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SAN BENITO — San Benito’s new commission is proposing a $16.7 million general fund budget coming with a hefty $16.2 million fund balance as commissioners consider holding down water rates while boosting low employee wages.
During an Aug. 1 meeting, commissioners were expected to hold a public hearing into the proposed budget whose projected revenues stand about $950,000 above the current budget’s $15.8 million.
“I think we have a solid revenue stream to make sure we have a balanced budget,” City Commissioner Pete Galvan before the meeting.
Officials are planning to keep the city’s property tax rate at 70 cents per $100 valuation.
“There’s still a lot to do and very little time to do it,” Mayor Rick Guerra said in an interview. “We’re looking at everything.”
Budget ‘team work’
At City Hall, interim City Manager Ruth McGinnis, San Benito’s long-time city secretary, has been working with Assistant Finance Director Stephanie Sarrionadia and department heads to draft the budget.
“She has guided us in a way I appreciate,” Commissioner Debra Morales said in an interview, referring to Sarrionadia. “The directors have been working really well. It’s been team work. Collaboratively, they’ve all been working together.”
Last month, commissioners appointed McGinnis interim city manager, replacing veteran administrator Gavino Sotelo, who resigned amid a contract dispute three weeks after commissioners bought out former City Manager Manuel De La Rosa’s contract for about $200,000, rejecting his offer to stay on the job for up to 60 days.
“Just because we don’t have a city manager doesn’t mean the city’s going to hell,” Guerra said. “I didn’t expect it, but we fell into it. It’s moving forward.”
As officials draft the budget, he’s helping out at City Hall, he said.
“I’m playing a bigger role,” Guerra said. “I get to see daily operations. I’m there every day as far as helping out with any decisions. The commission — everybody else — they’re pitching in. (Department heads) play a big role. Now they have to be accountable for their budget.”
Filling key positions
As they draft the proposed budget, officials are planning to fill key positions, including a human resources director’s job along with three finance department positions, including a director’s job and a plans examiner’s post, Commissioner Tom Goodman said.
Last month, commissioners launched a search for a city manager.
“Applications are coming in slowly,” Guerra said.
Commissioners are counting on the new city manager to name an assistant city manager.
Record fund balance
As part of the proposed budget, officials are setting aside the city’s biggest cash reserve fund standing at about $16.2 million.
“We’re comfortable where the budget’s going,” Goodman said in an interview. “We can thank Mr. De La Rosa for leaving us in good financial condition. Our finance department has been excited to move funds around so they could be better utilized. We’re able to better prioritize our needs in the community with the funds available. We looked very hard at the departments and found where we could economize.”
Mulling water rates
For weeks, officials have been considering options to boosting water rates set to increase based on a five-year schedule approved last year.
So far, commissioners haven’t determined whether they’ll cap rates or go ahead with implementing the schedule.
In 2022, the past commission, based on a water rate study which De La Rosa recommended, passed an ordinance calling for a 10-percent increase in household water rates spread out over a five-year period.
Based on the schedule, the first household water rate hike would go into effect next year.
Meanwhile, the ordinance would raise commercial water rates from 8.3 percent to as much as 9.8 percent each year over five years, based on water usage.
The first commercial rate hike kicked in last year.
“That’s going to be looked at,” Guerra said, referring to water rates.
Last year, the past commission called for the water rate hikes as part of a plan to offset a $2.8 million deficit in the utility department.
While officials were tapping into the city’s general fund budget to cover annual shortfalls, the utility system’s long-term debt had bulged to $19.39 million.
“We want to avoid the general fund subsidizing the utility department,” Goodman said. “We need it to stand alone.”
‘Better’ street program
Officials continue to work on a proposed budget aimed at funding street repairs.
In the current budget, officials set aside $1.5 million.
But so far, the public works department has spent about $350,000, Goodman said.
“We’re working on a better overall street program,” he said. “We begin by assessing the needs.”
As part of the new street program, officials are developing a “grading system” to better target streets whose conditions require repairs, Goodman said.
Employee pay increases
Among their list of priorities, commissioners are planning to boost employee wages hovering around $10 to $11 an hour, Goodman said.
The proposed pay increases are part of a $240,000 package, he said.
“We need to pay our employees more,” he said. “They come, get trained and leave for better jobs. We’re very concerned about using an appropriate pay scale for employees. We’re trying to catch up to pay our great people.”
Meanwhile, commissioners are planning to pay employees’ health insurance benefits, now costing employees about $86 a month.
At City Hall, employee morale is up, Goodman said.
That means better public services, he said.
“The attitude continues to change,” he said. “People are feeling good. All the assistance to help citizens — that attitude continues to get stronger.”
