The Frisco City Council is evaluating a proposed $325.3 million budget for the 2026-27 fiscal year, a plan that expands municipal staff, funds major public safety upgrades, and raises local utility rates.

During an August 10 work session, city leaders reviewed general fund allocations and revenue projections for the upcoming fiscal year, which begins October 1. Total budget funding marks a 7.01% increase over the previous year’s $304 million outline.

To support the expanded operational scope, officials proposed a property tax rate of $0.441289 per $100 of assessed valuation—a 3.71% increase from the 2025-26 rate of $0.425517.

Expanding Staffing and Development Services

The proposed General Fund budget targets $318.8 million in total revenue alongside $318.7 million in operational expenditures. The city will also use $6.6 million in assigned fund balances to complete the total $325.3 million spending plan.

The development services department saw the largest single increase among city departments, climbing 9.9% from last year’s budget. To keep pace with municipal growth, the budget allocates funding for 43 new full-time positions:

• Utilities & Operations: 14 utility fund positions, 4 stormwater positions, and 1 environmental waste specialist
• Public Safety & Admin: 7 police positions, 4 human resources roles, and 2 IT specialists
• Community Services: 9 parks and recreation staff, 1 director of sports and events, and 1 web and digital content specialist

Public Safety Investments and Capital Upgrades

Frisco plans to direct a combined $151.7 million toward emergency services.

Police department funding will cover 31 replacement vehicles, new portable radios, ballistic helmets, and an AI-driven call-processing system. Meanwhile, fire department expenditures will fund replacement chest compression devices, upgrades to the city’s emergency operations center, and a new hazardous materials truck and trailer.

Proposed Rate Hikes for Water, Sewer, and Stormwater

To offset rising operational and supply costs, city staff recommended rate adjustments across primary utility services:

• Water & Sewer: A 9% increase in water rates combined with a 5% increase in sewer rates will add an average of $9.99 to monthly residential bills.
• Stormwater: A 10% rate hike will add $0.73 to average monthly residential statements.
• Commercial Waste: A 5% increase in environmental service rates for commercial accounts.

Revenue Outlook and Adoption Timeline

Deputy Mayor Pro Tem Angelia Pelham noted that robust local sales tax performance continues to stabilize the city’s general fund. Frisco projects sales tax revenue for FY 2025-26 to reach $75.92 million, with an additional 5% year-over-year increase expected as major commercial developments in Northern Frisco open in 2027.

“The FY27 budget provides a strong foundation for the coming year, and Frisco remains well positioned for the future because of years of responsible financial management and thoughtful planning,” City Manager Wes Pierson stated.

Residents can voice their feedback during public hearings scheduled for August 18 and September 1. The Frisco City Council will take its final vote to formally adopt the budget and tax rate on September 15.