The City of El Paso has unveiled a proposed budget for the fiscal year 2027 that aims to protect essential services while tackling higher public safety costs and lower revenue. The budget, which includes a property tax rate increase, is designed to ensure the city can continue to provide critical services to its residents.

City officials have emphasized the importance of maintaining essential services, such as police and fire departments, neighborhood infrastructure, parks, libraries, and public health programs. The proposed budget reflects months of reviewing operations and reducing spending to avoid deeper service cuts.

The Need for a Property Tax Increase

The proposed budget includes an increase in the city’s property tax rate from $0.759649 to $0.809487 per $100 of taxable value. This adjustment is expected to generate about 7.89% more revenue for the city’s maintenance and operations compared to the previous year. For a home valued at $100,000, this increase would add an estimated $46.54 annually in city taxes.

The increase is driven by several factors, including the loss of property tax revenue, rising public safety costs, debt service for voter-approved bond projects, and the decision not to use the fund balance. The largest expense in the proposed budget will go towards public safety, with police and fire departments receiving just over $371 million.

Impact on Residents

For the average El Paso homestead with a taxable value of about $232,669, the increase would add approximately $11 per month, or about $132 annually, to the city portion of a homeowner’s property tax bill. City Manager Dionne Mack acknowledged the burden this increase places on residents but emphasized the necessity of maintaining essential services.

“We know families are already paying more for groceries, utilities, and other everyday expenses, and we understand what it means to ask them to pay more,” Mack said. “That is why we looked first at what we could reduce and where we could operate more efficiently. But we also have a responsibility to be clear about the choices in front of us.”

Public Safety and Infrastructure Investments

The proposed budget continues investments in police and fire recruitment through new academies. Federal grants are expected to fund 21 entry-level firefighters assigned to a Far East El Paso fire station, as well as additional police officers to support community policing efforts.

The city has also invested $39.4 million in fire facilities, including opening Fire Stations 1 and 38 and renovating Fire Stations 15, 20, 22, 23, and 24. These investments are part of a broader effort to enhance public safety and infrastructure across the city.

Financial Pressures and Savings

Despite identifying an estimated $26.2 million in recurring savings by reviewing spending, operations, and vacant positions, the city continues to face financial pressure from increasing public safety costs and lower-than-expected revenue. Changes in Texas property tax law have expanded exemptions, reducing city revenue by approximately $12 million. Additionally, lower-than-anticipated certified property values are expected to reduce General Fund property tax revenue by another $5.3 million.

City Chief Financial Officer Robert Cortinas highlighted the importance of sustainable budgeting practices. “The proposed budget is now trying to make up for that revenue,” Cortinas said. “My concern is the future fund balance, which has decreased by more than $15 million.”

Public Review and Approval Process

The proposed FY 2027 budget will now move through the public review process. A public hearing is scheduled for August 17, with the El paso city council expected to consider adopting the budget and tax rate on August 18.

Residents are encouraged to participate in the public hearings and provide their input on the proposed budget. The city’s goal is to balance the need for essential services with the financial realities facing its residents.