Connect with us

Dallas, TX

Dallas management gets a failing grade for finances

Published

on

Dallas management gets a failing grade for finances


The city of Dallas is going to ask voters to pass a bond package of $1.25 billion. Even this much money does not come close to covering the city’s need. Sadly, no money has been earmarked to address the $28 million needed to repair City Hall. Most alarming, it fails to address the pension problem that threatens Dallas.

Voters will have to decide if now is the time to borrow that much money. Dallas has a huge inventory of needs, but voters will have to ask: Is it prudent to borrow more money when we are already in such debt?

A just-released study on the fiscal health of American cities by the Truth in Accounting think tank provides a stark appraisal of Dallas’ fiduciary situation. The city earned a grade of “D.” That’s not the kind of Big D we want. Dallas finished worst among cities in Texas and among the bottom 10 of American cities overall.

Truth in Accounting was founded in 2002 by Sheila Weinberg, a practicing CPA with more than 40 years’ experience. The organization is “dedicated to educating and empowering citizens with understandable, reliable, and transparent government financial information.”

Advertisement

Opinion

Get smart opinions on the topics North Texans care about.

Each year Weinberg’s group studies the top 75 cities in the country and grades their fiscal responsibility. The study also attaches the dollar amount that would be required by every taxpayer to cover the city’s debts. This year Dallas finished 63rd out of the 75 cities, but improved from the previous year. By contrast, Washington, D.C., finished first and had a surplus of $2.8 billion, creating a surplus per taxpayer of $10,700.

Times have been good for Dallas. There has been Federal COVID-19 relief money, a huge sales tax boom and rapidly rising property appraisals. But somehow the city of Dallas still has a tax burden of $9,600 per resident, according to the Truth in Accounting study.

Even worse, Truth in Accounting reported, “The pension debt included in this report and the city’s financial report is based using 2021 data when pension investments were performing well. If the city’s pension investments experienced the same major decrease that most other cities experienced in 2022, Dallas’ pension debt would be higher. … Dallas had set aside only 61 cents for every dollar of promised pension benefits and no money set aside for promised retiree health care benefits.”

Advertisement

Underfunded municipal retirement programs are a risk to the U.S. economy. “Cities should focus on overfunding their retirement plans so they can weather market downturns,” Weinberg said in a press release. “If elected officials choose to ignore this perpetual issue, then taxpayers will be on the hook to pay higher taxes to cover the benefits promised to past government employees.”

According to the study, Dallas only has $3.4 billion available to pay $7.1 billion worth of bills. This $3.7 billion shortfall is an improvement by $1.9 billion from the prior year. So, the city improved and still earned a D — not good.

Dallas is losing residents. Its population shrank by 0.4% between April 2020 and July 2022, according to U.S. Census data. Even worse, we are losing young families. Many of those move to suburbs, which get high grades by Truth in Accounting. Plano finished third in the country and best in the state, earning it a B and a healthy surplus of $5,100 per citizen. Arlington ranked 16th and also earned a B thanks to its ability to run a surplus.

The budget for the city of Dallas continues to grow larger and larger, yet the delivery of services does not improve. The city offers far more services than it once did and promotes numerous programs. Whether it can afford all these, and if they are essential, is unclear.

I believe the city will have to address its spending habits. The city recently had to sell bonds to pay off its $55 million judgment in a gas drilling disaster. The City Council is already talking about more bonds (outside those in the bond package) to cover repairs at City Hall.

Advertisement

The upcoming bond election is necessary. The city must address its infrastructure. It must also repair the pension funds. Breaking the bond items into individual referendums gives voters the opportunity to determine which rise and fall on their own merits.

The city should not, however, expect a bailout from the state Legislature. Houston, Dallas and Austin have culturally and fiscally seceded from the rest of the state of Texas. The big cities may have a rude awakening when they look for a bailout of their pension funds. The state’s affluence and influence has shifted away from big cities and toward their bustling suburbs.

If Dallas cannot right the ship financially there could be dire consequences. Citizens could see the rising taxes and the elimination of the over 65 property tax exemption. Voters could find themselves thinking about the appropriate level of austerity.

