U.S.-Mexico Extend Non-Essential Border Travel Restrictions Until August 20, Dealing Financial Blow to City of Eagle Pass
By: Ricardo E. Calderon, Eagle Pass Business Journal, Inc., Copyright 2020
The United States and Mexico governments agreed to extend the non-essential migrant processing and travel restrictions at the U.S.-Mexico border, which have been in effect since March 21, 2020, for another month until August 20, 2020 as both countries are experiencing a rising surge of confirmed positive COVID-19 reported cases and deaths, dealing a financial blow to the City of Eagle Pass, Texas who depends up to forty-five (45%) percent of its annual fiscal budget from revenues at its two international bridges with its Mexican sister-city of Piedras Negras, Coahuila, Mexico.
Eagle Pass Mayor Luis E. Sifuentes has often stated publicly that the City of Eagle Pass loses approximately $600,000 per month in international bridge revenues that the U.S.-Mexico non-essential travel restrictions remain in effect.
In late-March 2020, Eagle Pass Finance Director Jesus R. Rodriguez projected to City Council a potential loss of $3,444,333 (Million) in international bridge revenues if the non-essential travel restrictions continued until the end of the 2019-2020 fiscal year in September.
With the extension of the non-essential travel restrictions until August 20, 2020, the City of Eagle Pass potentially could lose up to $3,000,000 ($3 Million) in general revenue funds in its 2019-2020 fiscal year budget. Although recently, vehicular traffic at the two Eagle Pass international bridges improved during the month of June and early July for the holidays of Father’s Day and 4th of July which might lessen some of the financial loss of revenues. Commercial traffic at International Bridge No. 2 has not suffered a huge loss as has vehicular traffic.
The City of Eagle Pass budgeted receiving a total sum of $11,948,117 (Million) from its two international bridges to its general revenue fund during the 2019-2020 fiscal year, which will more than likely not happen due to the travel restrictions causing a significant loss of vehicular traffic during its period of implementation.
The City of Eagle Pass swiftly took action to reduce some of its budget costs during the initial implementation of the travel restrictions in March 2020 by approving an employee emergency level contingency plan that included temporarily laying off some of its employees. The Eagle Pass City Council approved a budget reduction of $1,977,794.35 (Million) in April 2020 as a result of the loss of international bridge revenues due to the travel restrictions.
The extension of the non-essential travel restrictions until August 20 comes at a critical time for the City of Eagle Pass as it enters budget planning for the upcoming 2020-2021 fiscal year. The City Administration and City Council will face tough financial decisions as it works on preparing next year’s budget, including, but not limited to, whether to reduce the number of projects, employees, salaries, Department budgets, and to raise ad valorem property taxes. Eagle Pass taxpayers vehemently oppose the raising of their ad valorem property taxes.
Eagle Pass Finance Director Jesus R. Rodriguez and City Manager George Antuna have a huge task ahead of them in developing and getting approved next year’s budget by City Council with the travel restrictions and the COVID-19 pandemic surging in the community. Rodriguez and Antuna will be called upon to come up with creative and innovative solutions to the City’s loss of international bridge revenues.
