Eagle Pass City Council Approves $66.4 Million 2026-2027 Budget, Keeps Same Property Tax Rate

By Jose G. Landa, Copyright 2026 Eagle Pass Business Journal, Inc.

The Eagle Pass City Council voted Monday, September 14, 2026 at a special meeting to adopt a $66.4 million municipal budget for the 2026–2027 fiscal year and maintained the same city’s property tax rate at $0.480052 per $100 of assessed property valuation as last year.

The budget received approval during the third and final reading of the ordinance. It establishes funding for city operations, public safety, infrastructure, parks, municipal services and other expenses during the upcoming fiscal year.

City Finance Director Felix Castillo presented the final budget information to the mayor and City Council before the ordinances were considered.

Castillo reported that the budget authorizes $66,399,231 in appropriations. The city projects approximately $66.54 million in total revenue, leaving a difference of $144,181 between projected revenue and expenditures.

Approximately $63.7 million, or 96.1 percent of the budget, is designated for operating expenses. The remaining $2.6 million is allocated for capital expenditures.
Charges for municipal services represent approximately 54.7 percent of projected revenue.

Combined tax revenue, including property taxes, sales taxes and other taxes, represents 35.6 percent. Approximately $6.4 million, or 9.3 percent, is expected from other revenue sources.

Personnel services represent the largest expenditure category at approximately $36.6 million.

The city also budgeted about $11.3 million for other services and charges, $9.9 million for contractual services and $5.8 million for materials and supplies.

The budget includes approximately $24.2 million in interfund transfers supporting several municipal operations.

The general fund is expected to receive $1 million from the city’s sanitation fund and approximately $18.4 million from the international bridge system.

Funding transfers are also included for parks and recreational facilities, the International Center for Trade, the Eagle Pass Public Library, streets and sidewalks, the Main Street program, grant programs and debt service.

Approximately $692,500 is allocated to the streets and sidewalks fund for infrastructure improvements. The public library is expected to receive $687,000 from the general fund.

The city’s $2.6 million capital expenditure plan includes two garbage collection trucks, one for residential service and another for commercial service, along with waste containers.

The Police Department is also scheduled to receive radios, computers and other equipment.

Castillo reported that approximately $1.22 million, or 46.9 percent of the capital expenditures, is supported through grant funding. The remaining capital funding comes from municipal fees and hotel occupancy tax revenue.

He credited department directors for consistently encouraging city departments to pursue available grants to reduce the amount of local funding required for capital purchases.

Council members also approved and ratified the property tax revenue increase reflected in the adopted budget.

Although the tax rate remains unchanged from the previous year at $0.480052 per $100 of assessed property valuation, the city is expected to collect additional property tax revenue because of increases in taxable appraised property values and new construction added to the tax rolls.

The adopted rate includes $0.241526 per $100 of assessed valuation for city maintenance and operations and $0.238526 for payments toward the interest and sinking fund used for debt service.

City officials estimated that the $0.480052 tax rate will generate a total property tax levy of approximately $12.7 million.

The council’s vote concluded a budget process that included discussions about increasing operational expenses, inflation and the growing cost of providing municipal services.