PRESENTED 10-YEAR SERVICE pins are: front l-r, Richard Eubank, Kim Mooneyham, Libby Harris, Jeffrey Wright and Patricia Kingsley; back l-r, Wilbert Hunter, Donna Landers, Ron Harris, Sheila Johnson, Tammy Sanders, Melanie Schauwecker and Debbie Rash. A drop in mineral values this year could cause Fairfield Independent School District to tighten its belt when the budget for fiscal year 2010-11 is figured.

Freestone Central Appraisal District chief appraiser Bud Black released preliminary minerals and industrial values last week.

"This is a conservative estimate. There still are some unsettled values out there," Black says.

The appraisal district will certify values next month.

In May, FCAD released real property value estimates that showed a slight increase for taxing entities in Freestone county.

However, mineral and industrial values make up 70 percent of the tax rolls and fluctuations in those values has more of an effect on budgeting.

Estimated taxable mineral and industrial value for FISD this year is $1.7 billion and the estimated value of real property is $541 million, for a total of $2.2 billion in taxable property.

RECEIVING 5-YEAR SERVICE pins are: front l-r, Russell Holland, Emily Beaver, Melanie Bonner, Terry McElroy, Monica Franklin, Mikki Akers and Lupe Barlow; back l-r, Sid Ivy, LaWanda Walker, Crystal Thill, Amanda Thompson, Robert Shipley and Tommy Fadal. The total figure in FISD drops from the 2008 value of $2.36 billion, a decline of about $164 million.

"We are definitely going to feel this," FISD superintendent Katie Ryan says.

She says that cuts in the budget will be made in areas that are not detrimental to students.

"I know how to operate a district with a very lean budget," the superintendent says.

The current FISD budget shows $23 million in property tax collections and $5 million in state money to fund $28.6 million in expenses.

The expense figure includes $421,000 to the Bi-County Coop for which the district serves as fiscal agent and $12.9 million surrendered to the state under the school financing formula.

FISD is considered a property rich district and must give up a good chunk of its property tax revenue for distribution to property poor school districts.

"We give millions to the state. We will not be giving as much to the state next year, however it is not a clean balance," Ms. Ryan says.

Taxable real property values are estimated at a slight increase of $33 million, but taxable mineral and industrial values drop by $197 million in the school district.

Black attributes the decline in mineral values to a method of figuring natural gas production values— -the values are now calculated by the Texas State Comptroller and are about two-thirds less than a year ago.

The chief appraiser notes that the average price of natural gas used for 2008 values was $5.67 per thousand cubic feet and the price for 2009 values is $3.68 mcf.

He also points out that $560 million in natural gas values this year is for new production, but that the drop in the mcf price negated that.

Taxable values used in budgeting by entities is the appraised market value for property, minerals and industry with deductions made for exemptions such as agricultural use, homestead and property owners over the age of 65.

Market values are somewhat higher than taxable values. FISD shows total market values this year of $2.6 billion, down 17.2 percent from 2008, and total market values for Freestone county are $5.69 billion, down 10.33 percent.

Even with a taxable value drop estimated at $342 million, which equates to about $750,000 in revenue, Freestone county should have no budgeting problems because it is sitting on $12 million in cash reserves.

The county is operating this year under a $15.5 million budget and tax rate of 21 cents per $100 assessed valuation.

Biggest loss of taxable value, 20.09 percent, is in Dew ISD. Last year total taxable values were $511 million and this year they are $426 million.

Black says that the taxable values may improve some as supplemental values are added to the rolls. Supplemental values are generally natural gas wells that have been drilled and are producing, but have not yet been added to tax rolls.

About $94 million in supplemental values were added to tax rolls in January to catch up with drilling activity.

"The numbers appear to be down, but they may be up at tax collection time," the chief appraiser says. "But, you may not have much of it this year."

Bucking the trend of property value declines is the City of Wortham which sees its preliminary estimate rise 9.4 percent to $122 million in taxable value. Black reports that a gas well went on line within Wortham taxing boundaries.

FCAD calculates property values for 15 taxing entities which use the numbers to work out operating budgets. Some of the values are for small portions of taxing entities that cross the boundary into Freestone county, such as Corsicana ISD.

Other taxable property values (market value in parenthesis)and percentage change are:

—Fairfield—$219 million ($263 million), down 1.23 percent.

—Streetman—$5.6 million ($6 million), up .92 percent.

—Teague—$111 million ($125 million), up .87 percent.

—Buffalo ISD—$138 million ($182 million), up 5.54 percent.

—Oakwood ISD—$51 million ($83 million), up 23.28 percent.

—Corsicana ISD— $989,776 ($3 million), down 17.03 percent.

—Teague ISD—$1.9 billion ($2.1 billion), down .01 percent.

—Mexia ISD—$2.9 million ($2.8 million), up 92.53 percent.

—Fairfield Hospital District—$2.2 billion ($2.6 billion), down 10 percent.

—Teague Hospital District—$2 billion ($2.1 billion), down 1.24 percent.