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Memorandum

DATE

August 22, 2025

CITY OF DALLAS

Honorable Mayor and Members of the City Council

SUBJECT

Executive Liaison Assignments Update

“Service First, Now!”

Connect – Collaborate – Communicate

To ensure the continued success of each City Council Member and support the critical

and unique needs of your respective City Council districts, the City Manager's Office will

continue to provide Executive Team Liaison Assignments.

As a reminder, my executive team members are each assigned one or two City Council

Members to serve as liaisons. The intent is to (1) provide direct access regarding

important issues; (2) serve as a communication link between the City Council and staff

departments, as appropriate; (3) provide support and coordination of staff for community

meetings and special events, and (4) to ensure action items are recorded and prioritized

to the City Manager’s Office, as necessary.

The following table provides the updated list of executive liaison assignments:

District

Council Member

Executive

West

Jack Ireland

Mayor Pro Tem Moreno

Ahmad Goree

Gracey

Liz Cedillo-Pereira

Maxie Johnson

Chief Dominique Artis

Resendez

Liz Cedillo-Pereira

Cadena

Alina Ciocan

Bazaldua

Dev Rastogi

Blair

Donzell Gipson

Blackmon

Dev Rastogi

Stewart

Alina Ciocan

Roth

Donzell Gipson

Mendelsohn

Chief Dominique Artis

Deputy Mayor Pro Tem Willis

Jack Ireland

Ridley

Robin Bentley

Mayor Johnson

Kimberly Bizor Tolbert

Should you have any questions or concerns, please contact Chief of Staff to the City

Manager Ahmad Goree at ahmad.goree@dallas.gov.

Service First, Now!

Kimberly Bizor Tolbert

City Manager

DATE

August 22, 2025

SUBJECT Executive Liaison Assignments Update

PAGE

2 of 2

“Service First, Now!”

Connect – Collaborate – Communicate

Tammy Palomino, City Attorney

Mark Swann, City Auditor

Bilierae Johnson, City Secretary

Preston Robinson, Administrative Judge

Dominique Artis

, Chief of Public Safety

Dev Rastogi

, Assistant City Manager

M. Elizabeth (Liz) Cedillo-Pereira, Assistant City Manager

Alina Ciocan, Assistant City Manager

Donzell Gipson, Assistant City Manager

Robin Bentley, Assistant City Manager

Jack Ireland, Chief Financial Officer

Ahmad Goree, Chief of Staff to the City Manager

Directors and Assistant Directors

Memorandum

DATE August 22, 2025

CITY OF DALLAS

Honorable Mayor and Members of the City Council

SUBJECT

FY 2025-26 Proposed Budget Book

“Service First, Now!”

Connect – Collaborate – Communicate

After the printing of the FY 2025-26 and FY 2026-27 biennial budget on August 8, it was

determined that there was a correction and clarification needed on pages 245 and 302.

•On page 245, the clarification does not affect the bottom-line totals of the budget,

nor the department totals listed throughout the document. These amounts are all

accurate.

•On page 302, a budget system error caused one of the services to be displayed in

the wrong column in the Service Budget table only. The correction does not affect

the bottom-line totals of the budget listed elsewhere throughout the document.

These amounts are all accurate.

We have made the necessary clarification and correction on pages 245 and 302 and

provided hard copies of the replacement pages to the offices of the Mayor and City

Council. Replacement pages include 245-250 and 301-302 due to spacing on the affected

page. We have also updated the City’s website.

If additional corrections or clarifications are identified, you will be provided with

replacement pages as necessary.

Please contact me or Janette Weedon, Director of Budget & Management Services, if

you need additional information.

Jack Ireland

Chief Financial Officer

Mayor and City Council

Kimberly Bizor Tolbert, City Manager

Tammy Palomino, City Attorney

Mark Swann, City Auditor

Bilierae Johnson, City Secretary

Preston Robinson, Administrative Judge

Dominique Artis, Chief of

Public Safety

Dev Rastogi, Assistant City Manager

M. Elizabeth (Liz) Cedillo

-Pereira, Assistant City Manager

Alina Ciocan, Assistant City Manager

Donzell Gipson, Assistant City Manager

Robin Bentley, Assistant City Manager

Ahmad Goree

, Chief of Staff to the City Manager

Directors and Assistant Directors

Memorandum

DATE August 22, 2025

CITY OF DALLAS

Honorable Mayor and Members of the City Council

SUBJECT

FY 2025-26 Budget – Remaining Timeline and Amendment Process

“Service First, Now!”

Connect – Collaborate – Communicate

Thank you for your ongoing engagement and support in the FY 2025-26 budget

development process. The remaining timeline and information about the amendment

process is provided below.

Remaining Timeline

Date

Action

August 27

City Council will authorize a tax rate public hearing on September

17 and set the maximum tax rate to be considered on September 17

August 29

City Council Member proposed amendments due to the City

Manager and Chief Financial Officer by 10:00 a.m.

August 29

Distribute proposed amendments received August 29 at 10:00 a.m.

after 5:00 p.m.

