City public hearings next week on proposed budget, rate increases

The Graham community has the opportunity to come out and voice their opinions regarding the proposed budget as well as the increase in sewer connection charges, water tapping fees and wastewater and water service charges in two public hearings next week.

The city of Graham will host two public hearings at 8:30 a.m. Thursday, Aug. 15 at the City Hall council chambers at 608 Elm St. 

For those who cannot attend the meetings, comments can be submitted in writing no later than 4 p.m. Monday, Aug. 12 to City Secretary, City of Graham, 612 Elm St., Graham, TX 76450.

A proposed budget for the upcoming fiscal year was adopted Thursday, July 18 by the Graham City Council, with recommended increases to the property tax rate, water rate and wastewater rate.

The proposed budget includes a recommendation to increase the property tax rate to a value of $0.665 per $100 of valuation from the current rate of $0.635 per $100 valuation, or a 4.72% increase.

“This tax rate... proposed is strictly that. It is a proposed tax rate to meet the requirement of establishing a balanced budget,” Mayor Alex Heartfield said. “It does not mean this is the rate that we are necessarily going to end up with, but we have to establish a rate and we can reduce that rate over the next several meetings, but we cannot go above that rate once we have established it.”

Despite this, the mayor said for the council to meet the budget as it is currently presented in the proposed budget the increased tax rate would be required, or cuts would have to be made.

City Manager Eric Garretty said his reasoning for the increase is to continue to provide for core services such as Graham Police Department, Graham Fire Rescue and the streets department. 

While maintaining those core areas, he said he wanted areas for necessary expansion and to keep the workers required to accomplish the tasks of those departments.

“Given these desires, I was left with no choice but to develop a revenue model for the general fund which financially supports the continued functioning of our city at the desired levels,” he said. “The proposed budget also includes a recommendation to increase water and sewer rates. The city council exercised due diligence in ordering the conduct of a formal, analytic rate study to determine the net revenue needed to maintain and recapitalize our water and wastewater systems.”

Increasing costs for the production and distribution of water, transmission and treatment of wastewater and delayed infrastructure improvement projects, Garretty said warranted the increase for water and sewer rates.

“Water and sewer rates must increase for these systems to remain viable,” he said. “I would note that without robust and fully functional water and wastewater systems, we cannot survive as a community.”

The city of Graham received a report Thursday, June 20 from their water and wastewater study from Willdan Financial Services. The city was presented two five-year plans with increases each year.

The Graham City Council approved the first scenario presented by the company with the first of three readings of an ordinance to multiple amendments to Chapter 25 of the city ordinances for ‘Water and Sewers.’

“This ordinance will implement the sewer connection fees, water tapping fees, water service charges and sewer service charges proposed under scenario number one, as presented in the water and sewer rates study,” Garretty said. “These increased rates and fees would be effective with the start of the billing cycle that begins, Oct. 15, 2024. That is to say that customers would see an increase in the water and sewer bills they receive in November, which will show October, November fees and usage.”

A separate public hearing will also be held on the property tax increase at 11 a.m. Monday, Sept. 9 at the same council chambers location for the community to attend.