City leaders review FY18 budget needs; revenue increase likely needed

City representatives and leaders said it is too early to say if tax increases will be needed to cover the Fiscal Year 2018 budget.

Fiscal year 2017 brought about a $13.2 million increase to the city’s budget, and city leaders said Fiscal Year 2018 will bring the same amount, if not more, because of salary increases and benefits.

The current general fund allocates $287.5 million of the budget to personal services, about 75 percent of the total budget. Personal services include public safety, non-uniform compensation, new positions and health care.

“It’s police and fire compensation increases and part-time increases that we are doing to get employees up to $10 an hour,” Robert Cortinas, with the City’s Office of Management and Budget, said. “When we look at the increase (in 2018) it will probably be around the same ballpark of $13 million, at least.”

Another factor affecting next year’s budget is the debt service, which changed from reimbursement to a traditional issuance model. The low interest rates and timing of projects play a big role, after the accelerated rollout of signature projects while staying under 30-cent debt rate cap, and the quality of life bond was reduced to 10 years instead of 15.

A total of 48 quality of life projects have been completed and seven more projects are expected to be completed by the end of FY17. Looking ahead to The city said 15 projects are expected to be completed by 2018, including the west side pool, the east side sports center and library enhancements.

Another item on the agenda was a Metropolitan Planning Organization update. Omar Moreno, also with the Office of Management and Budget, highlighted the projects the city has completed the past two years.

Those projects include the River Ben and the Independence and the Viscount pedestrian and bicycle enhancement projects. The completed projects for 2017 included the Resler buffered bike lane and school safety zones.

Major construction is underway throughout the Borderland and much more is expected to come. The construction of 18 BRIO stations along Dyer Street is about a month into an almost two-year program. City officials expect the $35.9 million project to be completed by the summer of 2018.

The Carolina Bridge construction project is about 85 percent complete according to city officials. The $8.6 million project is expected to be completed by Summer of 2017. The cost of the bridge went up nearly $3 million after the original plan was altered. City officials originally planned to replace the bridge with the existing layout, however after beginning construction, they decided to add a middle land and sidewalks. essentially making the bridge wider.

Another major project coming to El Paso is the Edgemere and Rich Beem Roundabout. The $2.6 million project is expected to begin in the fall of 2017 and construction is scheduled to last for about 12 months. The two lane roundabout will include landscape, intersection illumination, pedestrian crossing signals, bike routes and an art piece.

The Zaragoza Point of Entry, Pan American and Winn rd. improvements will begin in the Winter of 2018. The nearly $14 million is expected to be completed in 20 months.

The blueprints propose that Winn Road would be widened to a four-lane divide facility with concrete pavement, medians, sidewalks, illumination, and safety and drainage improvements. The entire presentation from Moreno can be found on the city’s website.