The City who owns and operates our Port of Entries has begun to lose revenues as traffic flow has been decimated because of federal government restrictions on border crossings amid the Coronavirus Pandemic.
This does not fair well with the city budget as it depends on Bridge revenues for close to 50% of their entire budget. This ultimately translates to approximately $12,000,000 a year.
At this point the Federal Government as per recommendation of President Donald J. Trump has extended the border crossing restrictions another 30 days.
That is devastating to the City of Eagle Pass budget just like it will negatively affect many other regions.
The Eagle Pass City Council held a meeting on Tuesday, in which City Finance Director Jesse Rodriguez presented figures related to the loss of and projected loss of revenues in the near future due to the COVID-19 Virus Pandemic.
“We are looking at an estimated loss in revenues of about $3,444,433,” stated Rodriguez. Rodriguez further explained that at this time the Bridge System has seen a loss in revenues due to the 55 % decrease in traffic flow stemming from the COVID-19 Virus Pandemic and Federal Government restrictions on travel.
We are seeing a 55% decrease in traffic something unlike what we have seen in years. Back in 2008 when the recession hit we did experience a decrease of about 25%,” stated Rodriguez.
Rodriguez then proposed the city make cuts to the current budget in the approximate amount of $1,977,794 and tap into the city's operational reserve for an amount close to $1,467,000 to cover current commitments under this cycle.
The cuts proposed in the city's budget Include ; Reduce Transfer to Bridge Capital Improvement Reserve in the amount of $500.000.00, Reduce Transfer to Public Library Fund $200,000, Reduce Transfer to Debt Service $100,000, Reduce Transfer to Street and Sidewalks Fund by $400,000, Reduce Transfer to Main Street Fund by $40,000, Reduce Travel Budgets by $65,000, Reduce Training Budgets by $80,000, Reduce Fuel Budgets by $65,000, Reduce Fire Equipment (Chest Compression System) by $40,222.30, Reduce Police Equipment (NIBRS Upgrade) by $30,000, Reduce IT Supplies Budget by $45,000, Reduce Other Supplies Budgets by 30% $360.673.65, Reduce Other Services Budgets by 40 % $61.600 40, Election Cost by $40.000.00, General Find Anticipated Personnel Savings due to Vacancies by $292.000 00, Bridge System Anticipated Personnel Savings due to Vacancies by $75,000, and Payment Out of Emergency Leave by $339,700.00 for an estimated cut of $1.977,794.35.
The Eagle Pass City Council approved to amend their budget to look and make up for that shortfall in a unanimous vote.
The City is estimating that they will lose revenues from several areas Including the Bridge System, sales tax revenues and other essential incoming funds that are used on a yearly basis for its budget and operations.
This item will be brought back another two times to council before final approval.