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Edinburg council proposes 63¢ tax rate for 2025–26, schedules Sept. 16 hearing
Summary
The Edinburg City Council on Aug. 19 voted to propose a tax rate of 63 cents per $100 valuation for fiscal year 2025–26 and set a public hearing for Sept. 16. City staff said the higher rate is needed to cover contract raises, rising costs and to avoid larger service cuts; adoption will occur at a later public meeting.
The Edinburg City Council voted Aug. 19 to propose a tax rate of $0.63 per $100 of assessed value for the fiscal year that begins Oct. 1, 2025, and set a public hearing on the proposal for the council meeting on Sept. 16.
City Manager Myra Ayala told the council the proposed rate is higher than the “no new revenue” rate of 0.5835 and is intended to preserve services, meet negotiated pay increases and cover inflation-driven cost increases. Ayala said the proposed budget would also draw down the city’s fund balance by a little more than $600,000 to balance planned spending.
The proposal drew comments from council members during debate about competing priorities: preserving services and meeting contractual obligations for police and fire (including previously negotiated 3% raises), while acknowledging pressure to limit tax increases for residents. Ayala explained that at the lower no-new-revenue rate the city would not be able to meet current contractual commitments or maintain service levels.
Councilmembers moved and seconded a motion to approve the proposed 63¢ tax rate and schedule the public hearing. In a recorded vote called by the city secretary, the five members present — Mayor Ramiro Garza Jr., Mayor Pro Tem Jason De Leon, Councilmember Daniel Dan Villa, Councilmember David Salazar Jr. and Councilmember Jerry Lozano — voted yes on the motion (5–0).
Under Texas budget and property-tax procedures, setting a proposed rate triggers required public notices and a subsequent hearing and adoption vote; the council will take final action on the tax rate and the fiscal-year budget at the Sept. 16 meeting.
The city manager’s office said the proposed rate supports the budget presented to council but that the council had not yet adopted a final balanced budget. Adoption of a final budget and the tax rate will follow required public hearings and votes in September.
