Alice city officials have approved a new fiscal 2026 budget that includes a tax increase and pay raises for most city employees, with changes taking effect October 1st.
The Alice City Council approved a property tax rate of 0.615706, representing approximately a four-cent increase from the current rate of 0.56, according to City Manager Michael Esparza.
"The council did approve a final budget and also set a tax rate at 0.615706. It's like a four-cent increase or so from the current rate of 0.56," Esparza said.
The tax increase will help offset additional city expenses, Esparza explained.
"So, it's generating a little bit more money. We're having some additional expenses on police, fire, overtime. And some more money to streets. Some more money for inspections and also for fuel," Esparza said.
The city manager noted there's potential for increased revenue as more businesses open in Alice, which he hopes will help offset taxpayer costs in the future.
Along with the tax increase, the City Council and Mayor Cynthia Carrasco approved a one percent raise for most city employees.
"We all wanted to give more to our employees. They deserve it. They really do. It was just really hard to incorporate everything. So, the best we could do was one. I would've loved to see three percent or more," Carrasco said.
Local resident Ernie Herrera, who retired from the city years ago, expressed cautious optimism about the changes.
"Most of the time it's hard for a lot of people. What this is going on or whatever. So, it might work, it might not work. I don't know. God willing - we'll see what happens," Herrera said.
Herrera said that at his age, he doesn't focus much on political matters like the city's tax increase approval but trusts officials know what they're doing.
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