City launches three-month rate study on bridge tolls; committee told 50% of proposed increase would go to general fund

City staff told the Board of Entry Advisory Committee on Feb. 19 that the City of Laredo will conduct a three-month rate study to analyze whether and how to raise bridge tolls, and to recommend how revenue might be allocated.

Kent Richard, interim director of the city bridge department, said the rate study will analyze revenues needed to fund operating costs, debt service on planned bridge expansions and how Laredo compares to competing ports. “The last time commercial toll fees were raised was October 2017,” Richard said, and staff will use a broader analysis this time rather than rely only on competitors’ rates.

Richard told the committee the city manager’s office and budget and finance are coordinating with a financial consultant. After the three-month study, staff plan to present findings to the Port of Entry advisory committee and to city council before any recommended rate increase is included in the city’s 2025–26 budget.

Committee members pressed staff on how increased revenue would be used. The meeting record notes a proposed allocation that would direct 50% of any increase to bridge-related expenses (operations, equipment, software and upgrades) and 50% to the city general fund; staff said the wording in materials reads 50/50 but that the study will clarify allowable uses and whether funds can be reserved for infrastructure.

Committee members also raised the scale of the bridge expansion projects that the study must consider: staff said projected costs include about $40 million for the World Trade Bridge expansion and about $114 million for the Columbia Bridge, with World Trade’s construction expected to finish by the end of 2027 (in fiscal year 2028) and Columbia Bridge expected to be completed in 2029. Staff said the projects would not require all funding up front and that financing options such as grants or debt service would be analyzed if projected revenue is insufficient.

During discussion one committee member referenced a federal proposal: “Congressman Cuellar has filed a bill in congress for monies for the ports of entry that are not a water port,” a member said, and committee members said they will raise federal funding while in Washington, D.C.

Richard said staff expect to complete the three-month study and return to the committee and council with recommendations by June. He also said the bridge department will continue software and weigh-in-motion upgrades already underway and will coordinate with the city’s grant writers and financial advisors on funding options.

Ending Staff did not present a final recommendation at the Feb. 19 meeting. The study is scheduled to be completed in roughly three months and will be presented to the Port of Entry advisory committee and to city council for further direction before any rate change is adopted.