El Paso reports US$30 million surplus for fiscal year 2021

Category: News
Published: 2021-12-02
El Paso reports US$30 million surplus for fiscal year 2021

EL PASO – The El Paso City Council unanimously approved allocating US$24.9 million to the Budget Stabilization Fund after the city closed Fiscal Year 2021 with a surplus of nearly US$30 million, as presented by Chief Financial Officer Robert Cortinas.

The city reported that the fund created in early 2020 as an additional reserve to minimize tax rate increases and respond to emergencies increased to nearly US$41.8 million.

Texas city officials approved allocating US$24.9 million of the surplus to the Budget Stabilization Fund, while the remaining amount will be allocated to the General Fund.

In addition, the Council authorized the allocation of US$3.5 million from the Budget Stabilization Fund for street, infrastructure and facility repairs in response to the impacts of recent storms.

While another US$3.5 million will be used for the one-time payment of US$500 to full-time employees and US$250 to part-time workers.

According to information from City Hall, the City’s proactive financial management and use of financial best practices over the past seven years have positioned El Paso to increase its Budget Reserves and Stabilization funds by US$75.5 million.

Major factors for the reported surplus include a 14.4% increase in sales tax collections over the prior year; increases in property taxes; licenses and permits; as well as interest earned on investments.

Source: MEXICO-NOW Staff