Dallas City Council warned of inflation impact on city budget

DALLAS - Another sign of the inflation problem is with city budgets.

Dallas City Council members were warned by the city's outgoing chief financial officer that there could be a slowdown in the economy on the way. 

Dallas may have a tighter budget next fiscal year due to a huge increase in the living wage as well as higher fuel costs.

CFO Elizabeth Reich told council members that the living wage is set to jump by $2.60 an hour. It will go from $15.22 to $17.82.

The city requires its contractors to pay a living wage.  On top of that, the city will have to find ways to pay for increased fuel costs for police and fire. 

Wednesday was Reich's final presentation to the city council before she leaves for a new job at the end of the month. 

"As you are considering the budget in August, don't be surprised if the budgeters are more conservative so you don't have to come back mid-year and cut," she said.

On top of rising fuel and wage costs, Reich says spending is forecast to slow down which will impact sales tax revenue. She expects that slow down at the end of this year.                    

Revenues from property taxes are set to increase for the city. 

The value as of May was $193 billion, which is above the budget forecast. But that value is expected to decrease based on property owner protests.