In the last six years, DeWitt County has been blessed with a tremendous amount of oil and gas exploration activity.
Our certified tax roll has enjoyed explosive growth in mineral values which can relieve the tax burden on real property owners.
Since 2003, we have almost doubled the total taxable property values in the county - from $621 million in 2003 to $1.1 billion in 2009.
This is certainly something to celebrate, but it has risks attached to it if you understand that the reserve life of a typical natural gas well is about six years.
We have financed the restoration of our historic courthouse and the building of a new jail on the back of volatile mineral values. If (or when) the values begin to taper off, we will be saddled with the debt service of $1 million per year.
I propose that we begin to coordinate efforts with the Economic Development Corporations of Yorktown, Cuero, and Yoakum with the goal of diversification of the tax base in mind.
If we give an honest effort to this goal,we can lay the groundwork for job growth for the next generation. Rather than lose our educated youth to big city jobs, we could possibly attract them to live here and use modern technology for next generation, high tech, professional jobs which allow them to live and work in rural communities such as ours.
The alternative is to continue to lose our youth to the big cities and grow ever older in average population. Should the oil and gas boom go bust, the revenue needed to finance the operation of the county would have to shift back to the real property owners. Every home and business would be affected - except those that enjoy the Over 65 and Disabled Tax Freeze.
Theoretically, the tax burden could double for the 80 percent of taxpayers who are not "frozen" if the recently discovered mineral wealth were to evaporate.
It is not a pleasant thought. So we must be frugal while the activity is ongoing, pay down our debt, and search for ways to attract additional investment in DeWitt County which will diversify the tax base.
