Plano city officials are moving towards approving the city’s upcoming budget, with a focus on maintaining the current property tax rate while responding to increasing service demands.

Plano City Council members received a presentation July 30 from Director of Budget and Research Karen Rhodes-Whitney on Plano’s fiscal year 2025-26 budget, outlining projected revenues and potential impacts for residents.

What you need to know

Plano officials are currently planning to keep the property tax rate flat for the upcoming fiscal year, citing progress made by reducing Plano’s budget shortfall through last year’s financial recovery plan.

However, City Manager Mark Israelson said council should still consider increasing the rate to meet growing demands.


“While the [FY] 2025-26 budget being presented is based on last year’s tax rate, I believe the city should consider a tax rate, which provides an increase in revenue to keep up with service demands, the new bond authority and to remain competitive for staff in the Metroplex,” Israelson said.
If council does choose to increase the tax rate, it must remain under the voter approval rate or it would require a November election, Rhodes-Whitney said. Additionally, Rhodes-Whitney said once a tax rate is introduced on Aug. 11, council can lower the tax rate but cannot increase it.

Additionally, Rhodes-Whitney said despite a proposed flat property tax rate, residents may still see an increase on their tax bill as appraised home values in Plano have increased by 2.1% on average from 2024.

Breaking it down

Plano’s proposed budget includes $928.1 million in projected revenues and $788 million in expenditures for FY 2025-26, according to city documents.
Rhodes-Whitney said the city’s general fund balance is currently about $3 million below its target, but staff are working to address the gap.


While Plano is not planning on adding any new services this upcoming fiscal year, officials are considering funding for specific needs, such as addressing streambank erosion repairs throughout the city.

Plano residents may also see higher utility bills, as the North Texas Municipal Water District (NTMWD) is expected to increase wholesale water rates by 8.8% in the next fiscal year.

This would result in an increase for customers of $28.89 to $31.20 for 1,000 gallons, according to city documents.

What’s next?


Plano officials have several meetings ahead of approving the budget in September, including:
  • Aug. 11: present proposed community investment program, determine proposed tax rate
  • Aug. 14: council work session
  • Aug. 21: town hall meeting
  • Aug. 25: public hearing on tax rate
  • Sept. 8: council vote on budget, adopt tax rate
  • Oct. 1: new fiscal year begins