(September 21, 2022) For the sixth 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 $229.5 million General Fund for the fiscal year 2023 (FY23), which begins October 1, 2022.
The FY23 budget also provides Frisco homeowners a 12.5% homestead exemption and a senior ‘tax freeze’ for homeowners, 65 and older. In June, the Frisco City Council raised the homestead exemption from 10% to 12.5% and adopted a ‘senior tax freeze’, which begins in FY24.
Frisco’s average taxable home value, less exemptions, is $470,094. That means Frisco’s average property tax bill due to the city is $2,100.
“We’ve been embracing change and inviting possibilities in city operations this year, and the FY23 Budget reflects that theme,” said Mayor Jeff Cheney. “Our Financial Services staff delivered a lean budget that maintains quality services for our residents while managing challenges impacting the city’s bottom line like ongoing supply chain issues and rising product costs.”
The city’s wholesale water supplier, the North Texas Municipal Water District (NTMWD) is increasing its rates by 13.4%. As a result, the City of Frisco is increasing some utility rates.
“Inflationary costs for chemicals, fuel, and contractors are impacting how much the district (NTMWD) charges us for services, which is why we’re passing on the increase,” said Anita Cothran, Chief Financial Officer.
The FY23 budget calls for increasing residential rates by 10% for water and 3% for sewer. Stormwater rates will not change. The new budget also calls for an increase in trash and recycling services. Customers will pay $4 more per cart, per month.
Frisco’s Reserve Funds are strong and follow financial policy guidelines. The City Council’s policy requires at least 25% in fund balance for the General Fund; the FY23 budget projects 26% for the new fiscal year. A 5% increase in sales tax collections is budgeted for FY23, even though collections climbed about 24%.
“We’re very careful,” said Cothran. “We need to see a trend before we appropriate that money (increased sales tax collections) to ongoing operations. We’re just trying to figure out where our ‘floor’ is.”
The new budget provides for 47 full time positions including three for the Fire Department and 19 for the Police Department. The new positions at the Police Department will staff two new patrol districts being created to keep pace with the city’s population growth, as well as additional School Resource Officers. In fact, 48% of the city’s budget is dedicated to public safety.
“The new budget also enhances employee benefits,” said Jenny Hundt, Director of Budget and Strategic Planning. “One of our city’s core values is employees, and enhanced benefits will help our team recruit and retain the best talent.”
Frisco’s FY23 budget doubles longevity pay from $4 per month to $8 per month; adds two additional holidays; and absorbs any increases to employee insurance premiums.
The new budget provides membership to the Frisco Athletic Center at no cost to employees and supports an employee health and wellness center, which opened earlier this summer.
The new budget funds remodeling and expanding the Police and Public Works Departments and completes construction of the new Frisco Public Library.
Frisco’s new budget will go into effect October 1, 2022.