El Paso residents will experience a reduction in property taxes in addition to unprecedented state-level relief. After the El Paso City Council’s vote, in their local property tax rate.
El Paso City Council Unanimously Approves Lower Property Tax Rate Despite Rising Property Values and Taxable Worth
The fact that home values have increased does not necessarily indicate that all property owners will pay less in taxes. This year compared to last, the city’s taxable property worth grew.
The proposed 83.2-cent property tax rate was approved by the City Council by a unanimous vote. Decreased from the 86.2-cent rate in the 2022–2023 budget during a budget hearing.
Forecasts indicate that taxable values will rise by about $3.65 billion notwithstanding the decline. A result of upcoming construction and increased home values.
After exemptions, according to Chief Financial Officer Robert Cortinas’ presentation. El Paso’s taxable property values are just under $47.6 billion, up 8.3% over the previous year’s figures.
- Tax breaks on real estate increased to $38.3 million.
- Homestead exemptions up to $5,2,000,000
- exemptions for people over 65 and those with disabilities costing $17.7 million
- Exemptions for disabled veterans totaled $15.4 million.
Prior to the public’s opportunity to remark on the tax rate on August 14 and the City Council’s final vote the following day, a notice presenting the tax rate to the public will be published.
“As I said up front, I was in favour of a zero percent new revenue tax rate, and I trusted the City Council. The city team was able to discover the required savings to accomplish this aim while still taking care of the needs of our neighbourhood. In a press release issued after the vote on Monday, Mayor Oscar Leeser remarked. The team led by (Interim City Manager) (Cary) Westin has done a fantastic job of addressing the community’s priorities. taking into account the worries of the City Council and realising that we must adopt a creative and resourceful strategy.”
The council decides to pay off a $41 million debt early.
The $37.6 million excess in the General Fund will be used, the City Council decided. Additionally, $41 million in Transportation Reinvestment Zone debt will be paid off early with $3.5 million in unrestricted reserves.
Robert Cortinas, the city’s chief financial officer, said that TRZ 2 received an early settlement. This also includes the FM 659 Zaragoza direct links and improvements at the I-10/Loop 375 intersection. The city’s general fund would receive $7.8 million a year from the expansion of the I-10 frontage roads. Save the city about $20.6 million in future interest expenses starting in 2024.
The action was praised by Leeser as a means of preparing “for the future of our community.” and make sure that taxes won’t need to be increased to meet all city requirements.
During the meeting on Monday, he added, “The TRZ needed to disappear. “This is truly a remarkable development for El Paso.”
Rep. Brian Kennedy of the West Side city backed the budgetary plan. The surplus from El Paso is added, making it possible “to retire some debt.”
Even with the usage of reserve monies, according to Westin, the city would never fall short. Keeping a three-month operational reserve on hand is a standard for efficient city operations.
The goal, according to Westin, is to maintain our reserves at a healthy three months of operating expenses. No need to continue after that.
