Tejas Cafe in downtown El Paso has seen better days.

"The downtown area is dying, they aren't doing anything to get any better," said Manny Becerra, who manages the restaurant.

Becerra said the tax hike could really hurt.

"If the tax increase, I guess you know, downtown is going to die, completely," said Becerra.

Business experts seem very concerned about downtown businesses.

"That's a bitter pill to swallow because we haven't seen the increases in business," said Mike Bretinger with the El Paso Central Business Association.

City Rep. Beto O'Rourke said a majority in El Paso will see lower taxes.

"A little over 60 percent of El Pasoans will enjoy a net tax decrease from the city," said O'Rourke.

But that decrease comes at a hefty price for some.

"We're just shifting the burden from one group to another group. The only way we are going to get out of this problem is to grow our way out of the problem. We've got to encourage more businesses to move here to invest in El Paso," said O'Rourke.

Some said growing in downtown becomes difficult with growing taxes.

"We got to have a business-friendly climate, and high taxes are the first thing that a business owner or corporation is going to look at," said Breitinger.

Becerra, who has had Tejas Cafe at the same location for a decade, now wonders if he can stay.

"I'm thinking, you know I'm thinking of moving, you know, if taxes increase, and sales doesn't get any better, I'm thinking of moving out of this," said Becerra.

O'Rourke said this year became extra difficult for the budget with debt services, $100 million for the 2006 floods, and pension obligations for the police and fire pension funds. O'Rourke said they were able to slash $3 million from the budget.