Dallas administrators reviewed Tuesday the city’s $4.51 billion proposed budget for the 2023-24 fiscal year. The figure is based on a property tax rate of 74.58 cents per $100 assessed valuation, a reduction of about 2.75 cents from last year’s rate.
City Manager T.C. Broadnax said the proposed tax rate reduction represents the largest decrease in 40 years. The city has windfall tax revenue from higher real estate appraisals across the board; Broadnax wants to return 3 of the 15 percent windfall to taxpayers.
“Our budget serves as a policy document, financial plan, and operational guide,” Broadnax said. “The budget allows us to express our priorities with how we allocate the public’s resources that are entrusted to us.”
Chief Financial Officer Jack Ireland noted that the city anticipates collecting about $1.3 billion in property taxes in the coming year, the largest source of revenue to fund the budget.
No residents registered to speak at Tuesday’s public hearing. Council members responded favorably to the presentation.
“I think the framework for this budget is really strong,” said District 12 Councilwoman Cara Mendelsohn. Several opportunities are coming up for residents to weigh in on the proposal, which outlines strategic priorities as well as how funds will be raised and spent. The budget and tax rate will be adopted on final reading Sept. 21, and the new fiscal year begins Oct. 1.
During the three-and-a-half-hour workshop Tuesday, council members relayed concerns they’ve heard from constituents regarding things like housing, building permits, code enforcement, homelessness, and transportation.
Mendelsohn highlighted the importance of a five-year budget forecast and asked about sanitation pick-up and fees, and upgrades in the information technology department.
District 3 Councilman Casey Thomas II wanted to hear about racial equity in budget preparation and resource allocation. Councilman Tennell Atkins advocated for more robust code enforcement in District 8.
District 13 Councilwoman Gay Donnell Willis wanted to see if more could be done to further decrease the tax rate.
“We’ve seen this amazing increase in property value,” she said. “The sales tax projection looks like it’s going to be almost $31 million over the forecast … This is the phenomenal growth that we know Dallas, Texas, to fuel and to have. We know that even with this reduction, it is still going to feel like a tax increase. This is all around the city. This is every district.”
Broadnax pointed out that the city’s needs amount to an additional $172 million, with ongoing year-over-year expenses like salary growth.
“I believe the recommended [tax rate decrease] is an appropriate amount,” he said. “Our expenses are growing at an alarming level and the decades of disinvestment, as well as deferred maintenance, are things we’ll continue to talk about. I wanted to make sure we at least had the revenue to get at those things year over year.”
District 1 Councilman Chad West said he likes the aggressive tax reduction and overall infrastructure focus.
“It definitely helps quell the hunger games a little bit when a lot of the stuff we ask for ends up in the budget,” he said. “I also appreciate staff going out into the community and getting feedback before we get to this point.”
The next budget workshop is set for Wednesday, Aug. 17. Council amendments will be reviewed Aug. 31. For more information about the Dallas budget, visit financialtransparency.dallascityhall.com.
