Video summary
Fort Worth is experiencing significant growth, which brings increased demand for city services such as road maintenance, emergency response, and public safety operations. However, this expansion has not resulted in higher property tax revenues due to changes in appraisal practices that lower taxable values despite new construction. Consequently, the rising costs of operating expenses, equipment, and personnel have created a substantial gap between income and expenditures that the city needed to address for fiscal year 27. To manage this financial challenge without compromising public safety or reducing essential staff, the city implemented a combination of strategic budget adjustments.
The initial approach involved closing a $36.9 million gap through various cost-saving measures before resorting to tax increases. The city first reduced everyday operating expenses by an additional $7.8 million, followed by larger reductions totaling $14.6 million that included eliminating vacant positions and reducing non-essential contracts. Further savings of $28.5 million were achieved through deeper cuts such as modifying employee performance pay pools and limiting capital maintenance growth. Additionally, the city identified new revenue sources worth $6.3 million. These steps collectively allowed for a balanced budget while maintaining core services, though some adjustments to programs like park maintenance and administrative functions were necessary.
To fully balance the budget, City Manager Jay Chopper initially proposed increasing the property tax rate from 67 cents to 70.2 cents per $100 of taxable value. Following this proposal, the city council reviewed the plan and requested the restoration of certain services and positions that had been cut, which slightly adjusted the final proposed tax rate to 70.565 cents. Despite the higher tax rate, the typical Fort Worth household is projected to pay $8 less per year in total property taxes because the decline in taxable property values outweighs the rate increase. Furthermore, residents can expect to pay approximately $85 more annually in various user fees across nine departments, averaging about $7 per month, to support specific services like water and utilities.
Ultimately, this fiscal plan aims to sustain the critical infrastructure and community services that Fort Worth relies on while preparing for future growth. The budget ensures that police officers, firefighters, paramedics, and other essential workers remain fully staffed and ready to respond to emergencies. It also supports the maintenance of streets, parks, libraries, and other public amenities that keep the city functioning smoothly. By making thoughtful financial choices, the city intends to protect the services residents depend on today while ensuring Fort Worth is well-positioned for tomorrow's challenges and opportunities.
Read the full video transcript
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 6 million came from
larger reductions, including eliminating
vacant positions, reducing non-essential
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
$100 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.
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.