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Posted: 5:58 p.m. Tuesday, Oct. 30, 2012
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By Joshua Zuber
EL PASO, Texas —
In council chambers Tuesday, El Paso city staff broke down how much your property taxes will go up if the first and second propositions are passed in November's general election.
Also, they showed how long it will take to pay off the stadium with the passage of the third proposition, the Hotel Occupancy Tax.
The average home's property tax would increase to about $309 per $100,000 of valuation, at the maximum rate, which will come in 2023.
The first proposition is for improving the zoo and adding new parks.
The second proposition is for preforming arts buildings and improvements to the public library system.
If only the first proposition passes, property taxes go up to $283 in 2021.
If only the second proposition passes, it's a similar increase.
Right now the average home's property tax is $219.
If neither proposition passes, property taxes are set to go up to $269 in 2018, and then come back down, just like all these other models.
The bonds would be paid off in 25 years.
The third proposition is the hotel occupancy tax rate, and it is set to make extra money, if all goes to plan -- about $24 million.
The city's chief financial officer said all of these debts and new revenues should not affect the city's AA credit rating with credit agencies such as Standard & Poor's.
"(The credit rating agencies) are very aware of the additional bonds that we plan to issue. And so they've incorporated that into their ratings and that's actually disclosed in the documents," said Carmen Arrieta-Candelaria, El Paso's chief financial officer.
But one opponent of the bonds said the city's debt is already growing too much, and adding to it is irresponsible.
"We can't just go 10 years without some surprises that occur," Ron McGinnis, opponent of the bonds said. McGinnis is a civil engineer and has an MBA in finance and accouting.
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