By J. NOEL ESPINOZA
Special to the NEWS
After deliberating two scenarios to fund major capital improvements to an aging sewer system, San Benito opted for a third option at the last minute at Tuesday’s regular city commission meeting.
Donald Gonzalez, the city’s financial advisor with the firm Estrada & Hinojosa, presented a preliminary project list that included $8.2 million as the total for capital improvements. The breakdown included $6.7 million for lift station rehabilitation construction and $1.5 million for engineering, surveying, geotechnical, and administration.
The proposition, which is preliminary subject to change, includes a proposed funding from series 2019 certificates of obligation for $1.5 million and one from series 2020 certificates of obligation for $6.7 million.
Gonzalez presented one of the scenarios where they will utilize $65,000 from the Economic Development Corporation and a second without.
However, the city commissioners later decided in favor of a third scenario where they will use the $65,000 from EDC and $17,230 from $49,230 of a community development block grant (CDBG). The other $32,000 was divided among four non-profit organizations.
With the $65,000 from EDC (Economic Development Corporation), City Manager Manuel De la Rosa said they don’t foresee to increase taxes on the $1.5 million, but it’s a different story when it comes to the $6.7 million.
“I don’t think there is any doubt that we’ll have to do something,” De la Rosa said. “Either raise taxes or raise water (sewerage) rates.”
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