City budget: Council asked to approve $62 million in debt, property taxes likely to increase

Mayor and council spent several hours reviewing the FY 2017-18 budget during special meeting Monday morning.

The city highlighted it’s accomplishments to date, which included improvements to public safety. City Manager Tommy Gonzalez presented the budget, which the city claims is meeting community needs.

Property taxes are projected to increase 1.8 percent in assessed taxable valuation. The overall tax rate is expected to increase by 3.93 cents per $100 valuation.

The impact on a home valued at $100,000 would be a little over $39 in increased taxes for the year.

The city workforce will see a two percent pay increases for regular full-time and part-time civilian employees, which will become effective March of 2018. In the public safety sector, officers will receive a four percent pay increase, plus annual step increases. The city will also enter year three of a ten year plan to add 300 new police officers.

The El Paso Fire Department is budgeted for a four percent raise, about $4.3 million more than it received last year. El Paso Police are budgeted for a 4.5 percent increase, $5.5 million more than last year.

The presentation outlined proposed issuance of certificates of obligation, something former Mayor Oscar Leeser vetoed. The proposed CO’s would amount to $62.35 million to “address critical priorities and providing exceptional quality of place amenities,” the presentation stated.

Leeser vetoed $44-million dollars worth of Certificates of Obligation in March, saying he would not issue them for quality of life projects not approved by voters.

If council approves, $16.8 million of the more than $62 million in new borrowing would go towards quality life projects.

“What we are doing is correcting what wasn’t done previously,” Mayor Dee Margo said, “Certificates of Obligation are very proper and prudent for either surprises in a budget capital expenditure, or in this case, we are having to make amends for things that were not properly budgeted for in the past that need to be corrected.”

The city could issue $24.8 million in CO’s for public safety, $2.65 million in infrastructure and existing facility improvements, $18.1 million on streets and $16.8 millions doe quality of life projects.

Among the $24.8 million CO’s for public safety; $19.5 million will be used to replace 309 police marked vehicles over a three year period.

Aside from budget talks, members took the time to highlight Several of the city’s accomplishments include: 82 Police Officers graduating from the academy, 28 replacement police patrol vehicles, 10 replacement police motorcycles and 4 replacement fire trucks.

According to the report, 60 quality of life projects have been completed, 8 new spray parks and a dog spray park have been constructed, 15 playgrounds were upgraded and two new playgrounds were built.

The city released a statement: “The FY 2018 budget will continue to momentum of enhancing El Paso’s safety and quality of life. In the past, corners have been cut to safe a few dollars in the short term while not meeting future service levels or needs of citizens.”