Plano council adopts $798 million budget, approves 43.76-cent property tax rate

The Plano City Council voted Sept. 8 to adopt the city—9s $798,000,000 combined operating budget and to set the property tax rate described in the meeting as 0.4376 (43.76 cents per $100 of taxable value). The council also adopted a $319,000,000 Community Investment Program (capital plan) and ratified that the city will collect more property tax revenue in 2025'026 than in the prior year. The vote on the operating budget passed with one abstention; the community investment program and the ratification of property tax revenue each passed unanimously, and the tax-rate motion passed 8-0. City staff said the general fund in the adopted operating budget totals $422,700,000. City budget staff presented the packet and told the council that the debt portion of the tax rate is fixed at 11.5 cents per $100 of taxable value because it funds existing debt. That leaves the operating portion to be set by the council; staff said the combined figures are reflected in the published budget documents and that public hearings were held Aug. 11, Aug. 14 and Aug. 25 before the Sept. 8 vote. During the public comment period, resident Jennifer Grossman urged the council to approve a lower tax rate and criticized increases in several budget line items she called unnecessary, including economic development reserves and modest spending for council meals and apparel. Grossman said, "You want to spend $12,000 for food and clothes' thousand dollars for clothing...People on fixed income, that's not small money." Another speaker, Jennifer Groysman, urged officials to be mindful of residents' tax burdens before finalizing the rate. Council members discussed the proposal over several meetings and during the Sept. 8 session. Council member Maria (identified in the meeting by first name) moved to adopt the rate the council discussed as 0.4376; the motion was seconded and the council then voted to adopt the tax rate and related budget ordinances. Council members stressed the city—9s labor costs and the need to maintain staff pay to retain employees, while others said they preferred a lower, more gradual approach to increases. City staff also explained that the capital program is primarily funded through the debt portion of the tax rate and therefore was presented separately; the council adopted the capital plan with an 8-0 vote. What the council adopted are the spending and appropriation ordinances for fiscal year 2025'026; any future changes to the tax rate or appropriations would require subsequent council action. The council—9s formal motions and the recorded tallies were entered into the meeting minutes. The council adjourned after completing the evening agenda.