Graham Proposes 14.5 pct Tax-Rate Increase
Graham property owners could see a 14.5 percent increase in the city’s property-tax rate under a proposed $36.52 million budget presented to the City Council on July 23.
City Manager Eric Garretty proposed raising the rate from 69 cents to 79 cents per $100 of taxable property value for fiscal year 2027. The budget also incorporates previously approved water and sewer rate increases and a new $17.25 monthly sewer capital surcharge.
The proposal is the city manager’s initial budget request and can be changed by the council before final adoption, which is scheduled for Sept. 17.
Mr. Garretty said the increase is necessary to maintain city services, replace aging equipment, improve streets and begin rehabilitating Graham’s 48-year-old wastewater treatment plant.
At the proposed rate, a property owner would pay $790 in city property taxes for each $100,000 in taxable value, compared with $690 at the current rate. Assuming no change in taxable value or exemptions, the increase would amount to approximately $100 annually on a $100,000 property, $150 on a $150,000 property, and $200 on a $200,000 property.
The proposed budget would raise approximately $739,619 more in property-tax revenue than the current budget, an increase of 20.44 percent under the state-required calculation. Of that amount, approximately $77,934 would come from property added to the tax roll during the past year.
Mr. Garretty said the proposed 79-cent rate would generate approximately $4.6 million for city operations and another $250,800 for debt service associated with the purchase of a new fire apparatus.
The city’s estimated no-new-revenue rate is 63.8 cents. That is the rate calculated to produce approximately the same property-tax revenue from properties taxed in both years.
Mr. Garretty said adopting that rate would require cutting approximately $1.35 million from the proposed budget. He estimated that the city would need a rate of approximately 73.5 cents simply to maintain existing services and make the debt payment on the fire apparatus.
The proposed budget includes $2 million associated with the new fire apparatus, approximately $1 million for street paving and $500,000 to rehabilitate water-storage tanks and replace waterlines. It also provides approximately $49,000 to lease two police vehicles.
Most city employees would receive a 2.5 percent cost-of-living adjustment. The city manager, city secretary and assistant city manager would receive 1.5 percent increases.
Mr. Garretty also proposed increasing the city’s contribution to the Texas Municipal Retirement System from 5 percent to 6 percent. He said the contribution rate has not increased since Graham began participating in the retirement system in 1949.
The city estimates that salaries across all of its funds will total approximately $5 million. The proposed budget authorizes 87 full-time positions and 24 part-time, seasonal or contract positions.
Utility customers also will face higher bills. The budget incorporates a 7 percent water-rate increase, a 3 percent increase in sewer base and usage rates, and the new $17.25 monthly capital surcharge. The surcharge is intended to help repay debt for the rehabilitation of the wastewater treatment plant.
Mr. Garretty said the city has no signed agreement with Stream Data Centers or any other data-center developer, and the proposed budget does not assume that Project Saltworks will be built.
The City Council will hold a public hearing on the proposed budget at 6 p.m. Aug. 13. The council is scheduled to adopt the property-tax rate Sept. 14 and the final budget Sept. 17.