September 3

Budget Workshop: Consider Amendments (straw votes anticipated),

Adopt budget on First Reading

September 7

Advertise tax rate notice

September 17

Hold tax rate public hearing,

Adopt tax rate and budget on Final Reading,

Approve other budget-related agenda items

October 1

Fiscal year begins

Budget Amendment Process

At this point in the budget development process, City Council Members are invited to

submit amendments to the City Manager’s proposed budget for FY 2025-26. City Council

Member proposed amendments should be balanced with a specific source of funds

identified to cover the full amount of the desired use of funds. Although the City Council

will only adopt the FY 2025-26 budget on September 17, we ask that you submit

amendments that are sustainable over both years of the biennial. Amendments are

balanced when an on-going source of funds is identified to offset an on-going use of

funds, or if a one-time source of funds is identified it should only be used to offset a one-

time use of funds.

DATE

SUBJECT

PAGE

“Service First, Now!”

Connect – Collaborate – Communicate

August 22, 2025

FY 2025-26 Budget – Remaining Timeline and Amendment Process

2 of 2

Similar to prior years, we will work with each City Council Member and, as needed,

suggest an alternative source of funds that may have less service impact. Please use this

form to submit your proposed amendments.

If you are co-sponsoring an amendment with one or more of your colleagues, the

amendment should only be submitted once – by one member of the City Council. Please

do not submit duplicate copies of the same amendment.

As you can see from the above timeline, we request that all City Council Member

proposed amendments be submitted to the City Manager and Chief Financial Officer by

10:00 a.m. on Friday, August 29. This will allow staff time to conduct a technical review

of amendments, work with each City Council Member as needed, and distribute balanced

amendments received to all members of the City Council on the evening of Friday,

August 29.

Historically, we package and number the amendments based on the order in which we

receive them. It is the discretion of the presiding officer to determine the order in which

the City Council will discuss the amendments.

If you have any questions or need assistance preparing an amendment, please contact

me or Janette Weedon, Director of Budget & Management Services.

Jack Ireland

Chief Financial Officer

Kimberly Bizor Tolbert, City Manager

Tammy Palomino, City Attorney

Mark Swann, City Auditor

Bilierae Johnson, City Secretary

Preston Robinson, Administrative Judge

Dominique Artis, Chief of Public Safety

Dev Rastogi, Assistant City Manager

M. Elizabeth (Liz) Cedillo-Pereira, Assistant City Manager

Alina Ciocan, Assistant City Manager

Donzell Gipson, Assistant City Manager

Robin Bentley, Assistant City Manager

Ahmad Goree

, Chief of Staff to the City Manager

Directors and Assistant Directors

Memorandum

DATE

August 22, 2025

CITY OF DALLAS

Honorable Mayor and Members of the City Council

SUBJECT

Responses to Questions Regarding the City Manager’s Recommended Biennial

Budget for FY 2025-26 and FY 2026-27

“Service First, Now!”

Connect – Collaborate – Communicate

We were pleased to share the City Manager’s FY26 and FY27 Recommended Biennial

Budget on Tuesday, August 12, 2025. Below are responses to questions from the August

12th meeting regarding the FY26 and FY27 Budget.

1. Provide a list of the program inventory ranked by foundational pillar.

The FY26 Program Inventory with program names and descriptions, ranked by

Foundational Pillar, is available on the Financial Transparency website.

2. Why is the General Fund revenue for charges for services going down in

FY26 when compared to the current year?

The Charges for Services category includes revenue derived from Indirect Cost

allocations to Enterprise Fund departments for services provided by General Fund

departments. These allocations are reviewed annually to account for changes in

usage across departments. For FY26, costs associated with 7800 Stemmons were

excluded as the facility remains unoccupied, which reduces the revenue received

in the General Fund.

3. How much is included in the FY26 budget for maintenance of the Dallas

Museum of Art (DMA), and which department is the funding being proposed?

As part of the FY26 City Manager’s Recommended Budget, $254,392 was reduced

from Facilities and Real Estate Management’s (FRM) maintenance and repair

operating budget in anticipation of the planned outsourcing of the Dallas Museum

of Art’s (DMA) operations and maintenance.

Effective October 1, 2025, FRM will continue providing maintenance and repair

services for the DMA, with expenses reimbursed from the Office of Arts and

Culture (OAC) as intended by the cultural plan.

It is important to note that HOT funds cannot be applied to maintenance repairs,

therefore the $254,392 funds allocated for DMA's maintenance and repairs will be

drawn from OAC's FY26 building maintenance budget. Expenses that qualify

under HOT will be properly reimbursed and allocated accordingly.

DATE August 22, 2025

SUBJECT

Responses to Questions Regarding the City Manager’s Recommended Biennial

Budget for FY 2025-26 and FY 2026-27

PAGE

2 of 12

“Service First, Now!”

Connect – Collaborate – Communicate

4. How do the current sales tax collections compare to other cities, especially

those within our region?

Sales tax collections for 9 months from October 2024 through June 2025 for the

City of Dallas have increased by 2.2% compared to the same reporting period last

year. Among the 20 Texas cities with the highest sales tax receipts, Dallas ranks

12th in percentage growth from prior YTD payments. Within the Dallas–Fort Worth

metroplex, when compared to the six other cities with the highest sales tax receipts

(Fort Worth, Arlington, Plano, Irving, Frisco, and McKinney), Dallas ranks 4th in

year-over-year percentage growth. The average growth across these top seven

cities was 3.8%.

