HARLINGEN — The city’s finances stood strong during the coronavirus pandemic’s first six months, with officials stockpiling a massive $26.1 million cash reserve.
The city’s annual financial audit shows the war chest is big enough to run operations for 199 days, more than doubling the state’s recommended minimum of 90 days.
Since 2008, the city’s cash reserve has climbed from $11 million.
“Financially, we’re in very good condition,” Mayor Chris Boswell said Thursday.
“It has been a difficult 12 months because of the uncertainty,” he said, referring to the pandemic’s impact on the economy. “We did not suffer ill effects as a city. We’re really blessed and fortunate that financially we came through this last year in good health.”
Last week, auditor Quentin Anderson presented commissioners with the city’s 20192020 comprehensive annual financial report showing finances weathered the pandemic’s national economic slowdown. “I feel great about the audit,” Boswell said. “There was a lot of good financial news. It’s a clean audit — there were no exceptions. That’s the best we can get.”
Among the audit’s highlights, Boswell pointed to the Texas Municipal League Retirement System’s liability, which plunged from $8 million to $600,000.
“It’s certainly good for our balance sheet,” he said.
Sales tax revenue holds amid pandemic
The audit shows the city’s general fund revenues climbed to $52.6 million, covering $47.6 million in expenditures.
Fueled by 2019’s controversial four-cent property tax hike projected to generate about $3 million a year, the city’s property tax collection climbed to $22 million, from $19.3 million the previous year. Meanwhile, the city’s overall long-term debt stood at $46.8 million.
Despite the nation’s economic slowdown, the city’s retail sales tax collection held steady at $18.9 million, off from $19.3 million the previous year.
“Sales tax revenues held their own,” Anderson, with the certified public accounting firm of Riggs, Carr & Ingram, said during the March 31 meeting. “To me, it’s an indication a lot of our businesses were able to adapt.”
Tight budgets
Of the city’s two big funding sources fueled through sales tax revenue, the Economic Development Corporation’s fund balance slightly increased while the Harlingen Community Improvement Board’s balance dropped by more than $1 million.
While the EDC’s revenues and expenditures balanced at $6.1 million, up from the previous year’s $5.9 million, its fund balance climbed to $10.6 million, up from $10.4 million the previous year.
At the Community Improvement Board, the fund balance dropped to $5.9 million, down from $6.8 million the previous year.
Public services steady
While the city’s utilities services boosted revenues, the sanitation fund posted a slight drop. At WaterWorks, revenues climbed to $21.7 million, up from $20.4 million the previous year, while expenses stood at $19.2 million.
Meanwhile, the sanitation fund’s revenues dropped to $9.8 million, with $8.9 million in expenses.
The previous year, revenues had climbed to $9.9 million, covering $7.9 million in expenses.
Airport revenue plunges
While the pandemic paralyzed jet travel, Valley International Airport’s revenues plunged.
At the Valley’s busiest airport, operating revenues fell to $4.8 million, down from $7 million the previous year, while operating expenses remained steady at $6.39 million.
Across the city’s departments, the pandemic’s safety restrictions limiting gathering sizes took a toll on the Municipal Auditorium, whose revenues plummeted to $40,971, down from $222,427 the previous year. After about eight years, the Tony Butler Golf Course continued to dive deeper into the red.
The audit shows the golf course’s revenue dropped to $678,119, from $864,126 the previous year.
