Edinburg Council Adopts Budget, Tax Rate Below No-New-Revenue Rate, Restores Full Street Program

Edinburg, City Council, Budget, Tax Rate, Pay Plan, National Day of Remembrance for Murder Victims

Staff Report

Edinburg TX – The Edinburg City Council held its regular meeting Sept. 15, adopting the fiscal year 2026-2027 budget and a tax rate below the calculated no-new-revenue rate, restoring full funding to the city’s street improvement program, and considering a pay plan proposal to raise the city’s lowest-paid workers to $15 an hour.

Budget and Tax Rate Adoption

During a joint public hearing on the proposed budget and tax rate, McClarty asked whether police department fuel costs were included in the budget. Finance Director Ascención Alonzo confirmed, “Yes, that is included.” Teter again urged additional investment in the library, parks, green space and street paving.

The council adopted the fiscal year 2026-2027 budget by a unanimous roll call vote. During discussion, Ochoa announced the city identified additional funding to fully restore the street improvement program to its original $2.5 million level, after it had initially been reduced to $1.5 million to help cover rising employee health insurance premiums. “This is the first time in over a decade that the city of Edinburg has a budgeted street improvement program,” Ochoa said, noting the funding came from a deferred payment owed to the Edinburg Economic Development Corporation and additional bond savings.

Ochoa also proposed an alternative to the city manager’s originally recommended 2% across-the-board pay increase for non-civil service employees, instead raising the base pay of employees earning under $15 an hour to $15, with all other employees receiving a one-time 1% retention incentive payment. “There are 182 positions in the city of Edinburg where their base rate is under $15 an hour,” Ochoa said, citing groundskeepers, sanitation workers, custodians and other frontline staff. “These are frontline workers who are out in the sun… but are providing a very important service to the city of Edinburg.”

Alonzo said the proposal is budget-neutral, made possible by stronger-than-expected sales tax revenue, with projected growth revised from 5% to 5.5% for the year. “The trend’s going to continue,” Alonzo said. “We feel comfortable.” One council member questioned why the funding update had not been communicated to the council earlier; a city staff member responded that confirmation of the EDC’s deferred payment was only received earlier that same day. The council did not take formal action on the specific pay plan structure at this meeting, though funding for a plan is included in the adopted budget.

The council then unanimously adopted the property tax rate for tax year 2026 at $0.06300 per $100 of taxable value, consisting of a maintenance and operations rate of $0.05243 and an interest and sinking debt service rate of $0.01057. City Attorney Ben Castillo confirmed that because the proposed rate is below the calculated no-new-revenue rate, no additional statutory adoption language was required.

City Highlights

Mayor Omar Ochoa noted a car seat checkup and giveaway hosted by Edinburg Municipal Court on Thursday, Sept. 24, exclusive to Edinburg residents. Municipal Court Coordinator Maribel Velázquez said the event, held with the Edinburg Police Department, fire department and other agencies, is meant to prevent tragedies. “To prevent any accidents, we’ve seen a couple of fatalities… within the last few years, and that’s one of the reasons that we stepped up and thought we could do this for our community here in Edinburg,” Velázquez said.

Ochoa also highlighted the Edinburg Fire Department’s 100th anniversary celebration, including a 5K run Saturday, Oct. 3, at 7:30 a.m. at the main fire station, and the Edinburg Fire Stoppers Festival that evening at Promenade Park.

Mayor’s Report on Budget

Ochoa said the proposed budget was balanced without raising taxes, despite state law changes expanding homestead, disability and veteran exemptions that reduced the city’s potential property tax revenue. “The city of Edinburg has never done this, adopted a tax rate that’s below the no new revenue rate,” Ochoa said. “But it was an important thing to be fiscally responsible. We’ve made this promise all along, and we’re delivering on it.”

Ochoa said the city reduced transfers out of its solid waste fund while still financing nearly $2 million in new heavy equipment, and reduced the airport’s and golf courses’ reliance on solid waste fund transfers as those operations work toward breaking even. He said the city trimmed about $1 million in administrative costs.

Ochoa outlined infrastructure investments in the budget, including $1 million for water line improvements, $2 million for downtown water treatment plant revitalization, more than $2 million to modernize wastewater lift stations, $250,000 for citywide playground equipment upgrades, and $233,000 specifically for Edinburg Municipal Park playground upgrades. The budget also includes upgrades to the Chapin Street Hike and Bike Trail, including new public restrooms, and more than half a million dollars for police fleet modernization, drone technology and new fire department equipment.

Proclamations

The council proclaimed Sept. 25, 2026, as National Day of Remembrance for Murder Victims. Robert Garcia, founder and CEO of the Rio Grande Valley Family and Friends of Murdered Children, accepted the proclamation and shared the story of his brother Rogelio Garcia’s 2011 murder. “When you see us, you tell us, you stand with us, you hear us, and you will be with us,” Garcia said. “That’s the message of the proclamation you did today.” Garcia invited council members to the organization’s 14th annual candlelight vigil on Sept. 25 at the Jose “Pepe” Salinas Memorial Recreation Center in Pharr.