5. Does the city have a strategy for growing our sales tax?

The City’s strategy to increase sales tax revenue focuses on making it easier for

businesses to invest and ensuring Dallas remains a top destination for visitors. On

the development side, the city is improving efficiency by using technology,

streamlining permitting and zoning, and advancing reforms that make the process

more transparent and predictable – helping commercial and retail projects move

forward faster. At the same time, a strong customer service culture is being

emphasized to better support businesses and developers. Additionally, the city

supports targeted economic growth and the creation of living wage jobs through a

robust toolbox of incentive programs. On the tourism and convention side, the city

is partnering with Visit Dallas to attract more conferences and events, highlighting

the capabilities of the newly expanding Kay Bailey Hutchison Convention Center

Dallas (KBHCCD), and leveraging opportunities like the FIFA World Cup 2026 to

bring in future sporting events. These efforts are designed to boost hotel stays,

restaurant and retail spending, and related economic activity that directly supports

sales tax growth. Additionally, the city will launch a “Buy Dallas Campaign” in FY26

to encourage residents to support local businesses.

City P a y m e n t YTD Prior Year Payment YTD % Change

Pla no 88,299,499 81,072,346 8.9%

Irvin g 76,949,428 71,334,838 7.9%

Fort Worth 165,654,017 159,237,712 4.0%

Dallas 302,764,139 296,182,497 2.2%

McKinney 65,060,658 63,762,139 2.0%

Fris c o 94,923,671 93,773,109 1.2%

Arlington 129,479,499 129,416,573 0.049%

DATE August 22, 2025

SUBJECT

Responses to Questions Regarding the City Manager’s Recommended Biennial

Budget for FY 2025-26 and FY 2026-27

PAGE

3 of 12

“Service First, Now!”

Connect – Collaborate – Communicate

6. What factors are affecting our sales tax forecast?

Our current sales tax forecast reflects several economic forces moving in different

directions. The labor market remains our largest headwind. Since the 2021–22

hiring boom, job growth in Dallas-Fort Worth has slowed sharply from over 7% in

2022 to just 1.1% over the past year, while job openings in Texas have fallen by

half. Wage growth has moderated, and because immigrants make up roughly 22%

of the Texas workforce, shifts in immigration policy can further affect economic

activity and consumer spending. Slower labor force and population growth

generally translate to softer sales tax collections.

On the other hand, tariffs – if kept moderate – could provide a partial tailwind by

raising certain prices and encouraging domestic production, both of which can

support nominal sales tax revenue. That impact will be limited, however, by very

low local inflation, with Dallas-Fort Worth consumer prices up just 0.9% over the

past year. Finally, interest rate cuts projected over the next two fiscal years are

expected to stimulate housing, construction, and rate-sensitive retail such as

furniture and electronics. As households move and refurnish, this could boost

spending and, in turn, sales tax receipts.

We anticipate a one-time increase in sales tax revenue due to the economic

activity surrounding the FIFA World Cup. The additional one-time revenue will be

utilized to pay one-time expenses associated with the event.

7. Is Code Compliance (CCS) able to address night-time code issues other than

in the entertainment districts of the city?

CCS’s late-night enforcement is focused on the entertainment districts, where the

need is greatest. Outside those areas, CCS’s night enforcement authority is limited

as they cannot issue civil noise citations nor break-up parties. For issues like early

sanitation pick-ups, CCS is flexing Code Officer hours to provide coverage.

Additionally, CCS, in partnership with several other departments is preparing a

briefing on “Extraordinary Events,” focusing on enhanced tools to address land

uses such as party houses.

DATE August 22, 2025

SUBJECT

Responses to Questions Regarding the City Manager’s Recommended Biennial

Budget for FY 2025-26 and FY 2026-27

PAGE

4 of 12

“Service First, Now!”

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8. How will CCS be able to effectively provide outreach if there are budget

reductions in this area?

CCS intends to reimagine existing Neighborhood Code Representative positions

to bolster the department’s engagement efforts through CCS targeted community

programs.

9. Provide details on what is included in the FY26 budget for serving

individuals experiencing homelessness.

The proposed FY26 budget includes targeted resources to directly support

individuals experiencing homelessness totaling $27.7 million from various funding

sources. Resources are budgeted in the Office of Emergency Management and

Crisis Response (ECR) and the Office of Housing and Community Empowerment

(HCE). The FY26 Proposed Budget includes:

Description

Department

$ Amount

Funding Source

Dallas Street Response

ECR

$2.4 million

General Fund

Homeless Inclement Weather Shelter

Program

ECR $1.4 million General Fund

Continuum of Care Diversion

HCE

$0.25 million

ARPA*

HCE

$0.25 million

General Fund

The Bridge master contract and Pay

To Stay

HCE $6.0 million General Fund

Street To Home, Housing Forward

HCE

$5.4 million

ARPA**

Home After Shelter HCE $10.0 million ARPA*

Eviction Advocacy

HCE

$0.05 million

ARPA*

HCE $0.95 million General Fund

Homelessness Prevention

HCE

$1.0 million

ARPA*

*ARPA redevelopment funding is one-time and not ongoing

** Funds were encumbered in FY25, but not fully expended

DATE August 22, 2025

SUBJECT

Responses to Questions Regarding the City Manager’s Recommended Biennial

Budget for FY 2025-26 and FY 2026-27

PAGE

5 of 12

“Service First, Now!”

