What you need to know
Frisco City Council members will hold three public hearings on the city’s budget and property tax rate for FY 2024-25:
- Budget public hearings: Aug. 20 and Sept. 3
- Property tax public hearing: Sept. 17
Here is a quick look at what is being considered:
- A $273.42 million general fund budget for day-to-day operations
- $149 million capital improvement projects fund
- $0.425517 per $100 valuation property tax rate
All meetings will take place inside council chambers at 6101 Frisco Square Blvd., Frisco, and start at approximately 6:30 p.m., according to the public hearing notice. Council members are expected to adopt the budget and tax rate during the Sept. 17 meeting.
The details
The city’s proposed tax rate will be allocated toward:
- $0.283406 per $100 valuation to maintenance and operations
- $0.142111 per $100 valuation to interest and sinking, which pays back the city’s bond debt
Property taxes are the No. 1 source of revenue for Frisco, Chief Financial Officer Derrick Cotten said during an Aug. 12 budget meeting. Even with the new rate, which is roughly $0.01 lower than FY 2023-24’s, the city is expecting to raise an additional $16.31 million in property taxes overall—$7.59 million of that from new property, according to an Aug. 12 presentation.
As of Aug. 12, the city is still confirming its assessed property values with the Denton County Appraisal District, and the estimated tax revenue could change, Cotten said.
A portion of the city’s budget next year will go toward salary and life insurance increases for all of its employees, according to budget documents. This includes:
- An average of a 4% merit-based increase for employees, and 3% step for uniformed police and fire personnel
- Raising the life insurance policy to $150,000 for all employees
Something to keep in mind
While the property tax rate will decrease, residents’ water and sewer, stormwater, and environmental services rates will increase slightly.
- A $0.21 North Texas Municipal water District rate increase
- 10% higher stormwater rate
- 5% higher environmental services rate
Zooming out
The city’s financial successes can be attributed to its leaders’ long-term, thoughtful thinking, Frisco City Manager Wes Pierson said Aug. 12. According to city documents, the proposed FY 2024-25 budget will provide funding to a majority of projects related to Frisco’s priorities:
- Grand Park
- Performing arts center
- Reinvestment in Frisco
- World Cup 2026
- Innovation ecosystem
- Downtown
- North Frisco activation
- Community engagement
- Engagement and integration of the business community
- Parks and trails projects