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On Friday August 9th, all eyes were on Dallas’s interim City Manager Kimberly Bizor Tolbert as she led a discussion concerning the city’s proposed budget – a budget that considers both the current and next fiscal years. With Tolbert on the spot, in what some may consider her first major carry as she continues her tryout for a permanent spot on the city’s executive team, the City of Dallas unveiled its proposed biennial budget for Fiscal Years 2024-25 and 2025-26, outlining a strategy centered on economic expansion and financial responsibility. 

With a focus on “Reimagining and Realigning for Results,” the budget aims to build upon the city’s current trajectory of growth and social vitality. This includes continued emphasis on economic development, public safety, and infrastructure, as well as ongoing efforts to manage the city’s finances responsibly. According to Tolbert’s office, the city will continue to evaluate revenue and expenses, ensuring financial stability and continued progress towards its goals.

Tolbert’s Attempt to Right Size Fiscal Year 2023-2024 Ballooned Budget 

Tolbert faces the challenge of right-sizing a multi-billion dollar city budget as the city’s Fiscal Year 2023-2024 budget had been a subject of intense scrutiny and debate. The original budget proposal, presented by former Dallas City Manager T.C. Broadnax outlined a $4.63 billion spending plan, including a property tax rate decrease. However, the budget that was ultimately adopted by the City Council diverged significantly from this initial proposal.

The city experienced a significant budget expansion in the 2023-2024 fiscal year after the initial plan ultimately ballooned to a staggering $5.69 billion following amendments. This substantial increase has raised questions about the city’s spending priorities and the factors driving such a dramatic budgetary growth.   

Broadnax’s proposed budget aimed to balance economic growth with property tax relief. It included a decrease in the property tax rate, marking the eighth consecutive year of such a reduction. Additionally, the budget allocated increased funds for public safety, infrastructure, and social services.   

The City Council, however, had a different vision. Several council members expressed concerns about the proposed budget, arguing that it did not adequately address the city’s growing needs. They pushed for increased funding for various departments, including public safety, libraries, and parks and recreation.

The amended budget that was ultimately approved represented a compromise between the City Manager’s proposal and the Council’s priorities. A series of amendments to the original budget resulted in a substantial increase of over $1 billion. The additional funds were allocated to various departments and initiatives, including:

• Unexpected Expenses: Funds to address unforeseen costs, such as those related to natural disasters or economic downturns.
• Priority Projects: Additional funding for high-priority projects deemed essential for the city’s growth and development.
• Employee Compensation: Increased salaries and benefits for city employees to attract and retain talent.
• Contingency Funds: Reserves to address potential future challenges or opportunities.

While the amended budget addressed some pressing needs, it also raised concerns about long-term financial sustainability and the potential impact on taxpayers.

Key Highlights of the Fiscal Year 2024-25 Budget

The new proposal under Tolbert’s charge includes a total operating and capital budget of $4.97 billion, a significant increase from the current year’s planned budget of $4.63 billion, though a significant decrease from the current year’s amended $5.69 billion budget. The proposed budget places focus on essential services such as public safety, infrastructure, and economic development. According to Tolbert, investments in public safety and infrastructure are to remain a priority, with funding allocated for police, fire departments, and community-based initiatives and provisions made for improving the city’s infrastructure, such as roads, bridges, and public facilities.

Directly impacting the pocketbooks of property-owners, the city’s proposed budget would mean a reduction in property taxes for the ninth consecutive year, with a decrease of 3.10 cents per $100 valuation. The largest single-year reduction in recent history, Tolbert touted the cut to property tax revenue as a mindful strategy. “We have developed a budget that is focused and mindful of every tax dollar we spend while addressing the needs of our residents and the priorities of the Dallas City Council,” Interim City Manager Kimberly Tolbert said. 

Additionally, the budget allocates funds to address the city’s pension obligations, in line with state mandates and a plan to achieve full funding within 30 years.

Looking Ahead to Fiscal Year 2025-26

The budget development process involved extensive public input through town hall meetings and other engagement opportunities. The City Council will now review the proposed budget and make necessary adjustments before final approval.

The budget development process has faced challenges, including a projected $38 million shortfall for FY 2025. To meet these challenges, the city is exploring new revenue sources, such as economic development initiatives and public-private partnerships. Additionally, there’s a growing emphasis on performance-based budgeting, which focuses on outcomes rather than inputs.

Asking Residents to Get Involved

The City of Dallas is asking residents to weigh in on the proposed budget for the next fiscal year. Throughout August, City Council Members will be hosting Budget Town Hall Meetings in various formats: virtual, telephonic (Tele-Town Hall), and in-person.

• Full Schedule & Participation: Find the complete schedule of meetings and different ways to participate at https://dallascityhall.com/departments/budget/financialtransparency/Pages/budget-town-halls.aspx.
• In-Person Updates: If attending in person, double-check the event calendar and your Council Member’s social media on the day of for any last-minute changes.

Learn More:

• City Hall in Action: Throughout the year, the City showcases how your tax dollars are used. They’re partnering with community events to highlight resident engagement. Get details at https://dallascityhall.com/departments/budget/Pages/Budget-Engagement.aspx.
• Budget 101 Videos: Budgeting can seem complicated, but it doesn’t have to be! The City created short animated videos in English and Spanish to explain budget basics. These videos cover topics like:
  • Budgeting Basics
  • Where Does the Money Come From?
  • Where Does the Money Go?

Watch the videos (with language access and closed captions) here:

• bit.ly/cityofdallastv
• https://www.youtube.com/CityOfDallasCityHall

For additional details and to stay updated on the budget process, visit: https://dallascityhall.com/departments/budget/financialtransparency/Pages/Upcoming-Budget.aspx

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