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Frisco City Council passes 2013 budget, property tax rate

Published: Tuesday, September 18, 2012 9:16 PM CDT
The Frisco City Council passed the city's budget for the 2013 fiscal year on Tuesday with a 4-1 vote. The budget will go into effect on Oct. 1, the first day of the city's fiscal year.


Projected expenditures for Frisco's 2013 fiscal year are $90.2 million, an increase of approximately $4.6 million compared to its revised budget for the 2012 fiscal year. The increased expenditures will be offset by a projected $90.28 million revenue, an increase of $4.08 million from this year's projected revenue.

The property tax for the 2013 fiscal year was also approved with a 4-1 vote at the meeting, and it will remain at 46.1910 cents per $100 of taxable property value.

City officials said the increase in property values have allowed the city to keep its tax rate the same. Since the 2012 budget was adopted, the average home value in Frisco has increased from $288,978 to a projected average of $291,431 in 2013.

Council Member Scott Johnson, the lone dissenting voter for the city's upcoming budget and tax rate, said there were areas where the budget could be improved.

"I'm a little concerned this year we're putting a little in [the capital reserve fund] but also using that fund for capital," Johnson said. "... I hate the concept of putting in [less money than we take out]."

Johnson added that he would also be in favor of a tax reduction, with residents paying the effective tax rate instead of the same tax rate as the 2012 fiscal year.

The effective tax rate is the rate that keeps the city's overall revenues from property taxes at the same amount as the previous year. Such a tax rate would decrease as the city's average property value increased, although it wouldn't increase revenues for the expanding city.

Nell Lange, assistant city manager, said the city had few options available regarding the projects that were using funds from the city's capital reserves.

"We had no place to get the money -- I could have put it in the budget and cut out [new staff positions the city created]," she said. "We tried to prioritize our concerns. ... Right now would I prefer not to be drawing out of the capital reserves? Yes."

Public safety is one of the areas primarily impacted by the new budget, as both the police and fire departments will receive funding for additional positions. The police department will add four new positions while the fire department received funding for three positions.

Other changes to the 2013 budget compared to this year's budget include another 15 new or unfrozen positions and employee compensation adjustments.

The upcoming budget will feature a merit-based salary increase of up to 3 percent for city personnel -- police and fire personnel will receive an automatic 3 percent increase -- as well as a 2 percent market-based salary adjustment.

No resident input was taken regarding the new budget, as residents were given chances at two prior city council meetings -- Aug. 27 and Sept. 4 -- to discuss the budget. Two residents chose to speak about the budget at the Aug. 27 meeting and none spoke at the Sept. 4 meeting.

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