Connect – Collaborate – Communicate

10. What is included in the budget for city contribution to DPFPS?

The city contribution to the Dallas Police and Fire Pension System (DPFPS) totals

$225.7 million for FY 2025-26 and $247.1 million for FY 2026-27. The city

contribution to DPFPS aligns with the funding plan approved by the Dallas City

Council on September 11, 2024.

Fiscal

Year

Normal Cost

% of Pay

Normal Cost

Unfunded

Actuarial Accrued

Liability*

Total

FY25 6.78% $36,392,524 $168,656,000 $205,048,524

FY26 6.66% $39,191,553 $186,482,000 $225,673,553

FY27 6.57% $42,230,836 $204,889,000 $247,119,836

*Source: Exhibit A – City Council Agenda Item 24-2877 – September 11, 2024

11. What would be the effect on property tax revenue if the state passes the 2.5%

cap on property tax revenue?

Senate Bill 10 in the Second Called Session of the 89th Legislature would adjust

the calculation methodology of the Voter Approval Rate, capping revenue growth

from reappraisals at 2.5% for cities with over 75,000 residents. The bill is effective

January 1, 2026, and if enacted, it would reduce FY 2026-27 estimated property

tax revenue by $11.2M.

12. Provide a count of positions being eliminated and repurposed by the

department.

A count by department of all repurposed/added and eliminated positions is

available on slides 91-97 of the Appendix of the City Manager's Recommended

Biennial Budget for FY 2025-26 and FY 2026-27 presentation at the August 12

Budget Workshop. Details by position will be available once the FY 2025-26

Position Classification Allocation agenda item is posted for Council approval on

September 17, 2025.

13. Please provide the No-New-Revenue tax rate scenario.

A memorandum was provided to the City Council on August 12, 2025, that included

the No-New-Revenue tax rate scenario. The memorandum can be found using this

link: Financial Management Performance Criteria (FMPC) #24.

DATE August 22, 2025

SUBJECT

Responses to Questions Regarding the City Manager’s Recommended Biennial

Budget for FY 2025-26 and FY 2026-27

PAGE

6 of 12

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14. Where in the budget are funds for consultant services?

Consultant services are typically captured in both the 3070 – Professional Services

and 3099 – Miscellaneous Special Services line items in the budget book. The

amount budgeted for each City department is available in the proposed budget

book. Additionally, the expense detail for each City department is available on the

FY 2025-26 Proposed Budget website.

15. Provide additional information about the new department of Housing and

Community Empowerment, including the purpose of the consolidation.

A separate memorandum will be provided to the City Council on August 22, 2025,

that includes additional background about the Office of Housing and Community

Empowerment.

16. Why is the Marshal’s Office being combined with Court and Detention

Services?

A memorandum was provided to the City Council on August 15, 2025, that included

additional background about the combination of the Marshal’s Office and Courts

and Detention Services. The memorandum can be found using this link: Marshal’s

Office and Municipal Court & Detention Services.

17. What changes are proposed for the employee health benefit plan for FY26?

The city is updating its employee health benefit plan to manage rising healthcare

costs while maintaining quality, affordable coverage. Key changes include

adjustments to prescription drug coverage with expanded use of specialty

pharmacy programs, continuation of three plan options with slight premium

increases, tiered premiums to support lower-wealth employees, and the transition

of long-term disability coverage to a voluntary benefit. The Advocate Plus

Pharmacy Match Program will also be implemented this fiscal year to help

members with the most cost advantageous mail order pharmacy. These

enhancements are anticipated to yield more than $12M in savings this fiscal year.

As the City of Dallas is a self-funded health plan, savings are essential not only for

the city, but also for the benefit of all retirees and employees.

Additionally, the budget includes an increase in the employer contribution of 5%.

The City will continue to fund the provision of employer-paid life insurance and

anticipate savings through improved pharmacy contract pricing terms, Cost Plus

integration and rebate guarantees. While the overall financial impact on employees

will be minimal, some may need to change medications, use in-network

pharmacies, or participate in wellness programs. These program enhancements

DATE August 22, 2025

SUBJECT

Responses to Questions Regarding the City Manager’s Recommended Biennial

Budget for FY 2025-26 and FY 2026-27

PAGE

7 of 12

“Service First, Now!”

Connect – Collaborate – Communicate

are designed to preserve our robust employee health benefits portfolio while

sustaining our fiscal responsibility.

18. What is included in the budget for city facility preventative maintenance and

what is included for major maintenance?

