City Council votes against approving budget in 5-3 vote

UPDATE (12:42 p.m.) – The motion to approve the FY2026-2027 city council budget failed in a 5-3 vote.

Rep. Alejandra Chavez, Rep. Cynthia Boyar Trejo, Rep. Ivan Niño, Rep. Art Fierro and Rep. Lily Limón voted against approving the budget.

Rep. Josh Acevedo, Rep. Deanna Maldonado-Rocha and Rep. Chris Canales voted to approve the budget.

Conversations in council continue as they decide what to cut from the budget to lower property taxes for residents.

EL PASO, Texas (KVIA) – Tuesday, El Paso City Council will vote on whether to approve the FY 2026-2027 budget.

If council adopts the No-New Revenue tax rate, the tax rate will increase by $0.747490. The estimated property tax bill would be $1,590.49 for the median home valued at $212,778, according to the taxpayer impact statement.

The proposed tax rate is $0.809487. The estimated property tax bill would be $1,722.41 for the median home valued at $212,778, according to the taxpayer impact statement.

According to budget adoption documents, the budget increase is driven by:

• Loss of taxable value from state action
• Need to sustain ongoing city operations and obligations

Increasing Costs:

• Public Safety
• Fixed costs and contractual obligations
• Debt service for voter-approved bond projects

Loss of Revenue:

• Unfunded State mandates (property tax exemptions)
• No use of fund balance or one-time revenue
• Expiring American Rescue Plan Act (ARPA) federal funding

The proposed budget would raise more total property taxes than last year’s budget by $30,098,806 or 7%. Of that amount, $4,263,648 is tax revenue to be raised from new property added to the tax roll this year, according to budget adoption documents.

Council is set to vote on the budget during the city council meeting Tuesday.