EL PASO, Texas (KFOX14\/CBS4) \u2014 El Paso homeowners could soon pay more in property taxes as city leaders work to close a multi-million-dollar budget gap while maintaining essential city services.<\/p>\n
City Council is expected to receive its first detailed presentation on the proposed property tax rate during Tuesday’s meeting. <\/p>\n
While no vote is expected at that meeting, the proposal marks the beginning of the city’s public budget process for Fiscal Year 2027.<\/p>\n
City staff is recommending increasing the property tax rate from $0.759 per $100 of taxable valuation to $0.809 per $100 of taxable valuation.<\/p>\n
According to city officials, the proposal includes an additional 2.6-cent tax rate adjustment to help offset lower-than-expected property values and declining property tax revenue.<\/p>\n
Officials say the proposed increase would generate approximately $9.7 million in additional revenue.<\/p>\n
The funding would help pay for priorities including park and street lighting, animal services fleet replacement and other city operations.<\/p>\n
RELATED: El Paso budget plan could raise average homeowner taxes by about $11 a month<\/a><\/p>\n On July 31, KFOX14 spoke with District 7 City Representative Lily Limon, who said city leaders recognize many residents are already struggling with rising household costs.<\/p>\n “Our community overall… they’re angry. And rightly so. When you start seeing the rise in utilities, water, electricity, and then we impose this taxing as well, people are angry,” Limon said.<\/p>\n Limon said city leaders are facing difficult budget decisions as they try to replace lost revenue while maintaining services residents depend on.<\/p>\n “But then now as we get to the end of the budget, how do we replace that money?… It’s gonna be a very, very tight budget when we come down to it,” she said.<\/p>\n City officials say the proposed budget has been affected by several factors, including property values coming in approximately $415 million lower than expected, state-mandated property tax exemptions, rising public safety costs and the ongoing need to maintain streets, parks and other infrastructure.<\/p>\n District 1 City Representative Alejandra Chavez said the city has already looked for savings, including eliminating or leaving vacant positions unfunded, but budget pressures remain.<\/p>\n “There are some state mandates that have reduced our revenues at the city by about thirteen-and-a-half million dollars… we’re trying to figure out how to compensate for those exemptions,” Chavez said.<\/p>\n She said city leaders are working to balance affordability for taxpayers with maintaining city services.<\/p>\n “Our community expects us to deliver on the services… we still need to continue to maintain our streets, parks and our current infrastructure,” Chavez said.<\/p>\n City Council is expected to continue discussing the proposed tax rate and Fiscal Year 2027 budget over the coming weeks.<\/p>\n Public hearings on the proposed property tax rate and budget are scheduled for Aug. 17, with final adoption of both the budget and tax rate expected on Aug. 18.<\/p>\n RECOMMENDED: Weather-related outages leave over 17,000 El Paso Electric customers without power<\/a><\/p>\n