PILLAR: Fiscally Sound
AGENDA DATE: September 16, 2026
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Budget and Management Services
PRIORITY: N/A
______________________________________________________________________
SUBJECT
Title
An ordinance setting the tax rate at $0.6978 per $100 assessed valuation, which includes $0.5075 for the General Fund and $0.1903 for the Debt Service Fund, and levying ad valorem taxes for the City of Dallas, Texas, for FY 2026-27 - Estimated Levy: $1,658,739,578 (see Fiscal Information)
Body
BACKGROUND
The City Manager’s recommended budget for FY 2026-27 set the property tax rate at $0.6978 per $100 assessed valuation, a $0.0010 decrease from the FY 2025-26 property tax rate of $0.6988 per $100 assessed valuation.
The tax rate under consideration by the City Council is $0.5075 for the General Fund and $0.1903 for the Debt Service Fund, totaling $0.6978 per $100 assessed valuation. The rate of $0.6978 per $100 assessed valuation will fund the FY 2026-27 budget. Per Section 26.05 of the Texas Property Tax Code, the vote on the ordinance setting the tax rate must be a record vote and 60 percent of the governing body must vote in favor of the adoption of the tax rate. Specific language is required in the motion setting the tax rate, and must be made in the following form:
"I move that the property tax rate be increased by the adoption of a tax rate of 0.6978 per $100 assessed valuation, which is effectively a 5.40% increase in the tax rate."
This year’s levy to fund maintenance and operations expenditures exceeds last year’s maintenance and operations tax levy. Therefore, the ordinance setting this year’s tax rate requires the statement about a “tax increase” as specified in 26.05(b) of the Property Tax Code even though the FY 2026-27 tax rate of $0.6978 is less than the FY 2025-26 tax rate of $0.6988 per $100 assessed valuation. The statements must be in larger type than the type used in any other portion of the document.
On September 2, 2026, the City Council discussed budget amendments which did not lower the property tax rate from the City Manager’s recommended property tax rate of $0.6978 per $100 assessed valuation and passed a budget ordinance on the first reading by Resolution No. 26-1372.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
The City Council was briefed on the proposed tax rate at a Budget Workshop on August 11, 2026.
On August 25, 2026, the City Council authorized a public hearing to be held on September 16, 2026 and authorized a proposal to consider adoption of a tax rate of $0.6978 per $100 assessed valuation or a lower tax rate proposed by City Council on September 16, 2026, by Resolution No. 26-1305.
On September 2, 2026, the City Council discussed budget amendments which did not lower the property tax rate from the City Manager’s recommended property tax rate of $0.6978 per $100 assessed valuation and passed a budget ordinance on the first reading by Resolution No. 26-1372.
FISCAL INFORMATION
Estimated current year tax revenues are calculated using a tax rate of $0.5075 for the General Fund and $0.1903 for the Debt Service Fund, totaling $0.6978 per $100 assessed valuation (100 percent collection rate).
Estimated Revenue:
• General Fund - $1,206,377,667
• Debt Service Fund - $452,361,911