Frisco holds public hearing on $1.07 billion FY2026 proposal as utility rates rise

Frisco city staff presented the proposed fiscal year 2026 budget during a public hearing Sept. 2, outlining more than $1.07 billion in total appropriations across all funds and a balanced general fund of about $304.7 million. The presentation said the proposed tax rate would remain at 0.425517 and noted a prior council decision to increase the homestead exemption to 20 percent.

The budget presentation listed key specifics: proposed utility rate increases (the presentation cited a 9% water increase and a 15% sewer increase), a $1 monthly increase for trash and recycling, a proposed 20% stormwater rate increase to be addressed at a later public hearing, and roughly $98.7 million in planned general obligation bond sales in 2026. Staff also proposed 48 new positions across several departments, including police, fire, public works and engineering, and $6 million for building maintenance, IT servers and new library materials.

Derek Hahn, Frisco’s chief financial officer, summarized revenue performance and audit preparation and said sales tax is stronger than the national average and is expected to end the fiscal year up about 2 percent from budget. City staff described an effort to “smooth” rate impacts by drawing down fund balance while acknowledging rate increases are expected in coming years.

The council opened the public hearing by motion and, after hearing no public comment, closed it by motion. Council did not adopt the budget on Sept. 2; staff said final adoption of the budget, tax rate and fee ordinances is scheduled for a future meeting and additional hearings (including a public hearing on the proposed stormwater increase called for Dec. 2).

What’s next: Staff said a fee ordinance with proposed utility and environmental service increases will return Sept. 16, and the council will take final action on the budget and tax rate at a subsequent meeting.