San Benito residents oppose property tax increase

SAN BENITO — Residents here oppose a property tax increase to offset a $1.8 million shortfall in the city’s general fund.

Former Mayor Joe Hernandez joined residents at a public hearing this week to speak out against any attempt by the city to raise the tax rate from 68 cents to as much as 73 cents per $100 valuation.

“You’re very deep in the hole and trying to pass it on to the citizens of San Benito,” Hernandez told city commissioners Tuesday.

Businessman Jesse Sauceda warned that a tax increase could lead businesses to locate in Harlingen, where the tax rate stands at 58 cents per $100 valuation.

Resident Gavino Sotelo, a former Harlingen city manager who serves as manager of the Laguna Madre Water District, warned officials against raising water rates to help pay off a $32 million debt that stems from construction of a $17 million water plant and other water and sewer improvements.

“San Benito already has some of the highest water and sewer rates in the state,” Sotelo said.

After the hearing, city commissioners met in closed session for more than two hours to discuss possible staffing changes.

“We have to make some real difficult decisions,” City Manager Manuel Lara said before commissioners went behind closed doors.

“Everybody knows that staff and salaries is … the biggest expenditure. (A staff reduction) is a last resort, but we’re getting to that point,” Lara said. “The last thing we want to do is increase property taxes. The last thing we want to do is put another burden on the community because (water) rates are already high.”

According to records, officials estimated the city would save $442,000 if city employees’ hours are reduced to 32 hours per week.

Lara said the city has eliminated overtime to cut spending and is considering changes in the fire department to save money.

Labor law allows firefighters to work as much as 53 hours a week without overtime pay, Lara said.

Lara said officials were considering a plan to operate the fire department from one station instead of two to reduce expenses.

“We still will provide adequate staffing and fire protection for the community,” Lara said.
He said the city would shut down its old water plant that has remained open as a back-up power source for the new water plant that does not have a back-up generator, saving the city about $200,000 a year in chemical and electrical costs.

City officials said the plant closure would also eliminate the need to buy a $329,000 clarifier to store water at the old plant.

Officials will determine how to pay for a back-up generator at the new water plant.

The generator could cost as much as $800,000 and could be funded through a bond sale, Don Gonzalez, a representative with Estrada-Hinojosa, the city’s financial consultant, said.