The FY26 Proposed Budget includes $2 million for Preventative Maintenance

(PM). These funds will focus on:

• Roofs and HVAC systems for critical operations at public safety facilities

• Roof PM includes proactive and roof condition assessment at 75 buildings

• HVAC PM includes three quarterly PM service calls and one service call per

location

The FY26 Proposed Budget includes $14.5 million for Major Maintenance. Major

Maintenance funds will be used for:

• Large scale projects focused on restoring/replacing major systems

• Extends the useful life of the asset

• Typically, >$50,000

• Examples of projects: Dallas Animal Shelter emergency flooring

replacement ($0.8 million), Jack Evans Police Headquarters Roof

replacement – Phase I ($1.2 million)

19. What is included in the budget for General Fund reserves? Is there a reserve

for emergency facility repairs?

Pursuant to the City Council approved Financial Management Performance

Criteria (FMPC) #2, the unassigned fund balance of the General Fund, which

includes the Emergency and Contingency Reserves, shall be maintained within a

range of not less than 50 days and not more than 70 days of the General Fund

operating expenditures less debt service. For FY26, the Emergency Reserve is

$50.0 million, the Contingency Reserve is $10.3 million, and the Residual is $277.8

million. The total unassigned fund balance is 62.8 days.

The Contingency Reserve is part of the City's unassigned fund balance and is set

aside for unplanned expenses that arise during the year - such as unanticipated

service needs, including public safety, health issues, or revenue shortfalls. Use of

the Contingency Reserve requires a simple majority. The Emergency Reserve

covers urgent and unforeseen expenses – like natural disasters, major revenue

losses, or new state or federal mandates. Use of the Emergency Reserve requires

a City Council supermajority.

DATE August 22, 2025

SUBJECT

Responses to Questions Regarding the City Manager’s Recommended Biennial

Budget for FY 2025-26 and FY 2026-27

PAGE

8 of 12

“Service First, Now!”

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Emergency facility repairs are typically managed through current operating

revenues. If reserve funds are required, staff would seek City Council approval to

use the Contingency Reserve.

20. Did staff consider reducing the $5 million in the budget for travel, dues, and

memberships?

As part of budget development each year, departments generally review these

expenses, seeking to limit discretionary travel, use virtual options, and consolidate

trips where possible. The remaining costs typically cover required memberships,

compliance-related training, and essential conferences for continuing education

certification.

21. Did staff consider reducing the $6 million in the budget for expense object

3429 – Mobile Phone Services?

Pursuant to Administrative Directive 4-8, Mobile Telephone Service, department

heads and supervisors are required to conduct annual reviews of all established

mobile devices and allowances to affirm their continued justification (Section 3.2.5

and 3.4.2.2). The FY26 budget for expense object 3429 – Mobile Phone Services

includes $2.8 million for Dallas Police Department, $470,000 for Dallas Fire

Rescue, $386,000 for Code Compliance Services, and $1.6 million for Enterprise

Funds for cell phones, cradle points, and air cards.

22. Why is $32 million needed for civilian overtime?

Of the total $32 million in overtime across all operating funds, $20.0 million is

attributable to Enterprise Funds, primarily Sanitation Services and Dallas Water

Utilities.

• Sanitation Services: Overtime is incurred to ensure continuity of solid waste

management operations during peak workload demands and when gaps in

staffing occur.

• Dallas Water Utilities: Overtime supports continuous 24/7 operation of water,

wastewater and stormwater facilities and systems, emergency response

estimated from historical weather-related demands, and staffing shortages due

to hard to fill positions.

The remaining $11.2 million is largely in the General Fund, primarily within the

Dallas Police Department for 911 call center staffing ($4.3 million), as well as the

DATE August 22, 2025

SUBJECT

Responses to Questions Regarding the City Manager’s Recommended Biennial

Budget for FY 2025-26 and FY 2026-27

PAGE

9 of 12

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Department of Transportation and Public Works ($2.6 million) for increased repair

requests, weather-related emergencies, after-hours responses to DPD, DFR, and

special event needs.

23. Is the City shifting cost to fees when the property tax rate is being reduced?

No, there is no relationship between setting the city’s tax rate and our ongoing

review of fees for service. The City’s Financial Management Performance Criteria

(FMPC) #12 states an annual review of selected fees and charges is required to

determine whether the City is recovering the full cost of services. Per the policy,

the City reviews all fees at least once every four years and proposes changes to

achieve full cost recovery or based on other City objectives. Proposed fees are

based solely on fee-related costs and do not increase based on departmental costs

in un-related programs.

Enterprise fund fees such as Dallas Water Utilities, Stormwater, and Sanitation are

reviewed annually to recover the cost of service. The FY26 proposed increase in

fees are available in the Taxpayer Impact Statement available on the FY 2025-26

Proposed Budget website.

24. Clarification on page 24 of the Executive Summary (Streamlined Incentive

Process for All Real Estate Development).

Beginning October 1, 2025, all City incentives for real estate developments with

housing components will be administered by the Office of Economic Development

(OED). Housing development funding moving into the OED toolbox will include

bond funding (including 2024 Proposition G and Proposition H).

It was stated during the meeting that the responsibility of the Propositions G & H

would be transferred from Bond & Construction Management to Economic

Development. To clarify, the implementation of 2024 Bond Program Propositions

G & H are not managed through Bond & Construction Management. Effective

October 1, 2025, management will transition from the Department of Housing and

Community Development to the Office of Economic Development. This

realignment will provide developers and businesses with a unified application

process and consolidated underwriting standards under one roof.

