|
City Council · July 29, 2026
Plano Eyes Tax Pressure As Bond Costs Climb
Plano City Council spent its July 29 meeting getting a first look at the proposed 2026-27 budget and community investment program, with city staff warning that major bond-funded projects are starting to push up future debt costs. For residents, the early message was clear: city leaders are trying to hold the current tax rate steady now, but more difficult choices could be ahead as construction projects move forward.
Budget Keeps Tax Rate Flat For Now
City Manager Mark Israelson said the recommended budget would keep Plano’s current total tax rate at 43.76 cents per $100 of value while maintaining city services and funding infrastructure work tied to the 2025 bond referendum. Budget Director Karen Rhodes-Whitley said that rate is just above the no-new-revenue rate of 43.32 cents and below the voter-approval rate of 45.85 cents. No tax rate was set that night.
Debt Costs Start To Squeeze Future Budgets
Staff said the biggest long-term issue is debt. Plano already issued $95.7 million in bonds this spring, and the proposed 2026-27 capital plan includes another $76.87 million bond sale. As large projects move from design into construction, staff said the city may need future debt-rate increases. Officials said voters were told during the 2025 bond campaign to expect a 3 to 4 cent tax-rate increase over time.
Big Bond Projects Begin Moving Into Construction
The proposed capital program totals $290 million, including $88 million for street improvements, $56 million for municipal facilities, and $49 million for capital maintenance. Staff said upcoming bond spending includes work tied to a new police headquarters, Fire Station 14, remodeling at Fire Station 8, parks projects, and street repairs. Those projects could shape traffic, facilities, and neighborhood services over the next few years.
City Proposes Raises, Extra Days, And 34 New Jobs
The recommended budget includes a 3% across-the-board pay increase, two additional personal days for employees not covered by meet-and-confer contracts, and 34 new positions. Staff said that includes 22 jobs for Plano Fire-Rescue, 10 for Plano Police, one for Human Resources, and one for Parks. The city said the additions are aimed at keeping staffing competitive and supporting service demands and capital work.
|
