Property taxes, water concerns top discussion at regional TML meeting

Posted 10/15/26

Property taxes, rising costs and concerns about water supplies were among the topics discussed Thursday, Oct. 8, when the Texas Municipal League Region 15 held its fall meeting at the Mineola Civic …

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Property taxes, water concerns top discussion at regional TML meeting

Posted

Property taxes, rising costs and concerns about water supplies were among the topics discussed Thursday, Oct. 8, when the Texas Municipal League Region 15 held its fall meeting at the Mineola Civic Center.
The meeting was hosted by the City of Mineola. Mineola City Secretary Lisa Morrison organized the meeting, bringing city officials from across East Texas together to discuss issues that could affect their communities during the upcoming legislative session.
Rick Ramirez, TML director of state and federal relations, was the featured speaker. He discussed several proposals lawmakers may consider when the Texas Legislature convenes Jan. 12, 2027.

PROPERTY TAXES
AND RISING COSTS
Ramirez said property tax relief will likely be a major issue during the session, with proposals that could further restrict how much revenue cities collect and spend.
Among the proposals discussed were changes to property appraisals, limits on municipal spending and a process allowing voters to petition for reductions in property tax revenue.
Ramirez explained that while the proposals are intended to provide tax relief, they could make it harder for cities to pay for services and maintain infrastructure.
Ramirez noted that expenses such as street repairs, equipment and public safety continue to increase, even in communities with little population growth.
A recent TML survey of approximately 300 Texas cities found that property taxes account for about 40% of general fund revenue, while sales taxes make up about 30%. About half of general fund spending goes toward police, fire and emergency medical services.
Mineola differs from many Texas cities because it collects more in sales taxes than property taxes, a point Morrison emphasized during her opening remarks.
Mineola Public Works Director Kyle McCoy questioned how cities are expected to keep up with increasing expenses when their ability to raise revenue is limited. He noted that one city project now costs twice what it would have less than two years ago.
Ramirez encouraged officials to share those examples with their legislators to help them understand the challenges cities face.

WATER CONCERNS AND DATA CENTERS
The discussion also turned to water supplies and the growing number of data centers being developed across Texas.
McCoy raised concerns about the amount of water and electricity data centers require, particularly in East Texas, where communities are already discussing groundwater conservation and the possibility of water being sold to larger metropolitan areas.
Ramirez said TML is working to protect cities’ authority to decide whether data centers should be allowed within their boundaries.
He said some data center operators are exploring alternative water sources and recycling systems, but water availability remains a concern.
Attendees also discussed groundwater exports and the potential impact of large water withdrawals on smaller communities.
Ramirez, who previously worked as a municipal engineer, said water and energy needs are closely connected and that new approaches will be needed as demand increases.
Ramirez closed by encouraging city officials to stay in contact with their legislators and explain how proposed laws could affect their communities.
“They always complain that cities aren’t talking to them, so talk to them as much as you can,” Ramirez said.

MINEOLA WELCOMES REGIONAL OFFICIALS
Morrison opened the meeting by welcoming visitors and sharing information about Mineola, including its historic downtown, municipal services and Mineola Nature Preserve.
She also recognized city employees and credited former City Manager Mercy Rushing and current City Manager Cindy Karch for their work on the city’s finances and operations.
Mayor Jayne Lankford welcomed the group and discussed the city’s efforts to balance its budget while continuing to provide employee benefits and city services.
TML President Andrea Barefield, a Waco City Council member, attended the meeting and encouraged city officials to remain involved as the legislative session approaches.
Region 15 President James Humphreys, mayor of New Boston, conducted a brief business meeting. Members approved minutes from the previous meeting and discussed the upcoming TML annual conference in San Antonio.
Hallsville was mentioned as a possible location for the spring 2027 regional meeting.