As work continues on an ongoing Hwy. 290 expansion project, city officials in Jersey Village are trying to stay on top of how it could effect sales and property tax revenues. Although both revenue sources are projected to remain healthy in the 2015-16 fiscal year, they could take a hit in following years as construction starts to have a more profound effect on the city, City Manager Mike Castro said. “That’s one of the things we want to be aware of next year and monitor,” he said. “The majority of that construction has yet to make its way into the main part of the city.” Jersey Village City Council officially adopted its 2015-16 budget at its Sept. 21 meeting. The property tax rate, which will be adopted at its Oct. 19 meeting, is expected to remain the same at 74.25 cents per $100 valuation, but a 17.54 percent increase in assessed property values in the city will result in an additional $1,235,531 in revenue. “We were told by [the Harris County Appraisal District] going into the fiscal year that we might see a very minor bump in terms of assessed valuations,” Castro said. “Actually it was substantial bump.” Castro, projecting out a few years down the line, cautioned that property tax revenue could start decreasing. “We know Goodman Manufacturing in approximately 18 months will be relocating down [Hwy. 290] towards Waller, taking sales tax and property tax away,” he said. “The increase this year is a one-time gift. I don’t expect that to be maintained in years beyond.” With general fund expenditures projected at roughly $10 million and revenues at roughly $11 million, the city expects to bring in a surplus. That money could be used to help fund utility relocation efforts along Hwy. 290, City Manager Mike Castro said. The city took out $8 million in certificates of obligation in March to fund the relocation, which city officials argue should be refunded by the Texas Department of Transportation, the entity overseeing the expansion. The issue is the subject of an ongoing lawsuit. In the meantime, city officials expect to move forward with utility relocation this fiscal year. The certificates of obligation are reflected in the overall budget. “We have not settled on what property costs will be with the purchases associated with that utility construction,” Castro said. “I am reluctant to give a figure to council at this time. We are dependent on the condemnation courts and we have many dozens of properties to get through.” The budget included $1 million for street and drainage repairs specifically on Elwood Drive, which Castro identified as the street most in need. The city started taking bids from construction companies Sept. 22. Since the city’s new comprehensive plan has not been adopted, funding has not been included for specific projects recommended in the plan draft. Once the plan is adopted, it becomes incumbent on city council to prioritize projects and start the implementation process, Castro said. Other supplemental expenditures included in the budget are the hiring of an additional building inspector to help the city be more responsive to developers, continued improvements at the city’s swimming pool and traffic calming studies. Public hearings on the tax rate are set for Oct. 5 and Oct. 12 at 7 p.m. at the Jersey Village Civic Center, 16327 Lakeview Drive.