The city's proposed 2013–14 budget reflects a brighter fiscal outlook than the city has seen since the national economic downturn in 2008-09, City Manager George Purefoy said.

The proposed budget, set for adoption Sept. 17, would keep the tax rate the same. The city is benefiting from increased property taxes, but it is also dealing with needs created by a projected 5 percent population increase.

"Our goal is to maintain services without a tax rate increase and to fund necessary operational increases due to increasing service level demands generated from population growth," Purefoy said in his budget introduction letter to the council.

Assistant City Manager Nell Lange said rising housing permits is the biggest reason the city's finances are looking up, but that same housing outlook is also driving the need for more employees.

The city instituted a hiring freeze in 2008 when the economy took a hit, Lange said. The only significant hires in recent years were to man Frisco Fire Station No. 7.

"From 2008 forward, [hiring] has remained pretty flat," Lange said. "There have been a few ups and downs."

That will change this year, with the full time equivalent of about 50 new employees in the proposed budget.

Thirty-four employees fall under the general fund budget and are primarily in the police and fire departments and at the Frisco Athletic Center for the outdoor pool expansion. These employees are estimated to cost the city about $1.9 million annually.

Twelve new utility fund employees will cost an additional $695,558 annually.

While the tax rate will not increase, on average, rising property values will cost taxpayers slightly more in the coming year.

The city is proposing to keep the tax rate at $0.461910 per $100 in property value, where it has remained for two years.

Increasing property tax values, including new growth, rose 7.85 percent for a total taxable value of nearly $15.9 billion.

Taxes for an average home worth $299,889 would be $1,385 in the coming year, in contrast to last year's $287,495 average home value and $1,327 in taxes.

Also in the budget this year is up to a 3 percent merit-based raise for city employees.

"The average person, the average homeowner [will see taxes] go up $4.83 a month, $58 a year. I think that's incredible for a city our size" — City Councilman Tim Nelson

An additional $543,512 is budgeted for pay rate adjustments based on comparative salary levels.

The situation developed as a result of no increases to employees in fiscal year 2010, 2011 and 2012.

The proposed budget can be found online at www.friscotexas.gov.

Editor's note: The budget numbers are current as of Aug. 30, but they could change before the Sept. 17 adoption date.