PILLAR: Fiscally Sound
AGENDA DATE: August 12, 2026
COUNCIL DISTRICT(S): N/A
DEPARTMENT: City Secretary’s Office
PRIORITY: Government Efficiency
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SUBJECT
Title
An ordinance ordering a special election to be held in the city of Dallas (the City) on Tuesday, November 3, 2026, (1) for the purpose of submitting to the qualified voters of the City certain propositions pertaining to the issuance of bonds; (2) making provisions to conduct the election; and (3) providing an effective date - Financing: No cost consideration to the City
Body
BACKGROUND
This resolution calls for the City of Dallas to order a November 2026 bond election to fund essential capital improvements across several priority areas. The proposed bond program includes investments in Public Safety Facilities, Service Center Facilities, and Pension Obligation Bonds, ensuring the City can address critical infrastructure needs, support public safety operations, and meet long-term financial commitments. Adoption of this resolution will authorize the formal steps required to prepare for the election and present these funding initiatives to Dallas voters.
The Public Safety Facilities bond proposition provides $441 million to address critical facility needs across the City’s public safety system. Funding supports construction of the Dallas Police Department (DPD) Law Enforcement Training Facility, including gap financing needed to complete the construction scope of work as early as Q1 FY 2027, and advances the DPD Public Safety Training Complex, a major project that has never been funded in previous bond programs. The proposition also includes replacement of Fire Station 4, identified by Dallas Fire-Rescue as the station most in need of modernization, and the relocation of the City’s 911/Emergency Operations Center, ensuring improved resiliency and continuity of emergency communications. Collectively, these investments modernize aging infrastructure, expand training capacity, enhance operational readiness, and strengthen the City’s ability to deliver effective, reliable public safety services.
The City Service Maintenance Centers bond proposition allocates $17 million to replace the Southeast Service Center (SESC), a facility widely regarded as the most deteriorated building in the city of Dallas. This funding will be combined with existing resources to demolish the current structure and construct a new, modern fleet maintenance facility designed to support efficient city operations, improve service delivery, and ensure a safe and functional workspace for maintenance personnel. The new center will provide updated infrastructure, improved operational capacity, and long-term resiliency for the City’s fleet and service operations.
The Pension Obligation Bond proposition provides up to $500 million to partially address the unfunded liability of the Dallas Police and Fire Pension System (DPFPS). DPFPS is a defined-benefit pension plan that provides retirement, disability, and death benefits for permanent employees of the Dallas Police Department and the Dallas Fire Rescue Department.
The Dallas City Council and the DPFPS Board approved a joint funding agreement on December 10 and December 11, 2025, respectively. The funding agreement was accepted by the Texas Pension Review Board to meet their 30-year full-funding requirements. However, to accelerate addressing the unfunded liability and to potentially result in net savings to the city over the 30-year period, Pension Obligation Bonds provide a financial tool available to the city. The benefit of issuing Pension Obligation Bonds rests on the assumption that bond proceeds will achieve a rate of return that is greater than interest rate owed over the term of bonds.
Pending voter authorization, actual issuance of Pension Obligation bonds will only occur after the Finance Committee has been notified and the City Council has authorized the debt issuance. Additionally, the bonds may be issued in multiple tranches with no single tranche being less than $125 million and will only be issued when the expected cost of borrowing is 200 basis points (2 percentage points) or more below the DPFPS expected rate of return (discount rate) which is currently set at 6.5%.
The exhibits to the ordinance specify: (i) the election day polling locations designated by Dallas County, Denton County, and Collin County or their respective election officers (Exhibit A); and (ii) early voting places, the early voting times, and the addresses for early voting by mail for the special election (Exhibit B).
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
The City Council was briefed on public safety capital needs on April 15, 2026.
On May 21, 2026, the Joint Meeting of the Ad Hoc Committee on Pensions and the Finance Committee held a joint committee meeting to discuss:
• Overview of the Dallas Police and Fire Pension System
• Current funding status
• Additional funding opportunities
• Potential issuance of Pension Obligation Bonds (POBs)
On June 10, 2026, the City Council received a comprehensive briefing on Public Safety Needs, including:
• Public Safety capital projects
• Proposed Public Safety General Obligation Bond Program
• Proposal for approximately $500 million in Pension Obligation Bonds for the Dallas Police and Fire Pension System
On June 24, 2026, the City Council adopted Resolution No. 26-1113, which authorized the City Manager to prepare for and present, at the August 12, 2026 City Council meeting, the actions necessary to call a November 2026 bond election for the issuance of (1) public safety general obligation bonds; and (2) pension obligation bonds for the Dallas Police and Fire Pension System.
FISCAL INFORMATION
No cost consideration to the City.