In a recent city council meeting in Denison, officials discussed the impact of economic challenges on local growth and the upcoming tax rate adjustments. Council members highlighted the dual pressures of record inflation and rising interest rates, which have been increased 11 times between 2022 and 2023. These economic factors have affected the city’s operations, particularly in the procurement of essential chemicals for water treatment.

Despite these challenges, the city has seen significant growth, with over 1,500 permits issued since 2015, resulting in the completion of 592 apartment units and the approval of 315 duplex permits. This growth has led to a total of 2,410 new housing units in the community, necessitating additional services to support the expanding population.

During the public hearing segment, residents voiced concerns regarding the proposed tax rate increase. Becky Espel, a retired teacher, questioned the justification for raising taxes when neighboring cities like Sherman and Pottsboro maintain lower rates. She expressed empathy for families struggling with inflation, urging the council to consider the financial burden on residents already facing rising costs for essentials like food and gas.

In response, council members pointed out that a significant portion of the city’s revenue comes from sales tax, emphasizing the need for residents to shop locally to mitigate tax revenue losses to neighboring areas. They noted that Sherman benefits from a robust sales tax base due to its commercial developments.

Tiffany Drake, a local nurse and candidate for state house representative, also addressed the council, highlighting the rising costs of living, including housing and groceries. She referenced a study indicating that the average cost of housing has reached nearly $2,000, stressing that Denison families cannot afford further increases in living expenses. Drake shared her commitment to addressing affordable housing through a 10-point plan available on her campaign website, as the Texas Legislature prepares to tackle this pressing issue.

The meeting underscored the delicate balance between fostering growth and managing the economic realities faced by residents, as the council prepares to finalize the tax rate amidst ongoing public concerns.