Tax Budget
Tax Budget
Tax Budget
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
% Change 4.0%
$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%
$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
17
Operations and Maintenance Tax Rate
FY 2021
$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
21
Net Taxable Values
FY 2020 Certified Values $35,727,850,245
% Change 4.0%
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
Total $4,808,681
26
Budget Stabilization Fund
Introduction of the
Ordinance setting the tax
rate at the rate of Proposed Rate $0.907301
30
FY 2021 General Fund Budget
31