increase is feasible — or politically acceptable.
Requests From Public Safety
Precinct Three Commissioner John Coffee noted that much of the additional funding requested this year is coming from the Sheriff’s Department and the Fire Department.
“The Sheriff’s Department is asking for a pretty good increase, and probably needed. The Fire Department, equally so, is asking for a significant increase, and probably needed,” Coffee said. “The unfortunate part of that is, I just don’t think we can meet that goal they are asking for. We are already a pretty high-taxed county, and our citizens are probably not going to be able to take on the amount of tax that is being asked for at this point.”
These departments, like others, are facing cost pressures from inflation, equipment needs, and staffing challenges. Law enforcement agencies across Texas have reported difficulty retaining officers due to rising costs of living and competition from neighboring jurisdictions. Similarly, rural and semi-urban fire departments are seeing costs climb for everything from fuel to protective gear.
Finding the Limit
While Boston’s range of 4.9% to 5% was based on the county’s immediate revenue needs, Coffee said the current working figure discussed in the meeting was closer to a 4.5% increase, with some proposals stretching as high as 8.5%. The higher end, he said, was out of the question.
“Right now, we are looking at a 4.5% increase is where we stayed today, up to an eight and a half percent,” Coffee said. “I’m certainly not comfortable with the higher end of that, and I believe the court is in the same position.”
Judge Tanner agreed, stressing that such a steep increase would be untenable for taxpayers.
“Today, the tax rate is way too high, so we have to go back and propose something new,” Tanner said. “We’ll go back to the drawing board and we will make some more cuts, because we cannot raise taxes as much as they proposed, as much as we should raise them today.”
Cuts Already in Play
Boston noted that the current draft budget already includes reductions. While details of those cuts were not exhaustively discussed in open session, trimming department requests is expected to continue in the weeks ahead.
For departments like the Sheriff’s Office and Fire Department, that could mean delaying new hires, scaling back on planned equipment purchases, or deferring maintenance projects. Other county offices may face similar adjustments.
The challenge, according to county officials, is that some requests are not luxuries but necessities — for example, replacing aging vehicles or updating outdated technology that can affect both efficiency and safety.
Comparisons to Amarillo and Randall County
The fiscal situation in Potter County is not occurring in a vacuum. Just last week, the city of Amarillo held its own budget workshop, where the idea of a tax rate increase was discussed, though no final decisions were made. Randall County, with its growing population and expanding tax base, faces a different set of fiscal dynamics, but it too is dealing with inflationary pressures and growing service demands.
Potter County’s slower growth makes its budgetary decisions more sensitive. Without new property developments or significant commercial expansion, the county’s ability to raise revenue depends heavily on existing taxpayers — a reality that places a ceiling on how much rates can be increased without causing financial strain for residents.
The Balancing Act Ahead
The Commissioners’ Court now faces the difficult task of revising the budget to reflect both fiscal constraints and service needs. That will likely mean a series of working sessions where each department’s request is scrutinized line-by-line.
The county must also comply with Texas state law, which requires public hearings and notices for certain levels of tax rate increases. Under state “truth-in-taxation” rules, a tax rate increase above a certain threshold can trigger an automatic voter approval election, adding a political dimension to the commissioners’ decisions.
With inflation still affecting fuel, construction materials, and labor costs, even maintaining the same level of county services can cost more year over year. Meanwhile, economic growth in parts of the Panhandle has not been evenly distributed, leaving Potter County in a position where cuts in one area could impact services elsewhere.
Next Steps
In the coming weeks, the court will revisit the budget with the goal of lowering the proposed tax rate increase from the upper figures discussed Monday. That process will likely involve making deeper cuts to department requests, delaying some projects, and perhaps prioritizing essential services like public safety and emergency response over other expenditures.
While the meeting did not produce a final tax rate recommendation, it made clear that commissioners are leaning toward a figure closer to 4.5% rather than the 8%–8.5% range, and that they will continue searching for ways to limit the impact on taxpayers.
As Judge Tanner put it, the ultimate goal is to balance fiscal responsibility with the need to keep essential county services functioning — without placing an undue burden on residents.
Potter County residents can expect more budget discussions before the fiscal year begins, with opportunities for public input as required by law. For now, the message from the Commissioners’ Court is that while some form of tax rate increase appears likely, the highest proposals on the table will not move forward without substantial revisions.
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