Within 10 days of receiving City Manager David Cooke’s budget proposal for the upcoming fiscal year, Fort Worth City Council members requested a reduced tax rate, among other budget adjustments, to alleviate residents’ financial burden.
In a letter to Cooke dated August 23, Mayor Mattie Parker and the rest of the council requested that the city’s tax rate remain below the no-new-revenue limit of 67.25 cents per $100 valuation. Cooke’s plan, 67.73 cents per $100 valuation, would have hiked the city’s tax rate for the first time since 1995.
“Our residents continue to express growing concerns about their property tax burden and overall housing affordability,” the council’s letter to Cooke read. “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.”
Cooke will oversee the final budget before leaving in February after a decade as city manager, the longest tenure in Fort Worth history.
Cooke stated that the property tax increase, which would fund a $1.062 billion general fund budget, was required to cover an unexpected drop in property value growth, increased costs for police and fire departments, performance pay increases, pay-as-you-go fund increases, and the transition from MedStar to a fire-based EMS system.
Cooke and the council’s opposing viewpoints arise as council members are up for election in 2025. Parker, who backed Cooke’s efforts to enact a higher effective tax rate last year, has yet to say if she will compete for a third term as mayor.
Council member Michael Crain told the Report that he feels keeping a flat tax rate is “the right thing to do,” and he is pleased that his fellow council members agree. He stated that he has long pushed to cut the tax rate during his stint on the council.
“I think I’ve been clear over the last several years — I’ve not voted for the tax rates because I have not believed that city management has scrubbed the budget as best they can,” Crain told the crowd. “In the uncertain times we are in right now, it wasn’t the right time to (raise taxes).”
Crain, Alan Blaylock, and Charlie Lauersdorf were the only council members who voted against the adopted tax rate last year. The city cut the rate by four cents, yet residents’ tax bills remained higher.
Last year, the mayor supported boosting the tax rate above the no-new-revenue rate, claiming that the decision would position the city for future prosperity. This year, she added, she is pleased with the council for working together to advocate for a rate lower than the no-new-revenue rate.
“With growing concerns about property tax burdens and housing affordability, we must remain committed to lowering the property tax rate while also maintaining superior city services,” Parker said to social media on Aug. 23, 2018.
Crain said that he and the rest of the council recognize the financial strain that citizens face as a result of inflation and economic instability, and they want to assist in alleviating it. That is also why they are urging that Cooke adjust his proposed budget to raise the city’s minimum wage from $15.45 to $18 per hour.
The letter claimed that the council carefully evaluated the “necessity of taking care of our workforce and remaining a competitive and preferred employer” before consenting to request a minimum wage hike. Council members Elizabeth Beck, Chris Nettles, and Jared Williams have already stated that they back campaigners who protested outside City Hall in June, calling for a $20 minimum wage. The city management suggested a minimum salary of $16.07.
“There obviously was an effort to get to $20, but I think … $18 was the compromise that was made for all of us to be on board,” Crain told the crowd.
In addition to the proposed tax rates and minimum wage, council members stated in the letter that public safety “must continue to be a high priority.” They stated that they support Cooke’s current budget proposal, which includes several goals for public safety.
The council also asked that the budget include “vital street maintenance funds necessary to preserve the infrastructure of our growing city.” They endorsed the budget proposal to allocate $9 million to street repair through an increase in pay-as-you-go monies. The pay-as-you-go funds allow the city to pay for cash improvements rather than incurring debt.
Earlier this year, city staff suggested a new levy on property owners to pay for roadway repair, which would have increased residents’ annual city service bills by an average of $110. The levy would have helped close a projected $66 million annual gap between the financing needed to rehabilitate Fort Worth’s roadways and the amount of money available.
In May, staff tabled the idea, stating that they would consider other funding possibilities. Crain stated that placing the fee on residents would have been the wrong decision.
“Across the board, the City Council understands what’s right and what’s best for Fort Worth, and we’re going to continue to take care of our residents and provide the safe, clean city that they expect,” Mr. Crain said.
City Council will convene for budget work sessions on August 27 September 5 and 6. They will host a public hearing on September 17 to seek citizen feedback on the proposed tax rate before voting on the final budget and tax rate that same day.