Bonham, Texas -- Bonham City Council unanimously approved an intent to establish an ad valorem tax rate of $0.6550 for the 2020/2021 fiscal year, discussed the installation of thousands of new water meters in the near future and received an overview of the coming fiscal year during a special called meeting Thursday, August 27, 2020.

Bonham Mayor Pro Tem H. Compton presided over the meeting due to the absence of Bonham Mayor Roy Floyd. Councilmember Bill Chapman was also unable to attend.

After the meeting was called to order, Bonham City Council tabled an agenda item calling for the appointment or re-appointment of individuals to the Bonham Economic Development Corporation Board of Directors. Alan McDonald was recently tapped to serve on the board following the resignation of Teresa Stapp. The terms of current board members Emily Porter, Jack Lipscomb and H. Compton, the city council's representative on the board, are all set to expire August 31, 2020; all three have agreed to continue serving in the interim. A decision is expected at the next regular meeting of Bonham City Council.

Dave Struchtemeyer, CPA, Director of Finance for the City of Bonham presented councilmembers with an overview of the proposed fiscal year 2020-2021 annual budget.

General Fund revenue comes from a variety of sources, but approximately 60% of General Fund revenues derive from ad valorem tax and sales Tax, with ad valorem tax revenue comprising approximately 40% of General Fund revenues and sales tax revenue equating to approximately 20% of General Fund revenues.

Mr. Struchtemeyer reported that total taxable value subject to ad valorem tax assessment is $452,645,035, which amounts to an increase of $31,140,685 over last year. Struchtemeyer said this increase was made up of $8,156,815 in new property and valuation increase of $22,983,870 on existing property.

Every 1 cent of tax rate generates approximately $45,000 in revenue for the city.

Councilmembers unanimously approved an intent to establish an ad valorem tax rate of $0.6550 for the 2020/2021 fiscal year, which is the current tax rate. A public hearing regarding the proposed tax rate is set for 5:15 p.m., Monday, September 14, 2020.

Struchtemeyer and Lance Capehart, Director of Public Works, provided details regarding the installation of 3,000-4,000 new water meters beginning in 3-4 months. Water customers with less than a 2" water line whose meters must now be read manually will be charged a monthly rate based on their three-month winter average during the installation period in order to provide consistent billing.