Fort Worth\u2019s certified tax rolls for this year grew only 0.89%, pushing the city\u2019s projected general fund budget shortfall for 2027 to $77 million from an estimated $49 million in June, city staff said Tuesday.<\/p>\n
That means the city will have to pare spending further or figure out ways to raise more money, such as by raising the property tax rate, staff told city council members at an afternoon budget workshop.<\/p>\n
The city received its certified tax rolls from the Tarrant Appraisal District and three other surrounding appraisal districts July 25. Their property valuations came in lower than expectations in the middle of the city\u2019s budget preparation season, scrambling assumptions and triggering a reexamination. The council was on vacation in July, and the Tuesday meetings were its first in a month.<\/p>\n
\u201cI wanted to get level-set with you all, the media, the public,\u201d Jay Chapa, the city manager, told council members during the workshop.<\/p>\n
The city\u2019s property tax rate is 67 cents per $100 of value appraised for tax purposes. The staff, for purposes of discussion, estimated each penny of tax rate raises about $11.4 million of revenue.<\/p>\n
\u201cI\u2019m not recommending a 7 cent increase in property tax, just so you know,\u201d Chapa told council members.<\/p>\n
The news on the city\u2019s tax rolls for 2027 came as Fort Worth has substantially narrowed the projected budget deficit for the current fiscal year, using savings from a hiring freeze implemented earlier this year<\/a> and cuts to discretionary spending, the staff told members of the city council\u2019s Audit and Finance Committee Tuesday morning<\/a>.<\/p>\n Prior to the council\u2019s vacation, Chapa set Aug. 11 as the date for a proposed budget, and he and the staff plan to present multiple scenarios then for the council\u2019s consideration. The council would vote on a final budget proposal in September.<\/p>\n The appraisal numbers \u201creally changed where we were,\u201d Chapa told council members.<\/p>\n His presentation next week will include options for further \u201csavings, tax rates, all those kinds of things,\u201d he said.<\/p>\n Total valuations for tax purposes of property in Fort Worth were $130.2 billion, up from $129.1 billion for 2025, the staff said during the workshop. The tax rolls are largely centered in Tarrant County but also include lesser numbers from Denton, Parker and Wise counties.<\/p>\n Volatility in the property tax valuations came from several sources, including TAD\u2019s change in 2024 to reappraising residential values every two years; and significant growth in successful tax protests and litigation, the staff said.<\/p>\n Commercial valuations rose, as did valuations for new residential construction, but existing residential valuations dropped, the city staff said.<\/p>\n \u201cWe were projecting something in the 2%-3% range (for an increase in the tax valuations), but we ended up about 1%,\u201d Brady Kirk, assistant director in the city\u2019s FWLab budget planning unit, told council members.<\/p>\n Mayor Mattie Parker and council members were measured in their questions and remarks, asking whether Tarrant County is unusual in doing reappraisals every two years. Council member Macy Hill asked whether it was possible for Chapa to disclose his proposed budget and assumptions early so the council could better formulate questions at next week\u2019s meeting.<\/p>\n Hill also asked whether city fees are part of the budget reexamination. Chapa said they were.<\/p>\n \u201cWe\u2019re taxing people one way or another,\u201d Hill said. \u201cHow does all that play.\u201d<\/p>\n Even if the city raises the tax rate, it wouldn\u2019t necessarily raise property owners\u2019 tax bills, because of the flat and sometimes lower individual valuations. The city staff also said they would budget 2027\u2019s property tax valuations at a much lower level to start with, to better project losses to arbitration and litigation.<\/p>\n \u201cNow that we know this is more what we can project going forward, that\u2019s why we\u2019re changing our projections to these type of assumptions,\u201d Chapa told council members.<\/p>\n The flat rate of 67 cents per $100 valuation would generate an estimated $623.5 million in property tax revenue, down $14.1 million from the prior year\u2019s adopted $637.6 million, the staff said.<\/p>\n The so-called \u201cno new revenue\u201d rate of 67.0416, which would not raise revenue on the same properties, would generate $624 million in tax revenue, down $13.6 million from the prior year, the staff said.<\/p>\n A rate of 70.3525 cents, the highest rate the council could approve without triggering a voter election, would generate $661.1 million, up $23.5 million.<\/p>\n And because Fort Worth has unused \u201cincrement rate\u201d \u2014 the difference between its actual tax rate and the voter-approved rate, under Texas law \u2014 the council could add the increment rate to the voter-approved rate for a new rate of 76.9732 cents. That would generate $736.9 million, up $99.2 million.<\/p>\n The city tax bills on a home valued at an average $232,925 in each of those scenarios:<\/p>\n Flat rate: $1,560.60, down $91.23 This year\u2019s budget picture improves<\/p>\n Revenue for the city\u2019s total general fund budget, its largest fund and the one that pays for most basic city services, is now projected at $1.096 billion for the current fiscal year, city staff told members of the city council\u2019s audit committee.<\/p>\n That contrasts to projected expenses of $1.117 billion. The city would use so-called \u201cfund balance\u201d \u2014 the difference between assets and liabilities \u2014 to close the deficit, the staff said.<\/p>\n Revenue projections are $9.39 million under budget, primarily due to property tax protests and related litigation, the staff said. Property tax \u2014 57% of the general fund revenue \u2014 is projected to be $13.86 million under budget for the year at $627.5 million, the staff said.<\/p>\n Sales tax \u2014 24% of the general fund \u2014 is projected to be $500,000 over budget at $263.5 million for the year. It could come in higher after the city receives receipts from World Cup-related sales in two months, the staff said.<\/p>\n \u201cWe are looking forward to that,\u201d Cristi Lemon, assistant director in the city\u2019s FWLab budget unit, told audit committee members.<\/p>\n The hiring freeze and discretionary cuts have yielded about $10 million in projected savings for the year, Lemon told the committee members. At the end of January, the city projected its general fund was $9.7 million over budget.<\/p>\n \u201cIncredible effort by all of our departments,\u201d Lemon said.<\/p>\n Council member Deborah Peoples, a member of the audit committee, told Lemon the staff had done \u201cexcellent work, because what we looked at last time and what we\u2019re looking at now are two different things.\u201d<\/p>\n Among other city budget funds, the emergency medical services fund, which handles Fort Worth EMS<\/a>, is projected at $93.76 million in revenue for the year, the staff told audit committee members.<\/p>\n Expenses are projected at $93.389 million, the staff said.<\/p>\n Charges for services are projected at $70.47 million, $5.26 million higher than expected, the staff said.<\/p>\n The city would use the fund balance to pay for new ambulances and related equipment, Lemon told audit committee members.<\/p>\n \u201cWe still have some pretty old ones on the road,\u201d she said.<\/p>\n Scott Nishimura is senior editor for local government accountability and a Fort Worth City Hall reporter at the Fort Worth Report. Reach him at scott.nishimura@fortworthreport.org<\/a>.<\/p>\n
\nNo new revenue: $1,561.57, down $90.26
\nVoter approved rate: $1,638.69, down $13.14
\nVoter approved rate plus increment: $1,792.90, up $141.07<\/p>\n