STRATEGIC PRIORITY: Fiscally Sound
AGENDA DATE: September 17, 2025
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Budget and Management Services
EXECUTIVE: Jack Ireland
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SUBJECT
Title
An ordinance setting the tax rate at $0.6997 per $100 assessed valuation, which includes $0.5084 for the General Fund and $0.1913 for the Debt Service Fund, and levying ad valorem taxes for the City of Dallas, Texas, for FY 2025-26 - Estimated Levy: $1,584,513,566 (see Fiscal Information)
Body
BACKGROUND
The City Manager's recommended budget for fiscal year (FY) 2025-26 set the property tax rate at $0.6997 per $100 assessed valuation, a $0.005 decrease from the FY 2024-25 property tax rate of $0.7047 per $100 assessed valuation.
The tax rate under consideration by the City Council is $0.5084 for the General Fund and $0.1913 for the Debt Service Fund, totaling $0.6997 per $100 assessed valuation. The rate of $0.6997 per $100 assessed valuation will fund the FY 2025-26 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 0.6997 per $100 assessed valuation, which is effectively a 3.94% increase in the tax rate."
This year's levy to fund maintenance and operations expenditures exceeds last year's maintenance and operations tax levy. 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 2025-26 tax rate of $0.6997 is less than the FY 2024-25 tax rate of $0.7047. The statements must be in larger type than the type used in any other portion of the document.
On September 3, 2...
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