City approves capital improvements, Tax or sewer rate increase looms

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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