City Council approves 2014-2015 Fiscal Year Budget and Increased Tax Rate
By: Jose G. Landa, Copyright 2014, Eagle Pass Business Journal, Inc.
The Eagle Pas City Council held a special meeting on Tuesday, September 16, 2014, and unanimously approved the City of Eagle Pass 2014-2015 fiscal year budget of $18,978,955 and a tax rate increase of 4.5 cents per $100 valuation for 2014-2015.
During the special meeting, City Council held a public hearing on the proposed increased tax rate for fiscal year 2014-2015 and also held the third and final budgetary workshop for the proposed 2014-2015 fiscal year budget.
During the public hearing on the City of Eagle Pass Annual Budget for fiscal year 2014-2015, there were no public citizens who expressed their opinion on the proposed budget for fiscal year 2014-2015.
City Councilmember Gloria E. Hernandez stated that the concerns of the citizens whom had voiced their concerns were noted and will be explored in the future to see what actions if any can be taken to address their concerns.
The budgetary public hearing was then closed.
City Council then tackled an ordinance under agenda item No.5, which called for the approval of an ordinance approving and adopting the Budget of the City of Eagle Pass, Texas for the 2014-2015 fiscal year and declaring an emergency.
City Manager Gloria Barrientos stated that the 2014-2015 fiscal year beginning general fund balance was set at $5,675,589. General fund revenues are estimated at $18, 978,955 with taxes collected at $10,400,000 or 55% of the revenues; use of property is at $106,895; license and improvements is at 1%; fines and forfeitures is at $ 481,210; current services and charges is at $1,400,000 or 7% of revenues; and intergovernmental is at $6,100,000 or 32% of budgeted revenues.
“Our General fund main revenues are Ad Valorem Taxes at $ 4,400,000; sales tax are estimated at $4,900,000; ambulance fees are at $906, 830; and international bridges system transfer will be $5,948,522. Our general fund expenditures are $18,978,955, 72% of this are going to personnel, 2% is for capital outlay, 3% is operating transfer, contracts are at 6%, supplies at 8% and 9% goes to services and charges. General fund expenditures by function have 53% of those expenditures will go to public safety, 1% health and sanitation 3% transfers to other funds, 14% parks and recreation, 10% public works, 19% is for general government,” said Barrientos.
General fund expenditures by department percentages were also broken down and presented to City Council by Barrientos. Barrientos also itemized 11 new full time positions added within the City of Eagle Pass.
Barrientos presented a balanced budget of $18,978,95 for 2014-2015 fiscal year, including the amounts for contribution funds allocations, capital outlay of $381,584, operating transfers out of $272,139; Main Street Fund of $103,763; and International Trade Center subsidized by $220,908 for a total of $596,810.
After discussion, the City Council unanimously approved the 2014-2015 fiscal year budget for the City of Eagle Pass at $18,978,955.32.
The City Council then unanimously ratified the property tax revenue increase as reflected on the adopted City of Eagle Pass Budget for fiscal year 2014-2015.
City Council then continued and discussed an ordinance to levy the new tax rate for the City of Eagle Pass for the tax year 2014-2015 and declared an emergency.
The property tax rate will be increased by $0.510724 per $100 valuation.
Council member Gloria E. Hernandez motioned to approved the new increased tax rate and Council member Rudy Villalpando seconded the motion.
Mayor Ramsey English Cantu read the ordinance establishing the new tax rate for the City of Eagle Pass as required by law. Pursuant to Section 26.05(a) of the Texas Property Tax Code and other applicable provisions of the law, the City Council of the City of Eagle Pass does hereby levy or adopt the tax rate on $100.00 valuation for tax year 2014 as follows, $0.354042/$100 for the purpose of maintenance and operation, $0.156682/$100 for the payment of principal and interest on debt of this City, for a $0.510724/$100 total tax rate.
“ This tax rate will raise more taxes for maintenance and operations than last year’s tax rate. The tax rate will effectively be raised by 9%. The average home or property within the City of Eagle Pass is $107,045 and the increased tax rate will cost an extra $48.44 per year from $498.26 in 2013 to $546.70 in 2014.
“The Tax Assessor-Collector is hereby authorized to assess and collect the taxes of the City of Eagle Pass, employing the above tax rate,” said Mayor Cantu.
To provide for the funding of the 2014-2015 fiscal year budget, the City of Eagle Pass, Texas, must adopt a tax rate, and thereafter levy that rate, for the purpose of collecting revenues. This adoption of the tax rate and a levy must occur before October 1, 2014; however, there is inadequate time to approve this ordinance and read the same on three separate days. There exists, therefore, an immediate public emergency suspending the requirement that ordinances be read on three separate days. Such requirement is hereby suspended and this ordinance providing for the adoption of the tax rate, and levy of taxes, shall be in full force and effect from and after its passage on this date.
After discussion, the City Council unanimously approved the proposed tax rate for 2014 with a 4.5 cents tax increase in order to balance the budget.
