(September 22, 2021) For the fifth consecutive year, the City of Frisco’s property tax rate will stay the same at .4466. Last night, the Frisco City Council unanimously approved an operating balanced budget, which includes a $198 million General Fund for the 2022 fiscal year, which begins October 1, 2021.
The FY22 budget also provides Frisco homeowners a 10 percent homestead exemption. Senior homeowners, 65 and older, get an additional $80,000 tax break. The average home value in Frisco is about $441,000, up six percent over the previous year. That means the average city tax bill is calculated to be $1,971.
“Given the pandemic-related challenges we’ve all faced over the past year, we’re thankful our city’s strong financial position allows us to keep up with our fast growth,” said Mayor Jeff Cheney. “This budget also provides the critical infrastructure we need to keep pace with new developments, including our public-private partnership capital projects. Our city’s strong economy is one of the reasons we were, once again, recognized as one of the ‘Best Places to Live in America’ by Money Magazine for 2021-22.”
The new budget allows for 47 new full time equivalent positions, including 27 public safety positions between the police and fire departments. The FY22 budget also provides merit increases and funds market adjustments. Nearly 70 percent of the city’s operating budget is dedicated to employee wages, with nearly half being spent on public safety.
“When we started the budget process, we had to deal with a lot of unknowns,” said Anita Cothran, Chief Financial Officer (CFO). “But surprisingly, sales tax receipts came in strong, and our property tax collections were steady. This allowed us to add new positions, after going a year without. Our financial health also made it possible to provide merit increases and market adjustments, which are important to be competitive when recruiting and keeping employees.”
Water and sewer rates will increase three percent. Homeowners will also pay an additional $1, per cart, per month, for trash and recycling services. Increases will show up on homeowners’ January bills.
The additional $1 solid waste, monthly residential fee and two percent commercial fee will be used to fund cleanup of Stewart Creek and city-owned property, once occupied by a defunct battery recycling plant. The City of Frisco took over operational control of the property in October 2020.
“The city will begin the process of getting the remediation action plan completed with TCEQ (Texas Commission on Environmental Quality), which is expected to take about seven years,” said George Purefoy, City Manager. “A $25 million performance bond funded by Exide is earmarked for the cleanup. The former plant pollution controls must be operated and maintained until the cleanup is complete. Unfortunately, the actual costs to accomplish the work is double the original cost estimate.”
The FY22 budget supports major projects, including some of the city’s public-private partnerships. The new budget provides for design services for Grand Park, as well as the Performing Arts Center to be built at Hall Park. It also pays for roadway infrastructure supporting PGA Frisco, Fields and the University of North Texas branch campus developments.
“Property values have increased nearly $3 billion in Frisco,” said Jennifer Hundt, Director of Budget Services. “Half is new value and the rest is revalued existing properties. These property value increases show our city’s growth, despite the pandemic, and our ability to recover. We’re grateful our financial position allows us maintain a high quality of city services and support infrastructure for new project development.”
To view the FY22 budget in its entirety, read more here.