EL PASO, Texas (KFOX14/CBS4) — El Paso city leaders unveiled an updated proposed fiscal year 2027 budget Tuesday that aims to preserve essential city services while addressing rising public safety costs and declining revenue, including a recommended increase in the city’s property tax rate.

According to the proposal, the budget prioritizes funding for police and fire services, neighborhood infrastructure, parks, libraries, public health programs and other services residents use daily. City officials said the plan comes after months of reviewing operations and reducing spending to avoid deeper service cuts.

The City of El Paso provides 236 programs and services, including emergency response, street maintenance, parks and recreation, libraries, public health, animal services, code enforcement, planning and economic development.

Public safety remains the city’s largest General Fund expense, totaling about $371 million, or 57% of the General Fund.

RELATED: El Paso City Council weighs higher property tax rate to close multi-million-dollar gap

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.

Officials said the proposed budget also 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.

City services are part of our residents’ everyday lives, often in ways we don’t stop to think about,” City Manager Dionne Mack said in a statement. “It’s knowing someone will answer when you call 911. It’s driving on a safe street, taking your child to a City park or City library, or knowing help is there when your family needs it.

Before recommending higher taxes, city departments identified an estimated $26.2 million in recurring savings by reviewing spending, operations and vacant positions. Officials said about 75% of vacant positions were reduced or eliminated, while avoiding the use of one-time funding for ongoing expenses.

Despite those savings, the city said it continues to face financial pressure from increasing public safety costs and lower-than-expected revenue.

City officials said anticipated firefighter compensation tied to ongoing collective bargaining negotiations is a major factor. The city’s latest proposal would provide approximately $43 million in additional firefighter compensation over four years, including $7.7 million in fiscal year 2027.

El Paso currently has about 960 firefighters and 1,160 police officers serving the community.

Officials also pointed to changes in Texas property tax law that expanded exemptions, reducing city revenue by approximately $12 million. In addition, lower-than-anticipated certified property values are expected to reduce General Fund property tax revenue by another $5.3 million.

To help close the budget gap, the proposed budget recommends increasing the city’s property tax rate from $0.759649 to $0.809487 per $100 of taxable value.

According to the city, 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.

“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.”

The proposed FY 2027 budget will now move through the public review process.

A public hearing is scheduled for Aug. 17, with El Paso City Council expected to consider adopting the budget and tax rate on Aug. 18.

Sign up to receive the top interesting stories from in and around our community once daily in your inbox.