Dallas property tax vote set Wednesday

The Dallas City Council votes Wednesday on a property tax rate for the next budget year starting Oct. 1.

After several years of soaring property values property owners have been shocked with rising tax bills.

City Manager T.C. Broadnax in a new city budget plan proposed earlier this month recommended a slightly lower rate.

Dallas Mayor Eric Johnson in a memo Friday called for a much lower rate, the so-called no new taxes rate, which would cap property tax revenue at the same amount received in this current year.

It would save property owners more money but also require more than $100 million in cuts to the manager’s proposed budget.

For general fund services like police and fire protection, streets and sidewalks, property taxes are the largest source of funding.

Dallas city budgets have increased each of the past few years.

“I haven’t seen a great increase or an improvement in city service despite these increases, so I think it’s time for us to hone in,” City Council Member Chad West said.

Dallas Mayor Eric Johnson appointed West to lead a government performance committee to find ways to cut spending and taxes.

“I’m committed to supporting the mayor’s efforts to finding the tax cuts to help our families stay in their homes,” West said.

Dallas City Council Member Cara Mendelsohn said she will push for the no new taxes rate, plus a small amount more to fund an efficiency study of city government when the tax rate vote comes up Wednesday.

Also last week, Mendelsohn sent Mayor Johnson a memo, outlining ways the budget could be slashed.

The current Dallas property tax rate is 74.58 cents per $100 value.

The manager’s proposed rate of 73.93 would reduce taxes for the owner of the Dallas average $344,710 homestead by $17.40 a year.

The no new taxes rate of 68.13 cents per $100 value would reduce that bill by $168.21 a year.

The city manager's budget would be cut by $113 million.

Dallas City Council Member Carolyn King Arnold represents City Council District 4 in southern Dallas.

“We have committed to providing funding to historically underserved communities as a priority and so I believe the budget as proposed by the city manager addresses that,” Arnold said.

The new Dallas equity policy calls for catching up on long-ignored problems like potholes and missing sidewalks in those neighborhoods.

At the same time, the city’s chief financial officer predicts much larger budget problems in the future in a 5-year financial forecast.

“As a business owner, if I know I’m going to have a shortfall in two years, I start making cuts now and plan for it. I don’t increase my budget,” West said.

But West also said it may be difficult to find budget cuts enough to remove $113 million in proposed spending with just over a month to go before a final budget vote.

“The conversation will be very interesting, but we want to remind everyone of the commitment to equity,” Arnold said.

If a higher tax rate is approved by the city council Wednesday, it can still be lower if spending is reduced when a final budget is approved in September.