HARLINGEN — The city’s proposed $54.2 million general fund budget is coming with a property tax rate lower than the current rate.
After weeks of talks, city commissioners are proposing a voter-approved tax rate of 60 cents per $100 valuation, more a 1 cent lower than the current rate of 61 cents.
As a result of increasing appraised property values, the tax rate is projected to generate $1.03 million, Robert Rodriguez, the city’s finance director, said Monday.
“Because we have new construction, we’ll collect a little more,” he said during an interview.
This year, the Cameron County Appraisal District’s annual re-appraisals boosted the city’s property values to $3.97 billion, from $3.71 billion last year, Rodriguez said.
During a meeting, commissioners set the proposed tax rate while taking the first step to pass their planned general fund budget.
“So this is, I believe, three years in a row where it’s incrementally dropped,” Commissioner Michael Mezmar said, referring to the proposed tax rate, during Wednesday’s meeting.
The budget
During the meeting, commissioners passed the first reading of a proposed $54.2 million general fund budget coming with $52.6 million in expenditures along with a $25 million cash reserve.
During the new fiscal year, City Manager Gabriel Gonzalez is projecting sales tax revenue to jump t0 $23.8 million, from $20.1 million this year, while property tax revenue is expected to climb to $21.1 million, from $19.5 million.
Covering cost increases
Big contracts are boosting their price tags.
This year, the city’s employee health insurance premium is jumping 19 percent.
As part of the budget, commissioners are setting aside $4.47 million to fund the United Healthcare package, a $1.4 million increase over the current premium.
Meanwhile, officials are earmarking $337,000 to cover increasing electricity costs.
This year, commissioners are entering into a contract with Dallas-based TXU Energy, whose annual costs are expected to climb to $4.47 million.
Officials are blaming the increase on Russia’s January invasion of Ukraine, which has led natural gas prices to double.
Media production department
At City Hall, officials are planning to launch a media department whose job will include producing broadcasts to air on the city’s cable channel, aimed at reaching more residents.
To fund the project, commissioners are proposing hiring two coordinators, setting each salary at $62,984.
Employee pay taking focus
This year, commissioners are focusing on boosting employee salaries.
As part of the proposed budget, officials are planning about $1.2 million in pay increases.
During Wednesday’s meeting, they agreed to give 3 percent pay increases to employees earning annual salaries of less than $75,000 while employees making more than $75,000 would get 1 percent increases.
The package would cost $409,000.
During the upcoming fiscal year, personnel salaries are projected to make up about 71 percent of the budget’s total expenditures, with $15.25 million funding the police department and $10.49 million covering the fire department’s expenses.
Budget highlights
The proposed budget would come with a $1.5 million street project generated through a monthly street maintenance fee, down from this year’s $2.5 million street project.
Meanwhile, officials plan to leverage grant money to fund drainage projects.
As part of the proposed budget, commissioners are planning to boost the Harlingen Humane Society’s annual funding from $287,000 to $400,000.
