City of Harlingen budget focuses on employee pay increases

Aug. 1—HARLINGEN — A proposed $53.5 million general fund budget might help launch the city's first communications department while officials focus on boosting employees' pay.

Mayor Norma Sepulveda is proposing the development of a communications department charged with operating a cable television station while expanding the city's marketing office.

During a budget workshop, Commissioner Rene Perez also called for a stronger marketing drive aimed at better promoting the city.

"I don't feel as a whole we're promoting ourselves as well as we should," Perez told commissioners during the July 28 workshop.

"We have a history of being the capital of the Valley," he said. "I think over the years we've fallen from that a little bit. Some of the people here in town feel like we're stagnant — that we're not moving. I think we need to change that perception of Harlingen — that we're not just a retirement community. We need to show the people what we've got."

Amid discussion, Sepulveda proposed forming a communications department that would broadcast the city's cable television channel.

Now, Irma Garza, the city's spokeswoman, serves as the public information officer.

"We definitely have to do more," Sepulveda said after Perez's proposal. "We can't forget about our constituency that's not online. It seems like other municipalities have a staff — not just one person. To make sure that department is successful, we need to make sure that they're staffed appropriately."

Now, officials are considering developing and staffing the proposed department.

Employee pay takes focus

As part of the proposed budget, City Manager Gabriel Gonzalez is planning about $1.2 million in pay increases.

"The majority of pay that we're going to be considering's going to be salaries for employees," he told commissioners.

In the proposed budget, he's setting aside $190,000 to boost the salaries of drivers holding commercial drivers' licenses; $162,399 to increase police dispatchers' salaries'; $98,963 to fund lifeguards' pay; $105,018 to pay two new vector truck drivers' salaries; and $647,497 to increase hourly wages to $10 for employees making $8 to $9 an hour.

"After we approve this budget, we will not have any single employee earning less than $10 an hour," he told commissioners.

Meanwhile, commissioners will determine whether to fund 2 percent employee pay increases at a cost of $260,927 or 3 percent increases at $376,432.

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.

Revenues over expenditures

Now, Gonzalez is proposing a $53.3 million general fund budget coming with $52.5 million in expenditures and a fund balance of $23 million.

From the $23 million, he's setting aside $16.8 to operate the city for a recommended 120 days in case of emergency.

That's leaving $7.1 million in available cash.

During the upcoming fiscal year, Gonzalez is projecting sales tax revenue to jump t0 $22.8 million, from $19.5 million this year while property tax revenue is expected to climb to $21.1 million, from $20.1 this year.

The proposed budget, which sets its voter-approved property tax rate at 61 cents per $100,000 valuation, comes 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, Gonzalez plans to leverage grant money to fund drainage projects.

Questions surround health insurance, electricity costs

As officials come closer to finalizing the proposed budget, the cost of the city's new health insurance premium and electricity contract remain in question.

"There is going to be an increase to the health insurance," Gonzalez told commissioners. "We knew that going into this process. We just don't know what that number's going to be."

While Gonzalez has set aside $6.28 million to pay for medical insurance coverage, the premium could jump about $385,244 over this year's.

Meanwhile, he's earmarking $1.45 million to fund the electricity contract, which was running about $1 million this year.

Budget highlights

During his presentation, Gonzalez also proposed boosting the Harlingen Humane Society's annual funding from $287,000 to $387,000.

Amid discussion, Commissioner Frank Morales suggested increasing the agency's annual funding by an additional $100,000.

For the upcoming fiscal year, Gonzalez is proposing $1.17 million in capital expenditures including $29,500 for a police department hard drive server; $40,000 to fund driveway paving projects at fire department stations No. 4 and 7; $75,000 for a fire department air compressor; $25,000 for a fire department extrication tool or hazardous materials detector; $378,000 for five police department patrol units; $500,000 for a vector truck; $30,000 for two traffic single cabinets; and $26,000 for a traffic single.