In a preliminary discussion with the city council, Dallas City Hall said property tax revenue is $6.7 million less than forecast.
Dallas city manager Kim Tolbert told the city council Wednesday that city staff will spend the next few months determining which city services and programs provide the most value for taxpayers.
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WATCH HERE"It is going to be a painful summer," Tolbert said, describing the work ahead to find savings in what's expected to be a tight budget year.
"I can’t tell you where we’re going to end up," Tolbert said about the priority-based budgeting process.
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SIGN UP The budgeting method emphasizes spending based on an organization's stated goals and priorities, as opposed to incremental changes in departments year to year.
The city's chief financial officer shared that so far, revenue from
Jack Ireland said the erosion in revenue is largely due to successful legal challenges from landowners on assessed values of property. He added there is another $50 billion in assessed value under dispute with the Dallas County Appraisal District (DCAD), so forecasting how much revenue the city will receive when the fiscal year ends September 30 is difficult.
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The city faced a more than $30 million dollar gap at the same point last year.
District 13 council member Gay Donnell Willis said changing the way the city approaches the budget process is well-timed.
“Even if we weren’t under some of the pressures that we are now, that are so uncertain, the time has come to take this kind of approach," Willis said.
District 4 council member Carolyn King Arnold, who is term-limited and will not be a part of the next budget workshop on June 18, questioned Tolbert if the process will lead to job cuts for city employees.
"Will we lose staff as you prioritize for these programs? Is that a possibility?” Arnold asked.
"What I can tell you is that there are no sacred cows when it comes to the approach we have to take looking at the budget," Tolbert responded.
