Eagle Pass City Council approves First Reading of Proposed $21.4 Million 2016-2017 Fiscal Year Operating Budget; Keep Same Tax Rate

By: Jose G. Landa, Eagle Pass Business Journal, Inc., Copyright 2016

The City of Eagle Pass, Texas City Council approved the first reading of the proposed 2016-2017 Fiscal Year Operating Budget of $21,399, 367 Million at their Special Meeting held on Tuesday, August 23, 2016.

Eagle Pass City Finance Director Jesus Rodriguez presented the City Council the proposed annual operating budget for fiscal year 2016-2017 of $21,399,367. The current 2015-2016 City Operating Budget is $20,335,071. Thus, the new proposed 2016-2017 City Budget is $1,064,296 larger than this year’s budget.

Under agenda item No 4 , City Council attentively listened as Rodriguez proceeded to give a rundown of the proposed operating budget of $21,399,367 Million for fiscal year 2016-2017.

Rodriguez explained the overall details and status of every budgeted fund within the city governing body. Rodriguez noted that the proposed 2016-2017 Operating Budget has a deficit of $423,161, but that Administration is working on trimming it in order to balance the budget.

“Overall, the budgeted funds within the general fund remain the same. All of them are balanced with the exception of the storm drainage fund and the International Bridge System. The current deficit in the general fund is $ 423,161 . This budget includes Capital Outlay of $306,525, International Bridge System $1,700,00, Public Library $ 195,000, and the Environmental and Solid Waste Fund $529,000,” said Rodriguez.

Rodriguez added that one of the biggest changes in this budget was that it now included the pay adjustments for the current city of Eagle Pass Pay Plan.

Rodriguez concluded his presentation and stated that the budget will continue to be worked on and adjusted by the Finance Department as needed to assure that the City of Eagle Pass begins the new fiscal year with a balanced budget.

Mayor Ramsey English Cantu stated that this was a preliminary presentation of the budget and that adjustments were to made within the next two readings of the ordinance.

Mayor Cantu then called for action on the agenda item and Councilman Luis E. Sifuentes motioned for passage of the first reading of the ordinance to approve the City of Eagle Pass2016-2017 fiscal operating budget and was seconded by Mayor Pro-Tem Rudy Villalpando.

Mayor Cantu called the motion for any further discussion, which there was none.

The motion was then put to a vote and approved unanimously.

The City Council and Administration will continue to work on reducing the budget proposal within the following weeks to balancing it.

The 2016-2017 fiscal year for the City of Eagle Pass will commence on the 1st day of October, 2016, and ending the 30th day of September, 2017. This ordinance, therefore, shall be in full force and effect from and after its final passage.

Another agenda item approved by the City Council was to set the ad valorem tax rate for 2016-2017 fiscal year at $0.546017 per $100 valuation of real property, the same as last year’s tax rate. Of this $0.546017 per $100 valuation tax rate, the amount of $0.335295 is to be used to pay for Maintenance and Operations while $0.210722 is for payment of Interest on City of Eagle Pass debt. The City Council was able not to have to raise the tax rate this coming year due to the windfall tax revenues to be collected as a result of the record ad valorem property evaluations done by the Maverick County Appraisal District. Although Maverick County lost over $80 Million in tax revenues from oil and gas properties, the Maverick County Appraisal District raised the residential property owners their ad valorem tax evaluations by a median of 6.39%, including some property owners had up to 100% tax evaluation increases. This record ad valorem tax evaluations by the Maverick County Appraisal District were able to increase tax revenues for all tax entities by over $100 Million, giving local tax entities a windfall tax revenue collections for 2016-2017 fiscal year and not having to raise taxes because the tax valuations already increased taxpayers taxes. The City Council unanimously approved establishing the proposed tax rate of $0.546017 per $100 valuation for fiscal year 2016-2017 for City of Eagle Pass taxpayers.

The City of Eagle Pass will receive an increase tax revenues collection of $503,449 as a result of the increased Maverick County Appraisal District ad valorem tax appraisals for 2016-2017. Rodriguez, however, noted that $128,413 of these monies are from new real properties added to the City’s tax rolls. Rodriguez noted that the City of Eagle Pass’ net taxable property value is $1,437,054,424 Billion for fiscal year 2016-2017, an increase by $503,449 from last year.

The Eagle Pass City Council is composed of Eagle Pass Mayor Ramsey English Cantu, Mayor Pro-Tem Rudy Villalpando, and Council members Luis E. Sifuentes, Gloria Hernandez, and Yolanda P. Ramon.