BY KATHY WILLIAMS

HERALD DEMOCRAT

Sherman City Council adopted the $57.2 million 2010 Budget and the 32 cents per $100 valuation property tax rate to fund it Tuesday. The council also took a step closer to the redesigned streetscapes planned for Travis Street near the Courthouse square by hiring the engineering firm to design the intersections.

Councilors also voted unanimously to approve a negotiated natural gas rate with Atmos Energy Corp. and to ban sales, use, purchase and possession of synthetic cannabis. And they approved the $48 million Capital Improvement Plan for 2010-2015.

Acting on another public hearing matter, the council voted unanimously to accept new flood maps produced by the Federal Emergency Management Agency. This is a necessary step to allow the city to participate in the National Flood Insurance Program.

The council also voted unanimously, except for Councilor Chip Adami's abstention, to approve a specific use permit for St. Mary's Catholic Church to build a playground at 615 South Travis Street.

The council amended the 2009-2010 Budget to officially appropriate money in categories for which it didn't have specific costs when that budget was developed. In one case, the amendment is to appropriate money to cover costs of the Lights on the Lake event July 3, an event that was not anticipated at the time the budget was drafted in 2009. Lights on the Lake expenses will come from the Hotel and Motel tax fund as permitted by state law.

The council heard a report on the Fair Housing Impediment Update from Community Development Coordinator Theresa Caudle. Caudle explained that her office will hold three hearings on the issue Sept. 23. The first one will be at 10 a.m. with an invited group of stake holders like apartment managers and real estate agents; the second one will be at 3:30 p.m. for city councilors and city staff; and the third will be for the general public to have input on the plan. More details will be published closer to the event.

The 2010-2011 Budget will require raising water and sewer rates by about 6 percent and solid waste rates by 2.5 percent in order to balance those funds.

Of the $57.2 million General Fund budget, $1.6 million is earmarked for capital improvements as outlined in the first year of the five-year CIP councilors passed Tuesday.

"The proposed budget reflects a focus on funding our essential services and balancing the budget using available fund balances and rate increases while holding the property tax rate unchanged at $.32/$100 valuation," staff notes state as a summary. "Utility Fund and Solid Waste Fund revenue increases will come from increased water and sewer rates, as well as solid waste rates, while increases in certain user fees in areas such as cemetery and parks and recreation will generate additional revenues for the General Fund."

The General Fund is balanced for the upcoming year, but is not balanced on an ongoing basis, Assistant City Manager and Chief Financial Officer Robby Hefton noted in the council's agenda packet.

The entire budget and all its schedules and related material is available through the City Clerk's Office.

In the negotiated agreement on rates with Atmos Energy Corp., bills across the company's service area will rise by $30.4 million. That's a 3.5 percent increase and should result in an average increase for residential customers of $1.40 a month. Sherman participated with other cities served by Atmos in negotiating the settlement and pays for that representation based on an amount per resident. This is the third such rate issue in which Sherman has participated in the cities' group.

In other business Tuesday, the council approved:

* adopting an investment policy for the city of Sherman;

* entering a tender and release agreement with SureTec Insurance Co. for the Travis Street water main replacement project;

* authorizing execution of an encroachment easement to Melvin Fleitman for the construction of a storage building in a utility and drainage easement at 1800 Pebblebrook Lane;

* authorizing the execution of an interlocal agreement between the city of Sherman and the city of Fort Worth for household hazardous waste services.