El Paso Matters – Bigger budget, bigger costs: City of El Paso leaders begin debate over city spending plan

A preliminary budget proposal for the city of El Paso would increase the general fund that pays for basic city services by about $30 million next fiscal year as the city faces rising personnel, infrastructure and operational costs. It’s still unknown how that might impact city property taxes. 

The El Paso City Council on Wednesday will get its first public presentation of the proposed budget for the 2026-27 fiscal year, which includes a general fund budget of about $655 million – a 5% increase over the current year. The general fund pays for city services such as public safety, streets, parks and libraries, and is primarily funded by property taxes, but also includes revenue from sales taxes and fees for city services.

The preliminary proposal will shape decisions for funding services and will be the starting point for setting a property tax rate. 

RELATED: Why El Paso’s city government spends far less on services than other big Texas cities, despite having highest tax rate

The city anticipates collecting about $11 million more in sales taxes next year — an 8% increase over the current budget. The city projects franchise fee revenue will total about $61 million, a roughly 1% decrease from the current year.

Property tax revenue is also expected to rise by about 8%, or roughly $24 million, according to city budget documents, though the presentation doesn’t include specifics on tax rates as the city has not yet introduced a proposed tax rate for the next fiscal year.

The tax revenue projections were based, in part, on revenue estimates, and the proposed tax rate will be formally calculated and presented once certified property values are released by the El Paso Central Appraisal District, city spokesperson Laura Cruz-Acosta said in an email response to El Paso Matters.

The appraisal district sets property values that are used by local governments in setting their tax rates. Local taxing entities such as the city, county and school districts base their tax rates on certified property values anticipated to be released in July.

City leadership, including City Manager Dionne Mack and Chief Financial Officer and Deputy City Manager Robert Cortinas, will present the initial budget during the special council meeting set for 9:05 a.m. Wednesday at Council Chambers, City Hall, 300 N. Campbell St. You can watch the meeting live on the city’s YouTube channel.

Mack said the city this year started the budget process six weeks early to give City Council more time to review the preliminary proposal and receive input from the community.

“The goal is to allow Council to align priorities within available resources,” Mack said in an email response to El Paso Matters. She said potential adjustments will be discussed June 22. “Any changes to the budget would be evaluated carefully to understand how they may affect programs, projects, or service levels while maintaining the City’s focus on core services, public safety, infrastructure, and long-term financial stability.”

The City Council last year adopted a $1.4 billion all-funds budget – including a general fund budget of about $624 million – and a property tax rate of 75.9 cents per $100 of valuation for the current fiscal year.

Homeowners with an average-value $221,191 home currently pay about $1,680 in city taxes.

SEE ALSO: Public safety spending pressures city’s long-term financial outlook

By the numbers

Here are some key changes being proposed to fund city services for the next fiscal year based on the general fund estimates and city budget documents:

Public safety

The El Paso Fire Department’s proposed budget of about $168 million is a $9 million increase over the previous year, largely driven by collective bargaining agreement obligations, rising operational costs, salary increases and higher contractual obligations.

The city is negotiating a collective bargaining agreement with the El Paso Association of Firefighters Local 51.

Read more about the possible impacts of the new fire collective bargaining agreement contract on the city budget.

The proposed El Paso Police Department budget is about $203 million – $3 million more than the current budget, largely driven by collective bargaining agreement obligations, civilian salary increases, academies, longevity and incentive pay adjustments and contractual obligations.

The El Paso Municipal Police Officers’ Association collective bargaining agreement will expire in August 2027, which will impact the 2028 fiscal year budget.

Streets and Maintenance

The proposed Streets and Maintenance Department budget is about $67 million, a $2 million increase largely due to salary adjustments, expanded janitorial services, utility rate adjustments, an increase for traffic control devices and increased costs for vehicle parts and services.

Animal Services

Animal Services’ proposed budget is about $17 million, an increase of about $1 million for salary increases, rising medical expenses and higher operating and equipment maintenance costs.

Parks and Recreation

The Parks and Recreation Department’s proposed budget is about $56 million, an increase of about $540,000 for pay raises, contractual increases and increases for vehicle and heavy equipment. The budget includes about $7 million for aquatics, a decrease of about $164,000.

Libraries

The El Paso Public Libraries’ proposed budget is about $14 million, an increase of about $945,000 due to salaries, rising janitorial and security service expenses, rising fuel, hotspot service costs and collection materials.

Museums

The Museums and Cultural Affairs Department’s proposed budget is about $10 million, a $1 million increase for salaries, benefits, overtime and contractual increases for public art maintenance and the La Nube operating stipend budget.

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