Mid City Times

Published on September 08, 2024

Wise infrastructure investments are crucial for Fort Worth's development as more people move to the area. Maintaining current infrastructure while adding new facilities is vital to meet service demands.

City leaders emphasize budgeting cash for capital infrastructure improvements annually. Pay-as-you-go (PayGo) financing, which involves paying for projects with funds from property taxes and sales tax instead of relying on credit, has proven effective in maintaining and improving the City’s infrastructure.

During Fiscal Year 2025, streets, sidewalks, parks, street lighting, and transit facilities will receive improvements that might otherwise have to wait until the next bond election in 2026. These improvements are expected to cost $83.9 million and represent 7.25 cents of the recommended property tax rate.

The benefit to taxpayers is significant; since projects are funded using existing resources, there is no need to borrow money and incur interest payments. This leads to lower long-term costs for taxpayers. Using PayGo prevents deterioration and lengthens the lifespan of assets by addressing maintenance and improvements as they arise. This results in greater financial flexibility for larger-scale projects as the city grows. Improvements can be made within the current fiscal year rather than waiting for the next bond program.

PayGo funding has been in place in Fort Worth for ten years, starting at 3.78 cents of the property tax rate and increasing to a recommended 7.25 cents for FY25.

Employing this best practice ensures a strong foundation for financing capital asset management.

Next steps include a City Council vote on the FY25 budget scheduled for Sept. 17 after a series of budget workshops and a public hearing. The City’s new fiscal year starts Oct. 1.

Community open houses are being held in each council district to gather feedback from residents.