Council rejects a proposed tiered increase to waterworks transfer rate, keeps current 1% contribution
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Summary
After discussion and split votes, Eagle Pass council rejected a motion to adopt a tiered schedule raising transfers from the municipal waterworks and instead approved keeping the current 1% contribution for the remainder of the fiscal year; staff said the water utility needs planning certainty.
The Eagle Pass City Council debated a second reading of an ordinance that would change how much the municipal waterworks transfers to the city general fund.
City staff told the council the Eagle Pass Waterworks is currently contributing 1% of gross revenue to the city and recommended maintaining that rate while the utility and the city continue negotiation and planning. “At this time, we feel that it's in the best interest of the city to remain at 1%,” said staff presenting the item.
Councilman [motion-maker] proposed a multi-year, tiered increase that included incremental steps toward higher transfer rates; that motion failed in open session when the chair announced a tally of two in favor and three opposed. Following additional discussion, Councilwoman Ramon moved to keep the contribution at 1% for the remainder of the fiscal year and bring the matter back for review before the next budget in June; the council approved that motion 4–1.
Councilmembers cited the need to balance the utility’s ability to plan capital projects against the city’s interest in general revenues. Several members asked for a joint workshop with the waterworks board and staff to align priorities and to revisit the transfer rate when the utility and city have clearer multi-year plans.
What happens next: staff and council agreed to schedule a workshop and to bring the question back for review near the June budget discussions.