Farmers Branch staff outline FY 2024–25 budget timeline, warn of sales‑tax dip and limits under SB2

Tammy Zimmerman, identified in the transcript as Director of Finance, opened the council’s budget kickoff on May 21, saying “it’s officially budget season” and outlining a timeline that will post a draft budget July 30, hold a budget town hall Aug. 27 and target final adoption Sept. 17.

Zimmerman told council staff are currently tracking about $23,000,000 in sales tax revenue for the fiscal year and are projecting roughly $1,000,000 less for the 2024–25 budget cycle. She repeated staff’s caution about volatility in sales tax and the impact of Senate Bill 2, which imposes a 3.5% cap on the maintenance-and-operations portion of property tax growth and has encouraged some jurisdictions to shift to interest-and-sinking (I&S) rate adjustments.

“The starting point for municipal budgets is our revenue and forecasting our major revenue sources,” Zimmerman said, listing sales tax and property tax as the principal drivers and noting the city’s current tax rate at 0.569, a 20% homestead exemption and a $100,000 senior-and-disabled exemption.

Councilmembers probed technical terms required in the city’s truth-in-taxation calculations — including the “no new revenue” and “voter-approval” tax-rate concepts created by SB2 — and staff explained that the council’s unused increment period has expired and there is no increment left to carry forward.

Councilman Neal asked whether the city could hold more than one public hearing to increase resident participation; Zimmerman said staff will present options for multiple hearings and public outreach materials. Staff also said they will try to schedule a Q&A session with the Dallas County Appraisal District about certified values after DCAD posts them in late July.

Next steps: staff will continue department budget reviews through May and June, present a draft July 30 and bring public-engagement and tax-rate hearings to council in August and September.