While municipal bankruptcies are rare, they do occur. In 2020, a Pew Charitable Trust study determined 31 cities had done so since 2001, most famously Detroit in 2013. Interestingly, Detroit earned a grade of C in the most recent study, placing 39th. When you are looking up at Detroit in the standings, maybe you need to take a hard look at what you are doing.

The citizen satisfaction survey determined nearly half (47%) of citizens polled believe they are not receiving a good value for their tax dollars. Likewise, only 28% of citizens polled were “pleased with the overall direction that the city is taking.” Dallasites are frustrated with the series of debacles that have befallen the Broadnax administration.

Advertisement

It’s the administration of outgoing City Manager T.C. Broadnax that has determined that City Hall should be borrowing to the max. Can that judgment be trusted? Will our future city manager be as aggressive?

During a boom time, Dallas has increased its debt and earned a failing grade. Now, the city must hire someone capable of properly managing so much money.

We welcome your thoughts in a letter to the editor. See the guidelines and submit your letter here. If you have problems with the form, you can submit via email at letters@dallasnews.com



Source link

Advertisement

Dallas, TX

Dallas City Council approves resolution to explore leaving Dallas City Hall

Published

on

Dallas City Council approves resolution to explore leaving Dallas City Hall


Dallas City Council members approved a measure to explore options for leaving Dallas City Hall while, but left the door open to staying in the iconic building.

Resolution to explore leaving City Hall passes

What we know:

Advertisement

The resolution approved will explore options to buy or lease a new City Hall building. It was amended to include a plan to pay for repairs to the current building that would be compared side by side to the options to leave.

Dallas City Council approved the resolution by a 9-6 vote. The vote came around 1 a.m. Thursday morning after 14 hours of debate.

Advertisement

Councilman Chad West told FOX 4’s Lori Brown that if the city decides to stay or leave City Hall, the resolution includes proposals to redevelop the land around the building.

“We still should be looking at redevelopment options to tie it into the convention center later on, because otherwise it just equals ghost town, which is what we have now,” West said. “And of course, if we decide to move and City Hall itself gets repurposed or demolished and something gets built there, we need to have a projected plan for what that could look like as well.”

Debate on City Hall’s future

Advertisement

Local perspective:

Around 100 residents spoke about their desire to keep the current Dallas City Hall, the historic structure designed by architect I.M. Pei.

“The thought of losing this land to private hands is disheartening. A paid-off asset, unfair to taxpayers, built on what is here,” Meredith Jones, a Dallas resident, said.

Advertisement

“The decision belongs to the people, not the city council,” David Boss, the former manager of Dallas City Hall, said.

Several questioned why the price tag for a repair is public knowledge, but the cost for a move isn’t.

Advertisement

“The public deserves to know the value of the land we are giving up. Dallas deserves a careful decision, not a rushed one,” resident Azael Alvarez said.

Future Mavs arena looms large

Dallas City Council went back and forth on the resolution, amending it before it finally passed. Much of the conversation revolved around the Dallas Mavericks’ potential interest in the site for a new arena.

Advertisement

Mayor Eric Johnson lamented that conversation revolved around the Mavs’ future and not City Hall itself.

“A  conversation about a particular sports team and where you want them should never have been part of the conversation because that was not what was infront of us,” Johnson said. “I’ve never seen such vehement opposition to gathering more information.”

Councilwoman Cara Mendelsohn wore a Mavericks T-shirt to a recent hearing due to the continued conversation around them.

Advertisement

“We’re talking a lot about the Mavs. They’re the elephant in the room, but they’re actually not here, so let’s at least let them have a seat at the horseshoe,” Mendelsohn said on Monday.

Residents were also upset at the idea of City Hall being bulldozed to make way for a new Mavs arena.

Advertisement

“The Mavericks were ridiculed nationally, and still are. Worst trade in the history of the NBA,” one resident said Monday. “The decision to knock this building down without all the facts and allowing the people to make the decision is your Luka Dončić trade.”

