EL PASO, Texas – (KFOX14/CBS4) — El Paso residents will have a chance Monday morning to weigh in on a proposed city property tax increase that, if approved, could mean about $132 more a year for the average homestead.
City leaders are considering a property tax rate of just under 81 cents per $100 of value.
That would be higher than both last year’s rate and the city’s no-new-revenue rate.
RELATED: Community Conversations: El Paso mayor discusses proposed property tax hike
According to agenda documents, the citywide budget would collect nearly $30 million more in property taxes than last year.
City leaders say they have already made millions in cuts and need the additional revenue to protect basic services, but not everyone on City Council is convinced the city has done enough.
“Right now we’re in a really precarious situation in our community with everything rising, utility rates, gasoline, groceries, and so I am at the point where I’m not real sure that this is the best place to be,” said Rep. Lily Limon, who represents East El Paso and the Lower Valley.
City leaders say about $26 million was saved from the budget, largely by unfunding or eliminating about three-quarters of its vacant positions.
The city’s budget presentation says those vacancy cuts are part of almost $30 million in broader recurring savings and adjustments.
Mayor Renard Johnson and the city’s chief financial officer, Robert Cortinas, say deeper cuts could put public safety, parks and other services at risk.
“We are not adding any additional services; we’re maintaining what we have,” Johnson said.
“No one wants to raise taxes again; that’s not something we take lightly.”
A public hearing for the proposed tax rate is set for later this morning.
City Council is scheduled to take up final adoption of the budget and tax rate on Tuesday.
RELATED: Community Conversations: Rep. Lily Limon opposes city proposed property tax hike rate
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