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Dallas council sets tax-rate ceiling after heated debate over cuts and services
Summary
The Dallas City Council set a tax-rate ceiling on Aug. 27 that restores a quarter‑cent to the maintenance-and-operations rate while retaining a manager-proposed reduction in the debt-service rate, preserving roughly $5.5 million of annual revenue available to councilmembers as they finalize the fiscal year 2026 budget.
The Dallas City Council set a ceiling for next year’s property tax rate on Aug. 27 after hours of debate over whether to hold the line at the city manager’s proposed rate or preserve more revenue to avoid deep cuts to services.
Councilmember Paul Basildua moved to keep the maintenance-and-operations (M&O) rate at 51.09 cents per $100 of value — the current year’s level — while adopting the city manager’s recommended 0.1913 debt-service rate, for a combined total tax rate of $0.7022 per $100. The motion passed on roll call, 10–5.
The vote follows a failed effort by Councilwoman Kara Mendelson to adopt a “no-new-revenue” ceiling (0.673196 total), which she said would protect taxpayers from higher bills tied to rising property appraisals. That amendment failed 13–2 on a roll call, and Mendelson later renewed her push in debate before the council rejected it.
Why it matters: The ceiling adopted on Aug. 27 is not the final tax rate but…
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