Eagle Pass council approves interim $3 million transfer to start Paty Wind Boulevard construction

On June 16, 2026 the Eagle Pass City Council unanimously approved an amendment to the FY2025–26 budget to transfer up to $3 million from the international bridge fund into the general fund to begin construction of the Paty/Paty Wind Boulevard extension.

City manager Mr. Sto, who presented the item, told the council the transfer would create an interim funding “bucket” so the city can start construction while it pursues reimbursement from an Economic Development Administration (EDA) grant and finalizes a State Infrastructure Bank (SIB) loan. He said the city faces a May 2027 substantial-completion deadline tied to the EDA award and emphasized urgency: “I don't want to be the one responsible for losing $3.25 million,” he said.

Why it matters: the city described expected project funding of a SIB loan of roughly $15 million plus an EDA grant of $3.25 million for an estimated project scope of about $18.25 million. The general contractor price shown in the presentation was approximately $14.487 million (material-testing allowance roughly $80,000). Starting work now would enable the city to submit monthly invoices for reimbursement once the EDA processes disbursements.

Timing and conditions: Mr. Sto said the city must obtain a Federal Highway Administration classification of the roadway as a major collector (estimated 2–3 months), secure Texas Department of Transportation commission approval, and then allow about 45 days for loan disbursement after agreement terms are signed. The administration described the intention to transfer funds to the general fund only as invoices come due, not as a single lump-sum draw.

Bridge fund and compliance: The finance director, Mr. Felix, addressed concerns that the bridge system—Eagle Pass’s primary revenue source—would be compromised by the transfer. He reported a bridge fund balance of $5.5 million as of April 2026 and explained the policy reserves: a 30% operating reserve (about $783,000 in the presentation) plus a roughly $500,000 replacement reserve, together leaving the bridge above the required $1.2 million after the staged transfers. The administration cited city code section 26-184 as the authority allowing transfers of bridge revenues after required obligations and reserves are met.

Council action: After discussion emphasizing the goal of preserving the $3.25 million EDA award and using lower-cost SIB financing instead of higher-interest certificates of obligation, Councilwoman Rammon moved to approve the amendment and Councilman Diaz seconded. The vote was unanimous.

Next steps: Staff plans to issue a notice to proceed as contract terms and interim financing are arranged, to submit invoices for EDA reimbursement as work progresses, and to continue the SIB classification and TXDOT approval steps before drawing loan funds. The council did not adopt final loan documents; the action approved the budget amendment to create interim funding for construction to avoid jeopardizing the EDA grant.