The El Paso City Council has officially adopted its Fiscal Year 2026 through 2027 budget, outlining roughly $1.4 billion in investments for the next year.
Notably, the approved budget includes a reduced property tax rate, resulting in an increase in savings for the average homestead of approximately $26.82 annually. To accommodate the lower rate, the city cut around $6.5 million in expenditures included in the original proposed budget.
Budgetary expenditures are spread across multiple categories, including:
- General Fund – $659 million.
- Enterprise – $327 million.
- Special Revenue – $159 million.
- Debt Service – $123 million.
- Internal Service – $104 million.
- Capital Projects – $26 million.
- CDBG – $13 million.
The majority of the city’s focus will be on its General Fund, which will support core governmental services including emergency services, streets, parks, libraries, public health, IT and other administrative facets. By comparison, capital projects will be a lower priority.
From the General Fund, El Paso officials have highlighted a significant investment in public safety, totaling $371 million for the coming year. This funding will enable the city to continue funding police and fire academies while maintaining implementation of Community-Oriented Policing Services (COPS) and Staffing for Adequate Fire and Emergency Response (SAFER) grant programs.
The budget levies other notable General Fund expenditures to sustain the city’s Neighborhood Traffic Management and Vision Zero initiatives. In addition, city officials will offer public safety compensation adjustments consistent with collective bargaining agreements.
Infrastructure occupies a core component of the budget as well, largely focusing on preserving existing infrastructure rather than prioritizing new developments. The budget allocates $10 million for street maintenance, $9.4 million for police and fire vehicles and equipment, $4.9 million for facility maintenance and improvements and $1.5 million for parks and recreation amenity replacements and enhancements.
Many of the changes featured in the budget are driven by state and federal financial pressures. Several federal funding sources are expiring, resulting in a loss of revenue that El Paso must replace with alternative sources. The state has also mandated certain property tax exemptions, reflecting an $11.8 million loss of revenue for the coming year.
Photo by Mohan Nannapaneni from Pexels
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