Edinburg Council Adopts Budget, Holds Tax Rate Steady Despite Calls for Relief

Arnoldo Mata

EDINBURG, TX — The Edinburg City Council on Sept. 18 approved a balanced budget for the 2025-26 fiscal year and voted to keep the property tax rate at 63 cents per $100 valuation. While city leaders stressed the move protects services and infrastructure, residents voiced competing concerns about household costs and fiscal responsibility.

The budget includes a 3 percent pay adjustment for employees, maintains a 25 percent reserve in the general fund, and funds police, fire and utility commitments. Finance Director Juan Sifuentes said the plan “keeps the city on strong footing” by preserving depreciation set-asides and accounting for inflationary pressures.

During the hearing, residents and employees highlighted the tension between tax relief and the city’s rising obligations.

Longtime resident Diane Teeter urged caution, pointing to broader economic uncertainty. “I urge fiscal conservatism and adoption of the budget and tax revenue as is,” she told council members. Teeter, a retired college professor, warned that cuts in federal and state funding for higher education could ripple through Edinburg’s economy, affecting retail, housing and services tied to the University of Texas Rio Grande Valley. “We cannot assume continued growth in sales tax or property values if enrollment stalls and families feel the strain,” she said.

Others argued the city should still ease the burden on taxpayers. Fern McLarty, a frequent council attendee, pressed for a rate cut of at least half a penny. “All the taxpayers have asked for is one penny. I would even be thankful for half a penny,” McLarty said. She pointed to rising property valuations and utility bills, adding, “Families can’t plan when the costs just keep going up. A small cut would show residents that the city is listening and willing to share the load.”

City employees also weighed in. One municipal worker said she appreciated the proposed 3 percent pay increase but questioned whether the benefit might be offset by higher taxes. “Obviously, I want a raise, everyone wants a raise,” she said. “But I also want to make sure it doesn’t just come right back out of my paycheck through property taxes.”

Mayor Ramiro Garza sought to reassure employees that was not the case. “This budget includes the pay plan adjustment with no increase to our tax rate,” Garza said. He later added that city workers are “the backbone of day-to-day services” and that the city must remain competitive to retain staff.

Council members acknowledged the calls for relief but defended keeping the tax rate in place. Councilman Dan Diaz noted that “a half-percent on the budget is about $350,000,” saying inflation and departmental needs make a no-new-revenue rate unrealistic.

Garza emphasized that Edinburg cannot afford to delay major utility and infrastructure investments. “We can’t kick the can down the road,” he said. “Every year we have to do what we can. Our infrastructure demands are in the millions, and maintaining the tax rate is the responsible course.”

According to information provided in the proposed budget, there will be a three percent (3%) pay plan adjustment for all non-civil service employees, as well as for Police and Fire Department Civil Service employees.

The Edinburg Police Department will receive funding to attain ten new patrol units, strengthening law enforcement resources and ensuring officers have the tools needed to protect residents and respond effectively to community needs.

In addition, the Edinburg Fire Department was approved for the purchase of two Pierce Custom Enforcer Pumper fire trucks, enhancing emergency response capabilities and ensuring firefighters are equipped with state-of-the-art vehicles to safeguard the community.

New investments are included in the City’s utility systems. The budget provides funding for:

• Improvements to the Utility Water Plant, including a 250 HP Variable Frequency Drive and repairs to bulk chemical containment facilities;
• Upgrades to the Wastewater Treatment Plant, including a roll-off truck, utility truck with crane, UV system, and lift station pump replacements; and,
• Equipment for the Utility Systems Department, including water meter readers, sewer cameras, and new service trucks.

The budget allocates increased funding to the Information Technology Department for a citywide server refresh and phone system replacements, modernizing critical systems that support city operations and enhance service delivery for residents.

The City is also making targeted improvements to community amenities, including funding for upgrades at the Fountain Pool Pump House to ensure safe and enjoyable recreational facilities for families.

The Edinburg Airport will see progress on the Airfield Improvement Project and a fence replacement project, with the City providing the necessary grant match.

Mayor Ramiro Garza Jr. commended the passage of the budget and highlighted the careful planning behind it.

“This balanced budget reflects our commitment to fiscal responsibility while investing in the people, infrastructure, and amenities that make Edinburg thrive. I am proud of the work our team has done to ensure that we continue delivering the high-quality services our residents expect without raising the tax rate,” said Mayor Garza.

The council voted unanimously to approve both the budget and the tax rate, which city staff noted remains among the lowest in the region.