Balancing Fiscal Responsibility and Community Needs
In a move that marks a significant shift in the city’s financial landscape, the city of Fort Worth, Texas, has proposed raising its property tax rate for the first time since 1995. This proposed change, outlined in the city manager’s recommendations for the fiscal year 2025 budget, aims to address the growing demands for essential services and infrastructure while navigating the evolving revenue landscape.
Addressing Changing Revenue Realities
According to city officials, the proposed tax rate increase is a direct response to the slowing growth in property values across the city. After two years of rapid expansion, the Tarrant Appraisal District’s recent certification of the property tax rolls revealed a significant drop in the total taxable assessed value, falling from an estimated $129.7 billion to just $121.6 billion.
“That is almost a $4 billion decrease from the number we were using in June,” explained Fort Worth City Manager David Cooke. “And a $4 billion drop in net taxable assessed value has an impact on the resulting tax rate.”
This unexpected decline in property value growth has put considerable strain on the city’s budget considerations, requiring a recalibration of priorities and funding sources. Cooke emphasized that the proposed 0.48-cent increase in the tax rate, from 67.25 cents to 67.73 cents per $100 of assessed value, is necessary to maintain the current level of services and address pressing infrastructure needs.
Investing in Community Foundations
The central theme of the proposed $1.062 billion general fund budget is “focusing on foundations” – maintaining existing infrastructure and ensuring public safety while limiting the addition of new city staff positions. This approach reflects the city’s commitment to responsible fiscal management and prioritizing the most critical community needs.
“This year’s general fund growth is half of what it was last year,” Cooke noted. “Focusing on foundation also means narrowing our focus, or discussion, on basic governmental roles.”
One of the primary drivers for the increased budget is the investment in the city’s aging street infrastructure. The proposed budget would allocate an additional $9 million toward repairing crumbling roads, a long-standing concern raised by Fort Worth residents. This funding would come from an increase in the city’s “pay-as-you-go” mechanism, allowing the city to address these critical needs without taking on additional debt.
Navigating the Transition to Fire-Based EMS
Another significant change in the proposed budget is the implementation of a fire-based emergency medical services (EMS) system, replacing the longtime provider, MedStar. The transition to this new model will require an initial investment of $3.5 million in the fiscal year 2025 budget, with future costs to be covered through a dedicated EMS revenue fund.
This shift in the city’s approach to emergency medical services has raised concerns among neighboring municipalities that rely on Fort Worth’s EMS services. City staff are actively working to negotiate individual agreements with these communities, ensuring a seamless and equitable transition.
Balancing Workforce Needs and Affordability
Despite vocal advocacy from local unions and community organizations, the proposed budget maintains the city’s minimum wage at $16.07 per hour, a 4% increase from the current $15.45 rate. While city management argues that their current compensation structure is competitive, several council members have expressed a desire to further increase the minimum wage, potentially to $18 per hour.
“I don’t think anybody around this table disagrees that we want to make sure we take care of all of our workforce,” said Mayor Mattie Parker. “I think, unfortunately, we have very limited revenue this year, and so our job around this table is to work alongside management and HR to arrive at what we think as a body we are most proud of.”
The city’s efforts to balance workforce needs with overall financial constraints have also prompted a recommendation to conduct a comprehensive pay study, the first of its kind since 2014. This initiative aims to evaluate the current compensation structure and ensure Fort Worth remains a competitive employer.
Collaboration and Community Engagement
In a departure from past budget cycles, the Fort Worth City Council has taken a united stance against the proposed tax rate increase, requesting that the city manager maintain the current rate of 67.25 cents per $100 of assessed value. This position reflects the council’s recognition of the growing concerns among residents regarding property tax burdens and overall housing affordability.
“Our residents continue to voice growing concerns around their property tax burden and overall housing affordability,” the council stated in a joint letter to City Manager Cooke. “Given the economic uncertainty surrounding inflation and cost of living, we believe we must continue our over decade long effort at lowering the property tax rate while also providing superior services to our community.”
The council’s stance on the tax rate is not the only area where they have sought to address community needs. They have also requested that the budget allocate funding for a minimum wage increase to $18 per hour, recognizing the necessity of supporting the city’s workforce and maintaining Fort Worth’s position as a preferred employer.
Furthermore, the council has emphasized the importance of maintaining superior public safety services and allocating “vital street maintenance funds necessary to preserve the infrastructure of our growing city.” These priorities align with the community’s ongoing concerns and the city’s commitment to providing high-quality services.
Engaging the Community
To facilitate transparent decision-making and gather valuable feedback, the city has scheduled a series of public meetings and hearings throughout the budget process. These events will provide residents with opportunities to voice their concerns and insights, ultimately shaping the final budget and tax rate decisions.
“We’ve recently sent you an authentication link. Please, check your inbox!” Mayor Parker urged, encouraging residents to participate in the upcoming budget discussions.
By fostering open dialogue and incorporating community input, the city of Fort Worth aims to strike a balance between fiscal responsibility and responsive service delivery. As the budget process unfolds, residents can expect to see their voices reflected in the final decisions, ensuring the city’s priorities align with the community’s evolving needs.
Conclusion
The proposed Fort Worth budget for fiscal year 2025 represents a significant turning point in the city’s financial landscape. The decision to raise the property tax rate for the first time in nearly three decades underscores the challenges faced by the city in maintaining essential services and infrastructure amid changing revenue realities.
Through a collaborative approach that prioritizes community engagement and a focus on foundational priorities, Fort Worth is striving to navigate these complexities while remaining responsive to the needs and concerns of its residents. As the budget discussions continue, the city’s commitment to fiscal responsibility, workforce support, and infrastructure investment will be closely watched by the community.
By striking the right balance between budgetary constraints and community aspirations, Fort Worth can ensure that its residents continue to enjoy the high-quality municipal services and livable neighborhoods that have long defined the city. Through this process, the city can demonstrate its dedication to responsible governance and its unwavering commitment to the well-being of its vibrant community.
To stay informed on the latest developments and engage with the city’s budget discussions, visit the Joint Action for Water blog and follow the ongoing coverage.
