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The city of Frisco will soon vote on a $325.3 million budget for the 2026-27 fiscal year.
During an Aug. 10 meeting, the Frisco City Council reviewed the FY 2026-27 proposed budget, discussing general fund expenditures, service rate increases and additional public safety resources and personnel.
City Manager Wes Pierson said the budget “provides a strong foundation for the coming year.”
Breaking it down
The general fund budget pays for the day-to-day operations of the city, and is set at $318.8 million in revenues. The proposed FY 2026-27 general fund budget also includes $6.6 million in assigned fund balance on top of $318.7 in expenditures, bringing total expenditures to $325.3 million.
Total budget funding marks a 7.01% increase over last year’s $304 million. The FY 2026-27 proposed tax rate, $0.441289 per $100 valuation, could also increase 3.71% from the fiscal year 2025-26 rate of $0.425517 per $100 valuation.
What’s new?
The FY 2026-27 budget proposes funding 43 new full-time positions, including:
The budget allocates a combined $151.7 million for police and fire services. The police funding will be used to replace 31 total vehicles, portable radios, ballistic helmets and an AI call-processing system.
Fire expenditures will cover replacements of chest compression devices, a hazmat truck and trailer and upgrades to the emergency operations center.
City staff recommends a 9% proposed increase to water rates and a 5% increase in sewer rates to cover rising operational costs, which will increase an average monthly residential bill by $9.99.
City staff is also recommending a 10% increase in stormwater rates, which will increase an average monthly residential bill by $0.73. City staff recommended a 5% increase in environmental service rates for commercial customers.
The specifics
City documents show a 9.9% increase in development services department funding from last year’s budget, the largest increase by department.
Frisco Deputy Mayor Pro Tem Angelia Pelham said continued strong sales tax performance has supported general fund revenues. The estimated sales tax revenue for FY 2025-26 will increase to $75.92 million.
City documents state Frisco’s sales tax revenue is projected to increase 5% year-over-year as major commercial projects in Northern Frisco are anticipated for completion and operation in 2027.
“The FY27 budget provides a strong foundation for the coming year, and Frisco remains well positioned for the future because of years of responsible financial management and thoughtful planning,” Pierson said. “I look forward to working with the City Council, city staff and our residents as we implement the FY27 budget.”
What's next
Frisco City Council will hold public hearings on the budget Aug. 18 and Sept. 1. The council will vote on adopting the budget Sept. 15. The proposed budget and tax rate will go into effect Oct. 1.
