County budget staff outline fiscal 2026 tax‑rate context; new construction expected to add roughly $4.5 million in revenue

El Paso County budget staff on Thursday gave commissioners an early look at tax‑rate history, taxable value trends and preliminary revenue projections to inform Fiscal Year 2026 budget planning.

Jessica Garza of the Budget and Finance Department presented a comparative analysis showing El Paso’s population and budget position against other large Texas counties and explained that differences in county services and the presence of special taxing districts (for stormwater, roads or other services) make direct comparisons imperfect. She told the court the county typically receives four taxable value estimates through the budget cycle and that the certified‑to‑build change has averaged about 12% year‑over‑year in recent cycles.

Garza said, using trend analysis on October build values, staff estimates El Paso’s build values will be roughly $8.7 billion (an increase of about $8.7 billion over the prior certified value in the model cited in the presentation), and that statutory truth‑in‑taxation formulas normally offset much of that value growth so that general revenue will be close to current levels; the primary new revenue is produced by new construction. Garza’s presentation estimated about $4.5 million in new revenue available for the FY26 budget from new construction.

Budget trends and context

Melissa Carrillo, county operations, and Gabby Lehi from Budget and Finance gave a second, monthly update focused on FY25 year‑to‑date revenue and expense trends. Staff reported January collections and an overall revenue year‑to‑date collection of about 65.7 percent of the total revenue budget, and expenditures at about 25.18 percent of budget through January. Lehi and Carrillo also presented a “restoration register” listing items the court deferred in FY25 and the estimated $22 million needed to restore full funding for those items.

Commissioner comments and requests

Commissioners asked staff follow‑up questions about why El Paso’s budget is larger on a per‑capita basis than some counties with higher populations. Staff said differences reflect services the county provides directly (for example, jail services) and the existence of other taxing entities in other counties that shift certain costs out of the county general fund. Commissioners requested additional comparative materials (for example, taxable base comparisons and further breakdowns of how much of the budget is driven by jails, law enforcement pay and other specific services).

Why it matters

Staff said the county’s M&O tax rate historically is among the higher rates in the top 10 Texas counties, while average property values are lower than many other large counties. That combination means careful attention to revenue sources, service levels and restoration of previously cut programs as the court prepares FY26 budget hearings in coming months.

Ending

No budget decisions were taken at the meeting. Staff said preliminary values are expected in April and that they will continue to refine revenue estimates and return to commissioners with more detailed comparisons and restoration options ahead of formal FY26 budget hearings.