Sherman City Council Considers to Raise Property Tax - KTEN.com - No One Gets You Closer

Sherman City Council Considers to Raise Property Tax

Posted:
SHERMAN, TX -- People in Sherman could soon see an increase in their property taxes. City leaders met Monday night to continue talking about the proposed budget, which totals more than 65 million dollars. 

Sherman Mayor Cary Wacker says budget planning this year has been an extended process. She says the city has several projects planned for the future and this tax increase could foot the bill. 

"It's the base of how we fund all of our local government," said Scott Connell, President of the Sherman Economic Development Corporation, "at the city, school, college, county level in Texas." 

As of right now, the city of Sherman's property tax rate is at $.348 per $100 and the city council has proposed to increase that rate to $.372 per $100. This would mean a 2% to 4% increase for residents. 

Connell says Sherman has one of the lowest property taxes in the state of Texas. And even if the proposal by the city council goes through, it will still be one of the lowest. He says while it's good to be low, it's also good to be competitive. 

"We'll still be one of the most competitive tax rates in the entire state of Texas," he said. 

Connell says the focus of a rate increase lies with the community's needs. With a higher rate, more money is turned back to the government. He says city investments were delayed during the recession. 

"It's time for us to reinvest in some equipment," he said, "and we think that's what they're needing to do to, to continue the high quality service that they give."

He says historically Sherman residents have elected to have a sales tax in order to lower the property tax. And for years the city hasn't been in a position to bring those taxes back up. 

"I think just the cost of doing business has escalated and the cost of materials for the things we want done," Connell said, "and roads and water and sewer. We want to make sure we can handle those demands that the community has going forward."

Monday's meeting was simply introducing the idea in front of the entire city council. City members will hold a public hearing August 18th for residents to speak before they vote on the increase September 15.