(September 18, 2020) Frisco’s property tax rate stays the same and the homestead exemptions remain intact during the next fiscal year. On Tuesday night, Frisco City Council members adopted a flat tax rate of .4466 – still one of the lowest rates in North Texas. Homeowners will still get a 10-percent homestead exemption and homeowners over 65 benefit from an $80,000 Senior Homestead Exemption.
The FY21 budget also supports seven new public safety positions, including one at the Frisco Fire Department and six at the Frisco Police Department (FPD). Three of the FPD positions are supported by grants.
“I want to thank the entire finance team for the incredible work you do for the City of Frisco,” said Mayor Jeff Cheney. “This has been a challenging year for obvious reasons and staff is able to deliver a balanced budget to support exemplary services all of our residents have come to expect, including a fully funded public safety departments, at the same tax rate, with all of our prior exemptions. It’s just extraordinary work.”
Frisco’s average home value is approximately $418,000, which means the average city tax bill will be about $1,800 next year.
The new budget includes a $183 million General Fund. Besides new public safety positions, the General Fund will cover the costs to replace police vehicles, mowers, servers and fitness equipment at the Frisco Athletic Center. Significant road and pavement repairs will be completed. An employee wellness clinic is also funded in the new budget.
New, assessed property values increased by $1.8 million over the previous year ($33.5 billion in FY21 compared to $31.6 billion in FY20). Building permits are forecast ‘flat’ for the next budget cycle, as staff expects to issue between 1,800 – 2,000 permits for single-family homes. Sales tax revenue is down, so staff projected a 1-percent increase in revenues for FY21.
“We have a diverse tax base and our residents and businesses are still able and willing to shop and dine, even with different hours and adjusted service levels,” said Jenny Hundt, Assistant Finance Director.
“The economic uncertainty during a pandemic made budgeting for the new (fiscal) year very challenging,” said Anita Cothran, Chief Financial Officer. “We benefitted from federal CARES funds and we also used some of our reserves to deliver a conservative, balanced budget that maintains our services and programs.”
“That’s what reserves are for,” said Nell Lange, Assistant City Manager. “We’re fortunate to have City Councils, past and present, that recognize the value of setting aside funds for emergencies and unexpected circumstances, like a pandemic. “
The FY21 $586 million total budget takes effect October 1, 2020.