Homeowners may be expected to shoulder more of the load in funding governmental services because of a drop this year in industrial and mineral values.

The taxable minerals and industry values decline is pegged at $663 million, offset by an $18 million increase in taxable real estate values.

“The numbers are what they are,” Freestone Central Appraisal District chief appraiser Bud Black says. “I’ve not seen this happen since the mid 1980s.”

Since 1997, natural gas production and exploration have fueled a steady increase in taxable values in the county. In 1997, total taxable value was slightly less than $1 billion, and the figure is $4.7 billion today.

However, the 2009 taxable value figure, including real estate and minerals, was $5.37 million.

“It has been a really fast roller coaster ride,” Black says. “The nature of gas value is that it goes away as quickly as it comes in.”

Real estate taxable values throughout Freestone county increase two percent, to $870 million.

Minerals and industry account for 81 percent of the taxable value in the county, and with a 12 percent decline this year taxing entities will be scrambling to find the funds to continue operations without reducing services.

Black says that residential values actually declined an average of two percent this year, but prices for large acreages kept real estate fairly stable.

The chief appraiser points out that the job of his office is to set values based on market conditions and that taxing entities determine what levies will be required to fund services.

It makes no difference whether property values are appraised high or low as a whole, the taxing entities have the final say in setting taxes.

One of the tools is the effective tax rate, which is the levy required to bring in the same amount of revenue as was generated in the prior year.

When property values increase, the effective rate drops, and when property values decrease, the effective rate rises.

An entity can set its tax rate equal to the effective rate and not risk a rollback election, but it is liable to cost individual tax payers more.

Black explains that county property taxes paid on a $100,000 house in 2009 would have been about $205, but because of the drop in mineral values that same house could be valued at $98,000 this year, a two percent decrease, yet be billed for $251 in county taxes under the 2010 effective rate.

Freestone county commissioners could soften the blow by dipping into reserves—-estimated at more than $10 million—-to fund the budget instead of passing along the whole effective tax rate increase. The county budget was $15.2 million for fiscal year 2009-10.

School districts may have a more difficult time balancing budgets because most are at the maximum $1.04 per $100 assessed property valuation allowed under state law to fund maintenance and operations. The M&O rate can’t increase, even if an effective rate is higher.

Fairfield Independent School District shows a drop of $169 million in total taxable value this year, to a figure of $2.27 billion. That calculates to a seven percent decline.

Teague ISD loses 16 percent in taxable value, $346 million, for a new total of $1.76 billion.

Both districts also have construction bonds for which payments must be made from a shrinking tax base, but that can be recovered from taxpayers—- there is no cap on the tax levy for interest and sinking funds.

In Fairfield ISD, the tax rate could increase a couple of pennies, or more, to make bond payments.

Texas lawmakers protected property owners against a market-driven rise in appraisals several years ago by instituting a cap that does not allow taxable values to increase more than 10 percent a year, although market values may continue to rise.

The 10 percent cap meets a wrinkle this year as taxable values slide. If a home value has not caught up with its increase of values over the years because of the cap, the taxable value can still go up even though the property’s appraised value has dropped.

For example, that $100,000 house could increase in value this year if it has not caught up with its value that was deferred under the cap.

Estimated tax statements were mailed by the FCAD this week for 30,000 property parcels, all that are on the rolls.

“We opted to mail out notices to everything this year because it is a reappraisal year,” Black says.

Property owners can formally protest values, but are encouraged to visit the FCAD to discuss values short of the formal protest.

Friday is the deadline for filing property tax exemptions on agricultural, wildlife and timber properties.

Taxable value estimates, combined real estate and minerals, for governmental entities served by FCAD are: Freestone county, $4.7 billion, down 12 percent; City of Fairfield, $217 million, down five percent; City of Streetman, $5.7 million, unchanged; City of Teague, $112 million, down two percent; City of Wortham, $30 million, up one percent;

Buffalo ISD, $129 million, down 15 percent; Fairfield ISD, $2.3 billion, down seven percent; Oakwood ISD, $55 million, down three percent; Corsicana ISD, $55 million, down three percent;

Dew ISD, $399 million, down 21 percent; Teague ISD, $1.8 billion, down 16 percent; Wortham ISD, $131 million, unchanged; Mexia ISD, $2.8 million, down 13 percent;

Fairfield Hospital District, $2.3 billion, down seven percent; and Teague Hospital District, $1.8 billion down 16 percent.

Black must certify final property values by July 25.