Plano Leaders Vote to Raise Property Tax Rate for the First Time in 16 Years

Plano leaders voted unanimously Monday to raise the city’s property tax rate for the first time in 16 years, anticipating increased costs amid slowing growth and adopting a nearly $800 million budget.

The city’s tax rate has held steady at 41.76 cents per $100 of assessed property valuations for three years. It’s now set to increase to 43.76 cents in October.

The adopted rate is lower than the 44.06 cent ceiling many City Council members supported previously when the state Legislature was still considering making it harder for local governments to raise property tax rates. The proposed legislation failed since the last council meeting.

Reasons Behind the Tax Rate Increase

City leaders previously cited the need for emergency funds, economic development investments, money to address stream bank erosion, improvements to the city’s downtown and municipal facilities and more in their support of the higher rate. Some residents disagree with the decision.

Plano resident Jennifer Groysman told the council she was unsatisfied with the budget’s allocations to economic development and city staff and expressed concern over higher costs for residents.

“This year’s proposed budget has items in it that can be reduced or lowered to lower the tax burden on the residents and small business owners,” Groysman said. “Your job is supposed to be good stewards with our money, it is not just your job to bleed us dry and make Plano unaffordable.”

Concerns and Criticisms

Council member Vidal Quintanilla spoke out against adopting the highest rate allowed without an election. He told the council Monday he’d prefer a more gradual increase to the tax rate to ease the burden on residents.

Plano currently has a lower tax rate than some surrounding cities like Dallas, Frisco and Richardson. The city also provides the maximum 20% homestead exemption, a $40,000 senior and disability exemption and a tax freeze for residents who are at least 65.

Financial Outlook and Budget Allocation

After decades of growth, the city is adapting to aging infrastructure and new development shifting to redevelopment as the city approaches build-out. The current budget was a contingency plan adopted after a subpar financial forecast because of flattening revenues and less developable land in Plano, according to City Manager Mark Israelson.

After implementing a hiring freeze, increasing fees and reviewing policies, the city is on a “solid financial foundation” for the upcoming fiscal year that starts Oct. 1, according to the city manager. But Plano still expects expenses to grow an average of 3.2% a year, city documents show.

Infrastructure and Facilities Development

The city manager’s recommended five-year financial plan for infrastructure and facilities includes $319 million worth of projects in the upcoming fiscal year, nearly a third of which will fund street improvements. Other projects include park improvements, a new police headquarters and a fire station.

The budget includes increases for public safety positions and an across-the-board pay increase, as well as two new staff positions.

Conclusion

In conclusion, the decision to raise the property tax rate in Plano is a significant step towards addressing the city’s increasing costs and infrastructure needs. While some residents may disagree with the decision, the city leaders believe it is necessary to ensure the continued growth and development of the city.

FAQs

Q: Why is the property tax rate being increased in Plano?

A: The property tax rate is being increased to address the city’s increasing costs and infrastructure needs, including emergency funds, economic development investments, and improvements to the city’s downtown and municipal facilities.

Q: How much will the tax rate increase?

A: The tax rate will increase from 41.76 cents per $100 of assessed property valuations to 43.76 cents in October.

Q: What are the concerns of the residents regarding the tax rate increase?

A: Some residents are concerned that the tax rate increase will lead to higher costs for residents and small business owners, and that the city is not being good stewards of their money.

Q: What are the plans for the increased revenue from the tax rate increase?

A: The increased revenue will be used to fund various projects and initiatives, including street improvements, park improvements, a new police headquarters, and a fire station.