The city manager’s proposed budget and Community Investment Program for fiscal year 2024-25 was delivered to Plano City Council during the July 24 meeting. As part of the plan, city staff planned for less revenue growth from certain areas and ways to sustainably budget for the future.
“As you’re aware, the city [is] facing a shortfall in the [2023-24 fiscal] year, which would have compounded significantly if proactive steps were not taken,” City Manager Mark Israelson said. “That’s why we have activated our budget contingency plan due to several factors, including slowed development growth, inflation and supply chain issues, costs for compensation increases and overtime, and local policy impacts.”
The overview
The proposed budget for fiscal year 2024-25 allocated $846.1 million for revenues and $756.1 million for expenditures, Director of Budget and Research Karen Rhodes-Whitley said. For the 2024-25 fiscal year, the recommended tax rate is $0.4176 per $100 of assessed value. The maintenance and operations component, which covers the city’s operations, is $0.3026 per $100 in assessed value and the interest and sinking component, which is used to repay debt, is $0.115 per $100 in assessed value.
The proposal also included the Community Investment Program budget for the fiscal year 2024-25, which is $317.3 million. The Community Investment Program is used to pay for infrastructure, including street, parks and recreation, and water and sewer projects.
Utility rate increases are also projected for water, sewer and trash, with proposals expected to be shared with council in August.
Digging deeper
To help curtail expenditures, the city is planning to shift from a compensation increase across the board to a one-time $1,000 gross payment to city staff, Israelson said. Rhodes-Whitley added that there are still plans to have step pay increases for police and fire personnel.
Additionally, a hiring freeze for positions outside of police and fire, detention officers and school crossing guards is planned until January 2025, Rhodes-Whitley said. City staff are also evolving the city’s financial practices, including:
- Starting planning for the 2025-26 budget immediately
- Reviewing strategic financial policies
- Exploring more cost recovery options for city service fees, including accounting for inflation
- Ongoing monitoring of the budget and Community Investment Program processes
Looking ahead
Israelson said city staff will continue to refine the budget, so some numbers may change.
Tentatively, further discussions on the budget and tax rate are planned for Aug. 12 and Aug. 15. A budget town hall is planned for Aug. 22.
Individuals can access the proposed budget and Community Investment Program through the city’s website.
