.jpg)
State Attorney General Ken Paxton’s office is freezing raises on property taxes for Eagle Lake after the city filed a late audit required by state law.
A recent press release from Paxton’s office named Eagle Lake along with over 130 other cities as not following Senate Bill 1851. Passed in 2025, SB 1851 blocks cities from raising property taxes above the no-new-revenue tax rate if they do not conduct an audit first.
The bill introduced a 180-day deadline after the end of the city’s fiscal year. For Eagle Lake, that deadline passed two months ago at the end of March. City officials said they will file the necessary paperwork to return to state compliance.
According to published reports, the new law is taking a toll on smaller cities without a budget to pay for annual audits.
Carol Craig, the city’s budget officer, said that outside of the late audit, the city remains in compliance.
“We entered in our financial information to our auditors way back in December,” Craig said. “They are just bogged down, and I have been talking with all the authorities that are waiting on our audit. I have let them all know that it’s coming.”
A representative with the city’s auditor could not be reached for comment before publication. Craig said the firm notified her June 2 a draft will be ready for the City Council to approve soon.
“Once it’s turned in, then we are in compliance, and we’re good to go,” Craig said.
Supporters say SB 1851 was part of a push by the GOP-controlled Legislature to keep property taxes low and further regulate cities, but critics argue the measure could affect funding needed for municipal services.
The council met June 9 after press deadline, with an agenda that includes possible acceptance of the annual financial report for the 2024-25 fiscal year.
Editor's Note: The below content is an update following the June 9 council meeting.
City council unanimously approved the audit after a presentation by a representative from the auditor's office, Trlicek and Co., a small public accounting firm located in La Grange. The representative cited family issues as the reason for the delay.
"This should satisfy the Ken Paxton issue," City Manager Tink Jackson said.
