News Flash

FRISCO’S FY2024 BUDGET REDUCES PROPERTY TAX RATE, INCREASES HOMESTEAD EXEMPTION AND PROVIDES FOR 74 NEW POSITIONS

(September 20, 2023) The City of Frisco’s new budget reduces the property tax rate while raising the homestead exemption.  Tuesday night, the Frisco City Council unanimously approved a $267 million General Fund budget for Fiscal Year (FY) 2024.   

“We’ve approved a budget proving our commitment to provide Frisco homeowners tax relief,” said Mayor Jeff Cheney. “Dropping the tax rate and raising our homestead exemption are bold decisions. Even so, our city’s high growth allows us to make these moves while continuing to deliver quality programs and services.”   

Frisco’s FY2024 property tax rate is .432205 – which is down 1.4 cents.  The new budget also accounts for a higher homestead exemption of 15% - up from 12.5%. The Frisco City Council raised the homestead exemption in June. Residents 65 and older also benefited from a ‘senior tax freeze’, adopted last year and effective this year.  

“Raising the homestead exemption will save our homeowners about $22 million, collectively,” said Mayor Cheney. “Ultimately, our City Council intends to raise the homestead exemption to 20%, which is the maximum allowed by the state.”  

“Frisco’s budgeting approach continues to earn our city triple-A bond ratings from both S & P and Moody’s,” said Jenny Hundt, Interim Chief Financial Officer. “This is significant because the higher our bond ratings, the more money we can potentially save our taxpayers.”  

Utility rates will increase by 10%, which includes a nearly 9% water rate hike imposed by the North Texas Municipal Water District. Increased rates will also help cover costs to ‘change out’ meters and maintain cash reserves to meet the city’s financial policy.  

The FY2024 budget provides for 74 new positions, including 32 new positions for the Police Department. “We do appreciate the support that we have from our community,” said Chief David Shilson. “We appreciate residents passing bonds that will allow us to continue building the facilities we need to maintain a safe community.”  In May,  voters approved a $473,400,000 million bond package that will provide capital financing for the next five years. 

Equipment replacement, such as vehicles for first responders, is an important part of the FY2024 budget. The City of Frisco maintains 47 facilities, spanning two million square feet. Maintenance and upkeep are priorities while Frisco collaborates to develop its remaining 18-percent of land until ‘build-out’. 
 
“Frisco’s not a new community, but there is a lot of new in it,” said Wes Pierson, City Manager. “There are certainly areas of the community that have been around for a long time. We want to make sure we’re taking care of those areas so people feel like they’re in a world-class city whether they’re in a new part or in a more established part of the city.” 

Learn more and view entire budget.