The Lufkin City Council approves the first reading of the budget, tax increase

LUFKIN, Texas (KTRE) – Lufkin residents could see an increase in property tax rates.

The city council went ahead with the first approval of the proposed budget.

It includes a three-cent tax increase and City Manager Kevin McGee said it is set to be the lowest since 2014.

Mcgee also explained that it is due to increased operating expenses for city projects to $1.3 million, an increase of 1.48 percent from last year.

“Instead of borrowing money related to these projects, and it also maintains a level of service in our various departments and functions of the general fund,” McGee said.

Council member Guessippina Bonner raised concerns about increasing tax rates affecting low-income earners.

“I intend to recuse myself from it because I’m concerned about the people, especially in Ward One who may not have the financial ability,” Bonner said.

Council member Kim Ogden proposed a fair tax system, but Council member Jimmy Ford explained that renters are indirectly affected.

“Just to think outside the box, we need more money. I don’t think we always need to beat our property owners. And tenants, they need to, everyone needs to be affected in the same way, says Ogden.

Mayor Mark Hicks believes the proposed budget will help keep the city out of debt. He aims to avoid borrowing money for projects.

“I would like to see the community grow with new taxes, new properties, new projects coming online creating new additional tax revenue,” Hicks said.

The council approved an ordinance amending increased fees for surrendering animals and entering zoos.