W’boro Council proposes 51% property tax hike

Next Tuesday, the City of Whitesboro will hold a public hearing to discuss a proposed property tax rate increase of 51% for Whitesboro residents. This equates to an annual increase of nearly $500 for the average homeowner.

“The mayor and City Council are on the same page,” City Administrator Phil Harris said. “None of us are happy about it, but I have confidence that we’re doing the right thing.”

A July audit for the city’s finances for the last two years revealed that, at year-end in 2023, the city’s general fund was down $436,000. In 2024, the general fund was down $1,176,000. 

“When I saw that report, I thought, something’s got to change,” Harris said.

Over the past 14 years, the city has seen a property tax increase of just two cents. Last year, after receiving backlash for proposing a 30% increase, the council opted to go down in property taxes.

Currently the city is at a property tax rate of 38 cents. The highest tax rate the city can go (called the de minimis rate, which would enable the city to break even and then add $500,000 to the coffers) is 69 cents. The city is proposing a property tax rate of 59 cents per $100 valuation.

“As a city, we have other revenue sources we can make some money from, so we don’t need to be at (the maximum) 69 cents,” Harris said. 

Harris’s long-term goal for the city is to reduce property tax while moving to increase sales tax revenue, as it’s “less of a burden on citizens than any other tax.” With the 377 corridor heading this direction, Harris feels the city will see more commercial growth.

“For the first time this year, we’re going to charge vendors sales tax at Peanut Festival,” Harris said. “We’ll also get impact fees from developers. Over time, we want property tax to be a smaller piece of the pie. We want to continue providing the services we need, but we have to do what’s right for our citizens and employees. We want to be prudent and try to be thoughtful when it comes to our finances.”

The public hearing regarding the property tax proposal will be held Tuesday, Sept. 9 at 6 p.m. at City Hall. Citizens are encouraged to come and address the council. At the conclusion of the hearing, the council will vote on a decision.

“I invite everyone to come and talk about it,” Harris said. “I hope everyone can see that we’re doing our very best and this is where we are.”