The staff in the Department of Housing and Community Development Office and

the Office Economic Development do not charge administrative costs to the bond

program.

DATE August 22, 2025

SUBJECT

Responses to Questions Regarding the City Manager’s Recommended Biennial

Budget for FY 2025-26 and FY 2026-27

PAGE

10 of 12

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25. What percentage of procurements are cooperative purchasing agreements?

For FY24, 23% of solicitations over $100,000 for general goods and services were

cooperative purchasing agreements.

26. Can enterprise funds be used for General Fund related costs?

In most cases, no – enterprise fund resources cannot be used to cover General

Fund–related costs unless the expenditure is a direct, allowable cost of providing

the enterprise service or is part of a formal cost allocation plan approved by law or

policy.

The enterprise fund departments provide services for specific programs that are

derived from rates and fees and are supported wholly by these revenues. These

enterprise funds are restricted funds and are reported as part of our federal

government accounting principles. As such, these enterprise funds contribute to

costs associated with their operations that are supported by the General Fund.

Examples of these types of indirect charges that are paid for by the enterprise

funds include support from human resources, information technology services,

legal, building services, procurement services, insurance, and others.

Additionally, several of the enterprise departments contribute through a franchise

fee (also referred to as street rental) and other forms of direct payments such as

for pension obligation bonds, payment in lieu of taxes, debt service payments and

master lease payments for equipment and fleet. These enterprise departments

also work directly with city departments and reimburse services such as Dallas

Police Department, Dallas Fire Rescue, City Marshal's, Transportation & Public

Works, Code Compliance and Park & Recreation to name a few.

DATE August 22, 2025

SUBJECT

Responses to Questions Regarding the City Manager’s Recommended Biennial

Budget for FY 2025-26 and FY 2026-27

PAGE

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Department of Aviation

The Department of Aviation operates Dallas Love Field (DAL), Dallas Executive

Airport (DEA), and Vertiport as a business enterprise to be financially self-sufficient

and does not use sales or property tax revenue to fund this department. The

Aviation Enterprise Fund revenue is generated primarily through airlines,

passengers, and businesses operating at the Airports. The FY24 Dallas Love Field

Economic Impact and Contributions Report indicated $33.7 million in City of Dallas

Tax Revenue was generated at the airport. In addition, the Aviation Enterprise

Fund reimburses the City for services to other departments, including DPD and

DFR.

The Federal Aviation Administration (FAA) regulations prohibit using money

generated by the airport for purposes outside the airport's business. This restriction

applies to all other airports in the U.S. Over the last 5 years, Dallas Airports (DAL,

DEA, and Vertiport) have received over $254 million in FAA grants for capital

improvements. By accepting this money, the city guaranteed that it would be used

for its intended purpose and that all revenues generated by the airports will be

expended by it for the capital, operating costs of the local airport system, or for

noise mitigation purposes on or off the airport.

Dallas Water Utilities

Dallas Water Utilities is legally constrained from transferring revenue to the City’s

General Fund as an Enterprise Fund due to a number of restrictions in local and

state law such as:

• City Charter and Ordinance (Chapter 49): Dwelling on self-sustaining, rate-

based funding for the utility, with no legal mechanism for general-fund

transfers.

• State Statute (LGC § 552.915): Explicitly forbids transfers that threaten the

utility’s financial health or rate stability.

• Texas Water Code (Title 2, Subtitle B, Chapter 13, Subchapter A): Excludes

certain costs from rate calculations.

• Revenue‑Bond Requirements (Gov’t Code § 1501.051–.052): Allow only

narrowly‑tailored use of utility revenue—specifically for bonded

indebtedness—not for everyday city operations.

• Financial Management Performance Criteria (FMPC) #8 and #13 state

specifically that water and wastewater revenue will be used only for water

operating and capital purposes as below.

DATE August 22, 2025

SUBJECT

Responses to Questions Regarding the City Manager’s Recommended Biennial

Budget for FY 2025-26 and FY 2026-27

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DWU-8. Use of Excess Current Revenues. Current revenues which are more than

operating expenses and debt service will be used for capital expenditures and

other water and wastewater purposes.

DWU-13. Use of Funds Generated by DWU. Funds generated by DWU will be

used solely for the development, operation, and maintenance of the water and

wastewater utility system.

We will continue to respond to budget questions asked by members of the City Council

over the next several weeks. Please contact me or Janette Weedon, Director of Budget

& Management Services, if you need additional information.

Jack Ireland

Chief Financial Officer

Mayor and City Council

Kimberly Bizor Tolbert, City Manager

Tammy Palomino, City Attorney

Mark Swann, City Auditor

Bilierae Johnson, City Secretary

Preston Robinson, Administrative Judge

Dominique Artis, Chief of Public Safety

Dev Rastogi, Assistant City Manager

M. Elizabeth (Liz) Cedillo

-Pereira, Assistant City Manager

Alina Ciocan, Assistant City Manager

Donzell Gipson, Assistant City Manager

Robin Bentley, Assistant City Manager

Ahmad Goree

, Chief of Staff to the City Manager

Directors and Assistant Directors

Memorandum

DATE

August 22, 2025

CITY OF DALLAS

Honorable Mayor and Members of the City Council

SUBJECT

August 27, 2025 City Council FINAL Agenda – Additions/Revisions/Deletions

Memorandum

“Service First, Now!”