A potential 10-digit repair cost

The backstory:

Advertisement

Experts who assessed Dallas City Hall said the 47-year-old building’s mechanical, plumbing, heating, air conditioning, and electrical systems don’t meet modern standards. 

It put a $906 million to $1.4 billion price tag on keeping the iconic building, which was designed by the famous Chinese architect I.M. Pei, for another 20 years.

Downtown Dallas Inc., an advocacy group for Downtown Dallas, said last week they support leaving the current City Hall site.

Advertisement

“We believe Dallas City Hall is no longer serving its intended purpose. The important functions that happen and must continue to be evolved and innovated within our city government are inefficient and truly stymied in that space,” said Jennifer Scripps, President and CEO of Downtown Dallas Inc. told the crowd. “Our board called a special called meeting and voted unanimously in support of pursuing options to relocate City Hall and redevelop the site. We were we feel that the opportunity is huge.”

The Source: Information in this story came from FOX 4 reporting.

Advertisement
NewsDallas City CouncilDallas



Source link

Continue Reading

Dallas, TX

Study says the real value of a $100K salary in Dallas is…less than that

Published

on

Study says the real value of a 0K salary in Dallas is…less than that


How much do you earn? And how far does that paycheck really go?

In Dallas, a $100,000 salary is a figure that’s more than double the area’s individual median income, but nevertheless a useful benchmark for the region’s burgeoning business community. However — once taxes and the local cost of living is factored in — it has the effective purchasing power of around $80,000 according to a new financial report.

Consumer-focused fintech site SmartAsset worked the numbers on the country’s 69 largest cities, determining the “estimated true value of $100,000 in annual income” in each location by measuring federal, state and local taxes as well as local cost of living data, including on housing, groceries and utilities.

It used its own proprietary figures, as well as information from the Council for Community and Economic Research.

Advertisement

Related

Despite recent research suggesting North Texas has lately been losing some of its famous economic advantage — a major factor behind the region’s explosive growth — Dallas actually fared relatively well in SmartAsset’s analysis. Of the 69 cities, Dallas’ effective purchasing power, of $80,103 on the $100,000 salary, tied with Nashville to rank 22nd highest.

Business Briefing

Become a business insider with the latest news.

By signing up, you agree to our Terms of Service and Privacy Policy.

Advertisement

Like many cities in the report, Dallas also actually saw a year-over-year effective salary bump, likely because of slightly lower effective tax rates and living costs that have hewed closer to the national average. In 2024, the value of a $100,000 salary in Dallas came out to $77,197.

Other large Texas cities fared even better than Dallas. El Paso, where SmartAsset calculated the effective value of the $100,000 salary at nearly $90,300, ranked third highest overall.

San Antonio, where the effective value was around $86,400, ranked eighth. Houston, where the figure was around $84,800, ranked 10th, and Austin, where the figure was $82,400, ranked 17th.

Oklahoma City topped SmartAsset’s value ranking, with an effective salary of around $91,900, and Manhattan, which the website considered as its own city, came in with the lowest value, at around $29,400.

Dallas’ relatively strong effective value score won’t necessarily translate to the good life: Another financial report, published in November by the website Upgraded Points, determined that even a single adult with no kids needs a pre-tax salary of at least $107,000 to live “comfortably” in the Metroplex.

Advertisement



Source link

Continue Reading

Dallas, TX

Public frustration grows as Dallas leaders debate billion‑dollar City Hall fix or relocation

Published

on

Public frustration grows as Dallas leaders debate billion‑dollar City Hall fix or relocation


Dallas City Council members spent the day hearing hours of public criticism as they weigh whether to spend roughly $1 billion to repair the aging, 50‑year‑old City Hall or pursue a plan to move out entirely. The meeting grew tense as residents voiced mistrust over the council’s motives, prompting members to suspend normal rules and allow anyone in the chamber to speak. Speakers questioned whether the push to relocate serves the public or private developers, while city staff prepared to present cost and feasibility details during what is expected to be a long evening session.



Source link

Continue Reading

Trending