What is the absolute tax base value for Luminant for considering 2016 Somervell County budgets? Somervell County Salon-Glen Rose, Rainbow, Nemo, Glass....Texas


 

What is the absolute tax base value for Luminant for considering 2016 Somervell County budgets?
 


28 June 2016 at 1:14:06 PM
salon

Had a very interesting conversation with a knowledgeable person regarding Luminant, value of Luminant as of 2016, and tax base for determining the tax rate. Let's start with several assumptions. First, ignoring, for now,  the lawsuit that Luminant has on appeal against Somervell County CAD, in which the lawsuit used a determination of the value of Luminant/Comanche Peak as of January 1.2015.Second, budgets are due soon from all government entities. Third, one cannot set a budget without knowing what the revenues are that are coming in.

What was the value of Comanche Peak on January 1, 2016? Consider that between January 1, 2015 and January 1, 2016, Comanche Peak had two outages. Also, during that time, the price of electricity dropped from approximately $3.35 to, roughly, $2.00. That means that there were 3 reasons why Comanche Peak would be bringing in less money during that time frame, so that as of January 2, 2016, revenues would be lower. So 2 questions: How much electricity does Comanche Peak make, and what did it sell for? 

How does one figure out a budget without first knowing what revenues will be available?  Example using the hospital district.  I recall, in the Somervell County Hospital District meeting of 2015, when Ron Hankins wanted to set a higher tax rate, but the budget had not been in front of the Budget and Finance Committee, was only 3 pages, and didn't comply with the law. Even now, with the new board, for some reason, in violation of the bylaws, they are not having budget and finance committee meetings. I also have not, as of yet, seen a discussion of the revenues available, FROM WHICH they would be able to draw numbers about how to appropriately budget for departments. That's what you'd do, right? You have to know what your income or other funds are coming in so that you can know how you will dish it out. 

Is CAD or the various governmental entities talking to Luminant to find out not only what revenues would be there and what each *penny* of the tax rate would represent? Seems to me this information should be prominent before the public so that when it comes time for the various tax hearings, the public has some idea of exactly what to expect from the largest provider of property taxes in the county. 

Let's assume that Luminant, because of the outages and the fact that electricity costs versus the price one sells it for, have caused the overall value of Comanche Peak to go down. Suppose, for example, that Luminant was now worth $250 million dollars. Luminant is already in bankruptcy, but this would change the amount available FOR THIS 2016 BUDGET to be significantly less. Presumably, Luminant would be in negotiations of some point with CAD to discuss the value in order to determine the absolute tax base.If for example, it was determined that Luminant's total tax base was, this year, 1 billion dollars, then each tax penny would be $100,000. If 1.1 billion, then the penny would $110,000. 

What's ridiculous to me is that some are spending time attempting to demonize Luminant on the basis of the 2015 property value and tax while apparently doing nothing tangible and public to discuss falling revenues which would affect the entities and citizens here to a huge extent. Why aren't they, especially when time is running out to vote on a budget? (Brian Watts and John Curtis made short references to the ad valorum tax and the 2016 value in the commisioners meeting on 6/27/2016)

Why does this even matter? For one thing, because it seems like, if Comanche Peak is making significantly LESS than even the amount they said in 2015, then it would be LESS money coming in for the county, and how the heck can any entity figure out a budget WITHOUT having that revenue number first? At that point, a government subdivision would have to weigh some options. ... 1. Raise taxes 2. Dip into reserves 3. Cut even more services 4. Go under or be sold to a revenue producing entity. All of us as citizens should be insisting NOW that we also are privy to any information or negotiations going on regarding the true value of Luminant, since there is an almost certain tax rate raise on the horizon. And the budgets are due, in one case in the middle of July. It's almost July. 

 


Permalink Tags:          
     Views: 1009 
Latest Blog Post by salon -Why are Paul Manafort's defense attorneys helping Lev Parnas and Igor Fruman today?
More Posts You Might Enjoy
Final Judgment in State of Texas ex Rel Best v Harper - 9/10/2019
8/23/2019- Judgement Against The State of Texas and George Darrell Best
Audio-City of Glen Rose Town Council Meeting April 8 2019
Video- Somervell County Commissioners Court May 13 2019

 You! Leave a Comment! You Know you Want To!
You must be a registered member to comment on the blog.
Your first post is held pending approval to make sure you're not a spammer bot

 Not registered? Or you can login!

LOGON - Name:Password:

New poster comments are moderated, meaning they won't show up until approved... or not.  Be patient-we have lives outside this blog, so it might take awhile You want to be rude? totally stupid? inappropriate? Racist? Bigoted? Flame war baiter? Your post may be deleted. Spammers or people posting pretend interest comments but really wanting to hawk their latest book or sell stuff or govt propaganda flacks won't see their posts published. Comments do not necessarily reflect the viewpoint of the site owner(salon).
If you have a problem with logging in or registering, please speak up right away. Love your comments. Oh, except spammers
More on commenting



Click Here for Main Page



Guest
Today Is  
Monday, October 21, 2019






Latest Posts

Why are Paul Manafort's defense attorneys helping Lev Parnas and Igor Fruman today?
salon 10/10/2019

Money Laundering 101- Trump seeks to get rid of regulations on offshore money
salon 10/10/2019

Pete Sessions wrote letter then got lots of moolah from Republican PAC
salon 10/10/2019

So are christians accepting of Trump's actions with Turkey-slaughter of the Kurds?
salon 10/10/2019

Today In Trump's Grifterville -10/10/2019 Impeachment Edition
salon 10/10/2019

Did we elect a monarch? Bah to the Constitution? Trump and the Ukraine
salon 9/21/2019


More Blog Headlines
 



Comments

salon > Quick update on this, via Pacer-Click on pic to see larger (Turk Case Update- Telephone Conference Hearing Set for March 8 2019 )

salon > Lance Been awhile. Send me an email at salon@glenrose.net with the names of who you're talking about, above. Also, the newspaper editor is no longer local, ie officed here, but the paper is run.... (What Happened to Jerry Jacene? )

LanceHall > I'd love to see the Hotel Guest books and see if Jacene's name shows up long before he officially *found* the tracks.  I'd like to know if the Visitor's Bureau has emails wit.... (What Happened to Jerry Jacene? )

LanceHall > I see the land or that part of it is now in the hands of Glen Rose's own Corky Underwood. Is Jacene still involved?   I had already informed the Visitor Bureau manager (who's.... (What Happened to Jerry Jacene? )








Home | Blog Home | About | News | Piazza | Calendar | Audio/Video/Open Rec | Search
Write!  |profile | quotes |
top Daily | top Weekly |top Month | top Year | Top All! | archives | subscribe RSS

 

%>