Mayor Johnson calls for more substantial tax reduction

Dallas, Texas - In anticipation of a pivotal decision on the maximum tax rate for the coming fiscal year, Dallas Mayor Eric Johnson has urged a further reduction in the property tax rate.

This follows City Manager T.C. Broadnax's proposal in early August for a $4.63 billion city budget for the 2023-24 fiscal year, which includes a general fund budget of $1.84 billion and a modest property tax decrease.

On August 23, the City Council will discuss the highest allowable tax rate for the upcoming budget. Mayor Johnson's recent call for a more substantial tax rate decrease, from $0.7458 to $0.7393 per $100 valuation, will be considered. This suggestion occurs amidst concerns regarding Dallas' pension fund and the city's ongoing efforts to address the issue.

However, the proposed rate reduction of $0.0065 might not lead to tax savings for most Dallas property owners. Due to expected property value increases of roughly 10.5% for the upcoming fiscal year, the city could see increased revenue, leading to the largest city budget in Dallas' history, as mentioned in a memo from City Council Member Cara Mendelsohn.

Mendelsohn, a proponent of fiscal prudence, influenced Mayor Johnson's challenge to the original budget proposal. The City Council's forthcoming decision will likely determine if more property tax relief is granted.

Mayor Johnson emphasized in an August 20 newsletter, "We have an opportunity with this new city budget to… begin alleviating Dallas residents’ unsustainable property tax burden and to halt the expansion in size of our ever-growing city government.” He asserted the need for efficient service delivery and reduced city spending.

Mendelsohn has also proposed a no-new-revenue rate for the coming fiscal year to ensure stable tax bills for residents and businesses. Her suggestions aim to refine the budget and limit unnecessary expenditures. Key strategies include eliminating long-vacant "ghost" positions and reverting department budgets to previous fiscal year levels, with some exceptions.

Additionally, she recommends stopping city funding for programs overseen by other entities like the county or federal government, thus reallocating financial responsibility and easing the city’s fiscal load.

Mendelsohn contends that if her strategies are implemented effectively, they can provide financial predictability to residents and businesses. This approach could reshape Dallas' fiscal landscape.

As part of his agenda, Mayor Johnson is committed to property tax reduction. He voiced his aspiration in June to make Dallas the regional leader in low property tax rates, hoping to attract more residents and professionals.

In alignment with these objectives, a public hearing is scheduled for August 23 to gather community input on the budget. The hearing, during a City Council session at City Hall, is slated to start after 1 p.m., depending on the preceding meeting's length.

Community members wishing to participate have multiple registration methods available. Registration closes on August 22 at 5 p.m.

Following an August 18 memorandum, Mayor Johnson asked City Manager Broadnax for an updated budget, due by September 1 at 5 p.m. A budget workshop will follow on September 6 for City Council deliberation.

The final budget's official adoption is anticipated for late September. Once ratified, the budget will be active from October 1, 2023, to September 30, 2024.

Credit: Dallas Metro News, City of Dallas