Texarkana, Texas council adopts 2027 budget, raises water rates and extends trash contract
The Texarkana, Texas City Council on Monday adopted the city’s fiscal year 2027 budget, kept the property tax rate at 65 cents per $100 valuation and approved water and sewer rate increases that take effect Oct. 1.
Budget and taxes
The budget projects about $188.5 million in revenue and $213.9 million in spending across all funds, with reserves covering part of the gap. The city expects to collect $349,459 less in property taxes than last year, even though the rate is unchanged.
Sales tax is the city’s largest source of General Fund revenue, making up nearly half. Property taxes account for about 31%. Police and fire make up more than 40% of General Fund spending.
A roughly 45% jump in employee health insurance costs shaped this year’s budget. To absorb it, the city is cutting 25 full-time positions through attrition and phasing in department budget cuts that will reach 7% by 2029.
City Manager David Orr called this year’s budget process a difficult one.
Water bills going up
The new rates are the fifth step in a 10-year plan the city adopted in 2022 to replace aging pipes and plants. For a typical home using 6,000 gallons a month, bills will rise about $3.78, or 3.8%, according to a TXKtoday analysis.
The Riverbend regional water plant fee will stay at $5.16 per 1,000 gallons. That fee pays the city’s share of the $497.9 million regional treatment plant. Its jump last year pushed typical bills above what the 2022 plan projected, and Riverbend’s own projections show its charge to the city continuing to rise.
The council also approved about $20.75 million in water and sewer bonds for utility projects. The bonds sold at a 4.88% interest rate, lower than expected.
The increases come as many customers are still disputing high bills tied to the city’s new automated meters. A Texarkana attorney sued the city over his bills earlier this month.
Trash contract and local dumpster companies
The council extended the city’s contract with Waste Management for five years. The company agreed to give up a 5.16% rate increase scheduled for Oct. 1.
Under the current contract, Waste Management holds exclusive rights to construction dumpsters and temporary roll-off service inside the city. After council members raised concerns in earlier meetings, the company agreed to give up that exclusivity on March 1, 2028.
Two local dumpster company owners spoke before the vote.
Michael Jobe, who owns a dumpster rental business, said residents should be free to hire whoever they want. He noted that residents can choose any welder or mechanic, and said local dumpster companies should not be restricted either.
Colin Carlisle, owner of Just Us Dumping Services, said he started with one trailer and has grown to more than 30 roll-off dumpsters in about two years. His company serves customers within 100 miles in Texas, Oklahoma, Arkansas and Louisiana, but the contract keeps him from working inside Texarkana, Texas.
Carlisle thanked the council for working toward a change. He said he understands the city needs haulers to be insured, dispose of waste legally and protect city streets.
“I’m not asking for fewer standards,” Carlisle said. He said he wants a fair opportunity to meet them.
He said giving contractors a choice would improve availability and service, and that local haulers support employees and families in the community.
Carlisle asked why the change will take until 2028 and whether it could happen sooner. He suggested the city look at Arkansas’ model, where haulers are licensed through a regional solid waste district and then register with the city. He also urged the city to involve local haulers in writing the new rules and offered to volunteer his time.
The council did not address his questions before voting unanimously to approve the extension.
Other business
The council also:
- Approved a $375,693 contract to reconstruct Pine Street, which will become one-way southbound.
- Voted to remove the traffic signal at West 14th and Olive streets.
- Confirmed retired Judge Josh Morris to the Civil Service Commission.
- Approved permits for a cell tower, a permanent cosmetics business and a multi-tenant sign on New Boston Road.
- Canceled the Nov. 3 election after Steve Thompson and Cole Meador drew no opponents.
The council’s next meeting is at 6 p.m. Oct. 12.