Proposed 2027 budget would increase City property tax revenue nearly 8%
EL PASO, Texas (KVIA) -– El Paso’s proposed $1.407 billion fiscal year 2027 budget is accompanied by a property tax rate that would generate about 7.89% more revenue for the city’s maintenance and operations compared to last year. It adds an estimated $46.54 annually in city taxes on a $100,000 home.
This year’s budget increase is driven by:
Loss of property tax revenue Increasing public safety costs Debt service for voter-approved bond projects No use of fund balance
The proposed budget would be the first in the last three years that relies upon reoccurring revenue for reoccurring expenses as compared to the No-New Revenue rate.
The largest expense of the proposed increase will go towards public safety, police and fire at just over $371 million.
The largest revenue source for that expense is property taxes. While property taxes generate about $320 million in revenue, they do not cover the cities two largest departments, public safety, at $371 million.
During the council budget presentation, the City Chief Financial Officer Robert Cortinas said the No-New Revenue rate decreased tax rates. However, in the process it took one-time revenue to defer investment in City facilities and keep low pay raises which he says is not sustainable.
He said the proposed budget is now trying to make up for that revenue. Cortinas says his concern is the future fund balance which has decreased by more than $15 million.
He poses the question: We don’t know what the future holds. The thing that the city has to think about is what position they want to be in if they lose revenue.
Cortinas recommends an overall property tax increase of 4.9 cents:
2.6 cents per $100 valuation 0.9 cents to offset impact from lower than anticipated veritifed values 1.7 cents will generate $9.7 million in additional property tax revenue
Annual impacts on a home valued at $232,669:
Business personal property exemption: $27.69 annually Disabled veterans exemption: $20.94 Voter-approved debt service: $18.39 annually
The total impact on a $232,669 home would be $67.01 annually or 2.88 cents on the tax rate impact.
The City is scheduled to approve the fiscal year 2027 budget on Aug. 18 following public hearings on Aug. 17.
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