Beeville ISD v. Bee County: Attorney bills begin to arrive
Bee County commissioners voted in September to increase the amount the county would charge other taxing entities to collect their property taxes.
They believed the higher rate was fair for all.
But that additional $16,034.96 in revenue has already been reduced because of attorney fees.
And more attorney bills are sure to follow.
Commissioners voted reluctantly on Monday to pay a $2,695 legal bill submitted by Corpus Christi lawyer Phillip “Phil” McKinney.
County Judge David Silva said County Attorney Mike Knight spoke with McKinney earlier this month over the telephone regarding the legal action taken by the school district.
Precinct 2 Commissioner Susan Stasny noted that Knight sought out an attorney’s advice without the consent of the court as is required under county policy.
But Precinct 1 Commissioner Carlos Salazar recommended the county pay the bill so that it wouldn’t face a lawsuit from McKinney.
Silva reminded commissioners that they were out of town at a conference the day the school district’s attorney filed the writ of mandamus.
“Mr. Knight was consulting with Mr. McKinney by phone while we were at a conference,” Silva explained. “It was a unique situation and we were out of town.”
The writ of mandamus, filed in the first week of August, asked a district judge to order the county to collect the school district’s property taxes.
Commissioners authorized the county tax assessor-collector in October not to collect the school districts’ taxes unless they paid the higher rate set by the commissioners court.
The county tax assessor-collector collects taxes for all four school districts, the city of Beeville, Coastal Bend College and the emergency service districts and water districts.
The county had charged all four school districts $1.50 per parcel of property last year for tax collection service.
Commissioners voted Sept. 28 to increase the rate to $1.98 per parcel on the recommendation of a two-person ad hoc committee.
BISD Superintendent Dr. John Hardwick Jr. said the district did not take legal action because of the higher rate but because the county was not going to collect BISD’s property taxes and that without the property taxes collected the school district would be in dire straights financially.
District Court Judge Joel Johnson ordered both parties to enter into mediation and return with a solution within 90 days or he would find one for them.
Salazar said the county attorney should be exempt from the county’s policy that prohibits department heads from incurring legal expenses without permission from commissioners first.
Commissioners adopted that policy last year after they were surprised to find that McKinney had billed the county a consulting fee after speaking with the sheriff’s department about a legal matter.
Commissioners were equally surprised Monday to learn that they were scheduled to meet with another attorney about the pending legal action with BISD.
Commissioners voted earlier this month to hire Austin attorney Allison Bass to represent the county in its mediation hearing with the school district.
On Monday they voted to approve the contract submitted by Bass’ law firm.
However, Bass apparently wanted to meet with commissioners during a special called meeting on Thursday at which time “the rules of mediation would be established,” but the commissioners didn’t like the idea of incurring legal expenses if they didn’t have to do so.
Salazar said it was up to the commissioners to call meetings, not an attorney.
According to the contract between the county and Bass, the county will pay the attorney $240 per hour, paralegals $100 per hour and $50 per hour for traveling expenses.
“Ka-ching,” Salazar said, imitating a cash register. “You see, guys, it’s already costing us money.”
Although they didn’t like the idea of incurring more expenses, commissioners are going to meet with Bass on Thursday after all.
Salazar told the Bee-Picayune after Monday’s meeting that the two-person ad hoc committee was formed in December in hopes of saving the county and the school district money in legal expenses.
He said he met with BISD Trustee Tom Beasley last December after BISD took similar legal action against the county. He said he and Beasley agreed that the committee should research the issue and return with a rate acceptable to both parties.
Salazar told the Bee-Picayune last week that he and Beasley were acting on behalf of their boards, but on Monday he said he had misspoken and that they had agreed to take the idea back to their boards for approval.
He said he told his fellow commissioners about the suggestion and they agreed to the concept.
Salazar said he figured Beasley did the same.
Beasley told the Bee-Picayune last week that he was not speaking on behalf of the school district and had only offered a suggestion and never believed the ad hoc committee’s recommendation would be binding.
What’s at stakeBee County commissioners believe the county should be charging the school districts more to collect their property taxes each year.
Commissioners voted last month to increase the collection rate from $1.50 per parcel of property to $1.98. The four school districts believe the $1.98 fee is unreasonable.
Here’s how much each entity will pay under the old and new rate.
Beeville ISD: 13,090 parcels. At $1.50, $19,635; at $1.98, $25,918; a difference of $6,283.
S-T ISD: 4,395 parcels. At $1.50, $6,592; at $1.98, $8,702; a difference of $2,110.
Pettus ISD: 6,742 parcels. At $1.50, $10,113; at $1.98, $13,349; a difference of $3,236.
Pawnee ISD: 9,138 parcels. At $1.50, $13,707; at $1.98, $18,093; a difference of $4,386.