Budgets for Dallas-Fort Worth’s five largest cities, at a glance

Takeaways

Tax rate changes varied across the Dallas Region depending on budget challenges and service priorities, with most cities experiencing steady tax rates.
Cities experiencing budget challenges adjusted annual investments in core services, which may impact costs and service access for local businesses.
Cities experiencing higher revenue rates increased investments in core services, which may increase local businesses’ access to services.

By Jake Anderson, Vice President, Public Policy

Estimated reading time: 1 minute

Municipal budget season concluded in September, when city leaders determined the level of yearly investment in core services, such as public safety, water, streets, transportation and permitting departments—all of which impact businesses’ ability to effectively operate and grow.

This year, many cities are facing significant budget pressures. State law requires that local governments pass a balanced budget by October 1 and limits the ways in which tax revenues to local governments may grow year-over-year. Those laws, combined in some cases with falling property values or rising costs, have led communities across Texas to find creative solutions to budget challenges.

Below is a brief survey of budget toplines across the five largest cities in the Dallas Region.

Dallas

Facing a $51 million shortfall, Dallas city officials approved a budget on Wednesday, Sept. 16, that lowered the city’s tax rate, increased police hiring and salaries, and increased library services despite initially cutting them. To balance the budget, the plan eliminates 200 staff positions, eliminates its PPO health care plans for employees, caps cost-of-living raises at 2% (with executive staff foregoing any raises altogether), and reduces funding for certain departments.

Fort Worth

With a budget shortfall estimated at $94 million, the Fort Worth City Council voted to raise the tax rate by 3.2 cents, to $0.7020 cents per $100 valuation. Despite this tax rate increase, residents will actually pay less in taxes, as the budget deficit was driven by falling property values in Tarrant County. The rate change allowed the city to maintain certain services, including infrastructure improvements, animal welfare programs and merit incentives for employees.

Arlington

Arlington kept its rate steady this year and was not required to cut services. The city increased trash and water fees and updated its permitting fee schedule. Because of falling taxable values in Tarrant County, many residents will see a lower bill.

Plano

After the first tax rate increase in 16 years during the FY26 budget cycle, Plano managed to hold the tax rate flat for FY27. The total revenue increased by 2.2%, with the additional funding directed to the police department, city planning, recreation center maintenance and more.

Irving

Irving maintained its tax rate and service levels while adjusting employee salaries to keep wages competitive with neighboring cities. The City Council increased the formerly $60,000 homestead exemption for seniors and disabled homeowners to $65,000. It also directed funds to additional infrastructure improvements, public safety personnel and equipment and facility upgrades for the fire department.

Local government decisions influence both the cost and predictability of doing business, and they carry significant weight in where businesses choose to operate. Cities that invest in infrastructure, public safety and other critical services are better positioned to attract businesses and empower them—and their communities—to thrive.

The DRC monitors the Dallas Region’s evolving policy environment, including local policy changes and budget pressures which may impact the business landscape, to ensure regional business leaders remain engaged and informed. To discuss your business’ policy priorities or learn more about the DRC’s public policy work, contact publicpolicy@dallaschamber.org.