Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Hospital Budget And Tax Rate topic
No spam. Unsubscribe anytime.
El Paso County Hospital District proposes higher 2026 tax rate to pay for voter‑approved bonds
Summary
Hospital district officials presented a $1.9 billion 2026 budget and said a recent voter‑approved bond issuance will raise the district's property tax rate, prompting public comment and a lengthy county discussion about the effect on homeowners.
El Paso County Hospital District officials on Aug. 18 outlined a proposed $1.894 billion revenue budget and a $1.902 billion expense plan for fiscal 2026 and said the district's tax rate will rise because of voter‑approved debt from a 2024 bond package.
Hospital District Chief Financial Officer Michael Nunez briefed the court on the budget and debt service during a public hearing required by state law, saying the district's proposed total tax rate would rise from about 21.9 cents per $100 of assessed value to roughly 24 cents per $100 in fiscal 2026. Nunez said the maintenance and operations component would slightly decrease, while the interest and debt service component would increase to cover the new bond issue proceeds.
The district attributed the rate increase to a November 2024 bond order that voters approved, Nunez said. He told the court the bond order totaled about $397 million and the district issued $275 million of that amount in the first tranche; federal tax‑exempt bond rules require most proceeds to be spent within three years, he said. Nunez said the district's proposed routine capital budget for 2026 is about $30.4 million and that debt service would include roughly $45.3 million supported by property taxes.
Commissioners pressed staff for details about how the rate change would affect typical homeowners. Nunez said the county's average taxable home value rose from about $210,569 to $221,726; using those values, he calculated the average hospital district tax on that home would rise to about $534 a year from about $462 the prior year — an increase of roughly $72 annually, or about $6 per month.
During the hearing, one resident asked why he had not received mailed notice of the tax increase; the resident said higher appraisals combined with a higher rate could force rent increases for low‑income tenants. Commissioners and staff repeatedly said the rate change was driven by the bond debt rather than day‑to‑day district operations, and they urged residents with questions to use county resources for explanations and appeals.
The public hearing was held under Texas Tax Code Chapter 26 procedures; the county read the statutory notice about holding a hearing before adopting a rate that exceeds the no‑new‑revenue or voter‑approval thresholds. County staff later brought tax‑rate options to the court for consideration, including the no‑new‑revenue rate, a no‑new‑revenue M&O option that holds maintenance and operations revenue flat, the 2024 rate and the voter‑approval rate. Commissioners discussed the tradeoffs among restoring fund balance, covering one‑time budget reimbursements and maintaining contingency reserves.
Why it matters: the hospital district is the county's largest local taxing entity, and its debt issues and bond program will drive a higher share of property tax bills in 2026. The district said proceeds finance multiple projects expected to take several years to complete.
The court held the required public hearing and later continued county budget and tax‑rate deliberations; a final county tax‑rate adoption occurred later in the meeting.
Sources: presentation by Michael Nunez, El Paso County Hospital District chief financial officer, and public hearing statements recorded in the commissioners court transcript.
