Staff initially proposed a rate of $0.4406 per $100 valuation on Aug. 26, before approving the lower rate of $0.4376 per $100 valuation The approved rate is higher than the current rate of $0.4176 per $100 valuation.
Zooming in
The approved budget is about 5% larger than last fiscal year’s and includes Plano’s $319 million Community Investment Program, which funds projects such as street improvements, public parks, facility improvements and erosion control.
Karen Rhodes-Whitley, director of budget and research, said the program is primarily funded through the debt portion of the property tax rate.
What you need to know
With the new rate, the average Plano homeowner will owe $1,978 in city property taxes—about $234 more than last year.
However, Plano residents may still see higher bills regardless of the new rate due to rising property values.
What they’re saying
City Council members initially supported adopting the tax rate ceiling of $0.4406 at their Aug. 25 meeting, citing uncertainty regarding state legislation that could limit cities’ property tax revenue growth. However, that legislation failed during the Legislature’s second special session, which concluded Sept. 4.
Mayor Pro Tem Maria Tu said she initially supported the higher proposed rate of $0.4406 but changed her mind after the state legislation did not move forward.
“Although I was leaning towards a lower tax rate, I proposed a higher one because I just didn’t know what we would be facing the next year,” Tu said. “Ever since I’ve been on council, ... it’s always been skin and teeth throughout the entire budget time, and it is time for us to have a buffer.”
Deputy Mayor Pro Tem Julie Holmer said she shared concerns about how potential legislation might limit the city’s flexibility to cover expenses. However, like Tu, she no longer supported the $0.4406 rate once the session ended and voted for the $0.4376 rate instead.
Council member Vidal Quintanilla was the only member to oppose the higher $0.4406 rate at the Aug. 25 meeting due to concerns about the rising cost of living.
At the Sept. 8 meeting, Quintanilla said he would support a more “gradual, stair-step” approach to addressing city services demands and voted for the $0.4376 rate.
“With [the] cost of living continuing to rise, raising taxes to $0.4406 is not something I can support, specifically after running on the commitment of maintaining low property taxes,” Quintanilla said.
Looking ahead
The new budget and tax rate take effect Oct. 1, marking the start of the city’s 2025-26 fiscal year.
