Hondo earns over $200K interest in second quarter

By Rosanne Fohn

Anvil Herald Reporter

In his six-month financial report to Hondo City Council, Chief Finance Officer Chris Hill reported that the city brought in $214,364 in interest during the second quarter of the fiscal year. Added to the $223,502 earned in in the first quarter, this totals $437,866 in interest income since the fiscal year began Sept. 1. The figures are as of the year’s halfway mark, March 31.

The city’s funds are invested locally in high-rate bank certificates of deposit, which are insured, and in TexPool Prime, a pool of Texas public funds that are invested in U.S. government securities, AAA-rated money market mutual funds and other conservative investments.

Hill also reported that the city’s revenues and expenses are in line with the budget at this halfway point in the fiscal year. 

In the General Fund, revenue collected is slightly above the midpoint at 51.7%, with $6,660,133 of $12,873,124 in revenue for the first six months of the year. Regarding expenses, the city has spent 48.4% of what was planned for the first six months of the year, $6,222,399 of $12,873,125.

Budget amendments

In other business, council also voted 4-0 to pass amendments to square up the budget. The budget is amended two times a year to cover unbudgeted items. For example, in the General Fund, revenues of $1,119,515 were added to the budget and $1,261,659 were subtracted as expenses. All of the changes were voted on by council during the first six months of the fiscal year.

New security software system

Council voted to spend $15,232.52 to make its building access control system the same at all city offices. The Police Department, Administration Building and Public Works office had an older system that was becoming outdated, so council expanded its contract with Verkada to use the same system already in use at City Hall and the South Texas Regional Training Center (STRTC).

Lease agreement with SWTX

Council voted 4-0 for a lease agreement with Southwest Texas College at the STRTC. The college will need to approve the agreement before it becomes effective. 

The college is renting more space to expand its HVAC and welding programs, plus it is offering a wider variety of courses now that it has become a four-year college. The proposed rent is $62,000 a year with a utility payment of $650 per month for the nearly 8,088 square feet of rental space. 

Also related to the STRTC, council voted to spend $25,000 on a new air conditioner, one of six at the center. City Manager John Naron proposed replacing one unit a year, as the air conditioners are at least 10 years old. Council will consider whether to spend money for a second new AC unit during its next budget year.

Appointments

Mayor John McAnelly appointed Andrew Franke and Chris Shaw to the South Texas Regional Airport Advisory Board for three-year terms.

Mayor Pro Tem

Council member Rachel Ramirez nominated Jose (Porky) Ytuarte for mayor pro tem. Council members Dr. Benjamin McCollum and Brett Williams voted in favor. Council member Makenna Lange was absent.