Eagle Pass City Council Approves First Reading of 2017-2018 Tax Rate and Fiscal Year Budget

By: Miguel Munoz, Eagle Pass Business Journal, Inc., Copyright 2017

The City of Eagle Pass, Texas City Council unanimously approved the first reading of the Ordinance establishing the 2017-2018 Tax Rate and Fiscal Year Budget at their regular meeting held on Tuesday, September 5, 2017 held at City Hall in Eagle Pass.

Agenda Item No. 8 called for the discussion and approval of an Ordinance establishing the 2017-2018 Tax Rate for the City of Eagle Pass, Texas at $0.542449 per $100 ad valorem property valuation, which is composed of $0.330359 per $100 valuation for payment of Maintenance and Operations and $0.212130 per $100 valuation for payment of Principal and Interest.

The proposed 2017-2018 City of Eagle Pass Tax Rate of $0.542489 per $100 valuation is the same as the proposed effective tax rate and will generate an increase of $123,407 new tax revenues as a result of new properties added to the City’s tax roll, but is slightly less than last year’s (2016-2017) tax rate of $0.546017 per $100 valuation.  The City of Eagle Pass proposed tax rate for 2017-2018 is not an increase, but rather is a minuscule reduction.

The total amount of Muncipal Debt secured by Property Taxes for the City of Eagle Pass is $43,963,791 (Million).

Agenda Item No. 7 called for the discussion and approval of an Ordinance establishing the 2017-2018 Fiscal Year Budget for the City of Eagle Pass, Texas at $24,247,302 (Million), representing a $1,895,927 (Million) increase from the previous 2016-2017 Fiscal Year Budget or an 8.4% increase.  This $24,247,302 (Million) proposed 2017-2018 Fiscal Year Budget will be paid from the tax rate of $0.542489 per $100 valuation and several City Revenue generating enterprises and funds such as the International Bridge System.

The City of Eagle Pass is blessed to own its very own International Bridge System that has two international bridges between the Untied States and Mexico and charges certain tolls for people and vehicles to cross these bridges, generating significant revenues for the City of Eagle Pass.  In 2017-2018, the City of Eagle Pass will receive a larger contribution from the International Bridge System due to the fact that the Bridge System will pay off its current outstanding debt and become debt free.

Of the proposed $24,247,302 (Million) 2017-2018 Fiscal Year Budget, the City of Eagle Pass will receive a contribution from the City’s International Bridge System of $11,119,007 (Million) towards the City’s General Fund, representing 45.8% of the City’s 2017-2018 General Fund Balance.  This $11,119,007 (Million) contribution from the City’s International Bridge System is a $1,926,655 (Million) increase to the City’s General Fund Balance than the previous year (2016-2017), a significant 20.9% increase.  The City’s International Bridge System is definitely a blessing to City of Eagle Pass taxpayers by generating important revenues to the City’s General fund balance while maintaining taxes low.  No wonder the City of Eagle Pass wants to build a third international bridge to Mexico in the future.

It is expected that the Eagle Pass City Council will approve the second and third readings of the Ordinances establishing the 2017-2018 Tax Rate and Fiscal Year Budget at their scheduled September 12th and 19th special meetings to finalize the tax rate and budget cycle for next year.  These City Council meetings are open to the public.  The City of Eagle Pass taxpayers are encouraged to attend these City Council meetings to express their opinion on the proposed 2017-2018 Tax Rate and Fiscal Year Budget.

Eagle Pas City Manager Arturo B. Rodriguez and City Business and Finance Director Jesus Rodriguez, Jr. together will all City Department Heads have done an outstanding job on developing and presenting the City’s proposed 2017-2018 Tax Rate and Fiscal Year Budget.