Dallas City Council approves budget for FY 2025-26

(September 18, 2025)

The Dallas City Council voted to approve and adopt a balanced budget for fiscal year 2025-26 that is focused on Investing in Priority Programs and People. The FY 2025-26 operating and capital budget totals $5.20 billion including the General Fund, Enterprise Funds, Debt Service, Capital, Grants, Trust, and Other Funds. Of that total, the General Fund is $1.9 billion, which is $59.7 million, or 3.1% more than the budget adopted by the City Council last September.   

Public Safety remains a top priority for the City of Dallas. The combined budget for the Dallas Police Department and Dallas Fire-Rescue increased by $63.1 million to fulfill commitments made to our first responders. This budget reflects a reimaging of service delivery, including accelerating investments in automation and technology, eliminates duplication, and centralizes overlapping functions.  

The City Manager presented a balanced budget to the City Council on August 12 that included a property tax reduction for the tenth year in a row by 0.50¢, reducing the tax rate from 70.47¢ to 69.97¢ per $100 valuation.  The City Council provided additional tax relief to residents by reducing the tax rate an additional 0.09¢ from 69.97¢ to 69.88¢ per $100 valuation. Additionally, for the seventh time since 2017, we have increased the property tax exemption for residents who are age 65 and over or living with a disability, from $153,400 to $175,000. The budget for Fiscal Year 2025-26 begins on October 1 and runs through next September 30, 2026. 

“We are proud to present a sound budget that upholds our commitment to invest in programs that matter most to our residents, while exemplifying excellence through innovation, efficient government, and targeted economic growth,” said Dallas City Manager Kimberly Bizor Tolbert. “This achievement would not have been possible without the leadership of the Dallas City Council and the dedication of our staff, who devoted countless hours to the development of this budget,” Tolbert added. 

Budget Highlights: 

• Keep Dallas safe by hiring 350 police recruits and retaining seasoned officers with a goal of ending FY 2025-26 with 3,424 officers, the highest number since 2016. 
• Ensure the fiscal soundness of both the Dallas Police and Fire Pension System (DPFPS) and the Employee Retirement Fund (ERF) with increased City contributions.
• Moving forward with plans to build a new Dallas Police academy at the University of North Texas-Dallas.
• Increasing funding to improve 750 street lane miles and roadway improvements that are resilient, sustainable future-forward.
• Advancing the Vision Zero Action Plan by leveraging local and federal funds to implement traffic safety improvements identified in completed corridor studies.
• Invest in bike infrastructure to expand the bike network in accordance with 2025 adopted bike plan. 
• Advancing the 2024 voter approved bond program.
• Investing in housing for unsheltered residents and strengthening homeless prevention and diversion efforts. 

Dallas city officials expressed their appreciation to residents engagement in public hearings, town hall meetings, the community survey (residential and business), and the budget priorities survey.