Budget for new PUB fee remains a mystery

The city has started to bill Brownsville Public Utilities Board customers $2 a month to fund ambulances, the fine arts and animal enforcement and evacuations, but how the funds will be specifically spent remains a mystery.

A budget still has not been developed.

With just under three months remaining in this fiscal year, the fee, if paid by all of PUB’s 49,842 customers, would generate $99,684 a month or nearly $300,000 through the end of September.

It would bring $1.2-million annually to city coffers.

A budget has not been presented to the public showing how the revenues from the $2 fee would be distributed, how many ambulances would be funded, under what financing mechanism, would added personnel need to be hired, how would the funds for fine arts be divided, who gets what and by when, and how much would be set aside for animal enforcement and evacuations.

“All of these monies are going to be restricted (to those specific purposes), but we don’t have a budget yet,” city Finance Director Pete Gonzalez said Monday. Gonzalez said he would not be able to estimate revenues until he starts receiving feedback from PUB, which is collecting the fee for the city.

As Mayor Pat Ahumada sees it, the budget was established when the commission majority decided to distribute the revenues from the fee equally among public safety, the arts, and animal needs.

"That is the way I understand it," Ahumada said.

With the process getting underway for the preparation of the upcoming fiscal year budget, beginning Oct. 1, Ahumada said that this would be the time to estimate the amount of the allocations, equipment to be purchased and other specific budgetary allotments associated with the new fee.

Initially, Ahumada had proposed a $3 fee: 50 cents would be allocated for each the Brownsville Museum of Fine Arts and The Camille Playhouse: $1 each would be destined for public safety and animal needs.

Gonzalez’s understanding is that the later-reduced $2 fee would be divided equally among the fine arts, public safety and animal needs.

“I think they said it would be divided by one-third,” the finance director said.

City Manager Charlie Cabler was not available for comment.

PUB included the $2 fee with its billing of July 5 after Ahumada that day verbally told PUB CEO John Bruciak to include it, PUB spokeswoman Lucy Hernandez said Monday.

Hernandez also said that PUB has 21 billing cycles that correspond to the number of districts in the city. The first billing issued July 5 was for District I. Their payment date is July 25. Customers in other districts are receiving their bills with the included fee as the month progresses, Hernandez said.

Gonzalez noted that, “I should be able to figure out the budget once we get the allocation (from PUB). It will be done. We need to figure out how much we are going to get. Everything is new to us,” Gonzalez said.

In the midst, City Commission members also continue to debate the fee’s validity.

Residents have not heard the end.

Ahumada is unwavering that the fee was legally passed, although City Attorney Jim Goza publicly said he erred and that the July 3 motion failed.

And while Ahumada told Goza that he needs to do more research and get an opinion from the Texas attorney general, Goza countered that the AG’s office does not interpret city charters.

At July 17’s meeting, the commission went along with Goza’s suggestion that he prepare a proposed ordinance on the fee in order to have a more, “defensible position.”

Passage of an ordinance requires two public hearings and two more commission votes. The commission meets Wednesday, but the proposed ordinance is not on the agenda. Staff was not available to say why.

The fee appears to have been immediately triggered by Ahumada’s call for a moratorium on killing healthy dogs and cats.

PUB’s Hernandez said the utility company did not request legal advice from its attorneys as to the validity of the fee or its collection.

“It is a city issue,” PUB’s spokeswoman said.

He said it could be reasonably expected that most BPUB customers would pay the fee, noting that resistance is coming from persons still upset and "unable to get over" the outcome of the May 12 election.

"I think the community overall supports it," the mayor said. "Seven cents a day for three good causes and we don’t raise taxes. I think that’s very positive.”

Insofar as the detractors, Ahumada said they have not come up with alternatives. He also noted that, "they say they love Brownsville. Let’s see how much they love Brownsville."

Number of Brownsville Public Utilities Board customers in the city: 49,842 as of June.

If paid, a $2 monthly fee would generate $99,684 for the city on a monthly basis and nearly $1.2 million a year.

City Commission members want to fund ambulances, the fine arts, and animal enforcement and evacuation in the event of a hurricane.

Note: The city estimates that it will end this fiscal year budget with a surplus in excess of $11 million.

Source: Brownsville Public Utilities Board and City of Brownsville