San Benito proposing $18 million budget, plans water rate hikes

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SAN BENITO — Officials are proposing an $18 million general fund budget coming with a “robust” $16.8 million fund balance while planning to launch a five-year series of water rate hikes aimed at pulling the utility system out of the red while helping to pay off long-term debt tied to the new water plant.

Under the proposed budget, officials are planning to build an amphitheater at the city’s fairgrounds, City Manager Fred Sandoval said.

As part of the project, plans are calling for construction of a stage along with the amphitheater seating crowds of 10,000 to 15,000, he said.

Earlier this year, commissioners called for a $10,000 feasibility study aimed at planning the project.

“It’s going to be a big venue,” Sandoval said in an interview. “We’re going to rejuvenate the fairgrounds. It’s going to rejuvenate San Benito. People are going to come from all over the Valley.”

At city hall, officials are out to revamp the city’s image.

As part of the proposed budget, commissioners are setting aside as much as $50,000 to hire a marketing firm to develop the city’s new brand, Sandoval said.

“We’re working to improve San Benito’s brand,” Commissioner Tom Goodman said in an interview. “If you’re going to attract new businesses and families, we need to have pride in our community. A brand goes a long way.”

The city’s new brand will feature San Benito’s rich cultural history in the town billed as the home of conjunto music, Sandoval said.

“Obviously, there’s a lot of historical and cultural aspects to the city that I know the city fathers, present and past, would love to keep,” he said. “There’s the conjunto heritage and historical background, like Freddy Fender and Charley Crockett.”

Under the proposed budget, officials are planning to launch the five-year water rate plan in October, calling for a 10% increase in household water rates spread out over a five-year period.

After holding off for years, in 2022 the city’s past commission called for the water rate plan, set to increase household rates by 2% each year for five years while boosting average annual utility bills by $1.02 to as much as $1.54, based on water usage.

Last year, as part of the current $16.7 million budget, officials launched the first part of the plan, raising commercial rates by 8.3% to as much as 9.8% each year over a five-year period, based on usage.

For businesses, the plan increases average annual utility bills by $12.34 to as much as $160.64, based on usage.

After years of delaying a rate hike, the utility system’s annual deficit had climbed to $2.8 million while long-term debt had swelled to $19.39 million.

To offset annual shortfalls, officials were dipping into the city’s general fund budget.