City of Eagle Pass Announces COVID-19 Economic Plan
(Press Release) Cities across the Nation have been economically impacted as a result of implementing stay-at-home orders. US-Mexico Border Cities, such as Eagle Pass have been following Federal guidelines prohibiting non-essential International travel and this has significantly impacted the City’s budget.
“While we are unable to predict how long the pandemic will last, we are taking steps to plan for the future and will adjust as necessary during these unprecedented times,” said Mayor Luis Sifuentes.
The City’s main source of revenue is the International Bridge System, which generates over 14 million dollars per year for the City. Due to the ongoing pandemic, the City projects a loss of revenue from the Bridge of approximately 2.5 million dollars for the current fiscal year. The City also projects losses of approximately $950,000 from sales tax, franchise taxes, and ambulance services.
In order to offset the anticipated losses, City Council approved approximately 2 million dollars in budget cuts across all Departments. While recognizing the financial impact, the City is working hard to minimize impacts on services and employees. Sixty-three employees who are being furloughed for a period not to exceed 3 months will receive employee benefits.
Although they will not receive pay from the City during this time, they will be eligible to file for unemployment benefits. In most cases, they will receive more income than they would as an employee due to the addition of the Pandemic Unemployment Assistance (PUA) under the CARES Act. In order to expedite their unemployment claims, the City will file on behalf of the furloughed employees. This measure will save the City approximately $500,000. Police officers, firefighters, and other public safety personnel such as 911 Dispatchers will not be affected by the furlough.
The financial position of the City remains strong due to the effective planning during this pandemic as well as the strength of our emergency reserve, or “rainy day fund.” The City Council and the City Administration have made it a priority to maintain a healthy reserve in order to plan for emergency
situations.
