City’s “Oversight” of Previously Approved Multi-Tiered Financial Contribution Agreement with Eagle Pass Water Works System Causes Re-Examination of Issue
By: Ricardo E. Calderon, Eagle Pass Business Journal, Inc., Copyright 2026
The City of Eagle Pass, Texas City Council approved on August 27, 2024 to amend the City’s financial contribution payment fee agreement from its own City-owned, Eagle Pass Water Works and Sewer System, due to certain capital improvement projects necessary to ensure the future availability of water and sewer services to the community.
On August 27, 2024, the Eagle Pass City Council formally approved to amend the Eagle Pass Water Works System financial contribution agreement on a 3-1-1 vote with Mayor Rolando Salinas and City Council Members Elias Diaz and Monica Cruz in favor while Council Members Mario E. Garcia voted against and Mayor Pro-Tem William “Billy” Davis abstained from voting on the matter.
The Eagle Pass City Council approved on August 27, 2024 to amend the Eagle Pass Water Works System financial contribution agreement to be reduced during a seven year period as follows: during the first two years of the new amended agreement, the local water works system would pay the City of Eagle Pass the sum of one (1%) percent; during the third year, the contribution would increase to one and a half percent (1.5%); during the fourth year, the contribution would increase to two percent (2%); during the fifth year, the contribution would increase to three percent (3%); during the sixth year, the contribution would increase to four percent (4%); and during the seventh year, the contribution would increase to five percent (5%).
City Secretary Erika Rodriguez and her staff duly noted the City Council’s formal approval of the amendment to the Eagle Pass Water Works System financial contribution agreement on the minutes of the August 27, 2024 meeting minutes, except City Manager Homero Balderas, Jr. forgot to follow through with the City Council’s policy decision approval until 16 months later at the December 9, 2025 City Council meeting acknowledging that “there was an oversight on my part” to inform Mr. Jorge Barrera, General Manager of the Eagle Pass Water Works System, of the City Council’s approval of the City water entity’s request to amend the financial contribution agreement.
At the December 9, 2025 City Council meeting, Agenda Item No. 9 was addressed first under the title of: An introductory ordinance of the City of Eagle Pass, amending Chapter 27,… by modifying the percentage gross revenues paid from City Waterworks System to the City from 2 percent to a tiered schedule increasing the transfer rate from one percent for the first two years, then one and a half percent for the year three, two percent for year four, three percent for year five, four percent for year six, and five percent for year seven to continue until a new agreeent is in place;…”
Balderas stated “this item was presented or approved by a previous Mayor and Council last year, but unfortunately there was some oversight in getting this agreement in place with our Water Works Department.” “We realized that this agreement has never been adopted officially on the City ‘s behalf, and that’s the reason we are bringing it back and this is the language that was approved by Mayor and Council at that time. So we are bringing it back so Mayor and Council to give consideration as to what was approved back then.” The City Administration took 16 months to realize that they had not followed through with this important policy decision made by Mayor Rolando Salinas and City Council Members Elias Diaz and Monica Cruz on August 27, 2024.
City Council Member Jessica Rey Ramon then asked City Manager Homero Balderas, Jr. “When was the last time that this was discussed with our City Water Works?“ Balderas replied that “the last time we discussed this with them was last year before we presented this to Mayor and Council and unfortunately there was an oversight that this decision was never communicated to them….I was under the impression that it had been, so when we put this item on here, I was under the impression that everyone was on the same page….When I had a conversation with Mr. Barrera soon after that, he was not aware that Mayor and Council had agreed to this….”
Balderas requested City Council to be given the opportunity to meet with Mr. Jorge Barrera, General Manager for Eagle Pass Water Works System, to discuss and negotiate the terms of this agreement because it was decided more than a year ago and he did not know what are the current circumstances of the City Water Works System.
City Councilmember Ramon made a motion to approve Agenda Item No. 9 seconded by Councilmember Mario E. Garcia with the understanding that City Manager Balderas will meet with Eagle Pass Water Works System General Manager Jorge Barrera to negotiate an agreement between the two entities and bring it back to the City Council for approval at their next meeting. The motion passed with Ramon, Garcia, and Mayor Aaron Valdez voting in favor of the motion to approve Agenda Item No. 9.
At its next scheduled regular meeting on Tuesday, January 6, 2026, the Eagle Pass City Council will hear back from City Manager Balderas under Agenda Item No. 12 concerning his negotiations with Eagle Pass Water Works System General Manager Jorge Barrera and whether any agreement was reached between the two entities, which will require approval by both the City Council and Eagle Pass Water Works System Board of Trustees. The January 6, 2026 City Council meeting at 5:30 p.m. at City Hall, City Council Chamber, 100 S. Monroe Street, Eagle Pass, Texas is open to the public.
