The city of Plano has adopted the staff-recommended property tax rate, capital program and operating budget, bringing to a close a months-long deliberation over how much the city should lower tax rates to account for rising property values.
Plano City Council on Monday approved a 2017-18 property tax rate of $0.4686 per $100, a 1 cent reduction from last year's rate that would nevertheless raise nearly $18.7 million in new property tax revenues. Of that total, $6.7 million is expected to come from new properties recently added to the tax rolls.
The council also approved the city's operating budget and community investment program, which details $229 million in city capital projects during the 2017-18 fiscal year.
The council ultimately approved the tax rate by a 5-2 vote, with the two votes against the measure cast by members Tom Harrison and Anthony Ricciardelli.
Ricciardelli had previously argued for a steeper rate cut than that proposed by staff, and said on Monday he could not vote for the proposed budget because of concerns he had with the way the city handles unexpected surpluses. Fellow council member Rick Smith was not present for the vote.
Throughout the council's discussions and public hearings, debate centered on whether the city should lower the tax rate beyond the staff's recommended 1 cent cut to provide relief for Plano taxpayers. But proponents of the staff's proposal, including Mayor Harry LaRosiliere, pushed back against efforts to further trim planned expenditures, arguing they would harm the city's ability to retain employees and deliver effective public services.
“Budgets allocate more than just dollars and cents," LaRosiliere said before Monday's vote. "On one side of the ledger you have the cost, and on the other side of the ledger you have the services rendered."