Frisco City Council members approved a $273.42 million general fund budget and a $0.425517 per $100 valuation property tax rate during a Sept. 17 meeting.
The overview
The city’s $0.425517 per $100 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 main 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 meeting documents.
The city’s $273.42 million general fund budget, which gets most of its funding from property taxes, pays for day-to-day governmental operations. This includes additional positions across multiple city departments, another $1.1 million in book funding for the library and equipment replacements for Frisco’s police officers and firefighters.
Something to know
City officials were informed recently there was an error on a Denton Central Appraisal District’s calculation from 2023, which misstated $1.7 billion related to the city’s senior tax freeze in a “prioritization decision,” Cotten said Sept. 17. As a result, the general fund lost $5 million in revenue and the city cannot correct it, he said.
Related highlights
A portion of the budget next year will go directly toward city employees, according to budget documents. This includes:
- An average of a 4% merit-based increase for all employees and a 3% step for uniformed police and fire personnel
- Raising the life insurance policy to $150,000 for all employees
Other highlights in the budget include:
- A K9 officer replacement for the police department
- $2.9 million in information technology and disaster recovery equipment upgrades
- Additional funding for mental health support in the fire department
The new budget will go into effect when FY 2024-25 begins Oct. 1.
Also of note
While the property tax is lower than last year’s, multiple city utility fees were increased slightly. This includes:
- Water: 6% rate increase
- Environmental Services: 5% rate increase
- Sewer: 10% rate increase
- Solid Waste: $1.00 monthly rate increase for residents
Fees for Parks and Recreation, Public Works, Fire Department and Development Services also saw rate increases.
The higher water and sewer utility rates will help offset a 5.7% increase from the North Texas Municipal Water District as well as cover replacement equipment and personnel needs in the city, according to budget documents.
Altogether, the rate increases will add roughly $11 to the average resident’s bill, said Brett Peterson, Frisco’s budget and strategic planning manager.
Council members also called a public hearing to consider a 10% raise to the city’s stormwater drainage fees to take place during a Dec. 3 meeting.
All fee adjustments—including the stormwater drainage fee, if approved Dec. 3—will go into effect for billings after Jan. 1, 2025.
