Harlingen commissioners review proposed FY2025–26 budget; prioritize drainage equipment, new positions and event sponsorship tracking

At a Harlingen City Commission workshop on the proposed fiscal 2025–26 budget, city staff told commissioners the draft keeps revenues modestly above projected expenditures but relies on restricted fund balance and one‑time transfers for capital items and grant matches.

The discussion on the workshop agenda focused on drainage equipment and crew capacity, 25 newly added staff positions, requested 4B grant matches, and proposals to track and increase sponsorship revenue for city events. Commissioners directed staff to add a boom mower to the one‑time budget items and authorized staff to implement a limited additional personnel pay authorization if the final cost is below $50,000.

City finance staff presented the working figures and said revenues are projected at about $66.9 million compared with roughly $66.1 million in expenditures, leaving a small operating surplus before one‑time items. Staff reported a multi‑million‑dollar deduction from the general fund for one‑time items added in previous workshops and set aside about $2.4 million for two fire engines and roughly $500,000 in encumbrances; after adjustments staff estimated an available fund balance for 09/30/2026.

Staff told the commission the single largest outstanding uncertainty is what the Harlingen 4B board will fund. Staff said the city needs approximately $2,070,275 to match previously awarded grants and listed additional 4B requests that together total roughly $4.0 million; commissioners were told they should expect a final 4B decision before the next commission meeting this week.

Drainage equipment and crews featured heavily in debate. A resident, Raymond Reyes of 706 Nantucket Drive, urged the commission to prioritize infrastructure and said the budget should support core services. "The budget's, you know, crucially, important," Reyes said during the citizens communication period.

Commissioners and staff discussed adding equipment to improve maintenance of ditches the city is responsible for and to assist neighboring drainage districts under memoranda of understanding. Staff described current equipment gaps: two boom mowers are not fully serviceable, one replacement boom mower is due in several months, and the city would still lack capacity to maintain all city ditches without additional equipment. Public Works staff said buying at least one additional boom mower would substantially increase coverage.

The commission agreed to add the boom mower as a one‑time purchase to the working budget and to reserve the funds in the fund balance until the equipment is delivered. Staff said the mower cost is about $300,000. Public Works staff also said the city can operate the additional mower using existing personnel if commissioners approve the purchase; the commission accepted adding the equipment and asked staff to proceed with budget entries to reflect the purchase.

Personnel and benefits were a second major focus. Staff noted the draft includes a 3% across‑the‑board adjustment and discussed a supplemental 2% increase for employees with salaries below a specified threshold. Commissioners agreed to authorize staff to implement the supplemental 2% for eligible employees if the final, precise cost is below a $50,000 ceiling; staff said they would email the exact calculation the next day. Staff also said one‑time pension (TMRS) service‑credit adjustments are included this year and that recurring pension or TMRS rate increases were not recommended because of long‑term affordability concerns.

Budgeted headcount changed in the draft: staff said 25 positions were added to the working budget (totaling roughly $1 million in recurring cost) and that an additional 25 positions remain on a not‑funded list that would add about another $1 million if approved. Commissioners discussed the pressure that many new positions would place on the general fund over future years and asked staff to monitor two‑year projections.

Event funding, sponsorships and the convention bureau also drew attention. Staff proposed budgeting $25,000 in sponsorship revenue (listed as $12,500 apiece for the downtown improvement district and Visit Harlingen) to begin tracking sponsorships for city events. Several commissioners asked staff to confirm what Visit Harlingen and the downtown group already collect before fixing a goal and asked staff to track event metrics for return on investment. Staff noted that the CVB (Visit Harlingen) is funded out of the hotel‑motel tax and that the city wants better, consistent data on attendance, lodging and economic impact for marquee events such as the birding festival.

Other items discussed included funding set aside for Casa del Sol and grant matches, requested upgrades to network switches and routers across city departments, fire station flooring and cabinetry projects (some work the city can do in‑house), and a $100,000 increase to the downtown transfer for beautification and events.

Commissioners directed staff to prepare final numbers for the certified tax roll and to return at a later workshop and the next commission meetings with the finalized revenue estimates, a clear breakdown of which items would be drawn from fund balance, and the precise cost of the supplemental personnel authorization. Staff also said the certified property tax totals are expected on July 25 and that the commission will consider setting the tax rate in early August under the published schedule.

The commission heard an announcement that Anna Hernandez has accepted the city planning director position; Hernandez told the commission she plans to continue assisting the grants department during a transition. Commissioners asked staff to schedule a presentation later this summer on code enforcement operations and on how the new and existing code officers will be deployed.

The workshop concluded with the commission scheduling the next budget workshop and with staff tasked to circulate updated payroll and budget figures prior to the next meeting.

Ending — The commission set a follow‑up meeting to finalize the numbers after receipt of certified property valuations and the 4B funding decisions; staff will provide amended line items and the precise costs associated with the personnel authorization before the commission acts on a tax rate and final budget.