Frisco Council Approves FY27 Budget, Maintains Property Tax Rate

The Frisco City Council unanimously approved an operating balanced budget for the 2027 fiscal year, which begins October 1, 2026. The approval includes maintaining the city property tax rate at .425517 for a third consecutive year.

The General Fund for FY27 is set at $319.1 million. With an average taxable home value of approximately $608,520, the average city property tax bill will total $2,589.36. This represents an increase of about $8 per month compared to fiscal year 2026.

Homeowners continue to receive a 20 percent homestead exemption, and an additional $80,000 exemption remains available for residents aged 65 or older or those who are disabled.

Mayor Mark Hill outlined three primary budget priorities: maintaining the low tax rate, providing a subsidy to offset increasing sewer rates from the provider, and committing to future economic sustainability. He noted that property values across the state face pressure and that the state legislature is imposing regulations beyond local control.

The FY27 budget focuses on protecting services, supporting employees, maintaining fiscal health, and reinvesting in the city. Approximately 70 percent of new requests funded in the General Fund are dedicated to reinvestment in city assets, including facilities, parks, roads, and technology.

The approved budget authorizes 31 new full-time positions related to community growth and new assets such as Northwest Community Park. It also provides full-year funding for fire and police department positions previously authorized in mid-year FY26. Additionally, the budget includes an average four percent merit increase and funds market adjustments for staff.

City Manager Wes Pierson stated that staff worked to present a cost-effective and sustainable budget while maintaining established standards. Chief Financial Officer Derrick Cotten emphasized that employee care is central to the budget process.

Residents will see changes in utility costs as well. The average monthly water and sewer bill is expected to increase by about $10 starting in January. Residential customers will not see an increase for trash and recycling services.

The Council plans to begin strategic discussions on next year's budget during the upcoming Winter Work Session.