Eagle Pass council approves PID bonds, short-term rental rules and several infrastructure steps

The Eagle Pass City Council on March 3 authorized a package of actions to advance local infrastructure and regulation, including approving special-assessment bonds for the Eagle Pass Public Improvement District, adopting new short-term rental rules and authorizing application for a $15 million TxDOT SIB loan for the Patsy Wood Boulevard extension.

Council opened the meeting with the pledge and a brief invocation, heard routine announcements and one public comment from Letty Perez of the Community Transformation Alliance, who urged residents to "speak up 1 time this month" and described simple ways to contact public officials.

Why it matters: The council's actions move multiple projects from planning toward construction and add a regulatory framework for short-term rentals that city staff say will both enforce safety and collect a locally administered 7% hotel-occupancy tax from rental guests.

Key votes and outcomes

Votes at a glance: - Consent agenda: approved (vote announced as 3 in favor, 1 abstention). - Eagle Pass Public Improvement District (PID) bonds (Improvement Area 1 and Area 2): council authorized issuance and permitted bond counsel to insert final pricing terms as presented; related service and assessment plan updates were approved. - Short-term rental ordinance (local 7% hotel occupancy tax, permit, inspections, fees): unanimously adopted. - Resolution to apply for a TxDOT State Infrastructure Bank (SIB) loan up to $15,000,000 for the Patsy Wood Boulevard extension: approved unanimously to submit the application and return with financing options. - Camino Real Port facilities contract (Artura Group Inc. supplemental): approved (amount not to exceed $882,543). - Purchase of two ZOLL X monitors (grant-funded): approved (no local match required). - Parking meter system upgrade (multi-space, cashless meters): approved (estimated one-time cost ~$231,000; ongoing fees estimated; staff recommended multi-space meters for downtown). - RFP 2026-004 (Fourth of July sound production): council voted unanimously to reject the proposals and directed staff to pursue alternatives under the city's newly updated procurement policy. - Multiple other routine ordinances, interlocal purchasing agreement (TechShare), purchasing-policy updates and easement acceptances were approved as presented.

What the bond approvals mean

Financial adviser David Gonzales presented the PID bond pricing results the council approved for Improvement Area 1 (principal about $11.91 million; true interest cost ~8.248%; final maturity 09/01/2060) and Area 2 (principal about $2.371 million; true interest cost ~8.266%). He emphasized the bonds are secured by assessments on the PID parcels, not by the city's general-obligation tax pledge: "This is not an obligation of the city of Eagle Pass," he said.

Short-term rentals: permit and tax

City staff outlined the new short-term-rental code additions: registration and a short-term-rental permit (valid up to one year), safety inspections (life-safety inspection fee $25), an application fee ($200), renewal fee ($50), a $50 late-filing penalty, and fines up to $500 per day for violations. Staff estimated roughly 170 active short-term-rental accounts and projected, under their occupancy and rate assumptions, roughly $232,000 in annual local tax revenue if the 7% local portion is collected from guests.

Next steps and follow-ups

- Bond documents will be finalized and submitted through the attorney general's office and the closing process. - Staff will return with final financing comparisons for the Patsy Wood Boulevard loan application (TxDOT SIB vs. open-market certificates of obligation). - The city manager and procurement staff will pursue alternatives for July 4 entertainment under the updated procurement rules.

Sources and evidence: Meeting transcript of the Eagle Pass City Council regular meeting, March 3, 2026. The city noted statutory hearings under Chapter 372, Texas Local Government Code, preceded bond and assessment actions and City staff confirmed the service and assessment plan was updated to reflect pricing presented at the meeting.

Ending: Council concluded the evening after executive sessions and returned to approve actions tied to closed-session items; the meeting adjourned following post-session motions.