Dallas city manager presents $5.2 billion FY26 proposed budget, recommends half‑cent property tax cut

City Manager (Ms. Tolbert) and the city finance team on Aug. 12 presented a $5.2 billion proposed operating and capital budget for fiscal year 2026 that would reduce the city property tax rate by one‑half of a cent per $100 of valuation and increase spending for police and fire recruitment, pensions and a range of capital projects.

“This morning, we will present to you the fiscal year 26 budget that focuses on investing in priority programs and people,” Chief Financial Officer Jack Ireland told the council during the presentation. The recommended total for FY26 is $5.20 billion; the general fund portion is $1.97 billion.

Why it matters: The proposal would lower the municipal tax rate from 70.47¢ to 69.97¢ per $100 of assessed value while funding higher starting pay for recruits, stepped increases in pension contributions and a multiyear capital program. Council members used the briefing to press staff for more detail on a promised shift to priority‑based budgeting, rate and fee changes for utilities and sanitation, and several operational consolidations the city manager proposed.

Key numbers and highlights

- Total recommended budget (all funds): $5.20 billion, a roughly $230 million (4.6%) increase from the current year adopted budget. - General fund: $1.97 billion (a 3.2% increase vs. FY25 adopted). - Property tax rate proposal: reduce by 0.5¢, from 70.47¢ to 69.97¢ per $100 of valuation. - Capital and debt: $514.8 million in capital improvement projects funded through debt issuance and pay‑as‑you‑go; $250 million tranche of…