Ochoa thanked the families for attending. “Murder is a terrible crime that rips apart families, splits communities, and leaves a lasting impact on you for the rest of your lives,” Ochoa said. “Please know that there are people who see you, who love you, and that we are here for you.”

The council also proclaimed Sept. 16, 2026, as 1977 State Champion Edinburg High School Boys Cross Country Team Day, recognizing the team’s induction into the Rio Grande Valley Sports Hall of Fame. A team member who spoke, identified in the meeting as Rick, said the achievement required significant dedication. “Our team has to run between 50 to 75 miles a week,” he said. “We beat a defending powerhouse of El Paso… and we call it winning the trifecta.” Head coach Homer Martinez added, “To win as a team is very hard. To say that you’re the top one in the state of Texas… is something that will always be with them.”

Public Comments

Resident Fern McClarty raised concerns about rising water bills and new deposit requirements for water connections. “I did not know that the new water connection requires 100-dollar deposit and proof of property ownership,” McClarty said. She also questioned a variance request later on the agenda regarding right-of-way dedication along Chapin Road, saying, “I keep asking y’all, but it’s the good old boys club.”

Deborah Gomez, representing the Museum of South Texas History, spoke in support of a special use permit for the museum’s Fandango 2026 fundraiser. “All we are asking is to help with the special use permit to be able to close off the streets… in order to keep everybody safe,” Gomez said.

Resident Diane Teter urged the council to consider a one-cent tax rate increase above the proposed rate. “One cent is an investment that multiplies our collective resources,” Teter said. “Holding a tax rate flat does not hold inflation flat.” Teter also suggested the city consider providing a salary for elected officials. “Where is the over 50 percent population of women?” Teter asked. “Maybe it’s time to think about allowing a salary in order for others besides those who are just in finances to go ahead and serve.”

Public Hearings

The council tabled two public hearing items related to a comprehensive plan amendment and rezoning at 1815 W. Owassa Road, pending finalization of a development agreement concerning a proposed sewer lift station. A related routine public hearing item was also tabled.

The council approved a sign variance for a new electronic message sign at 503 Conquest Blvd., requested by AJ Ferrara on behalf of the Bernardo Motor Group. A company representative, identified as Mr. Backer, described a multi-phase development plan for the area. “When we get through this whole thing, you’re probably talking 50 million dollars, and you’re probably talking 7,500 new jobs,” Backer said, adding that plans include relocating and expanding several area dealerships along Owassa Road while keeping them within Edinburg city limits.

The council approved a sign variance for Driscoll Health System at 5502 S. McColl Road, allowing an existing sign located on state right-of-way to be refaced.

Variance

The council approved two variances for the proposed Montemayor Estates Subdivision at 3220 W. Chapin Rd., requested by Quintanilla, Headley and Associates on behalf of several family-owned properties. Engineer Alfonso Quintanilla explained the circumstances behind the request. “It’s a family matter,” Quintanilla said. “The original parents passed away along the way, but they had gifted their sons and daughters each, and so they all built their homes.” The variances allow the properties to remain on existing septic systems and eliminate a required payment toward street paving costs, while the owners agreed to dedicate an additional 10 feet of right-of-way along Chapin Road. Assistant City Manager Tomas Reyna said the city has been awarded federal RAISE grant funding for planning and engineering design related to a future expansion of Chapin Road.

Ordinances

The council approved a temporary special use permit for the Museum of South Texas History’s Fandango 2026 event, to be held Saturday, Oct. 3, at 224 N. Closner Blvd. The council also approved ordinances updating the city’s administrative structural organization and providing changes to classification and compensation plans for non-civil service and civil service employees, including the addition of a director of public facilities position.

Awarding of Bids

The council approved awarding a request for proposals for a Development Impact Fee Nexus Study to Willdan Financial Services, and awarding a request for proposals for Veterans Boulevard Drainage Improvements Phase II to Blue Dot Site & Utilities, LLC, for an amount not to exceed $760,000.

Economic Development

The council approved the Edinburg Economic Development Corporation’s fiscal year 2026-2027 program of work and budget. EDC Executive Director Raudel Garza said the budget totals more than $13.3 million in revenues, with more than $7.5 million planned for infrastructure investments, including completion of the workforce resource center and pro shop at Ebony Hills. “Our focus this upcoming year will be to continue to work on attracting new businesses… and of course, in creating a better quality of life for our citizens,” Garza said.

Consent Agenda

The council approved consent agenda items A, B, D and E, and tabled item C for further review.

Other Business

The council approved a motion setting notice requirements for a joint public hearing with the Planning and Zoning Commission regarding proposed amendments to the city’s Unified Development Code, scheduled for Oct. 6, 2026, at 5 p.m.

Executive Session

After an almost two-and-a-half hour closed door session, the Council returned to open session. City Attorney Ben Alonso said only one item needed action. “I recommend a motion to approve the action of the EDC board of directors approving project Fizz as to the terms discussed in executive session,” Alonso said. The vote to approve was unanimous.