City Council Holds First Public Hearing for Tax Rate Increase and Budget Workhsop
By: Jose G. Landa, Copyright 2014, Eagle Pass Business Journal, Inc.
The Eagle Pass City Council held their first Public Hearing for the proposed 2014-2015 tax rate increase and another 2014-2015 Budget Workshop on Tuesday, September 2, 2014, at City Hall in Eagle Pass, Texas.
Facing possible budget cuts to the proposed City of Eagle Pass Budget for 2014-2015 to offset a $1.8 million dollar deficit, the Eagle Pass City Council had another 2014-2015 Budget Workshop during their regular monthly meeting on Tuesday September 2nd.
At the last Budget Workshop held on August 19th, Eagle Pass City Manager Gloria Barrientos stated that the initial deficit was over $2 million but that through administrative efforts it had reduced it to $1.8 million.
Barrientos advised City Council that administration was intensifying its efforts reviewing every line item and option to balance its proposed 2014-2015 City of Eagle Pass Budget.
Barrientos told the City Council that the proposed 2014-2015 Fiscal Year budget had been balanced and proceeded to present the City Council a rundown of how it was accomplished.
“We are proposing a sustained balanced budget. Our total expenditures are at $18,978,955.32 and so do our revenues. We were able to accomplish this by taking some of the items on the capital outlay list,” said Barrientos.
Barrientos pointed out that administration had taken out approximately $900,000 off the capital outlay.
“We feel very strongly that we can purchase a majority of these items with this year’s remaining balance,” said Barrientos. Barrientos stated that administration would be presenting a budget amendment within the next two weeks to reflect this action.
“We also have $300,000 in reserve in the Bridge and we will be asking Council to allow us to restrict another $200,000 from Bridge revenues from this year to build up the reserve so they can purchase the equipment they need. That also allowed us to free up some additional funding to be able to balance the budget,” said Barrientos.
“The remaining $400,000 that we were still short, we were proposing to change the street cleaning department in the amount of $323,768 through this presentation street cleaning would be moved into the Municipal Solid Waste Enterprise Fund,” said Barrientos.
The funding for the street cleaning department was proposed to be taken from the City’s general fund and covered under the Municipal Solid Waste Enterprise Fund. The Budget Workshop was concluded after the presentation by Barrientos.
City Council addressed an earlier agenda item which had not passed and died for lack of votes during the course of the regular meeting pertaining to the Solid Waste Enterprise Fund due to a lack of clarification on certain issues with the ordinance.
Agenda item No. 15 called for discussion and possible approval of an ordinance amending Section 14-8-24, Chapter 14 of the Code of Ordinances of the City of Eagle Pass to provide for the use of the Solid Waste Enterprise Fund.
This ordinance calls for all fees collected in the operation of the recycling, landfill, solid waste management, and all related environmental services provided by the City to be deposited into the Environmental and Solid Waste Management Fund. The gross revenues generated from of the recycling, landfill, solid waste management, and all related environmental services are to be used in order of priority with payment of all necessary and reasonable maintenance and operating expenses for the services provided through the Environmental and Solid Waste Management Fund. The Ordinance also provides payment of debt (principal and interest) associated with operation of the services provided through the Environmental and Solid Waste Management Fund, minimum of $30,000 contribution per month, to a Capital Replacement Account for the garbage and refuse collection service, minimum $50,000 per year, to be transferred to the Landfill Fund to finance the closure/post closure costs of the City’s Type IV landfill. Any remaining funds may be transferred to the City’s General Fund at the sole discretion of the City Manager.
City Attorney Heriberto Morales and City Manager Gloria Barrientos advised City Council that that an important piece of this ordinance had been omitted when it was approved in 2010. “You had an ordinance in 2010 and they brought the entire chapter to you to codify it but it didn’t contain that one section,” said City Attorney Heriberto Morales.
City Attorney Heriberto Morales advised City Council that they needed to vote to approve the proposed amendment (section) of the ordinance previously omitted to clarify the whole ordinance. “It just didn’t get included in there when you adopted that chapter,” said Morales.
The Solid waste Enterprise Fund ordinance issue in question is that it does not specify an amount of funding and cannot not be modified if there is not a specific amount which should be $15,000 but now is being proposed to be increased to $30,000 monthly by administration.
“To address the transparency issue that you have is that this would actually provide like in 2010 provide a mechanism for you the council to inform the general public what is exactly happening with those funds,” said Morales. “This in essence would address what is happening to those funds and where they are going,” said Morales.
During discussion, Mayor Ramsey English Cantu raised his concern on who is responsible for codifying actions and ordinances for the City of Eagle Pass. Mayor Cantu noted that he did not want this omission to occur again. “As a Council, we are voting on items and they are not being included. So who is the ultimate responsible party here? That is my concern. This is a hefty fund this is something that is not easily looked over. And I’m sorry but this to me is just unacceptable,” said Mayor Cantu.
Mayor Cantu noted that the City Council, Administration, and Legal Counsel attest to the veracity and truth of each ordinance when City Council approves and sign them.
City Council unanimously approved the amendment of the section previously omitted from the ordinance. The ordinance must be read and approved two more times before it becomes effective.
PUBLIC HEARING TO RAISE TAXES
City Council then held its first public hearing on the proposed tax rate increase for fiscal year 2014-2015 by the City of Eagle Pass. Mayor Cantu opened the public hearing and read the proposed tax rate increase for 2014-2015.
“The proposed tax rate is $ 0.510724 per $100 on a property value. The average home valuation home in the City of Eagle Pass is $107,025. The 2013 tax amount was $498.26, 2014 proposed tax amount is $ 546.70 an increase per year of $48.44, a total increase per month of $4.04 cents. Maintenance and operation of the tax rate is $ 0.35402 and the INS is at $0.156682,” said Mayor Cantu.
Mayor Cantu asked if there was anyone in the audience who wished to address the City Council on the proposed tax rate. No citizen addressed the City Council.
The second public hearing for the tax rate increase will be held on September 9, 2014.The public is invited to attend and address the Eagle Pass City Council with any concerns or questions regarding the proposed tax rate increase for 2014-2015.
Mayor Cantu announced that the adoption of the 2014-2015 City of Eagle Pass proposed tax rate will be on September 16, 2014 at a City Council meeting.
