STRATEGIC PRIORITY: Fiscally Sound
AGENDA DATE: September 3, 2025
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Budget and Management Services
EXECUTIVE: Jack Ireland
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SUBJECT
Title
First reading and passage of the appropriation ordinance appropriating funds for the proposed FY 2025-26 City of Dallas Operating, Capital, and Grant & Trust Budgets (1) for the maintenance and operation of various departments; (2) authorizing the City Manager to make certain adjustments; (3) appropriating funds for public improvements to be financed from bond funds and other revenues of the city of Dallas for fiscal year 2025-26; and (4) providing an effective date - Not to exceed $5,510,422,946 - Financing: General Fund ($1,965,019,000), General Obligation Debt ($491,015,332), Capital Funds ($952,657,537), Enterprise/Other Funds ($1,530,942,519), Internal Service and Other Funds ($299,422,205), Grants, Trusts, and Other Funds ($264,014,138), and Employee Retirement Fund ($7,352,215)
Body
BACKGROUND
In accordance with the Charter of the City of Dallas and prior to August 15, the City Manager recommended a budget to the City Council for the upcoming fiscal year on August 12. The fiscal year will begin on October 1, 2025, and end on September 30, 2026. The total budget for FY 2025-26 is recommended at $5,203,648,527. The Internal Service Funds are budgeted at $299,422,205 and the Employee Retirement Fund at $7,352,215.
The budget for Internal Service Funds is included in this action because the funds require budget appropriation for spending. The budget for Internal Service Funds is not included in the budget overview in the budget document or budget briefing materials to prevent the revenues and expenditures from being counted twice in citywide totals as funding is moved from one city fund to another. For example, when a department purchased fuel through Equipment and Fleet Management, it would not be accurate to record this as a citywide revenue and expenditure, as the money is simply moving from one city fund to another.
Additionally, the budget for the Employee Retirement Fund (ERF) is not included in the budget document or briefing materials. The ERF budget is reviewed and approved by the ERF Board of Trustees who are responsible for administering the Fund in accordance with the Dallas City Code, Chapter 40A.
The City Council held public hearings on the proposed budget on March 26, 2025, May 28, 2025, and August 27, 2025. The City Council has received additional information through briefings and workshops. Additional resident input has been received through City Council sponsored town hall meetings.
This action will approve the budget on first reading in accordance with the City Charter. The City Council is scheduled to pass the appropriation ordinance on final reading on September 17, 2025. Additional amendments may be considered at any time prior to passage of the appropriation ordinance on final reading on September 17, 2025.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On February 26, 2025, the City Council authorized three public hearings to be held on March 26, 2025, May 28, 2025, and August 27, 2025 to receive comments on the FY 2025-26 Operating, Capital, and Grant & Trust Budgets by Resolution No. 25-0334.
The City Council was briefed on the FY 2025-26 proposed and FY 2026-27 planned budget on August 12, 2025.
On August 27, 2025, the City Council authorized a public hearing to receive comments and will consider adoption of a tax rate of 70.22 cents per $100 of assessed valuation or a lower tax rate on September 17, 2025, as proposed by Resolution No. 25.1396.
FISCAL INFORMATION
General Fund $1,965,019,000
General Obligation Debt Service Fund $ 491,015,332
Capital Funds $ 952,657,537
Enterprise/Other Funds $1,530,942,519
Grants, Trust, and Other Funds $ 264,014,138
Subtotal: $5,203,648,527
Internal Service and Other Funds $ 299,422,205
Employees Retirement Fund $ 7,352,215
Subtotal: $ 306,774,420
Grand Total: $5,510,422,946