Bonham, Texas — The Bonham City Council convened on Tuesday, August 16, 2022 for a special meeting that included a general overview of the proposed annual budget for the 2022-2023 fiscal year and to vote on the intention to establish a ad valorem tax rate effective January 1, 2022.
Bonham Mayor H. Compton presided, with council members John Burnett, Michael Evans, Kevin Hayes and Wayne Moore in attendance; Bill Chapman and Timothy La Vergne were absent.
The meeting began with a general overview of the proposed annual budget for the 2022-2023 fiscal year.
Property tax assessments in the city continue to rise. Last year, Bonham saw $2.3 million in new construction; that total jumped to around $24 million in 2022.
Sales tax revenue was another pleasant surprise. The city traditionally expects sales tax revenue to grow by 3.5% to 5% per year, but in fiscal year 2022, sales tax revenue grew nearly 12%.
Permit fees and franchise fees also exceeded expectations.
Currently, 1,200 acres of raw land in the city is currently being designed, with some developments more advanced than others.
Bonham City manager Sean Pate expects 617-acre development to be first Public Investment District (PID) in the town of Bonham and he predicts that it will be established by the end of 2022.
According to the Texas Land Title Association, a public improvement district is a special district created by a city or county under the authority of Chapter 372 or Chapter 382 of the Texas local code. The law allows a city or county to levy a special assessment on district properties to pay for improvements and/or maintenance. Failure to pay appraisals results in a foreclosure lien on the property.
City staff are working with a developer on a 150-home development near Silo Road. The developer and the city will share the cost of upgrading the sewer line from 10 inches to 16 inches.
The city is working with Bonham Economic Development Corporation (BEDCo) to share the cost of an extension of the water main off Silo Road to run north along FM 87. In another BEDCo-supported project, l Infrastructure is being extended along US 82 from Island Bayou to Albert Broadfoot to service raw land developments currently under negotiation.
“Interest in Bonham’s development has not slowed,” Mr Pate reported.
Key challenges for municipal staff to address include an aging municipal infrastructure and fleet, an urgent need for capital improvements, and municipal departments working understaffed and underpaid compared to neighboring towns.
Following the general overview, Bonham City Council unanimously approved the intention to establish an ad valorem tax rate of $0.56759 per $100 of assessed property for the year of taxation commencing January 1, 2022, which will result in a nine cent reduction in the current tax rate. of $0.6550.
The public hearings required for the adoption of the tax rates will be held on Monday, September 12, 2022.