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Dallas proposes balanced $5.2 billion FY2026 budget with modest tax cut, police hires and utility rate increases
Summary
City staff presented a recommended FY2026 budget totaling about $5.2 billion, including a $1.97 billion general fund, a half-cent reduction in the city property tax rate, funding to hire 350 police recruits, a $952.7 million capital program, and modest utility rate increases. Council consideration is set for early September.
City of Dallas budget staff presented a recommended fiscal year 2026 spending plan they say is balanced and focused on public safety, sustainability and core services.
"El presupuesto total recomendado para el año fiscal 26 está equilibrado y asciende a 5.2," Iván Guel, Deputy Director of Budget and Administrative Services, said while reviewing the proposal. The recommendation, submitted by the city manager, would allocate roughly $1.97 billion to the general fund and about $952.7 million to capital investments.
Guel said the recommended city tax rate would fall from 70.47 cents to 69.97 cents per $100 of assessed value — described in the presentation as a half-cent reduction and the tenth consecutive year of tax relief in the manager’s recommendations. The proposal also raises the homestead exemption for seniors and people with disabilities to $775,000 and recommends a city minimum wage of $21.50 per hour.
Beyond tax policy, the budget includes targeted service and infrastructure changes. Guel said the plan funds the hiring of 350 new police recruits and aims to end FY2026 with about 1,424 sworn officers. The package also includes $162 million for sustainability work to maintain and improve roughly 750 miles of lanes, Vision Zero safety projects and the first phase of a 2025 bike plan, and continues a $1.25 billion bond program for capital projects.
Utility customers would see modest rate adjustments under the recommendation, Guel said: water rates would rise by about 6.7% (approximately $4.88 per month for a typical residential account), solid waste and recycling rates by about 0.9% (about $0.36 per month), and stormwater fees by about 5.5% (about $0.56 per month). Guel characterized those increases as necessary to maintain service levels for potable water, waste collection and stormwater management.
The recommendation includes several organizational changes and program investments: creation of a new Department of Housing and Community Empowerment to consolidate neighborhood and human services programs; expanded animal services funding for sterilization, vaccination and microchipping; reinforced code enforcement with camera tools and an expanded nightlife team; and investments in procurement modernization and cybersecurity.
Guel also highlighted economic development work tied to the downtown convention center master plan and airport terminal projects discussed in the presentation. The presentation referenced a convention center master plan name in the transcript; officials are pursuing related redevelopment and real-estate integration with housing and preservation planning.
City staff emphasized the timeline: community budget meetings continue through Aug. 28; the City Council will consider amendments and is scheduled to give first reading to the budget on Sept. 3, with final adoption planned for Sept. 17. If adopted, the budget would take effect Oct. 1.
The presentation materials and a summary of recommended investments are posted on the City of Dallas budget website, the presenter said.
