HARLINGEN — Officials are pulling $1.5 million from the city’s burly cash reserves to balance a proposed $49.7 million general fund budget that includes $342,156 to reopen the Tony Butler Golf Course’s nine-hole short course.
During a workshop Friday, city commissioners agreed to cut reserves from $23.18 million to $21.6 million, enough to run city operations 154 days, nearly double the state-recommended 90-day minimum.
“This is a very good budget,” City Manager Dan Serna told commissioners as they closed the third and final workshop aimed at balancing the proposed budget.
The proposed budget doesn’t call for an increase in the city’s property tax rate of about 63 cents per $100 valuation.
Meanwhile, the Cameron County Appraisal District’s property reappraisals boosted the city’s projected property tax collection from $21.4 million to $22.6 million, with about $500,000 of the increase going into the general fund and $650,000 set aside to pay debt.
“We’re going to have increased revenue,” Mayor Chris Boswell said.
Funding reopening of nine-hole short course
Last month, the commission’s new majority voted to reopen the golf course’s nine-hole short course, a favorite among Winter Texans and young golfers, to try to draw players back to the golf course that has run a deficit for about eight years.
To reopen the short course, Serna proposed $342,156 in start-up costs as officials plan to repair its irrigation system and upgrade its greens.
As part of the package, he recommended the $73,000 purchase of two mowers, $50,000 to buy 10 golf carts along with $219,000 in start-up costs, including $50,056 to fund the salaries of four part-time grounds keepers.
Amid debate, Commissioner Frank Morales suggested holding back on the purchase of a $57,000 fairway mower along with the golf carts.
“We’re trying to do more with less,” Morales said, adding officials don’t know the numbers of Winter Texans who’ll return to play the short course set to reopen in November.
But Serna said golf course General Manager Jeff Hart called for the mower to serve as a back-up while warning the course was running out of golf carts during Winter Texan season.
“I’m not really in favor of opening the nine holes but if we’re going to do it, let’s do it right,” Boswell said. “If we’re going to do it, let’s try to make it a success.”
Golf course shortfall
During budget workshops, a financial report showed the golf course generated $666,986 while taking $983,470 in expenditures, leaving a shortfall of $316,484 during the current fiscal year.
Now, Serna is planning to pull $268,706 from the city’s general fund budget to help offset the golf course’s current deficit.
According to the city’s report, the golf course has run annual deficits ranging from $419,713 in fiscal year 2015-2016 to $223,731 in 2018-2019.
After running shortfalls for about eight years, the golf course’s total deficit stands at $846,548, a report showed.
Since opening in 1929, Tony Butler stood as Cameron County’s sole 27-hole golf course — until last year.
In April 2020, the city’s past commission voted to close holes 19 to 27 to cut maintenance costs while mulling the sale of a 30-acre tract running across holes 19 to 23, prime land along Interstate 69’s frontage road with an estimated value of about $5 million.
However, holes 24 to 27 have remained open for play.
At the time the past commission voted to close the short course, officials were counting on using the money to fund upgrades to the golf course as part of a plan to draw golfers back.
But they turned up a decades-old city resolution restricting the land’s use to parks and recreation, City Commissioner Frank Puente has said, adding voters would have to decide whether the city could sell the land.
Sales tax projections up
The coronavirus pandemic’s spreading Delta variant sparked concern over the economy as officials planned the budget.
While the city’s sales tax collection climbed by 15 percent after officials had projected no increases in their current budget, Serna is projecting 4-percent growth during the upcoming fiscal year.
“It’s a huge unknown,” Commissioner Michael Mezmar told commissioners. “The virus didn’t go away and now it’s coming back with a vengeance because of the mutation.”
Streets, drainage projects
As part of the proposed budget, Serna plans a $2.5 million street paving program funded through a $1.1 million draw from the general fund along with $1.4 million generated through a monthly street maintenance fee.
“It’s probably our biggest year ever,” he said of the project, three weeks after warning the city was falling behind in its street repairs.
Meanwhile, Serna plans to draw $6 million from the city’s $21 million share of the American Rescue Plan Act to fund drainage projects along 21st Street and Jefferson Avenue, where officials plan to widen storm sewer lines.
New positions
Under the proposed budget, Serna is calling for eight new positions including an administrative secretary, a grant writer, an MIS specialist, three dispatchers, a booking officer and an animal control officer, totaling $234,208 in salaries and $211,259 in benefits.
The proposed budget also includes $1.58 million in one-time purchases, including a $272,000 street sweeper and $300,000 set aside to build downtown restrooms.
Main funding sources, expenses
As part of the proposed budget, the city’s main funding sources include $19.5 million in property tax revenue and $20.1 million in sales tax revenue.
Under the proposed budget, $35.5 million would fund employee salaries, with public safety taking the biggest chunk, with $14.4 million set aside to finance the police department’s personnel costs and $10 million to cover the fire department’s expenses.
