Fund category breakdown still in debate
Two big money issues are brewing at Dallas City Hall: the police and fire pension system and a public improvement bond referendum. Many people are fighting for a share and city council members are now planning to increase the bond plan.
NBCDFW
By Ken Kalthoff
Dallas City Council Members held an unusual Friday afternoon and evening meeting to discuss two big money matters, a planned 2024 public improvement bond referendum and public employee pension problems.
The City Council Chambers were jammed with people concerned about their preferred use of the public money.
Council members agreed to increase the bond plan from $1.1 billion to $1.25 billion and hold the referendum in May and not November as some people requested.
The Austin Street Shelter used a bus to deliver to city hall people who need affordable housing.
One proposed segment of the bond plan is borrowing money to help encourage affordable housing, to help deal with soaring home costs in Dallas.
“The dollar amount we requested was $200 million. It was be cut down to $70 million and we think it needs to go back,” Austin Street Chief Executive Officer Daniel Roby said.
Dallas Chief Financial Officer Jack Ireland said some of the money that was to be set aside to shore up the Police and Fire Pension could be used instead to increase borrowing capacity for the public improvement bond referendum.
“If we're able to do that, and I'm hearing that we may be able to, that will solve a lot of the tension that's out there because it'll pay for more things,” City Council Member Chad West said. “Pension is certainly our priority, but I don't think we have to not do the bond or necessarily delay the bond simply because of that. I think you can have them both.”
West also said he supports a larger portion of affordable housing.
The proposed breakdown from City Manager T.C. Broadnax includes $500 million for streets and transportation.
A new Dallas Police Academy and other police and fire facilities would get $89 million in the staff recommendation, nowhere near as much as the police and fire departments requested.
Mayor Eric Johnson has supported a Parks Coalition that requested nearly $400 million. The latest city staff proposal was $250 million for parks.
Council Member Carolyn King Arnold said underserved communities that she represents need immediate attention to correct past lack of equity in city maintenance of streets and parks.
She said the public improvement bond referendum should be held as soon as possible in May, instead of November.
“We are hearing more in our communities that they want the basic infrastructure so we will have a chance to boost the quality of life and attract economic development and just different options,” King Arnold said. “Where housing is very important, we are working as a city to support housing. We do have programs that sustain a program for housing.”
More than 60 people signed up to speak at the meeting. Most of them were there to speak about the bond referendum and many were in favor of the largest-ever Dallas bond investment in affordable housing.
“Yes, this may be the first time we’ve done it but every other city that has had an innovative bond for housing has leveraged that for federal dollars that we don’t have the eligibility to if we don’t have matching funds,” Councilman Adam Bazaldua said.
City officials said the housing money could be used for infrastructure investments to support housing development or direct reduction of construction costs to produce less expensive dwellings.
Since there is no such fund available now, the city officials could not specify what projects would get the housing money.
City Council Member Cara Mendelsohn said there are already ways to help produce affordable housing without borrowing money to do it.
“I think we should be spending more about homelessness as a general item, but I don’t think we should be spending as a bond proposition,” Mendelsohn said. “We can be issuing bonds to housing finance corporations to accomplish all of these housing goals and not using the capacity of the city debt that we need for parks and streets and all of these other projects.”
Hearing from public speakers and the city council discussion of pension details continued into Friday evening.
Final decisions about the pension issues are not required until early 2025.
The bond fund category breakdown must be approved by Feb. 14 to be put before voters in May.
More meetings are scheduled on Jan. 31 and Feb. 7 so there is still time to sound off.