FY 2021 Appraisal Roll,

Tax Rate, and

Proposed Budget
July 27, 2020
Integrated Budget Process

2
FY 2021 Budget Calendar
• July 6 – 8: Overview and Vision Block presentations
• July 24th: Receive Certified Property Values from CAD
• July 27th: Special Council meeting
• Review certified property values
• Introduce tax rate ordinance
• August 11th: Public hearing on the budget
• August 18th: City Council adopts budget and tax rate 3
FY 2021 Budget – Key Points
• No increase to tax rate
• Limited data and uncertainty creates challenges
• Long-term recovery with continued revenue declines
• Focus on the basics (police, fire, streets, workforce)
• No debt issuance (defer non-essential capital projects)
• Utilize all tools and resources to balance the budget
4
FY 2021 Budget Development
• Started with a $60 million deficit before any
budget adjustments
• Assumes declining economic conditions continue
through the third quarter of next year
• Based on limited data and uncertainty related to
current health crisis

5
Budget Adjustments to Balance
• Scaled-down and phased-in opening of quality of life facilities
• Maintain freeze on filling non-essential vacant positions
• Defer annual pay-go and debt issuance
• Utilize debt service savings
• Utilizing federal funding where possible
• Use of remaining budget stabilization funds

6
 FY 2021
Appraisal Roll,
No-new revenue tax rate
&
Voter-approval rate

7
Taxable Property Values
• Proposed Budget estimated 1.75% increase in taxable values

15.0%
11.9%
12.0% 10.7%
9.7%
8.6%
9.0%
6.7% Proposed

6.0% 5.5%
3.7% 4.0%
3.2% 3.5%
2.8% 2.5%
3.0% 1.9% 1.9% 1.4% 2.2% 1.75%
0.8% 1.3% 1.4% 1.4%

0.0%

8
Net Taxable Values
FY 2020 Certified Values $35,727,850,245

FY 2021 Certified Values $37,170,466,732

% Change 4.0%

Net General Fund Impact $4,808,681

9
 Total Taxable Values
FY 2020 FY 2021 $ Change % Change

Appraised Property $45,600,463,492 $47,500,935,516 $1,900,472,024 4.2%

Homestead Cap - $74,945,384 $25,741,350 ($49,204,034) (65.7%)

Assessed Property = $45,525,518,108 $47,475,194,166 $1,949,676,058 4.3%

Exemptions Amount - $9,797,667,850 $10,304,727,434 $507,059,584 5.2%

Total Taxable
=
Property $35,727,850,258 $37,170,466,732 $1,442,616,474 4.0%

Total New Taxable Value $498,375,817 $490,017,172 ($8,358,645) (1.68%)

Tax Assessor Collector certified a 99% Collection Rate

10
Net Taxable Values
$39
BILLIONS

$37.2
$37
$35.7
$35.2
$35 $33.9
$33.4
$32.9
$32.4
$33 $31.9
$31.1
$30.4
$31

$29

$27

$25
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

11
Net Taxable Values - % Change
4.5%
4.0% 4.0%
4.0%

3.5%

3.0%
2.5%
2.5% 2.2%

2.0% 1.7%
1.7%
1.4% 1.4% 1.4%
1.5%

1.0%

0.5%

0.0%
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

12
Residential – Single Family
$21.0 7.0%
Billions

$20.8
$20.5
$20.5 6.0% 5.8%

$20.0 $19.9 5.0%

$19.5 4.0%

2.9%
$19.0 $18.8 3.0%
$18.7

$18.5 2.0%
1.4%
1.3%
$18.0 1.0%
0.4%

$17.5 0.0%
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

13
Residential – Multifamily
$2.5 20.0%
Billions

$2.43
14.8%
$2.4 15.0%

$2.3 10.0%
$2.26
$2.22 6.6%
$2.2 5.0%
$2.14 1.7%
$2.11
$2.1 0.0%
-1.4%
$2.0 -5.0%
-5.0%

$1.9 -10.0%
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

14
Residential – Commercial
$11.0 10.0%
Billions

$10.7 8.7%

8.0%
$10.5

6.0%
$10.0 $9.9 $9.9
$9.8
4.0% 3.7%

$9.5 $9.4
2.0% 1.8%
1.3%

$9.0
0.0%
-0.4%
$8.5 -2.0%
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

15
Proposed Property Tax Rate
1.00
0.907 0.907 • Maintain overall
same tax rate
Debt Debt
0.75
0.297 0.284 • No additional debt
impact in FY 2021
0.50
• Utilizing debt
service savings
O&M O&M
0.25 0.610 0.623

0.00
FY 2020 FY 2021
16
Property Tax Rate Comparison

FY 2020 FY 2021
Adopted Proposed
M&O 0.610139 0.623131

Debt Service 0.297162 0.284170

Total Rate 0.907301 0.907301

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Operations and Maintenance Tax Rate

