Homeowners in the city of Donna will soon save money after the city cut their property tax rate and increased the city's homestead exemption.

It's part of their more than $30 million budget approved Thursday night.

"That is money we are going to save and as senior citizens we definitely need a break," Donna homeowner Patricio Jesus Garcia said.

Garcia is retired, and lives on a fixed income, and with rising prices of food and gas he says any bit helps. 

He says he's catching a break with a decrease in the property tax rate approved by city leaders. 

"I'm extremely happy that they did that because like I said with inflation the way it is, every little penny we can save," Garcia said.

Every home and business owner in Donna is now going to see an eight cent decrease in the property tax rate.

"We normally go down one cent, half a cent, a cent and a half, it's the first time in the history of Donna that it went down eight cents," Donna Mayor Rick Morales said.

Morales says it's also the first time the city approved a $6,000 ad valorem tax exemption. The exemption automatically knocks off $6,000 from a home's appraisal value. To qualify for the exemption, a person must be a homeowner and 65 years or older.

Morales says it will save residents even more money.

"It all depends on the value of their house, but it should be significant," Morales said.

On average, he expects homeowners to save $200 on average.

Morales says the city was able to pass the savings on to residents because the city is making more money. 

Both the property tax rate cut, and the exemption will kick on October 1.

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