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City Manager David Cooke presents his proposed budget during a special called budget work session Aug. 13, 2024. (Camilo Diaz | Fort Worth Report)
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After two years of rapid growth, property value increases in Fort Worth are slowing down — and tightening budget considerations for the city.

That changing revenue landscape is reflected in City Manager David Cooke’s proposed general fund budget for fiscal year 2025, which would raise the tax rate to 67.73 cents per $100 of assessed value — up by .48 cents compared to last year. If approved, it would be the first time since 1995 that Fort Worth has increased its property tax rate. 

A resident with an average Tarrant County home and a homestead exemption would see about a $60 increase in their tax bill from the city, according to staff estimates.

The property tax increase would fuel a $1.062 billion general fund budget, a 4.8% increase from 2024, Cooke told council members in an Aug. 13 presentation. The main drivers for that increase are police and fire, performance pay increases, pay-as-you-go fund increases and the switch from MedStar to a fire-based EMS system.

Fort Worth City Council members listen while City Manager David Cooke presents his proposed budget during a special called budget work session Aug. 13, 2024. (Camilo Diaz | Fort Worth Report)

Cooke told council members that the theme of the budget is “focusing on foundations” — maintaining current infrastructure and ensuring public safety while limiting the addition of new city staff positions.

“This year’s general fund growth is half of what it was last year,” he said. “Focusing on foundation also means narrowing our focus, or discussion, on basic governmental roles.”

Chief among those priorities is triaging Fort Worth’s crumbling roads, a consistent complaint raised by residents in city surveys. The proposed budget would add $9 million toward repairing aging streets through an increase in pay-as-you-go funds. The pay-as-you-go funds allow the city to pay for projects with cash, rather than taking on debt. 

The budget will be Cooke’s last, as he plans to retire next February. The longtime city manager said his hope is that he leaves the city in a good position for years to come. 

“I think we’re in strong financial shape, and I hope that gets passed on to the next city manager,” he said after the meeting.

Whether or not the proposed budget makes it through council unscathed is up in the air. City Council has in years past placed an emphasis on lowering the tax rate, and last year council members Alan Blaylock and Charlie Lauersdorf voted against the eventual tax rate because of concerns it was too high. 

During the Tuesday budget preview, council members asked questions but did not indicate whether they would support the proposed tax rate. 

What’s next for City Council and the budget

Fort Worth City Council will meet for budget work sessions on Aug. 27, Sept. 5 and 6.

The city will hold a public hearing on the proposed tax rate Sept. 17.

Fort Worth City Council will vote on a final budget and tax rate Sept. 17 after the public hearing.

Property value growth slows, rates increase

When city staff first began crunching numbers for the 2025 budget in April, they were working off numbers provided by the Tarrant Appraisal District that estimated the total tax base would be about $129.7 billion. The city used a conservative estimate of $125.8 billion to plan and brief council members through the spring, when they announced aims to increase the general fund budget by 3.5%.

But when the appraisal district certified its property tax rolls in July, that estimate had dropped significantly. Value growth for existing properties had slowed to a crawl in the months since April, even as new property values remained on target. Instead of $129.7 billion in taxable value, conversations with appraisal staff confirmed that the city was looking at $121.6 billion. 

“That is almost a $4 billion decrease from the number we were using in June,” Cooke said. “And a $4 billion drop in net taxable assessed value has an impact on the resulting tax rate.”

Vince Puente, chairman of the Tarrant Appraisal District board of directors, speaks during a board of directors meeting held on July 22, 2024, at the Arlington ISD administration building. (Camilo Diaz | Fort Worth Report)

The slowing property valuations come as the Tarrant Appraisal District prepares to overhaul how it handles residential property appraisals. Under the new reappraisal plan approved Aug. 9, the appraisal district will freeze residential market values in 2025, switch to a two-year residential appraisal schedule, and establish a 5% threshold to raise residential values in the future. 

Each policy will result in greater value stagnation for residential properties. Cooke told council members that while he’s not worried about the impact of flat property values now, it could be an issue if it continues for multiple years. 

“If we have flat taxable incomes in the future, that has more of an impact on future debt capacity,” he said.

Attend a budget meeting in your City Council district

City staff will host town halls across Fort Worth over the next month to discuss the budget and get feedback from residents. Find more information here. 

Aug. 21: 6 p.m. at Southwest Community Center, 6300 Welch Ave.

Aug. 22: 6 p.m. at Eagle Mountain-Saginaw Administration Building, 1600 Mustang Rock Road

Aug. 26: 6 p.m. at Highland Hills Community Center, 1600 Glasgow Road

Aug. 27: 6 p.m. at Northside Community Center, 1100 NW 18th St.

Aug. 28: 6 p.m. at Chisholm Trail Community Center, 4936 McPherson Blvd.

Aug. 29: 6 p.m. at Basswood Elementary School, 3100 Clay Mountain Trail

Sept. 4: 6 p.m. at Handley Meadowbrook Community Center, 6201 Beaty St.

Sept. 5: 6 p.m. at Como Community Center, 4660 Horne St.

Sept. 7: 11 a.m. at Riverside Community Center, 3700 E. Belknap St.

