Quitman officials got their first look at the city’s proposed 2026-27 budget Thursday, Aug. 13, with sales tax collections running strong and a lower property tax rate on the table.
The Quitman City Council spent much of the evening reviewing the proposed budget before moving into its regular meeting, where members discussed unpaid water bills, gaming machines and a deteriorating property.
Sales tax collections are running ahead of last year. The city has collected approximately $961,896 with one month remaining in the fiscal year, compared with about $975,760 for all of last year.
Even with collections on pace to top $1 million, City Secretary Allan Gilbert said the city is budgeting $985,000 in sales tax revenue for the coming year.
“I'd rather bring a budget to you guys that's conservative,” Gilbert said.
The proposed budget includes a 5% raise for most city employees and a 3% raise for police department employees. Police received an additional pay adjustment earlier this year.
Council members were told the raises could be included while still leaving an estimated $31,000 surplus before any additional allocations.
Residents could also see a lower property tax rate. The proposed rate is about 8 cents lower than last year’s, helped by increased property values and a reduction in city debt.
The city recently used interest and sinking funds to pay off equipment, including a zipper and backhoe, bringing outstanding I&S debt down to $171,000.
Water infrastructure is expected to be one of the city’s larger expenses over the next few years.
The proposed budget sets aside about $250,000 to rehabilitate aging water tanks, with another $250,000 expected to be budgeted next year. The city has also ordered 100 new water meters for approximately $26,000.
The council also discussed money the city is losing to unpaid utility accounts.
Approximately $69,000 in water bills has gone unpaid since 2018, although some of that money has since been collected. Under the current system, customers can sometimes accumulate several billing cycles of charges before water service is disconnected.
“We will do everything we can to help them keep their water, but we cannot keep letting people pile up four-, five-, $600 bills and walk away from it,” Gilbert said.
During the regular meeting, the council approved a $725 fee to remove and replace a water meter in certain cases when someone leaves a property with a substantial unpaid bill. Officials stressed that meters will not be removed simply because someone is late paying.
The council also set the city’s bulk water rate at $30 per 1,000 gallons.
Gaming machines that recently appeared at two Quitman convenience stores also came before the council.
Police Chief John Farmer said officers visited the businesses, gave them copies of the city’s ordinance and had the machines unplugged. City officials said the ordinance does not allow the machines in businesses that sell alcohol.
The city attorney is reviewing the issue, and officials may also seek guidance from the Texas attorney general’s office.
“The attorney general's ruling on it is whether it's skill or whether it's chance. It's still illegal if you get money. Bottom line,” Gilbert said.
The council also agreed to move forward with the legal process involving a deteriorated property at 222 Clark St.
The property was previously ordered to be brought into compliance, but officials said the matter had fallen through the cracks. The city plans to begin the lien process, with demolition potentially following.
The proposed budget is expected to return to the council Aug. 25. Adoption of the property tax rate is planned for Sept. 17 at the city council’s regular monthly meeting. The council meets the third Thursday of each month at 6 p.m. at City Hall.