El Paso City Council Approves 2026 Budget and Tax Increase

The El Paso City Council approved the Fiscal Year 2026-27 budget on August 19, authorizing approximately $658.6 million in General Fund spending. To fund the budget, the Council adopted a property tax rate of $0.798 per $100 of taxable value, a slight reduction from the originally proposed rate of nearly 81 cents. City officials estimate the final rate will increase the average annual cost for single-family homeowners by $105.

City Manager Dionne Mack and Mayor Renard Johnson argued the increase was necessary to maintain basic services and public safety, which remains the largest investment area at $371 million. Financial pressures included a $11.9 million rise in police and fire costs and an $11.8 million revenue loss from state-mandated tax exemptions. To mitigate the hike, the city identified nearly $27 million in recurring savings and eliminated vacant positions.

The measure passed despite opposition from Representatives Lily Limon and Cynthia Trejo, who cited the burden of rising living costs on residents. In a separate local action on August 17, the El Paso County Commissioners Court held public hearings on its own proposed budget and tax rates, while previously approving a 4% pay raise for non-uniform elected officials to offset inflation.