City of Eagle Pass Faces Financial Dilemma Due to COVID-19 Pandemic
By: Ricardo E. Calderon, Eagle Pass Business Journal, Inc., Copyright 2020
The worst kept secret within the City of Eagle Pass, Texas is the impending financial dilemma facing the City’s fiscal budget for 2019-2020 as a result of lost revenues from the two City-owned International Bridges, sales taxes, Hotel Occupancy Room Tax, Convention and Tourism revenues, and other revenue sources due to the COVID-19 Pandemic.
At the recently held April 7, 2020 regular meeting of the Eagle Pass City Council, City Councilwoman Yolanda P. Ramon stated that she wanted the City Human Resources Department to advise all City Department Directors and employees that “we are not letting go of anybody” and that “nobody is at risk of losing their jobs” and that “they are good with all of their benefits….”
Also at the April 7, 2020 City Council meeting, Mayor Luis E. Sifuentes asked Eagle Pass International Bridge System Director Homero Balderas to provide a report on the bridge traffic flow and Balderas replied that the flow of traffic at the two international bridges had decreased “drastic” during the month of March 2020 compared to last year’s March 2019 since the implementation of the joint U.S.-Mexico agreement to close the southern border only to essential travel, modification of Bridge No. 1 hours, and COVID-19 ramifications.
Eagle Pass Port of Entry Customs and Border Protection (CBP) Director Paul Del Rincon noted in an interview that vehicle and pedestrian traffic have significantly decreased at the two Eagle Pass international bridges due to COVID-19, citing that the vehicle traffic prior to COVID-19 was averaging 10,000 vehicles daily compared to its current post-COVID-19 average of 2,000 vehicles daily while the pedestrian traffic has decreased from 3,000 to 800 daily.
Eagle Pass Port of Entry Director Paul Del Rincon also noted that the commercial traffic flow of tractor-trailers had slightly decreased from 700 to 550 daily due to COVID-19.
In addition to the loss of international bridge revenues, the City of Eagle Pass is sustaining a loss of sales tax revenues as a result of less tourists and visitors to the community due to COVID-19. For instance, during the month of April 2019 the City of Eagle Pass received $401,415.74 in sales tax revenues during a robust economy, but this April 2020 will only receive $356,452.89 in sales tax revenues due the COVID-19, a loss of $44,962.85 in just one month with five months remaining in the fiscal year.
The loss of these key revenues by the City of Eagle Pass is causing a financial dilemma to maintain the fiscal budget for 2019-2020 adopted by the City Council on September 17, 2019.
The City Council approved a 2019-2020 fiscal year budget of $78 million on September 17, 2019 composed of “$38 Million to operate all of the City’s services (salaries, supplies, and contracts) including: $11 Million for Public Safety, $3 Million in Infrastructure, $4 Million in Health and Sanitation, $3 Million in Parks and Recreation, $5 Million in Debt Service, $2 Million in International Bridge System, $1 Million in Public Library , and $7 Million in Administrative Services,” according to a City-issued Press Release in September 2019.
In addition, the City Council approved a total of “$40 Million in Capital Projects including: $20.1 Million in Park improvements including a new Sports Complex and other park improvements, $8.8 Million in Public Safety Improvements including the reconstruction of Fire Station No. 2, $4.3 Million in Downtown Improvements, $5.6 Million in Storm Drainage Improvements, $1.1 Million in Street and Sidewalk Improvements, and $1.8 Million in new capital equipment.”
While the City Administration led by City Manager George Antuna and Finance Director Jesus Rodriguez, Jr. and the City Council led by Mayor Luis E. Sifuentes are cognizant of the serious financial dilemma facing the City, City leaders have been relatively quiet on the nature of their discussions with the citizens of Eagle Pass on what steps they are considering and/or planning on taking to adjust the “drastic” decrease of revenues to sustain the lofty $78 Million fiscal budget adopted on September 17, 2020.
The City of Eagle Pass has not posted any notices of any emergency or special meetings or workshops in the immediate future to address the financial dilemma facing the City budget as of the writing of this article. City Taxpayers certainly are interested in knowing what steps the City leaders are going to take and how this might affect them with their ad valorem taxes and services provided by the City.
When City Council adopted the 2019-2020 fiscal budget on September 17, 2019 the economy was humming and blowing strong with monthly increased international bridge traffic flow and revenues and the sales tax revenues exceeding projections, but no one anticipated nor foresaw the dreary COVID-19 pandemic throwing the City and the United States into an economic crisis unseen since the Great Depression. Now, the City of Eagle Pass, as well as all governmental entities, face a financial dilemma that is going to require the prioritization of services and benefits offered to taxpayers, including making significant adjustments to the 2019-2020 fiscal year budget.
Updated at 11:58 A.M. on April 10, 2020.
Updated at 7:47 P.M. on April 10, 2020.
