The Plano city council voted Monday night to raise the city’s tax rate by about 4% to keep up with increasing demand for services in the aging city.
Council members voted to approve a tax rate of about $0.4376 per $100 of a home’s value for the fiscal year that starts Oct. 1, up from $0.42 per $100 this year. The council also approved a budget of about $798 million at Monday’s meeting that includes funding for maintaining services and an increase in costs associated with the North Texas Municipal Water District.
Plano is the largest city in Collin County, which is one of the fastest-growing areas in the nation according to the U.S. Census. The county opted to maintain the current property tax rate, but homeowners may see a higher tax bill because of rising home values.
Mayor Pro Tem Maria Tu said Plano has been conservative with property taxes in previous years, going down to the no-new-revenue rate, which keeps property tax revenue the same despite home values increasing.
“It is time for us to have a buffer, and it is time to replenish some of the emergency funds that we basically have run out because of all the storms and all the shocking surprises that we've had in the city,” she said.
Plano residents passed $648 million in bond funds earlier this year, which may also impact property taxes. The bond included funding for street improvements and a new police headquarters.
Plano is a mature city — it’s mostly built out. Mayor John Muns told KERA earlier this year ahead of the bond election Plano needs to maintain its aging infrastructure to stay attractive to the businesses.
“If we don’t take care of our infrastructure, I think companies will look elsewhere if we’re not taking care of our city in all facets,” he said.
Jennifer Groysman, a Plano resident, told city council members raising property taxes will make Plano less affordable.
“Everything you're doing and done in the past has made the cost of living in Plano go up,” Groysman said.
Got a tip? Email Caroline Love at clove@kera.org.
KERA News is made possible through the generosity of our members. If you find this reporting valuable, consider making a tax-deductible gift today. Thank you.
