Adopted Budget FY 2018-2019

increasing to last year’s level. The trade agreements created by the United States-Mexico-Canada
Agreement (USMCA) with Mexico and Canada is in debate and will have an impact in Texas and the
local economy.
Almost half of Texas exports is attributed to old NAFTA with the supply of components for automobile
assembly plants in northern Texas.
Growth
As noted earlier in this message, over a larger horizon perspective, the City has experienced dramatic
growth. And, while growth has been accompanied by economic prosperity, it also presents its own
challenges. Although much has been done to provide an adequate transportation system that continuously
alleviates traffic congestion within the City as well as an adequate drainage system, there’s much to be
done.
Unfunded Mandate – Storm water Drainage Regulations
As implementation of these regulations begins to phase in, all cities will be required to incur additional
costs—capital as well as operating and maintenance—to comply. These costs must either be absorbed
within the existing revenue stream, or like in many cities be financed by a new revenue source. The City
enacted Ordinance No. 2018-02 establishing a Municipal Drainage Utility System to address surface water
drainage problems and setting the fees to undertake this projects.
Quality of Life Issues
The City has been developing over time from a small-to-medium sized city toward a larger city status,
which has brought about an increased emphasis on quality of life issues. Although much has been done,
there is much yet to do.
Economic Development
As has been noted, the City’s economic progress over the last 10-15 years has been truly remarkable—by
almost any standard, including growth in taxable values, job growth, personal/family income, a significant
decline in the traditionally high unemployment rate, etc. Much of this success in economic development
can be attributable to its strong relationship with Mexico. One measure being taken to further strengthen
this relationship was the partnership on a feasibility study for the construction of a new bridge at Madero.
Financing Capital Costs
This year, the City is will issue Bonds not to exceed $25M for the Traffic ($3M) and Drainage ($22M)
improvements. Prior to this, a significant amount of capital projects has been financed on a pay-as-you-go
basis using surpluses generated by the General Fund as well as monies funded by State Grants.
Balancing Demands for Service vs. the Tax Rate
As the City considers all of the requests for additional facilities and services, it must view them in relation
to a balanced property tax rate—at a level that is supported by citizens and taxpayers, does not place an
undue burden on them, and does not impede economic development.
While all of these issues are indeed challenges which must be addressed, they are indicative of a city on
the grow and are considered preferable to the alternative.
2018-2019 Budget Message vi