It actually sucks when your house goes up in value, if you don't plan on moving, because everything else nearby has also gone up in value, so you'd be force to leave if you ever sold, and because your property taxes go up (in some places).
Extremely true in Houston (and the rest of Texas). Property taxes are big and can change dramatically year to year.
If the property taxes are going up that much, then the local government is spending much more. But I have seen places where land values go up, and tax rates actually go down (and/or assessments remain low), since the government expenses do not rise at the same rate.
That would be rare, because rapidly increasing property values are almost always driven by rapidly increased demand. The municipal government has to expand its expenditures to meet this demand, usually ahead of when it receives expanded revenue. Generally speaking, it's much more expensive to grow quickly than slowly.