Dallas proposes $5.2B budget with focus on public safety, tax rate reduction

DALLAS — Dallas City Manager Kimberly Bizor Tolbert unveiled the proposed balanced budget for fiscal years 2025-26 and 2026-27 to the Mayor and City Council on Friday.

The plan totals $5.2 billion, an increase from this year’s $4.97 billion budget.

The General Fund, which covers core city services, is set at $1.97 billion, up 3.2% or $61.6 million from last year. Most of the increase is earmarked for the Dallas Police Department and Dallas Fire-Rescue. The budget includes a pay raise for police starting at $81,232 a year, which is one of the highest salaries in the region.

City officials faced significant challenges preparing the budget, as Dallas grapples with a lower-than-expected sales tax revenue report, an increase in home appraisal appeals and a voter-approved mandate to hire hundreds of new police officers. 

Despite these hurdles, the city balanced the budget while reducing the property tax rate by half a cent—from 70.47¢ to 69.97¢ per $100 valuation. This marks the 10th consecutive year Dallas has lowered its property tax rate, which has dropped nearly 10 cents (12.21%) since fiscal year 2015-16.

In addition, Dallas increased the property tax exemption for seniors aged 65 and older or residents with disabilities for the seventh year in a row, raising it from $153,400 to $175,000. Daycare facilities also continue to receive a 100% tax exemption.

“We looked at the top priorities identified by residents in the annual Community Survey. We incorporated their feedback, as well as the City Council’s,” Tolbert said. “This budget reflects a reimagining of service delivery, the elimination of duplications, the optimization of operational efficiencies and other measures that maintain responsiveness to the needs of the city.”

• Keep Dallas safe by hiring 350 police recruits and retaining seasoned officers to end FY 2025-26 with 3,424 officers, the highest number since 2016.
• By the end of FY 2026-27, the goal is to have 3,634 sworn officers.
• Working to provide market-based pay and step pay increases in accordance with the Meet and Confer Agreement for uniform employees, which expires in September, negotiations are underway for the new agreement.
• The FY 2025-26 budget recommends increasing starting compensation for police officers to $81,232 to be one of the highest within the region while maintaining parity for our firefighters.
• Contribute to the Dallas Police and Fire Pension System (DPFPS) in compliance with the funding plan approved by the City Council on September 11, 2024.
• Moving forward with plans to build a new Dallas Police academy at the University of North Texas-Dallas.
• The FY 2024-25 budget for the total street maintenance program was approximately $125 million to improve 710 street lane miles. The FY 2025-26 budget increases this investment to $162 million to improve 750 street lane miles.
• Advancing the Vision Zero Action Plan by leveraging local and federal funds to implement improvements identified in completed corridor studies.
• Continue with proven strategies to end street homelessness incrementally across the city, including accelerated diversion and rehousing from shelters, to prevent street sleeping with a $10 million investment to move more people inside and prevent overflow into our streets.

The city says it wants public feedback on the budget. Dallas City Council members will be hosting town hall meetings throughout August. There’s also a citywide Tele-Town Hall on Saturday, August 16, 2025, at 10 a.m.

The full budget documents can be accessed here.