FY2027 budget development kicks off with presentation at work session

On Tuesday, May 5, the City of Fort Worth kicked off a series of work sessions to inform development of the Fiscal Year 2027 budget. The City's budget is the financial plan for how it provides services each fiscal year, running from Oct. 1 through Sept. 30.

Based on current estimates, the City will need to overcome a shortfall of $49.3 million to deliver a balanced general fund budget for FY27. The total expected revenue is $1.13 billion and total expected expenses equal $1.18 billion.

In 2026, the adopted general fund budget was $1.105 billion. This included a quarter-cent reduction in the property tax rate, full-year operation of emergency medical services, sustained Pay-Go funding for infrastructure and expansion of high-impact neighborhood programs like the Mobile Tool Shed.

Each year, City departments are asked to develop their budgets based on a target, with several predetermined costs already included. The prior year's adopted budget is the starting point, then one-time costs are reduced from the target, prior year commitments are carried forward and indirect or administrative costs are allocated to each department. The last component is the salary and benefits projection, which includes retirement, health insurance and the pay-for-performance program. The general fund target budget has grown by 4.74% (roughly $52 million) since last year.

To reduce projected expenses, all departments were directed to balance to a 1% reduction in their target budget and also identify another 3% in potential cost-saving options. A 1% reduction would allocate $7.8 million toward the shortfall, and the 3% reduction would provide $14.1 million, leaving a $27.4 million gap remaining. City staff will work throughout the summer to close the gap and balance the budget by early August.

On May 1, preliminary budgets were submitted by all departments and are currently under review. Budget projections will be updated as new tax revenue data is released throughout the summer. The city manager's recommended budget will be presented to the Council in August. Community events will occur during the month of August, with the budget adoption in September.

The City will soon launch a budget priorities survey to get community feedback on priorities and trade-offs that could help balance the budget. This information will be shared with staff and City Council to finalize the budget by September.