City Plan Commission - Regular Meeting

Fort Worth continues to grow, but is facing a challenge. More residents, more roads, more emergency calls, more demand for city services. While our city has grown, the cost of providing those services has grown too. Police vehicles, fire equipment, road construction, and everyday operating expenses all cost more than they did just a few years ago. At the same time, Fort Worth's growth isn't translating into higher taxable property values. Changes in property appraisal practices mean that even with new construction, the city is collecting less property tax revenue than expected. Together, these factors created a significant gap between revenues and expenses that needed to be addressed in this year's budget. For fiscal year 27, the city's operating budget is $3.3 billion and the general fund budget is $1.6 billion. The general fund pays for many of the services residents use every day. Public safety makes up the largest share, with $658 million, more than half the fund, supporting police, fire, and emergency management. The remaining portion supports other essential city services. Over half of general fund revenue comes from property taxes. With property tax revenue down, the city had to make some tough decisions. And we can't simply move money from other city funds into the general fund. Many of those funds are legally restricted for specific purposes. To close the gap without reducing public safety funding or personnel, the city used a combination of strategies. The first $7.8 million came from reducing everyday operating expenses, including supplies, travel, training, and other administrative costs. Another $14.6 million came from larger reductions, including eliminating vacant positions, reducing nonessential contracts, reducing capital maintenance, and shifting eligible positions and costs to other funds when possible. The next $28.5 million came from deeper cuts, including changes to the employee performance pay pool, freezing or eliminating additional vacant positions, limiting growth in capital maintenance, and reducing certain contributions. New revenue sources were identified, providing another $6.3 million. To close the remaining $36.9 million gap and get to a balanced budget, City Manager Jay Chopper proposed a property tax rate increase from 67 cents to 70.2 cents per hundred dollars of taxable value. After reviewing the recommended budget, the City Council asked to bring back some services and positions that had been slated for cuts, which would result in a tax rate of 70.565 cents. That's an increase of 3.565 cents from last year. So what does the property tax rate mean for you? At first, that may sound surprising. The proposed tax rate is going up, but the typical Fort Worth household is projected to pay $8 less per year in city property taxes. While the tax rate is increasing, taxable property values have declined. So for a typical household, the decrease in taxable value is greater than the increase in the tax rate. The additional revenue generated by the proposed rate would help maintain the services residents rely on every day. Property taxes aren't the only source of funding for city services. Some services are supported through fees and rates paid by the people who use them. For fiscal year 27, nine departments are recommending fee updates. Under the proposed fee schedule, a typical household would pay approximately $85 more per year in fees, or about $7 per month. The city has tried to minimize overall service impacts through these budget balancing strategies, but residents may notice some changes, fewer mowing cycles, longer wait times, or other adjustments to programs and services. Despite those challenges, this budget continues to invest in the services that matter most to our community. It keeps police officers, firefighters, and paramedics staffed and ready to respond. It supports our streets and infrastructure, our parks and libraries, and the everyday services that keep Fort Worth moving. As our city continues to grow, the goal is to make thoughtful choices that benefit our entire community, protecting the services residents depend on today while preparing Fort Worth for tomorrow.