El Paso passed a 'no-new revenue' city budget for 2024. Here's what else you need to know
The El Paso City Council has approved the city's 2024 budget — the spending plan for all city services, employees' salaries, street repairs and maintenance, ongoing projects and public safety.
The 2024 fiscal year budget — $1.3 billion compared to $1.07 billion in fiscal year 2023 — takes effect on Sept. 1, 2023, and ends on Aug. 31, 2024.
The new budget includes a no-new revenue tax rate and an infusion of millions into the city's general fund thanks to an early debt payoff.
The budget's authors said the spending plan includes no decrease in city services. It also doesn't provide an across-the-board pay raise for all non-uniform city employees.
"This is probably one of the most transparent and best budgets I've ever seen," Mayor Oscar Leeser said during Tuesday's council meeting.
The council unanimously approved an adjusted property tax rate of 81.9-cents, down slightly from both the 83.2-cent rate discussed in late July and the 86.2-cent rate seen last year.
During a news conference Monday, city Chief Financial Officer Robert Cortinas said it was the first time since 2015 that the council had approved a no-new revenue rate. The last time that happened before was during Leeser's first term as mayor in 2013 with former City Manager Tommy Gonzalez at his side.
More: El Paso City Council votes unanimously in favor of decrease in city property tax rate
Still, with home valuations rapidly rising in the city, many homeowners will see higher property tax bills next year.
Interim City Manager Cary Westin said the city was able to approve a significant drop in the city property tax rate thanks to the elimination of Tax Increment Reinvestment Zone (TIRZ) 10 and Transportation Reinvestment Zone (TRZ) 2.
TIRZs and TRZs are areas in the city in which tax dollars are reinvested rather than sent to the city's general fund. By eliminating the two zones, the city expects to see millions in new annual revenue and significant savings on would-be future interest payments.
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The city used a $37.6 million general fund surplus, as well as additional unrestricted funds, to pay off the $41 million debt on TRZ 2, resulting in savings of roughly $20 million in interest payments and an additional $8 million annually in the city's general fund.
The elimination of TIRZ 10 is expected to add $1.2 million annually to the general fund.
That's money the city can "bank on annually," Westin said.
"We will end up saving ourselves, we believe, a lot of money if we can find the paths like we did this year with additional revenue," Westin said during a Monday, Aug. 14, news conference. "We know what the primary needs are, so addressing those year over year is extremely important."
Both Westin and Leeser said they hope to eliminate more TIRZs in the coming years and both expressed optimism over passing a no-new revenue budget for fiscal year 2025 as well.
Key highlights of the 2024 budget include the following:
A net increase of 53 police officers and 25 firefighters, as well as a move from two to three police training academies;
$10 million for street resurfacing projects;
An additional $6.4 million — $14.4 million total — for city vehicles, heavy equipment and other fleet needs;
An additional $5 million — $6 million total — for upgrades and repairs to city facilities;
Continued operating funding for quality-of-life projects, such as the children's museum, the Mexican-American Cultural Center and the penguin exhibit at the El Paso Zoo;
A $1 increase in the minimum wage, to $13.11 per hour, for city employees.
"We continued to become fiscally responsible to the taxpayers," Leeser said, "and we wanted to make sure we didn't cut any services. This is great news."
This article originally appeared on El Paso Times: El Paso City Council unanimously approves drop in property tax rate
