Brandon Chicotsky

Understanding my hometown’s tax collection…

As mentioned in previous posts, I am pursuing independent study of Fort Worth’s city management, voting trends, history, and cultural developments. My latest discoveries involve taxes. ..

Fort Worth accounts for tax revenues through a City Operating Budget. The accounts are grouped into what’s known as, Enterprise Funds, General Funds, Internal Service Funds, and Special Funds.

All city services (sanitation works, airports, water works) are supported by Enterprise Funds. Generally, user charges pay for operations. In recent years, Fort Worth has pursued a noble goal - eliminating all forms of subsidization to utility enterprise funds. This means, no one is using my tax dollars to pay for mismanagement or budget shortfalls - I highly value this form of conservative governance.   

Every tax dollar paid to the municipality initially goes to the General Fund before money is allocated outward. The Internal Service Funds finance the services and goods of each department (equipment, technology solutions, office services, and temporary labor). The Special Fund serves to track revenue and expenses. This fund helps identify excess and lapses while providing a safeguard for any budget oversight.

The city also accounts for grants. For example, in 2006, the U.S. Department of Housing and Urban Development granted the city of Fort Worth over $11 million for community development, emergency shelters, and housing opportunities for persons with AIDS. These grants are handled through a separate budget, which means Fort Worth’s leadership must never become complacent in managing its resources.

Near my family’s retail center on 7th street (Chicotsky’s Center) we have enjoyed new, highly valued commercial and condominium development, which is taking shape throughout the Historic District and downtown area. New development contributes to keeping a low tax rate for property owners. As long as housing developers consider affordability and market forces to avoid over-saturation we can avoid high tax rates.

Fort Worth’s property tax rate has changed several times over the last few years with welcomed tax cuts, and we have proven somewhat immune to the aftermath of the 2008 market dive. Currently, we enjoy the lowest tax rate in the city since 1986. As long as we have an increase in construction, an increase in single-family homes, and smart assessments by the Tarrant Appraisal District (provides current value assessments), we can keep our tax rate competitive.

-Brandon Chicotsky