Eagle Pass City Council approves 2015-2016 Budget and Tax Rate in Split Vote
By: Jose G. Landa, Eagle Pass Business Journal, Inc., Copyright 2015
The Eagle Pass City Council approved the 2015-2016 budget and increased tax rate at their meeting held on Tuesday, September 15,2015 in a split vote of 4 to 1, questioning whether City Council thoroughly reviewed the budget and maximized the use of every dollar within the budget for the benefit of its citizens. Voting in favor of the near $20 Million 2015-2016 Budget and Tax Rate Increase were Mayor Ramsey English Cantu, Mayor Pro-Tem Rudy Villalpando, and Council members Luis E. Sifuentes and Yolanda P. Ramon while Council member Gloria E. Hernandez casted the sole dissenting vote.
During the September 15, 2015 City Council meeting, the second public hearing for the City of Eagle Pass proposed annual budget for fiscal year 2015-2016 and tax rate increase was held. No local citizen addressed the City Council during the second public hearing unlike previous public hearings or meetings. At earlier public hearings or meetings, several local citizens requested City Council not to increase the ad valorem property tax rate and expressed their absolute opposition to any tax rate increase due to many citizens living on a fixed income and who are unable to afford any tax rate increase.
City Council and administration detailed and discussed the items under the proposed 2015-2016 budget and tax rate increase during the public hearing.
Eagle Pass Mayor Ramsey English Cantu closed down the second public hearing process since there was no citizen registered to address the City Council.
Mayor Cantu called agenda item No. 12 regarding the third and final reading of an ordinance approving and adopting the budget of the City of Eagle Pass, Texas for the 2015-2016 fiscal year.
“Is there a motion to approve the annual budget 2015-2016 as presented?” asked Cantu.
Mayor Pro- Tem Rudy Villalpando motioned to approve the annual budget: ” I move to approve the ordinance, adopting the budget presented by the administration and to verify the property tax increase reflected in the budget which totals a tax rate of $0.546017/$100 assessed value for tax.” Councilman Luis E. Sifuentes seconded the motion. The tax rate increase was approved at the rate of $0.546017 per $100 valuation on a split 4 to 1 vote with Mayor Cantu, Mayor Pro-Tem Villalpando, and Council members Luis E. Sifuentes and Yolanda P. Ramon in favor while Council member Gloria E. Hernandez opposed the tax rate increase.
The Eagle Pass City Council also approved the third and final reading of an ordinance levying a tax rate for the City of Eagle Pass for the tax year 2015 under agenda item No.13 on a split 3 to 1 vote with Mayor Cantu, Mayor Pro-Tem Villalpando, and Council members Luis E. Sifuentes and Yolanda P. Ramon in favor while Council member Gloria E. Hernandez voted against.
During discussion, Mayor Cantu stated that the tax rate increase being looked at would be $0.340789/$100 valuation for the purpose of maintenance and operation (MNO) with a value of $0.205228 /$100 value for the payment of principal and interest on debt of the City of Eagle Pass long term debt. “The total tax rate for 2015 would be at $0.546017/$100 valuation,” said Mayor Cantu.
Cantu then explained that the adopted tax rate had been cut down from what was originally being looked at which was at the beginning of the budget and tax rate process at $0.68/$100. “It has been modified to simply look towards the payment of the principal and interest of the city’s debt. “ added Cantu.
Cantu then asked if anyone had a motion on the agenda item.
Councilman Luis E. Sifuentes motioned: “I move that the property tax rate be increased by the adoption of the tax rate of $0.546017/$100 which is effectively an 11.073% by which the proposed tax rate exceeds the effective tax rate. The 2015 effective tax rate is $0.491580/$100.” Councilwoman Yolanda P. Ramon seconded the motion.
Cantu then called for discussion before calling a vote.
“These are difficult decisions for elected leader,” said Cantu. Cantu stated that the tax rate increase process is a delicate one, but that under the tax increase it is assured that the community is being served in a responsible manner accounting for every dollar and assuring that the City of Eagle Pass as a whole is moving in the right direction.
Councilwoman Gloria E. Hernandez stated that she understood the responsibility of an elected official and the tough decisions faced during the taxing and budgetary process but that she could not agree to what was being proposed and looked at to approve. “I am also not convinced that we as leaders have done enough to make sure that we’re using our dollars to the top maximum,” said Hernandez.
Hernandez then stressed that she does see the other side of the coin and that she and all other council members pay taxes, but that it’s about the struggling taxpayer and not them.
“It has nothing to do with how much I pay. It has to do with how responsible are we for those who have to scrounge up the money,” said Hernandez.
“It has to do with what the general community has to pay. We are saying we’re going to do this, do it with the amount of money that you have. We came to the community and said these are the projects we’re planning to have for the next ten years and we raise taxes. Are we going to keep raising taxes every year? I’m saying we didn’t go deep enough to make sure that was the best way to go,” said Hernandez.
Councilwoman Hernandez believes the City Council did not review the budget and the tax rate increase thoroughly to ensure that taxpayers are receiving the maximum value for their money.
Mayor Cantu replied: “Your comment is well received.”
Mayor Pro-Tem Rudy Villapando spoke in favor of the tax rate increase due to the growth of the community and responsibility as a City Council to assure the services to the community. “I feel good about this budget and I feel we’re going to meet the needs of a lot of our citizens. It’s a decision that, yes its hard.“ said Villalpando. “If we had our doubts then we should have kept on asking. “ added Villalpando.
