PALM VALLEY — The city needs money – not for day-to-day operations, but rather for significant infrastructure improvements likely to be needed in the coming years.
In a community which relies almost completely on property taxes to generate all revenue to pay for services, there are limited ways in which to raise more cash.
One is to increase the tax rate and another is to increase user fees on services such as water.
Today at 5 p.m., city officials will consider several options, including a tax rate increase, a water rate increase and a fire service fee hike.
Last week, city officials and concerned property owners discussed at length the future of the city, including the worry some have about road, drainage and sewer needs in the city that would likely cost millions.
Among the ideas to start a fund to pay for that infrastructure include an 8.2 percent tax rate increase that would bring in about $42,000 of additional revenue for 2017.
The 48-cent tax rate per $100 of appraised valuation would mean an increase to property owners of $32 for every $100,000 of property value in the city.
The city’s budget, as proposed, would create a surplus of just more than $104,000 for the 2017 years.
The city of Palm Valley surrounds Harlingen Country Club and has few commercial entities other than the club itself. Only about $55,000 per year comes from sales taxes. The rest of the city’s approximate $750,000 in revenues comes from property taxes on more than 700 homes.
There are no commercial or retail areas to grow.
City officials have tossed out the number of $7 million to reconstruct roads in Palm Valley. Other infrastructure needs revolve around drainage and the ponds.
During the city’s nearly 50 years of existence, mainly patchwork jobs have been performed on streets, sewers and other infrastructure.
City officials know that huge expenditures will be needed in the coming years to reconstruct roads and parts of the water system.
However, city officials say these issues can be overcome. The hope is to gradually build the reserve fund to improve the city’s bond rating and seek grants to fund some of the repairs.