Sept. 9: 6 p.m. at Blue Haze Elementary School, 601 Blue Haze Drive

Sept. 11: 6 p.m. at Truett Wilson Middle School, 14250 Sendera Ranch Blvd. 

Sept. 12: 6 p.m. virtual meeting

The calculated no-new revenue rate and the voter approval rate — the maximum rate that can be passed without an election — are now both above the current property tax rate. As such, despite representing an increase, the proposed 2025 tax rate is just shy of the no-new revenue rate. 

In addition to the increased property tax rate, the city is also proposing several fee increases. With support from the city’s development advisory committee composed of real estate leaders, city management is recommending a 12.5% across-the-board increase to development fees. That will generate an estimated $3.2 million in revenue, which will go toward hiring additional employees and help keep the development services department on track with service improvements.

Management is also recommending a 5% increase to the stormwater utility fee. The stormwater management department previously told the Fort Worth Report these increases are essential to maintaining or replacing thousands of feet of drainage pipes. Without this work, the risk of sinkholes, flooding, erosion and property damage rises. 

PAYGO increases will fund street maintenance

The city has over 8,000 miles of street surface, and nearly 5,000 miles are in need of maintenance or reconstruction. All city leaders agree it’s a problem that needs to be addressed — but finding a solution everyone supports has been challenging. 

In May, City Council members hit the brakes on a proposal by city staff to establish a new street maintenance fee for residents. The fee would’ve cost residents $110 annually, a price council members balked at. 

In the 2025 proposed budget, city staff are aiming to tackle street maintenance costs in a different way. Under the recommended tax rate, the pay-as-you-go portion will increase from 7 cents to 7.5 cents, generating around $9 million in revenue. 

A transportation and public works street maintenance crew works on repairing a portion of Yeager Street in July 2024. (Alberto Silva Fernandez | Fort Worth Report)

The money will go toward repairing cracks, potholes and other street issues. Staff said it is intended to address the historic underfunding of street maintenance due to growth and inflation.

However, the increased funds for street maintenance could be among the first on the chopping block if council members reject Cooke’s proposed tax rate. Other new costs, like pay increases for police officers, are unavoidable under the terms of the city’s soon-to-be-approved meet and confer agreement with the police union. As such, the pay-as-you-go funds represent an easier target if push comes to shove.

“The other thing is we would look at different reductions throughout the general fund,” Cooke said. “The budget grew last year by nearly $100 million and we did a number of new things. We added a second neighborhood to the neighborhood improvement program. We added more money for a number of things. So we would go back and look at that list and see if we want to scale those back.”

Early costs for EMS system switch revealed

In May, Fort Worth City Council made the historic decision to dissolve longtime EMS provider MedStar and switch to a fire-based EMS system. In that new system, the fire department will house employees whose sole role is to respond to medical emergencies. 

Initial costs for the new system will be borne in the 2025 budget. Cooke said the proposed budget includes $3.5 million in funding for the system starting next July. Future costs will be paid through a newly established special revenue fund for the EMS system, which will receive monies through the general fund, and through fees to neighboring cities who sign agreements with Fort Worth for EMS services. 

A MedStar employee sits during a collective bargaining meeting between IAFF 440 and the city of Fort Worth’s management team on July 26, 2024, at Local 440 Jim Tate Building. (Camilo Diaz | Fort Worth Report)

Some of the smaller cities have expressed concerns about how the transition will impact their own residents and budget process. Fort Worth staff are in the process of hammering out individual agreements with each city for service. 

The city is currently negotiating the terms of the transition with the union representing fire employees, IAFF 440. Topics on the table include job classifications, salary structures and capital infrastructure needs. 

City management nixes $20 minimum wage proposal

Despite vocal advocacy from local unions and community organizations, city management remains opposed to a $20 minimum wage for city workers. 

Instead, Cooke is proposing increasing the city’s minimum wage from $15.45 to $16.07. This will impact about 100 people currently employed with the city. Cooke told council members the city is doing well when it comes to recruiting and maintaining workers, especially taking benefits, work environment and opportunities for advancement into account.

“I do believe we are competitive at all ranges of pay in the city of Fort Worth,” he said.

Angi DeFelippo, political director for the Tarrant County Central Labor Council, speaks at the Fort Worth City Council meeting about rasing the minimum wage for city employees on June 4, 2024. (Alberto Silva Fernandez | Fort Worth Report))

City management is also recommending funding a comprehensive pay study to evaluate Fort Worth’s current compensation structure. It would be the first comprehensive pay study since 2014, and staff estimate it would cost about $500,000.

Several council members remained unsatisfied with the proposed minimum wage, including District 8 council member Chris Nettles. He acknowledged the fiscal constraints the city is under, but urged city management to take another look and see how much more the wage could be raised. 

Mayor Mattie Parker cautioned against making a significant change to the minimum wage this budget cycle.

“I don’t think anybody around this table disagrees that we want to make sure we take care of all of our workforce,” Parker said. “I think, unfortunately, we have very limited revenue this year, and so our job around this table is to work alongside management and HR to arrive at what we think as a body we are most proud of.”