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City finance director reports stable first quarter; sales tax flat and property‑tax growth easing
Summary
The city’s Q1 financial update showed property‑tax receipts strong and sales tax essentially flat; staff projected a preliminary balanced year but warned that franchise fees and sales tax remain volatile and will be monitored.
City Controller Robert Cortinez presented the City of El Paso’s fiscal‑year 2025 first‑quarter financial report on Feb. 4, saying the city’s books currently project to end the year close to the adopted budget but that sales tax and franchise fees require close monitoring.
Lede facts: Through the first quarter (September–November), the general fund had collected about 15.2% of budgeted revenue and expenditures were at roughly 19.7% of budget. Property‑tax revenue was ahead of prior year collections; sales tax was essentially flat, up 0.3% for the quarter compared with last year. Cortinez told council the city is projecting to use $4.6 million of previously planned drawdown from reserves — less than the $7.2 million included in the adopted budget — based on current trends.
Why it mattered: Property tax and sales tax make up roughly 70% of general‑fund revenue; property valuations have risen sharply during recent years while sales‑tax collections are more volatile and lag by two‑to‑three months in reporting. Council members pressed staff about vacancy savings, overtime, and targeted investments to reduce deferred maintenance — especially streets — and asked for more data on problem parks and streets rated D.
Details and next steps: Cortinez described the city’s “paygo” capital funding (annual non‑debt allocations) and noted a $3 million reduction in paygo this year. He said the city has increased annual paygo to about $20.4 million over recent years, improving capital funding but that funding needs still outpace annual allocations. Staff will report to council quarterly; the next update and the budget preparation work will refine revenue estimates for FY26.
Council reaction: Councilmembers thanked staff for the presentation and requested more granular dashboards, maps of complaint density for problem streets and parks, and continued attention to hiring/compensation for street crews to reduce vacancies and speed repairs.
Ending: Cortinez said staff expects to present second‑quarter projections in April, which will be used as a baseline for FY26 budget development.
