BY KATHY WILLIAMS

HERALD DEMOCRAT

SHERMAN -- The City Council will ask for the public's opinion on seven issues at 5 p.m. Tuesday in Council Chambers at City Hall, 220 W. Mulberry. The council meets a day later than usual to avoid the Labor Day holiday.

Among the items open to a public hearing are the five-year, nearly $48 million Capital Improvement Plan, the second hearing of the $57 million budget for 2010-2011, keeping the property tax rate at 32 cents per $100 valuation and a proposal to prohibit the use, sale and possession of synthetic cannabis, which is currently legal and goes by several commercial names.

Councilors will seek the public's opinion on accepting a negotiated agreement with Atmos Energy Corp. for a $30.4 million natural gas bill increase. The settlement results in an average residential customers' monthly bill increase of $1.40 or about 3.5 percent beginning in October. Sherman is part of a group of cities served by Atmos that had protested the company's proposed rate increase. Lawyers for the group of cities recommend the cities involved approve the negotiated rate rather than seeking further relief through court action. That option might cost the cities more and result in less desirable rates. The rate increase covers the gas itself and steel gas line replacements.

Another public hearing item that likely will be of interest to Sherman residents is the adoption of new federal emergency management regulations relating to flood damage prevention.

Other public hearings will include one on a specific use permit to allow St. Mary's Catholic School to build a playground in a multifamily residential area at 615 S. Travis St.

Councilors will consider amending the 2009-2010 budget to cover unexpected costs of debt service in the 2009A bond series in Hotel-Motel tax funded debt service. Also the additional spending will pay for items not budgeted such as the Lights on the Lake July Fourth celebration. Staff notes on the agenda item state that all funds have sufficient money to cover the increase, totaling $355,600.

In other business, the council will consider:

* authorizing entering a professional services agreement with Teague, Nall and Perkins Inc. for the preparation of final design plans and specifications and the performance of other engineering services for the Travis Street Streetscape Project;

* 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;

* receive a Fair Housing Impediment Analysis Update from Community Development Coordinator Theresa Caudle.