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City analysis: SB2 property-tax caps and conservative modeling could produce multi-year shortfalls

Richardson City Council · December 15, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

City staff told the Richardson City Council that Texas’ SB2 property-tax cap has created a compounding revenue effect and, under conservative assumptions, the city could face multi-year deficits without new revenue or program cuts; staff asked council to prioritize core services and prepare outreach to state legislators.

City Manager Don Magner and Budget Officer Bob Kleinmire presented the city’s year-end financial results and a multi-year fiscal model showing the impact of the Texas Property Tax Reform and Transparency Act of 2019 (SB2) on Richardson’s long-term revenue picture.

Kleinmire reported the general fund finished FY25 with $183.6 million in revenue, about $2.9 million above the original budget, driven by sales tax strength; property-tax collections were $3.2 million below the budgeted amount. He said total general-fund expenditures…

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