Dallas adopts $5.51 billion fiscal 2026 budget; tax rate set as property values push new revenue

The Dallas City Council voted Sept. 17 to adopt a $5.509 billion operating, capital and grant budget for fiscal year 2025-26 and set a property tax rate tied to a $66,328,005.69 increase in collected property-tax revenue.

City Manager Kim Tolbert told the council before the vote, "After months of work, we have made it to the final day in the fiscal year 2026 budget development and approval process." The appropriation ordinance passed with 11 votes in favor, three opposed and one absence.

The adopted tax ordinance sets the rate included on the council agenda and passed the council by recorded vote: 12 in favor, two opposed and one absent. "If we don't pay the people, what is market? What is competitive? They'll leave," Councilmember Melissa Mendelson said in the debate, arguing the budget must keep city pay competitive for police and fire.

Why it matters

The adopted budget reduces the official tax rate from last year's figure but, because of rising property valuations, increases the total amount of property-tax revenue the city will collect. Chief Financial Officer Jack Ireland gave the council the precise figure: "The total amount is $66,328,005.69," he said, a sum the council ratified later in the meeting.

City leaders framed the package as a balance between limiting the rate and protecting core services. Tolbert said the recommendation "delivers on key resident priorities, including investments in street infrastructure, as well as in public safety. Beyond that, we delivered a budget that balanced those priorities of the community, and we also included a tax rate decrease of 0.05 cents per $100 valuation."

Most important votes at a glance

- Appropriation ordinance (FY2025-26): Adopted. Final adopted operating/capital/grant total: $5,509,411,657 (recorded approval: 11 in favor, 3 opposed, 1 absent). - Tax rate ordinance (FY2025-26): Adopted. Ordinance on the council agenda set the rate at the number published for public hearing; council recorded its passage (12 in favor, 2 opposed, 1 absent). The action also triggered the mandatory ratification of the increased tax take by $66,328,005.69, which the council ratified by recorded vote. - Fee and code changes (multiple ordinances): Adopted (includes changes to stormwater, sanitation, water/wastewater, court fees and other departmental fee schedules). - Salary schedules and pay: Council adopted civilian and uniform pay schedules for FY2025-26 and related merit steps and hiring-rate adjustments. The record shows the civilian merit program and the separate uniform pay schedules were approved as presented.

What the council debated

Public speakers and council members spent significant time in the meeting discussing the budget's effects on city services. Public…