Connect – Collaborate – Communicate

On August 15, 2025, a DRAFT City Council Agenda August 27, 2025, was provided for

your review. This memorandum outlines any additions, revisions or deletions made to the

FINAL agenda after the distribution of the DRAFT agenda. In addition, we have

highlighted agenda items which have been briefed to the City Council and/or Committee

by briefing memorandums.

Additional items and deletions to the DRAFT agenda are outlined below, including

revisions to the FINAL agenda are underlined in blue and deletions are strikethrough in

red. A brief explanation for the revisions along with staff’s contact information is provided.

Additions:

60. 25-2578A Authorize (1) designating approximately 2.9 acres of property

currently addressed as 2601 Victory Avenue as City of Dallas

Neighborhood Empowerment Zone No. 23 (“NEZ No. 23”), pursuant

to Chapter 378 of the Texas Local Government Code, to promote an

increase in economic development in the zone, establish boundaries

for the zone, and provide for an effective date for the zone; (2) an

economic development incentive agreement with The Bank of Nova

Scotia or an affiliate thereof (“Scotiabank”) to include: (a) a business

personal property (“BPP”) tax abatement for a period of ten years in

an amount equal to the City taxes assessed on ninety percent (90%)

of the added taxable value of the business personal property

resulting from the Project and (b) a Chapter 380 economic

development grant in an amount not to exceed $2,700,000.00

consisting of: (i) an amount not to exceed $2,500,000.00 for job

relocation and/or creation and (ii) an amount not to exceed

$200,000.00 for fees associated with expedited permitting and soft

cost expenditures, in consideration of the job creation and

investment associated with Scotiabank’s establishment and

operation of a new regional office at 2601 Victory Avenue in NEZ No.

23; and (3) the City’s nomination of Scotiabank’s Project for

designation as an Enterprise Zone Project under the Texas

Enterprise Zone Act, as amended by the Office of the Governor,

Economic Development and Tourism division, through the Texas

Economic Development Bank; in accordance with the City’s

Economic Development Incentive Policy - Total not to exceed

DATE August 22, 2025

SUBJECT

August 27, 2025 City Council FINAL Agenda – Additions/Revisions/Deletions Memorandum

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$2,700,000.00 - Financing: Public/Private Partnership Fund, and

Estimated Revenue Foregone: $831,308.00 over a ten-year period

(see Fiscal Information)

61. 25-2558A Approve the Rockwall Central Appraisal District’s (RCAD) proposal

to complete the 2nd floor renovation containing 7,500 sq. ft. at the

site of the current appraisal office located at 841 Justin Road,

Rockwall, Texas, pursuant to § 6.051 of the Tex. Tax Code which

requires such proposal be approved by three-fourths (3/4) of all

taxing units entitled to vote on the appointment of RCAD board

members which includes the City of Dallas - Financing: This action

has no cost consideration to the City (see Fiscal Information for

future cost)

62. 25-2419A A resolution discharging Timothy J. Menke as Inspector General for

the City of Dallas, effective ______ - Financing: No cost

consideration to the City

63. 25-2421A A resolution amending Subsections 9.1, “Committees Established,”

and 9.3, “Committee Meetings,” of Section 9 “City Council

Committees,” of the City Council Rules of Procedure changing the

name of the Committee on Government Performance and Financial

Management to Committee on Finance, changing the name of the

Committee on Workforce, Education, and Equity to Committee on

Government Efficiency, and requiring in-person attendance at

meetings of City Council committees - Financing: No cost

consideration to the City

Revisions:

23. 25-2239A Authorize the First Amendment No. 1 to and Restatement of the

Development Participation Contract with the Texas Trees

Foundation for the donation of privately funded design plans for a

City of Dallas 2017 General Obligation Bond Program Project

identified as the Southwestern Medical District Streetscape

Plan/Harry Hines Boulevard Improvements (Market Center DART

Station to Mockingbird Lane) project to (1) revise the scope of work

to separate the Infrastructure Design component from the Project

Enhancement Design component; and (2) identify the responsible

parties of each project component – Financing: This action has no

cost consideration to the City (see Fiscal Information for potential

future costs)

This item is being revised to update the Agenda Information

Sheet and Resolution. Please contact Ghassan Khankarli,

DATE August 22, 2025

SUBJECT

August 27, 2025 City Council FINAL Agenda – Additions/Revisions/Deletions Memorandum

PAGE

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Director, Department of Transportation and Public Works, at

214-671-8451, for more information.

29. 25-2513A A resolution authorizing the execution of the Financing Agreement

and related documents for the funding commitment from the Texas

Water Development Board for Project Loan LM251535; and all other

matters related thereto - Financing: This action has no cost

consideration to the City (see Fiscal Information)

This item is being revised to update the Agenda Information

Sheet and Attachment 1. Please contact Jenny Kerzman,

Assistant Director of Treasury, City Controller’s Office, at 214-

670-3676, for more information.

