Dallas manager recommends $5.2 billion fiscal 2026 budget with small property tax cut, utility increases

City of Dallas Director of Budget and Management Services Jeanette Wheaton on Thursday presented City Manager Kimberly Beiser Tolbert’s recommended fiscal 2026 budget, calling it a balanced $5.2 billion proposal that aims to invest in public safety, infrastructure and services while reducing the city property tax rate.

"The total recommended budget for fiscal year 26 is balanced and totals 5,200,000,000.0, investing in priority programs and people," Wheaton said, noting the operating budget includes a $1.97 billion general fund to pay for police, fire, parks and code enforcement.

The proposal would lower the city tax rate by one-half cent, from 70.47 cents to 69.97 cents per $100 of valuation, marking the tenth consecutive year of property tax relief from the manager’s recommendations. Wheaton said property tax remains the largest source of general fund revenue but reminded residents that most of a tax bill goes to the school district, county and other taxing entities.

The recommended capital budget totals $952.7 million and the city would continue rolling out a $1.25 billion bond program that includes street, facility and water projects. Wheaton said $162 million is earmarked to improve and maintain about 750 lane miles, implement Vision Zero safety projects and begin phase one of a 2025 bike plan. The proposal also advances design of the Dallas Police Department Law Enforcement Training Center and upgrades to the Veil Fork Water and Central Wastewater projects.

Under the "safe" pillar, the manager’s plan funds the hiring of 350 new police recruits and retention measures with a stated goal of ending fiscal 2026 with 3,424 sworn officers; it also funds the Dallas Police and Fire Pension System as approved by the City Council on Sept. 11, 2024. Wheaton said the city is realigning the marshal’s office and preparing for security needs during the 2026 FIFA World Cup matches.

The recommendation would raise the city’s minimum wage to $21.50 an hour, increase the over-65 and disabled homestead exemption to $175,000, introduce a new task-pay program for critical roles, and save about $12 million in employee health benefit costs through proactive strategies.

Typical residential customers would see utility adjustments in fiscal 2026, Wheaton said: a 6.7% water increase (about $4.88 per month for a typical household), a 0.9% sanitation increase (about $0.36 per month) and a 5.5% stormwater increase (about $0.56 per month). She noted the $3 per month environmental cleanup fee would remain unchanged.

Wheaton described a range of other investments across seven foundational pillars that include increased code enforcement capacity, expanded homelessness prevention partnerships and a housing pathways framework, resumption of city operation and maintenance of Fair Park, and efforts to transform the Convention Center District under the Kay Bailey Hutchison Convention Center master plan.

The city manager’s timetable calls for continued budget town halls through Aug. 28, city council consideration and first reading of budget amendments on Sept. 3, and final adoption on Sept. 17. Implementation of the adopted budget would begin Oct. 1.

"Resident feedback and engagement play a vital role in determining budget priorities," Wheaton said, inviting residents to review details at dallas.gov.