Council hears proposed FY2026 budget and sets Sept. 11 date to adopt tax rate and budget

City staff presented the proposed fiscal year 2025–26 tax-rate calculations and budget framework to the Socorro City Council on Sept. 4, and the council formally announced it will take final action on the tax rate and municipal budget on Sept. 11, 2025, at 6 p.m.

“ This tax rate is the one that the staff is recommending for adoption,” Victor Perez, deputy city manager, said while reviewing three tax-rate scenarios, the no-new-revenue rate, the voter-approval rate and an alternative. The presentation included these figures: the no-new-revenue tax rate at 0.634377; the voter-approval rate at 0.645233; and staff’s recommendation of the voter-approval rate.

Perez presented projected revenue and expenditure totals under the voter-approval scenario: $10,424,145 for maintenance and operations, $9,214,350 in other revenues, and total projected revenues of $19,638,495. He said the city would expect total proposed expenditures of $22,931,752 and planned to use reserves of $3,293,257 to meet those expenditures. Perez said staff considered this reserve usage “acceptable and sustainable for fiscal year budgeting.”

The presentation also outlined department and program changes proposed in the FY2026 budget: a new intergovernmental custodial services agreement with Fort Bliss estimated at about $4,100,000; establishment of a transit department with estimated costs of $230,000 for a microtransit system; $650,000 budgeted for a phase 5 sidewalk-improvement program; and other personnel and technology adjustments including a crime-analyst position, $50,000 for municipal court facility improvements and digitization, $45,000 to outsource payroll, $65,000 for a grants/special-projects coordinator, and $105,000 referenced to the city clerk line item. Perez also noted no structural changes for IT were requested in the presentation.

Council discussed scheduling: several members noted the Sept. 11 adoption meeting coincides with the Socorro High School homecoming; staff and council decided to keep the posted Sept. 11, 6 p.m. date to meet the public-notice schedule required by state law. City Attorney Jim Martinez advised the council that certain charter and statutory deadlines apply to capital-program and budget actions, which influenced timing and the recommendation to use the already-noticed date.

Council passed a motion to announce Sept. 11 at 6 p.m. as the date and time for final action on the tax rate and FY2026 municipal budget.