58. 25-2501A Authorize (1) the City’s contracted Owner Controlled Insurance

Program (OCIP/ROCIP) broker of record, Marsh USA, LLC, to

purchase the Kay Bailey Hutchison Convention Center Master Plan

Renovation and Expansion Project insurance policies for commercial

general and excess liability, workers’ compensation, contractor’s

pollution liability, railroad protective liability, owners protective

professional indemnity, and builders risk, and other lines of coverage

as needed for the period August 27, 2025 to August 27, 2030; and

(2) an increase in appropriations in an amount not to exceed

$58,760,667 in the CCT 2025 Senior Lien Special Tax Revenue

Notes Fund - Not to exceed $58,760,667 ($36,334,542 for OCIP

insurance and $22,426,125 for Collateral and Retained Losses)-

Financing: CCT 2025 Senior Lien Special Tax Revenue Notes Fund

This item is being revised to update the Agenda Information

Sheet and Resolution. Please contact Zeronda Smith, Director,

Office of Risk Management, at 214-671-9051, for more

information.

PH2. 25-2404A A public hearing to receive comments concerning: (1) the proposed

levy of assessment for the Dallas Downtown Improvement District

(the “District”) in accordance with Chapter 372, Texas Local

Government Code, for the purpose of providing supplemental public

services to be funded by special assessments on property in the

District; and, at the close of the public hearing; (2) authorize an

ordinance approving and adopting the final 2026 Service Plan, the

final 2025 Assessment Plan, the 2025 Assessment Roll (to be kept

on file with the City Secretary) and 2026 Notice of Obligation to Pay

Improvement District Assessment (to be filed with Dallas County); (3)

establishing classifications for the apportionment of costs and the

methods of assessing special assessments for the services and

improvements to property in the District; (4) closing the public

DATE August 22, 2025

SUBJECT

August 27, 2025 City Council FINAL Agenda – Additions/Revisions/Deletions Memorandum

PAGE

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hearing and levying a special assessment on property in the District

for services and improvements to be provided in the District during

2026; (5) providing for reimbursement of city administrative costs for

operational oversight of the District; (6) establishing charges and

liens against the property in the District and against the owners

thereof; (7) providing for the collection of the 2025 assessment; (8)

authorizing the receipt and deposit of assessments from Dallas

County; (9) authorizing the disbursement of assessments and

interest to Downtown Dallas, Inc.; and (10) providing for an effective

date - Not to exceed actual collections estimated at

$12,771,992.62213,084,290.24 - Financing: Dallas Downtown

Improvement District Fund ($11,746,060.3812,058358.00), General

Fund ($690,816.81), and Convention and Event Services Enterprise

Fund ($335,115.43) (subject to appropriations) (see Fiscal

Information)

This item is being revised to update the Agenda Information

Sheet. Please contact Maria Smith, Assistant Director, Office of

Economic Development, at 214-670-1690, for more information.

PH3. 25-2406A A public hearing to receive comments concerning: (1) the proposed

levy of assessment for the Dallas Tourism Public Improvement

District (the “District”), in accordance with Chapter 372, Texas Local

Government Code, for the purpose of providing supplemental public

services to be funded by special assessments on Dallas hotels with

100 or more rooms; and, at the close of the public hearing; (2)

authorize an ordinance approving and adopting the final FY 2025-26

Service Plan, the final FY 2025-26 Assessment Plan and the FY

2025-26 Assessment Roll (to be kept on file with the City Secretary),

and FY 2025-26 Notice of Obligation to Pay Improvement District

Assessment (to be filed with Dallas County); (3) establishing

classifications for the apportionment of costs and the methods of

assessing special assessments for the services and improvements

to property in the District; (4) closing the hearing and levying a

special assessment on Dallas hotels with 100 or more rooms for

services and improvements to be provided during FY 2025-26; (5)

providing for reimbursement of city administrative costs for

operational oversight of the District; (6) establishing charges and

liens against the property in the District and against the owners

thereof; (7) providing for the collection of the FY 2025-26

assessment; (8) authorizing the receipt and deposit of assessments;

(9) authorizing the disbursement of assessments and interest to

Dallas Tourism Public Improvement District Corporation; and (10)

providing for an effective date - Not to exceed actual collections

estimated at $21,898,601.00 - Financing: Dallas Tourism Public

DATE August 22, 2025

SUBJECT

August 27, 2025 City Council FINAL Agenda – Additions/Revisions/Deletions Memorandum

PAGE

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Improvement District Fund (subject to appropriations) (see Fiscal

Information)

This item is being revised to update the Agenda Information

Sheet. Please contact Maria Smith, Assistant Director, Office of

Economic Development, at 214-670-1690, for more information.

PH5. 25-2418A A public hearing to receive comments concerning: (1) the proposed

levy of assessment for the Far East Dallas Public Improvement

District (the “District”) in accordance with Chapter 372, Texas Local

Government Code, for the purpose of providing supplemental public

services to be funded by special assessments on property in the

District; and, at the close of the public hearing; (2) authorize an

ordinance approving and adopting the final 2026 Service Plan, the

final 2025 Assessment Plan, the 2025 Assessment Roll (to be kept

on file with the City Secretary), 2026 Notice of Obligation to Pay

Improvement District Assessment (to be filed with Dallas County)

and the establishment of appropriations in the District Fund; (3)