After much back-and-forth over the past six months, the Whitesboro City Council agreed unanimously on Feb. 27 to release the previously earmarked property tax increase funds for use in the general budget.
Council approved a tax rate of 58 cents per $100 of valuation back in September. This was an increase from the previous rate of 38 cents per $100.
The rate adoption came on the heels of numerous public hearings where concerns from taxpayers were aired as well as considerations of the newly passed Senate Bill 1851.
Effectively, SB 1851 says cities cannot increase property taxes if their previous year’s audit was filed late.
Whitesboro’s audit was late, and protestors (including State Representative Shelley Luther) lobbied the council against the increase.
Attorney General Ken Paxton sent a letter in October alerting the City he would be launching an investigation.
Since the news of the AG’s investigation, the increase difference of the two tax rates have been sitting in a separate account awaiting final direction from the state.
City Administrator Phil Harris advised the council to release the funds. They agreed.
“We had (the funds) set aside. The county was keeping it set aside for us as well,” Harris said. “…We understand the ruling from the Attorney General is that we can’t raise property taxes next fall and there’s no plan to do that.”
The city was on target to accept this year’s audit on time at Thursday’s regular City Council meeting. Results of the meeting were not available as of press time.
In other business on Feb. 26, the council awarded an engineering grant to Pape-Dawson for preliminary plans for a Community Block Grant project on D Street.
According to Harris, the city has been awarded a $750,000 state grant to replace water lines in the area.
“That neighborhood still has steel pipes with lead solder joints,” Harris said. “The lead doesn’t touch the water, so we are safe there, but this would replace the waterline. It’s the last steel line we have with lead joints… It’s a three blocks stretch that will replace the waterline, the sewer line and then re-do the road.”
The city will cover any expenses above the $750,000 grant.
Also on Feb. 26, the council:
- Ratified ordinance 1260 banning the use of air compression (jake brakes) by 18-wheelers within the city limits.
- Approved a payment of $56,635 to Landmark Structures for work completed at the new city water tower.
- Approved a payment of $28,712 to Zone Industries for repair works at one of the sewer lift stations.
Source: Freepik.com