Sherman warns of possible tax hike - - No One Gets You Closer

Sherman warns of possible tax hike

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SHERMAN, Texas -- The City of Sherman needs a way to pay back debt from infrastructure projects.

City spokesman Nate Strauch said one possible solution is an increase in property tax.

"It would raise taxes -- property taxes, the city portion of your property taxes -- about $33 a year on a $100,000 house," he said.

City Council member Shawn Teamann said this isn't the best way to make up the shortfall.

"There are some solutions this year that do not include a tax increase," he said. 

Fellow Council member Kevin Couch said one way to do that is to let the tax base grow.

"Let's let Sherman Crossroads on the south side develop a little bit more; let's let 691 and 75 develop a little bit more; create a larger tax base with some of those new developments, and then let's reassess this next budget year if we need to take the tax rate up or not," he said.

On top of a possible property tax hike, Sherman residents can expect their utility bill to climb a couple of bucks as well. That's because industries are using less water.

"Over some circumstances that happened this year, their water usage was down significantly, and so that affected how much income the utility fund received," Teamann said. "So it's almost inevitable this year that there will be a utility bill increase."

The city plans more discussion about budget issues, and will hold public meetings over the next several months before deciding how best to balance the bottom line.