FY 2021

No New Revenue 0.608543

2.4%
Proposed Rate 0.623131

Voter Approval* 0.629842

* Represents 3.5% increase over No New Revenue rate
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Average Value – Single Family Home
$160
THOUSANDS

$140 $134 $135

$130
$124 $123 $124 $124 $123 $124 $125 $125 $124
$120
$120 $110

$100

$80

$60

$40

$20

$0
FY FY FY FY FY FY FY FY FY FY FY FY FY FY
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
19
Over 65/Disabled Exemptions
52,000
50,998
51,000
$5,000 Discount 50,047
50,000

49,000

48,000 47,772
47,372
47,000
46,323
46,000

45,000

44,000

43,000
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
20
City Property Tax Relief ($ in millions)
HOMESTEAD OVER 65 DISABLED
$25.0
$22.9
$21.5
$20.2 $2.5
$20.0 $19.2 $2.4
$17.9 $2.3
$17.0 $2.2
$2.1
$2.0
$15.0
$13.1
$1.4 $14.8
$13.8
$12.0 $12.7
$10.0 $10.5 $11.1
$7.4

$5.0

$4.3 $4.5 $4.7 $5.0 $5.2 $5.3 $5.6

$-
FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

21
Net Taxable Values
FY 2020 Certified Values $35,727,850,245

FY 2021 Certified Values $37,170,466,732

% Change 4.0%

Net General Fund Impact $4,808,681

22
 July 6 Budget Workshop Requests
Request Amount

Restore Neighborhood Traffic Management Program $200,000

Restore City Council Discretionary Funding $40,000

Total $240,000

23
Council Budget Requests
District Request Estimated Recommend
Cost ?
7 To commence phase 2 implementation of a study and $16.4M No
recommendation on how to equip the El Paso Police Department
with body-worn cameras.
1 Funding the Neighborhood Traffic Management Program (NTMP) at $200,000 Yes
FY2020 levels.
1 Research funding opportunities for installing solar panels on City 1. $918,000 No
1 Funding for the creation of an independent police oversight advisory - Future
board. Update
1 Continued funding for the Citywide ADA Curb Cut Demand Program $500,000 No
at FY2020 levels.
2 Security improvement and restroom facilities at McKelligon Canyon - No
2 Comprehensive system for constituent requests $250,000 No
24

List is in the order the request was received

Council Budget Requests cont’d
District Request Estimated Recommend?
Cost
5 Zaragoza: traffic congestion Pending No
5 Repave Saul Kleinfeld street; Saul Kleinfeld street from pebble Pending No
hills to Montwood in District 5- we have received several requests
to repave this area.
5 Tierra Este while driving north on Zaragoza: needs right turning Pending No
Lane; 12051 Tierre Este road (CVS) heading north on Zaragoza
road towards pebble hills road, needs right turn lane to ease
traffic congestion.
5 Montwood Connection Pending No
7 Strategy and plan to fund public safety and reduce property taxes Pending No
2 Mental Health Assistance in 911 Pending No
TOTAL ESTIMATED COST $18,268,000
25
List is in the order the request was received
 Staff Recommendation
Additional Revenue Available from Certified Values $4,808,681

Restore NTMP and Discretionary Funds $240,000

Replenish FY 2021 Use of Budget Stabilization $1,988,172

Increase Budget Stabilization $2,580,509

Total $4,808,681

26
Budget Stabilization Fund

March 3 – Council Approval $2,700,000

March 30 – FY 2020 Council Action $6,600,000*
FY 2021 Recommendation $2,580,509
Total $11,880,509

* Deferral of $6.6M in residential street projects to address estimated

deficit for FY 2020
27
 Budget Stabilization Fund
• March 3 - $6.6M for street projects deferred to
offset revenue impacts from COVID-19
• FY 2020 3rd Quarter report indicated better-than-
expected revenue projections
• Use of budget stabilization may not be needed in
FY 2020
• Recommend waiting until FY 2020 closes before
allocating use of stabilization funds
28
 Budget Stabilization Fund
• Once FY 2020 closes, recommended priority use
of budget stabilization will be:
• Local response to COVID-19
• Residential street projects
• Public safety capital
• Facility improvements
29
Introduction of Tax Rate Ordinance

Introduction of the
Ordinance setting the tax
rate at the rate of Proposed Rate $0.907301

0.907301 No-New Revenue Rate $0.902107

of one percent of the Voter-Approval Rate $0.914012

assessed value on all
property, real, personal,
and mixed

30
FY 2021 General Fund Budget

FY 2021 Proposed Budget $436,083,098

Additional Revenue from Certified Values $4,808,681

FY 2021 Revised Budget $440,891,779

31