Plano City Council discusses $788M budget and potential tax rate increase to 44.06¢

The City of Plano is moving forward with a proposed budget of $788 million for the fiscal year 2025-2026, alongside a community investment program totaling $319 million. During a recent city council meeting, budget director Karen Reitz Whitley opened a public hearing on the budget and the proposed ad valorem tax rate, which is currently set at a ceiling of 44.06 cents per $100 of assessed value.

The council is set to make final decisions on the budget and tax rate during a meeting on September 8, where they will also hold another public hearing. The proposed tax rate represents an increase from the previous rate of 41.76 cents, a figure that has remained unchanged for the past three years. Council members expressed the need for this increase to maintain city services and address various one-time expenses, including public safety staffing and infrastructure improvements.

Council member LeBain emphasized the importance of meeting residents' expectations for city services, while other members highlighted the necessity of preparing for unforeseen events, such as natural disasters, which could strain the budget. Concerns were raised about the potential impact of state legislation that could lower the voter-approved tax rate, which could further complicate the city's financial planning.

Several council members voiced their support for the proposed tax rate, citing the need for a financial buffer to ensure the city can respond effectively to emergencies and maintain high-quality services. Council member Horn noted that while the increase would cost homeowners an average of $257.30 annually, it is a necessary investment in the community's safety and infrastructure.

Despite some hesitance from a few council members regarding the tax increase, the overall sentiment leaned towards adopting the higher rate to secure funding for essential services and projects. The council's discussions reflect a commitment to balancing fiscal responsibility with the needs of the community, as they prepare for the upcoming budget adoption and tax rate decision.