Dallas City Council Budget Workshop - August 26, 2026: Transportation Budget Overview and Proposed Amendments

The Dallas City Council held a budget workshop on Wednesday, August 26, 2026, from 9:28 AM to 4:39 PM, to discuss the proposed FY 2026-27 and planned FY 2027-28 biennial budgets. The morning session (Briefing Item A) focused on the Department of Transportation and Public Works (TPW) budget overview, including street maintenance, infrastructure priorities, and key initiatives. The afternoon session (Briefing Item B) addressed proposed revisions to the city manager's recommended budget, with seven adjustments responding to initial council feedback. No formal votes were taken; the council will consider amendments by Friday, August 28, 2026, at noon, with a straw poll and final votes scheduled for September 2, 2026 (first reading) and September 16, 2026 (second reading and adoption).

Discussion Items

Department of Transportation and Public Works Budget Overview (Morning Session)

• Director Gus Kinkarley presented the TPW budget, which is the third-largest general fund department after Dallas Police and Fire Rescue. The proposed FY 2026-27 budget is $159.475 million (general fund component), with a total of $176.3 million including bond and internal service funds; FY 2027-28 totals $182.1 million.
• TPW manages 11,700 lane miles of roadways (6,200 asphalt, 5,500 concrete), 1,400 miles of alleys, 4,500 miles of sidewalks, 648 bridges, and 1,483 traffic signals.
• Street maintenance funding: $65 million in general funds and $77 million from bond/DART for FY27, supporting 800 lane miles of treatment. The department has historically over-delivered on lane mile targets (e.g., 769 in FY23, 810 in FY24, 725 in FY25, on track for 780 in FY26).
• Cost per lane mile varies by treatment: preventive (micro seal) $19,000–$30,000; maintenance/repair $108,000–$270,000; resurfacing (full replacement) ~$800,000; full reconstruction $860,000–$2.5 million. Alley repair costs average $600,000–$800,000 per mile.
• Key initiatives: Increase bridge maintenance funding from $4.4 million to $7.3 million; construct 50 warranted traffic signals; add 6 miles of bike lanes under Phase 1 of the Dallas Bike Plan; procure a new Advanced Traffic Management System (ATMS) costing ~$20 million (federal and bond funds); invest $1.5 million in Vision Zero to leverage additional grants; replace 900 non-smart parking meters with smart meters to increase revenue.
• Council members raised questions about utility coordination, sidewalk maintenance, traffic calming, street lighting costs ($17 million for Encore electricity and maintenance), ATMS cybersecurity, and equity concerns in District 4 and other southern sectors. Deputy Mayor Pro Tem Maxie Johnson highlighted persistent infrastructure and lighting disparities in District 4. Councilmember Paula Blackman noted that District 8 has lower pavement condition scores than some other districts, but contested the claim that it is better.

Proposed Budget Revisions (Afternoon Session)

City Manager Kimberly Meiser Tolburn and CFO Jack Ireland presented seven recommended revisions to the proposed budget, based on council feedback:

1. Dallas Animal Services (DAS) – Animal Cruelty Response: Increase funding by $500,000, offset by a reduction in the Dallas Zoo management fee (from $14.9 million to $13.7 million, for a total reduction of $1.2 million). The zoo also receives $30 million in bond funds. Council members expressed mixed views: some supported the increase for DAS but opposed cutting the zoo; others wanted alternative funding sources. The city manager noted an additional ~$300,000 from the former SBCA site could be redirected, bringing total new DAS funding to ~$800,000.
2. Legislative Support: $300,000 for external lobbying support for the upcoming Texas legislative session, funded by $78,000 from a vacant DPD assistant director position and $222,000 from canceling a Zen City customer experience contract. Most council members supported this.
3. Library Adult Learning Programs: Restore $267,000 for English language and GED instruction at Prairie Creek, Pleasant Grove, and Hampton-Illinois branches. Management response: Not to restore funding, but to partner with Workforce Solutions of Greater Dallas, Dallas College, and other nonprofits to provide similar services. Council members expressed concern about service gaps and documentation requirements.
4. Pleasant Oaks Community Pool: $100,000 to keep the pool open for the 2027 season, funded by $40,000 in increased park fees and $60,000 from park security program savings (using DPD cameras instead of purchased cameras). Council debate focused on the pool's age and reliability, with supporters arguing it is the most-used community pool and has bond capital committed.
5. Trinity River Audubon Center and Cedar Ridge Preserve: Restore less than $10,000 in cuts to these partners, funded through park security savings. Supported by many members.
6. Office of Inspector General: Restore $114,000 cut, funded by eliminating the remaining Zen City contract ($35,000), eliminating youth commission travel ($23,000), and reducing mayor/city council office budgets ($56,000, ~$3,733 per office). Some supported; others opposed reducing council budgets.
7. Eviction Advocacy Support: Not restored. Management recommended a public-private partnership model, citing Dallas County's existing funding. Several council members (including Mayor Pro Tem Recendez) argued it is a core service for homelessness prevention and should be funded.

Multi-Year Fund Discussion

A significant portion of the afternoon debate centered on the Parks and Recreation Department's multi-year funds (totaling ~$15 million, including $8 million for golf and $3 million for rec centers). Councilmember Adam Basildua questioned the lack of a clear policy for using these funds, and Interim City Auditor Rory Gaul confirmed that the allocation of 45% of golf fees to the multi-year fund lacked a current council resolution. Council members expressed frustration that these funds were not considered during budget cuts, and the city manager committed to developing a policy for council review.

Key Outcomes

• No votes taken on the seven revisions; the council will receive updated proposals by Friday, August 28, 2026, and will consider all amendments (including those submitted by Friday noon) on Wednesday, September 2, 2026, via straw poll and first reading.
• The city manager will incorporate feedback from the workshop and explore alternative funding sources for DAS animal cruelty funding (to avoid cutting the zoo) and for eviction advocacy.
• The council requested a briefing on the parks multi-year fund policy in the coming months.
• The final budget adoption (second reading) is scheduled for September 16, 2026, with the new fiscal year beginning October 1, 2026.