SHERMAN, Texas (KTEN) -- With the next fiscal year right around the corner, the Sherman City Council just approved a $125 million budget for 2021-22.

A new $17 million police headquarters highlights the spending plan.

"Policing has changed over the years," said Mayor David Plyler. "Our city has changed over the years; our police force has grown, so we really need a new police station."

That facility will include a modern evidence lab along with provisions for maintenance and other needs.

Here's some good news and some bad news: Sherman residents will not face a property tax increase, but utility bills will be going up.

"We want to introduce a small raise in the utility rates every year, because we haven't raised them in several years," said Sherman city spokesperson Nate Strauch. "Everybody knows things are costing more, and we want to be on the forefront of utilities changes, infrastructure improvement, and everything like that, because that costs a little bit more money."

Utility rates will go up gradually by a couple of dollars every month over the next five years.

Sherman's budget plan also addresses the city's number one complaint: Street maintenance.

"Four or five different streets over the course of the next year will be taken down to the dirt and rebuilt from scratch," Strauch said.

City parks will also benefit from about $1.5 million in funds to add trails and pickleball courts.