WHARTON, Texas — Wharton is proposing a lower property tax rate for the upcoming fiscal year, while a proposed 5% water and sewer rate increase failed Monday night and a separate increase to GFL garbage rates was approved.

During its Aug. 24 meeting, Wharton City Council considered Agenda Item 1, an ordinance that would have amended portions of Chapter 86 of the City of Wharton Code of Ordinances dealing with Utilities and Services.

A motion was made to approve a 5% increase to city water and sewer rates, but three council members voted against the proposal, causing the motion to fail.

City Secretary and Assistant City Manager Paula Favors confirmed the vote result Tuesday morning.

The proposed increase would have taken effect Oct. 1, 2026.

Proposal Follows Previous Utility Rate Increase

The failed proposal comes after water and sewer rates increased for the current fiscal year.

The city’s current published rate schedule, effective Oct. 1, 2025, lists a minimum water charge of $41.75 for the first 2,000 gallons and a minimum sewer charge of $44.85 for the first 2,000 gallons.

The city’s FY 2025-26 adopted budget included a 10% increase to utility services within the Water and Sewer Utility Fund.

The current budget projected approximately $7.31 million in Water and Sewer Utility Fund revenue.

The proposed FY 2026-27 budget projects approximately $7.34 million in Water and Sewer Fund revenue, including about $3.74 million from water sales and $3.39 million from sewer charges.

During Monday’s discussion, city officials also said more than 50% of Wharton’s water and sewer infrastructure is aging, highlighting the challenges facing the city’s utility system.

GFL Garbage Rate Increase Approved

Council separately considered Agenda Item 2, dealing specifically with Green for Life, or GFL, the city’s garbage collection provider.

Council approved a 3.84% adjustment to GFL garbage rates, effective Oct. 1, 2026.

During the meeting, officials said the GFL agreement allows for an annual adjustment of up to 5%, while the applicable Consumer Price Index adjustment this year was 3.84%.

The GFL increase is separate from the proposed 5% water and sewer increase that failed.

Property Tax Rate Proposed to Decrease

The city is also proposing a lower property tax rate for FY 2026-27.

The proposed property tax rate is $0.40787 per $100 of taxable valuation, down from the current adopted rate of $0.42411.

According to the city’s taxpayer impact statement, a median taxable homestead valued at $164,017 would have an estimated annual city property tax bill of $668.98 under the proposed rate.

That would be approximately $26.63 less per year than the estimated $695.61 bill under the current rate.

The city’s no-new-revenue rate is listed at $0.41117 per $100 of valuation, which is higher than the city’s proposed $0.40787 rate.

The proposed property tax rate remains part of the city’s FY 2026-27 budget and tax-rate process and has not yet been finally adopted.

Following Monday’s meeting, the 5% water and sewer rate proposal failed, while the 3.84% GFL garbage rate adjustment was approved and is scheduled to take effect Oct. 1.

Councilmember and Mayor Pro Tem Russell Machann was not in attendance at Monday’s meeting and did not participate in the votes.

You can view the City of Wharton’s FY 2026-27 proposed annual budget here: View the proposed FY 2026-27 budget