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 commenters urged the council to preserve libraries, community pools and other neighborhood services; multiple speakers said library branches and pools are critical safety and education resources for children and seniors.

Councilmembers exchanged sharply different views about priorities. Some members prioritized tax relief and asked for cuts to memberships and outside contracts. Others pressed to protect frontline services and city staff. Mendelson and other supporters of higher police and fire compensation argued pay must remain competitive to keep staffing levels; opponents urged using one-time funds, reallocations or internal savings rather than permanent increases.

Other contested items included: - Libraries and parks: Several council amendments proposed earlier in the meeting would have accelerated branch closures or reallocated funds to parks and pools; those measures were debated in detail but did not become final policy changes beyond the adopted budget framework. Council members and many public commenters asked for a transparent public engagement timetable before any branch closures. - Sanitation and technology pilots: Council considered whether to accelerate purchase of AI-enabled cameras for sanitation trucks to help detect illegal dumping and code violations. The council discussion described a vendor pilot, privacy safeguards and the potential for efficiency gains; the amendment to reduce the pilot funding failed. - Pensions and outside consulting: An amendment seeking one-time funding for independent investment review of the city's pension funds passed after debate; related proposals to reserve funds for other pension services were defeated.

How the budget will be implemented

The city manager and finance staff said they will publish final budget schedules and begin the administrative steps to implement salary schedules, fee changes and capital projects. Tolbert told the council staff will return where needed to align the fee ordinances, tax ordinance and budget to keep the city's books balanced.

Context and background

The council's action continues a multiyear pattern: the recommended rate on the agenda is smaller than last year's official rate but rising property valuations across Dallas and North Texas mean most taxpayers will see higher bills unless their valuations are reduced by appraisal changes or exemptions. The city manager identified infrastructure, stormwater and public-safety investments as priorities.

Quotes

City Manager Kim Tolbert: "After months of work, we have made it to the final day in the fiscal year 2026 budget development and approval process."

Chief Financial Officer Jack Ireland: "The total amount is $66,328,005.69."

Councilmember Melissa Mendelson: "If we don't pay the people, what is market? What is competitive? They'll leave."

Ending

Councilmembers told constituents the vote closes a long process of workshops and public hearings that included hundreds of pages of amendments. The council adopted the budget and a tax-rate ordinance that will require staff to finalize ordinance language, publish final schedules and begin implementing changes for the fiscal year that begins Oct. 1. Several council members said they expect follow-up items from the manager and from committee work in the coming months on libraries, parks and the use of one-time federal funds.

Provenance (transcript evidence)

- topicintro: {"block_id":"block_5143_5161","local_start":0,"local_end":150,"evidence_excerpt":"After months of work, we have made it to the final day in the fiscal year 20 26 budget development and approval process.","tc_start":"01:25:43","tc_end":"01:27:33"}

- topicfinish: {"block_id":"block_10610_10618","local_start":0,"local_end":90,"evidence_excerpt":"With 12 voting in favor, 2 opposed, 1 absent vote taken. The item passes, mister mayor.","tc_start":"10:35:10","tc_end":"10:36:30"}

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