Whitesboro council schedules second public hearing to set tax rate, adopt annual budget

After a question of legal compliance was raised at last week’s public hearing, resulting in the tabling of tax increase discussions, the Whitesboro City Council discussed the idea of moving forward with a 51% property tax rate increase at this week’s special called meeting.

During Citizens to Be Heard, several people addressed the council with their concerns about a possible property tax rate increase.

Lisa Banfield wanted to know why the city’s audit wasn’t filed in time per the requirements of state law. 

According to Local Government Code Title 4, Subtitle A, Chapter 103, Section 103.003, “the annual financial statement, including the auditor’s opinion of the statement, shall be filed in the office of the municipal secretary or clerk within 180 days after the last day of the municipality’s fiscal year.”

As a municipality’s fiscal year ends on Sept. 29, the law indicates the city’s audit should have been completed/filed by the end of March.

A newly-passed Senate Bill 1851 now penalizes cities in non-compliance by forcing a no-new-revenue tax rate adoption.

According to City Administrator Phil Harris, who said he and City Secretary Teresa Nino were aware of the bill back in May, the city’s 2023-2024 audit was issued on June 30 and posted in early July.

Therefore, he said, as of the Sept. 1 passing of the bill, the city is in compliance with the law.

State Representative Shelley Luther disagrees and has filed a report with Attorney General Ken Paxton and is awaiting his ruling on the matter. 

Citizen Lewis Hill was in favor of a tax increase, but encouraged the idea of smaller increases over time.

Luther made a repeat appearance this week and beseeched the Council to reassess their budget.

“I ask you again -- no-new-revenue rate. That doesn’t mean you’re going to lose out on money, because everyone’s appraisal rates are going to be ridiculous.”

After the hearing, Harris explained to Council variations of the budget with possible tax rate increases (including $0.58, $0.53, $0.51, $0.48 and no-new-revenue).

He highlighted some budget items that could be adjusted, like hiring two full-time firefighters instead of four; continued use of two older utility vehicles (although he had concerns about reliability and maintenance); and parks and rec items like baseball fields at the Tot Lot Park and a second handicap lift chair at the public pool.

“In my analysis of the budget, it’s not just about where the dollars fit. It’s who is using those services, and are we satisfying those citizens with those services,” Harris said. “I’m not asking for action on this item; I think it deserves (Council’s) study.”

The Council voted to proceed with a public hearing for the originally proposed property tax increase of $0.585800 per $100 valuation. This would be a 51% increase over the city’s current tax rate, but Harris mentioned that it could go down from there.

This second public hearing will take place Monday, Sept. 29 at 6 p.m. at City Hall. The Council will vote to adopt a tax rate at that meeting.

A public hearing regarding the budget will take place the night before on Sept. 28. An agenda will be posted on the city’s website, but was not yet available as of press time.

The deadline for municipalities to adopt a budget and set a tax rate is Sept. 29.