3 PERCENT

SAN BENITO — The city will ask department heads to cut 3 percent from their wish lists as officials try to balance the general fund budget, Finance Director Susan Crabtree said.

Falling revenues are forcing officials to cut the fiscal year 2010-2011 budget by $386,000, City Manager Manuel Lara said.

“We’re going to tighten down as much as we can to try to balance the upcoming budget,” Lara said. “We’re going to do as much as we can and continue providing good quality services.”

Officials blamed the national economic slowdown for lower consumer spending that has
resulted in sales tax collections at their lowest levels in about five years.

The city’s sales tax collection, which accounts for about 50 percent of the general fund budget, fell to $2 million this year from $2.19 million at the same time last year, state records show.

The collection of court fines, another key revenue source, dropped 8 percent in a year when officials planned to reap $865,074 in fines, Crabtree said.

Officials are counting on a month-long amnesty program to boost city coffers, Crabtree said.

Throughout July, officials have waived $50 warrant fees and $164 failure-to-appear-in-court
fines to encourage violators who owe a total of more than $4 million in outstanding fines to settle their cases.

Court coordinator Modesto Vasquez declined to disclose information on collections until he releases a report to city commissioners after the program ends Saturday.

Tolls at the Free Trade Bridge at Los Indios, another revenue source, fell 25 percent below projections this year, Crabtree said.

The city planned to collect $187,712 in tolls but has reduced the projections to $125,000, she said.

Crossings plunged 21 percent during the months of April, May and June, a Cameron County report said.

Violence in Mexico and the economic slowdown contributed to the 14 percent drop in revenues, which now stand at $481,322, county officials said.

The cities of San Benito and Harlingen each receive 25 percent of total bridge revenues, while Cameron County’s share is 50 percent, according to an agreement.

Bridge revenues hit a high of $2.4 million in 2007 before slipping to $2.3 million the following year, county records show.

By 2008, revenues were down to $2.3 million before dropping to $2.1 million last year, records show.