Proposed $5B Budget Aims to Break Down Dallas City Hall Silos for Savings, Efficiency

If you had to slap a theme on the City’s proposed $4.97 billion budget, it’d be something about breaking down Dallas City Hall silos. Interim City Manager Kimberly Bizor Tolbert said as much when Councilwoman Paula Blackmon asked her what the headline for this year’s budget should be. “Reimagining and realignment for results,” Tolbert said. 

Dallas officials spent almost four hours Tuesday reviewing the city’s proposed $4.97 billion budget for Fiscal Year 2024-25. City Council members praised Tolbert for strategic budget cuts, including eliminating hundreds of vacant “ghost” employee positions and streamlining services to allow for better communication and a lower probability that mistakes could be made.

Tolbert also introduced the largest single-year property tax reduction in modern history, a decrease from 73.57 cents to 70.47 cents per $100 assessed valuation. 

Siloed Departments Led to Mistake

The City of Dallas remains under fire as some home builders in the former Freedman’s community of Elm Thicket/Northpark could be forced to tear down and start over as the result of a city mistake. Builders were issued “stop work orders” in late July, forced to scrap projects they’d invested hundreds of thousands of dollars in because city inspectors erroneously issued permits allowing them to build in areas that weren’t zoned for their projects. 

Dallas Admits Elm Thicket Permits Were Issued Erroneously, Builders Ordered to Stop Work

The Elm Thicket zoning changes were approved almost two years ago, but inspectors were using outdated information when they issued the permits, and the city dashboard wasn’t immediately updated to reflect the change. 

At least one builder affected by the mistake will appeal his case to the Board of Adjustment next week; another Elm Thicket case is scheduled in September. 

Watch Tuesday’s budget briefing. 

Planning and Development Department Merger

We took note as Chief Financial Officer Jack Ireland reviewed budgetary impacts on the newly merged Planning and Development Department, which now oversees everything from city planning to permitting to zoning. Previously, the Development Services Department was in charge of permitting, and the separate Planning+Urban Design oversaw zoning, even though there is significant overlap in those functions. 

“A big focus in this budget is the establishment of the Planning and Development Department to continue our efforts to improve our planning, zoning, and permitting and ensuring those are directly aligned in one department,” Ireland said. 

Dallas’ historically siloed departments have been blamed not just for poor communication and zoning mistakes but also for creating bloat in the city budget. 

Emily Liu, who was hired from Kentucky in May as the planning director and now also oversees development services, told the council on Tuesday that employees are cross-training to break down the silos and ensure that staff members are communicating. 

“We want to make sure we’re cross-trained so we eliminate some of the mistakes and provide better customer service,” she said. 

The merged department increased its total budget by about $7.4 million, based largely on a new revenue stream coming from increased building permit fees. The measure, approved by the City Council in March, will increase revenues by 35.4%, said Assistant Budget Director Ivan Guel. 

Councilman Paul Ridley questioned why the budget for salaries in the new department increased, even though the Development Services Director position was eliminated. 

Planning and Development Deputy Director Vernon Young said the purpose of adding an assistant director over permitting is to increase accountability. Under the new structure, there are chief officials overseeing commercial permitting, residential permitting, and inspections, Interim Assistant City Manager Robin Bentley said. 

More Changes in Economic Development and Housing

The City’s CFO Ireland said the proposed budget also includes an effort to grow the capacity of small developers and create a one-stop incentive toolbox for developers of all sizes. 

“As we’ve realigned the activities and tasks that were part of the Small Business Center, Economic Development will now have within their toolbox the Southern Dallas Investment Fund, the South Dallas/Fair Park Opportunity Fund, Neighborhood Empowerment Zone Program, and other programs at their disposal as they’re working with developers of all sizes, small and large,” he said. 

The City is proposing allocations of a $7.5 million public-private partnership program and $6 million in the infrastructure investment fund to attract commercial real estate development projects, especially in historically under-invested areas, Ireland said.  

Council Members Praise Proposed Budget

Several council members issued statements in their weekly newsletters about the budget, and most were positive. Councilman Chad West said for the first time since he was elected, he doesn’t have any immediate amendments to propose. Councilwoman Gay Donnell Willis said it appears the budget office and administration not only listened to the council’s wishes but also took into account the views of residents who want lower taxes and efficient service delivery. Councilwoman Jaynie Schultz also had high praise during Tuesday’s meeting. 

“I think this budget is a triumph,” Schultz told Interim City Manager Tolbert. “This is also a time to commend you and your team for the consolidation and reimagination of so many departments.”

Tolbert said her goal was raising the bar.

“We’ve taken the opportunity over these last few months to really look at what we do and how we do it, and are we doing it in the best possible way,” Tolbert said. “I think for me and for the team, it’s really about not just making it the headline but we put it into action. We don’t stop just with the delivery of the annual budget. We continue to find ways as an organization … to revisit, to raise the bar, and to continue to do better.” 

View the budget overview and the full City of Dallas proposed budget document.

Budget town hall meetings in each council district began Thursday. 

Public hearings will continue through the month of August ahead of budget adoption in September. The new fiscal year begins Oct. 1.