Edinburg Council Votes To Keep Tax Rate At $0.63

Arnoldo Mata
Edinburg TX – The Edinburg City Council voted tonight to keep the city’s tax rate at $0.63. The approved tax rate increases the total amount of taxes collected and provides for pay raises for police and fire fighters as well as covering increased costs due to inflation.
In preparation for approving the new fiscal year’s budget, the city is required by law to set its tax rate and hold a public hearing on that tax rate. At last night’s meeting, the City Council approved the new rate in a 5-0 vote. The tax rate will be for the new fiscal year, beginning October 1st, 2025 through September 30th, 2026. A public hearing on the tax rate is set for the City Council’s regular meeting on Sept. 16, 2025.
Edinburg resident Fern McClaugherty spoke in favor of reducing next year’s tax rate. She pointed out that the proposed rate, while the same as this year, would bring in more tax revenues. She urged the Council to consider reducing the tax rate to $0.5835 to bring in the same amount of funds as this year.
Council Member Daniel Diaz said he supported the proposed rather than reducing it. “If we consider (reducing it), then we would not be able to cover the already negotiated terms with fire and PD on 3% raises annually, plus some of the ARPA monies. From the ARPA monies that we’ve had since COVID that have now been exhausted, we have to put that in our budget to cover some of the things we have allocated.”
Finance Director Ascencion Alonzo explained that a “no new revenue tax rate is $0.5835. That would bring in the same revenue that we had last year. But, in a perfect world that would work. Unfortunately, the city, also is that exempt from inflation? Is that from some of the commitments that are with meeting confer and with any other commitment with copiers and everything else? Rates are going up, electricity, pay plan adjustments. So, to maintain, to be able to provide the services that the city provides, it would require that, at this time, it would require that $0.63.”
Council Member Jason De Leon also expressed for maintaining the same tax rate. “Anywhere you go, things are going up. You go buy food, food’s going up, electricity’s going up. That’s why we have to be very conservative in how we do our tax rate this year. You know, in a perfect world, I would love to drop our tax rate. Definitely. I’m proud that our administration has been able to drop the tax rate 5 cents since we’ve been in office. That’s unheard of. I don’t think any other council has ever dropped it 5 cents in a term. I’m very proud of that. But it’d be very irresponsible for us to go any lower knowing that things are going up and knowing that the goal is to get to $15 an hour for our employees, and that way we can retain them.’
“our upper management, our directors, our staff, we really try to bring that rate down,” Alonzo added. It was not for a lack of effort. We really tried to minimize that tax rate. But, but there are services to be provided and there’s a cost to that.”
Council Member David Salazar said, “It’s kind of irresponsible for us to just want to do things just because we want to please the community. I was the first person in in my race to say, I can’t do that until I go in there and actually review and see everything up front. So I can’t make that promise. And this is just doing the responsible thing.
Mayor Ramiro Garza Jr. pointed that Edinburg residents have several exemptions they can file to lower their taxes, including the homestead, elderly and veteran exemptions. He requested that staff hold ongoing workshops to inform home owners of the exemptions they can apply for.