Mayor Chris Boswell: Harlingen's finances stand strong

Mar. 23—HARLINGEN — Mayor Chris Boswell on Friday delivered his annual State of the City address to a sold-out crowd, describing the city's economy as strong, creating hundreds of new jobs while the health care industry is expanding with the state's first school of podiatry.

During the hour-long speech, Boswell said the city was robustly rebounding from the coronavirus pandemic's economic slowdown before an audience of about 400 residents along with Rio Grande Valley officials.

"Despite all of the challenges brought on by the pandemic these last two years, Harlingen has continued to thrive. Indeed, the state of the city is strong," he said. "Our strong economy also means the city is financially sound."

Strong financial standing

At City Hall, the city's cash reserve stands at $24.1 million, enough to run city operations for 164 days in case of emergencies, Boswell said.

"This fund balance positions the city to be able to fund important drainage and infrastructure projects without borrowing money," he said, noting Fitch Ratings has given the city an AA+ rating.

"This rating reflects ... a very strong capability to meet financial commitments," he said.

Fitch "reports that Harlingen has solid revenue growth prospect, superior financial resilience,

exceptionally strong gap-closing capacity and moderate fixed costs. Fitch predicts Harlingen will continue to have strong reserve levels with a strong operating performance."

Sales tax climbing

A strong retail sales tax revenue stream is helping to fuel the economy, he said.

"Another strong indicator of Harlingen's rapid growth is our retail sales tax revenues," he said.

In 2021, the city's annual sales tax collection climbed to nearly $30 million, up from $18.6 million in 2011, he said, adding the city was on track to hit the $33-million mark this year.

"That growth means that the economy in our city is strong," he said. "It means that we are adding businesses and restaurants and that existing businesses are growing as well. It means we can provide the city services our citizens expect. It means we can adequately fund our police and fire departments through pay and equipment. It means that we can pay our share of grants for drainage improvements — and it means that we can keep our property taxes low."

Construction booming

Across town, construction is booming, he said.

"The growth in construction in our city this past year is remarkable especially given the fact that we remained in a pandemic," he said.

Last year, the number of building permits issued soared by 55 percent, carrying a construction value of $109 million up from $70 million in 2020 — doubling over the last seven years, he said.

Meanwhile, he said, permits issued for apartment and duplexes jumped 530 percent, with a construction value of $34,586,899 in 2021 compared to $5,487,000 in 2020.

Population boost

Last year, the city posted its biggest population boost in decades, climbing nearly 11 percent to 71,829 to lead Valley in gains, Boswell said.

"An 11% census growth rate will help us to attract more businesses, retail outlets and restaurants which rely almost exclusively on Census figures in making their determinations on where to locate. Expect our census data to pay off in the coming years," he said. "And we also believe that Harlingen was undercounted and that our true population is much higher."

Airport soaring

Valley International Airport is strongly rebounding from the pandemic's grinding slowdown.

Last year, the Valley's biggest airport added its seventh airline, now offering 12 non-stop destinations, Boswell said.

"All of this additional service has seen the last three months hitting 10-year record high levels," he said.

State's first school of podiatry

During the speech, Boswell announced the University of Texas Rio Grande Valley's plans to open its School of Podiatric Medicine, the state's first school of podiatry.

"This will be the first in Texas and will allow students to pursue careers in the medical and surgical care of the foot and ankle — an important specialization for the Valley, with its high incidence of diabetes and related diseases of the lower extremities," he said.

Institute of Neuroscience

Last year, the university opened its Institute of Neuroscience on the city's medical campus, Boswell said.

"ION houses clinics and diagnostic centers for numerous neuropsychiatric and aging disorders while also leading the way forward in clinical and laboratory research," he said. "Their world-renowned

neurologists, other clinical specialists and scientists work together to create personalized diagnostic and treatment plans of the highest-quality. Their researchers are also leading the way on Alzheimer's disease, stem cell and medication therapies for neuropsychiatric disorders and neuromodulation for spinal cord injury. ION will house the state's only National Institute on Aging designated Alzheimer's Disease Research Center to help examine and better understand how this disease impacts Hispanics."

Health care industry growing

Now, the city's health care industry, with 1,232 employers, has added more than 12,000 health care jobs, he said.

"Here in Harlingen, we have always thought of our efforts in developing more and more healthcare infrastructure and medical education as not only a core economic driver for the city but also one which enhances our quality of life," he said. "There are approximately 1,232 health care facilities in Harlingen employing over 12,038 employees. The health care industry in Harlingen has over twice the expected employment for medical related jobs compared to the United States and we are expected to grow those jobs by 2 percent over the next year. There are over 10 million square feet of healthcare facilities that have been developed in our city — with more on the horizon."

"Knowing that healthcare in Harlingen is such an important part of our economy is one of the many reasons, we are so proud of our partnership with the University of Texas—Rio Grande Valley."

Drainage projects

Meanwhile, the city continued upgrading its drainage system with a $2.4 million project aimed widening storm sewer lines along the Ninth and 13th Streets, he said.

"Our strong financial position allows the city to invest in infrastructure," Boswell said. "We continued our priority commitment to improving our drainage infrastructure."

Now, he said, with $6 million from the American Rescue Plan Act, the city's planning to widen storm sewer lines along Jefferson Avenue, Business 77, 13th Street and West Commerce Street.

Meanwhile, officials expect to land $8 million in grant money to widen storm sewer lines along Business 77, 13th Street, Fifth and Seventh Street.

Broadband expansion

Last year, officials launched a $100,000 feasibility study to plan a city-wide project aimed at expanding broadband access across town, Boswell said.

"Higher quality fiber optic connection can open the doors to greatly expanded economic activity, being competitive in attracting businesses which rely on highest quality connection and even improving access to telemedicine," he said. "Broadband and fiber optic cable has been compared to electric service itself in the late 20th century. If we don't want future opportunities to pass us by, we must sooner or later invest in the technology of the future."

Parks open

Last year, officials opened the $3.3 million first phase of the Lon C. Hill Destination Park before launching its $4 million second phase along Fair Park Boulevard.

Meanwhile, at Pendleton Park they're completing a $712,000 project aimed at renovating the HEB Tennis Center, featuring a pro shop, training room, spectator area, restrooms and lobby.