Alice approves 2026 budget with tax increase and modest raises

Alice city officials formally adopted the fiscal 2026 budget at the end of December, approving a new property tax rate and employee pay adjustments intended to address growing operational costs. City Manager Michael Esparza said 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." The budget changes took effect October 1.

City leadership framed the higher rate as a response to specific budget pressures. Esparza said, "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." Those line-item pressures reflect core city responsibilities that residents rely on daily: policing and fire services, street maintenance, permitting and inspections, and rising fuel costs for municipal fleets.

The City Council, joined by Mayor Cynthia Carrasco, approved a one percent raise for most city employees. Carrasco acknowledged limits in the allocation: "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." The modest raise highlights a familiar municipal trade-off between personnel compensation and constrained revenue.

Local reaction was mixed. Longtime resident and former city employee Ernie Herrera said, "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." For residents, the decision means higher property tax bills beginning with the current fiscal year and incremental increases in city payroll costs adjusted only slightly for inflation and market pressures.

City officials pointed to potential revenue growth if new businesses continue opening in Alice, a hope Esparza said could help offset taxpayer costs over time. For now, the adopted budget reallocates limited local resources to cover immediate operational needs while offering a small raise for the city workforce.

The council's decision underscores the fiscal choices facing small Texas cities: balancing employee compensation, public safety readiness and infrastructure upkeep against the limits of the local tax base. Residents seeking clarity on how the new rate affects individual tax bills should consult appraisal and tax calculations for specific property valuations or contact the city finance office for detailed breakdowns.