Council Member Cara Mendelsohn warned in an exclusive interview with The Dallas Express that City leaders might have to hike taxes and make budget cuts if they fail to adopt her proposal for a “no new revenue” property tax rate.
Mendelsohn’s proposal for a property tax rate with a ceiling of $0.6813 per $100 valuation was rejected by the City Council this month in a 10-4 vote, as reported in The Dallas Express. The council instead passed the higher property tax ceiling of $0.7358 per $100 valuation recommended by City Manager T.C. Broadnax, which, if adopted next month, would be a tax increase on Dallas residents due to rising property values in the region.
Mendelsohn said the council’s actions could put Dallas on the road to making serious financial sacrifices if residents begin leaving the city and taking their tax dollars with them.
“If we don’t significantly reduce the [property] tax rate, I expect to be sitting at the horseshoe next year considering major cuts or massive tax increases, as we already know the problems coming,” she told The Dallas Express.
Mayor Eric Johnson has publicly backed Mendelsohn’s “no new revenue” proposal, which he warned is necessary to help ensure residents stay in Dallas.
“This property tax situation that we’re in … [is] an iceberg,” he said at a council meeting earlier this month. “We can’t continue to tax people the way we’ve been taxing them and think they’re going to stay — think they’re going to continue to choose Dallas to live and have their businesses here.”
The City warned in its recent budget proposal that costs will outpace funding by 2026, as reported by The Dallas Express. This unbalanced forecast, Mendelsohn said, casts further doubt on the City’s financial prospects unless serious reforms are made.
“If you look at the history of the 5-year budget forecast, you’ll know the answer to the accounts being out of balance has historically been to raise taxes to make the budget balance,” she told The Dallas Express. “It is clear to me that we can provide the services our residents need at a greatly reduced cost.”
Mendelsohn said the City must explore innovative solutions to relieve its financial troubles. One focus, she said, is to find ways to increase the efficiency of City departments.
“I would like to invest in an outside professional efficiency audit that can help departments streamline workflows and automate services where possible,” Mendelsohn told The Dallas Express. “This can provide lasting savings and a more efficient service delivery experience for residents. We can have better services at a lower cost.”
