EL PASO, Texas (KTSM) — The El Paso City Council adopted a Fiscal Year 2026 budget on Tuesday, Aug. 19 and with it, what the City is calling its lowest property tax rate in 10 years.
The council set a tax rate at $0.759649 per $100 valuation.
While the City Council lowered the tax rate, some residents may still see increases in their tax bills due to higher property values, the City said.
“The adopted budget reflects our continued commitment to balancing financial responsibility with the needs of our community,” City Manager Dionne Mack said. “Through careful planning, efficiencies, and community input, we are sustaining essential services, investing in public safety and infrastructure, and providing additional tax relief for seniors and individuals with disabilities.”
The adopted budget reflects months of community engagement, including 18 public meetings, record participation in the Chime In survey, and 31 department presentations, the City said.
“Before presenting the budget to City Council, City staff made more than $26 million in savings and efficiencies,” Mack said. “Making deeper cuts would have meant reducing or eliminating services that residents told us were a priority, such as public safety, street maintenance, and quality of life programs.”
Key Budget and Tax Highlights, according to the City:
- Lowest Property Tax Rate in a Decade: Reduced from $0.761405 to $0.759649, with a lowered debt service rate.
- Debt Reduction: Outstanding City debt continues to decline, with a $300 million reduction since 2022.
- Tax Relief for Seniors and Individuals with Disabilities: Exemption increased from $42,500 to $45,000, providing $342 in total annual savings to more than 57,000 households.
- Public Safety Investments: Three new police academies, six 911 call-taker academies, and the transfer of 48 firefighter positions into the General Fund.
- New Facilities and Services: Completion of two new fire stations, continued $10 million for street resurfacing, and $500,000 for park amenity replacements.
- Employee Support: Phase 2 of the compensation strategy, across-the-board raises for eligible non-uniform employees, and no increase in employee health care premiums for the eighth consecutive year.
FY 2026 Budget Overview:
- Total Budget: $1.38 billion across all funds.
- General Fund: $625.7 million, with nearly 75% of increases tied to public safety and workforce support.
- Efficiencies: $26.1 million in reductions and adjustments implemented to balance the budget.
Residents can review the full budget details and learn more about property tax exemptions by clicking here.
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