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The Frisco City Council approved its $330.5 million budget and property tax rate for the 2026-27 fiscal year.
Approved during a Sept. 15 meeting, the budget keeps the city’s property tax rate unchanged for another year.
The details
During a Sept. 2 board workshop, Frisco City Council directed city staff to keep the fiscal year 2026-27 property tax rate at $0.425517 per $100 valuation, the same rate as FY 2025-26.
By keeping the property tax rate flat, Frisco has now marked nine years without a tax rate increase.
The property tax rate is split between $0.303182 for maintenance and operations, or M&O—which funds day-to-day city services—and $0.122335 for interest and sinking, or I&S—which pays the principal and interest on city debt.
Even though the tax rate remains the same, the city can collect more property tax revenue when the total taxable value of properties in Frisco increases through new construction and higher property values.
A city presentation showed the average taxable home value in Frisco is now $608,520, resulting in an average monthly tax bill increase of $8.
Budget
Frisco’s approved budget has a general fund of $319.1 million, an increase of approximately $13.5 million or 4.3% from last year’s general fund. This year’s budget has a $202.1 million utility fund, marking an increase of approximately $10.8 million or 5.7% from last year’s budget.
The total budget appropriation, which includes approximately $11.4 million in one-time expenditures for the FY 26-27 general fund budget, is $330,479,023.
City documents show the budget calls for funding 31 new full-time positions and $150.7 million for police and fire services. The budget includes funding for new equipment and vehicle replacements, a 4% merit increase for city employees and one additional step for police and fire pay schedules.
The budget also recommends increases to water, sewer and stormwater rates that would raise the average residential monthly bill by $10.72 combined.
Tanya Anderson, Frisco's Budget and Strategic Planning director, said “the increases that are being passed through from North Texas Municipal Water District for the water rates” equate to a 9% increase in Frisco’s average water rate.
The budget allocates $1.1 billion for capital and utility projects across fiscal years 2026 and 2027, city documents show.
“The people who built Frisco built it with quality in mind; we’re here today to maintain and improve that quality,” City Manager Wes Pierson said. “Frisco continues to grow while reaching a point where we must increasingly reinvest in the infrastructure, facilities, technology, equipment and people that support the community we have built.”
One more thing
The budget is expected to generate $5.49 million more in property tax revenue than last year, a 2.69% increase. Of that amount, $5.5 million is expected to come from new properties added to the tax roll this year, city documents state.
The budget and tax rate will go into effect Oct. 1.
