The Dallas City Council voted overwhelmingly on Friday to support raising the capacity of the 2024 Bond Program to $1.25 billion and holding the bond election in May instead of November.
The votes are non-binding but serve as a framework for discussions about the bond moving forward. Mayor Eric Johnson was not present for Friday’s briefing, having been in Switzerland all week for the World Economic Forum, as previously reported by The Dallas Express.
Council Member Cara Mendelsohn (District 12) was the only official present to oppose both raising the bond capacity and holding the election in May. Every other council member voted in favor of increasing the bond from $1.1 billion to $1.25 billion, while the vote for holding the election in May was 11 to 3. Both motions were introduced by Council Member Adam Bazaldua (District 7).
Mendelsohn argued that holding the election in November would give the City more time to iron out the details of the bond program. She noted that bond funds are distinct from general fund dollars because bond funds are borrowed by the City, with the Dallas taxpayer paying interest on those bonds. She argued that projects should not be funded via bond if there is an alternative funding source that does not result in interest payments.
“The question that I keep coming back to on this is: Is this something we should take out debt for as opposed to something we should put in our budget and fund every year?” she said.
Mendelsohn pointed to housing projects and argued they should be funded through avenues like the Dallas Housing Finance Corporation rather than the bond program. More than 60 residents were registered to speak before the council on Friday, with many of them calling for more bond dollars to be directed toward housing.
Mendelsohn added that more information is needed to determine when the bond election should be held. However, council members who voted to hold the election in May argued that the City needs the bond funds sooner rather than later.
“District 4 needs an election in May so they can get their just due,” said Council Member Carolyn King Arnold (District 4). “I’m going to encourage everyone here as we talk [to] stay woke and make sure you understand the time to do right is now.”
Bazaldua pointed to the lively debates around the horseshoe in August and September over the FY 23-24 budget and argued that if some officials were “going to continue to slash the general fund budget and there’s a threat to a lot of services or projects … we can’t make it as if we have an option of doing both.”
As previously reported by The Dallas Express, when the council was determining the current City budget, Mayor Johnson and Mendelsohn fiercely advocated for a lower tax rate and smaller budget to ensure more responsible taxpayer spending.
During Friday’s briefing, Bazaldua claimed that the general fund does not adequately fund projects addressing pressing needs like reducing homelessness, fixing Dallas’ streets, and funding parks.
“All of these things have to be addressed, and I don’t believe we can put all of our eggs into one basket,” he said. “Not one [issue] should be prioritized over the other.”
“I personally am in favor of the increase of capacity and May election as well,” Bazaldua said.
The additional $150 million that would be added to the bond program would come from bond funds originally set aside for Pension Obligation Funds, which are meant to go toward the City’s pension programs for public safety officers and other municipal employees.
The Dallas City Council will meet again, this time with Mayor Johnson, on January 31 to discuss the bond program further.
