Plano North October 2020

Key Highest rate

PLANOPROPERTYVALUES

CONTINUED FROM 1

Lowest rate

taxes, all of which are major revenue sources for the city. Sta reacted with a budget contingency plan in March and took a proactive approach to pre- pare for projected losses through FY 2020-21, according to City Manager Mark Israelson. This contingency plan included a re-estimate of the FY 2019-20 $601.4 budget, a hiring freeze for most positions and a 5% cut to all fund expenses. By doing this and paus- ing any salary increases, Plano was able to retain its workforce, Mayor Harry LaRosiliere said. It also helped identify $13 million in savings from the FY 2019-20 budget, according to Israelson. The city plans to continue with its contingency plan into the new bud- get year, with the exception of hiring some public safety positions, until there is more certainty about the long-term impacts of the coronavirus pandemic, Israelson said. “We are cautious and conservative in our approach, and we maintain a contingency plan,” LaRosiliere said. “I will continue to have concerns as long as there is uncertainty that lies before us for both sales tax and prop- erty taxes, which are our two largest sources of revenue.” Even with a $6.4 million reduction, close to half of the city’s $327 mil- lion general fund expenses are ded- icated to public safety. Another 15% is devoted to programs and services provided by the libraries, parks and recreation, and public works. All of these programs were funded at nearly the same levels as the previous scal year. “Obviously, COVID-19 has had a signicant impact on how service is delivered, but the services that are being delivered are still the same,” Israelson said.

Here is a look at what Plano homeowners can expect from their scal year 2020-21 property tax bills and at how the city’s rate compares with those of other cities in the region.

PROSPER $0.52*

$1,357 Average property tax bill in Plano

$6.7M increase in Plano property tax revenue

$378,396

380

MCKINNEY $0.508645*

Average home value in Plano

5

FRISCO $0.4466*

CHANGES FROMTHE STATE Senate Bill 2, which was passed by the Texas Legislature in 2019, went into eect for municipal budgets in scal year 2020-21. Among the changes was the use of new terminology for property tax rates.

THE COLONY $0.655*

DNT TOLL

SRT TOLL

ALLEN $0.489*

PLANO $0.4482*

75

NEW SB 2 TERMINOLOGY

PREVIOUS TERMINOLOGY

N

MEANING

PGBT TOLL

A tax rate that will produce the same amount of revenue as last year despite new appraised values

No-new-revenue tax rate

RICHARDSON $0.62516*

Eective tax rate

*PER $100 VALUATION

Rollback tax rate

Voter-approval tax rate

The maximum tax rate a city is allowed to set without voter approval

SOURCES: COLLIN CENTRAL APPRAISAL DISTRICT, CITY OF PLANO, TEXAS ASSOCIATION OF COUNTIESCOMMUNITY IMPACT NEWSPAPER

COURTESY ADOBE STOCK

Adelayed impact In the 30 years Budget Director Karen Rhodes-Whitley has worked with the city of Plano, she said, the property tax rate has increased only twice: once to incentivize economic development in scal year 2006-07 and once more following the eco- nomic recession of ’08. For FY 2020-21, the city approved the same tax rate as the year before: $0.4482 per $100 of assessed property value. But because of Senate Bill 2, which changed how cities calculate their property tax rates, the same rate is considered a 2.97% increase compared with what is now called the no-new-revenue tax rate—a term created under SB 2, according to Rhodes-Whitley. City ocials estimated that the

Comptroller’s Oce. In June and July, the city saw decreases of roughly 14% and 17%, respectively, as compared to those same months last year. Plano has made a slight comeback since then, with monthly allocations uctuating within 2% in August and September as compared to the same months a year ago. These numbers are encouraging, Israelson said, but do not guarantee an economic resurgence. “We’re grateful for the recovery that’s already happened but hopeful that there is even more growth within the economy and within the business sector,” he said. In FY 2019-20, the city expected to receive $86.1 million in sales tax reve- nue but found that it came in $4 mil- lion lower. In FY 2020-21, collections

annual tax bill for the owner of an average-priced home will decrease by $4 in FY 2020-21. The city expects to see a $6.7 million increase in total property tax revenue, with close to half of that increase coming from new property added to the tax roll in Plano. Property values will be reevalu- ated in January, and the city is antic- ipating a negative impact due to the pandemic, Israelson said. Those unknowns make maintaining a con- tingency plan the best option, he said. Watching for recovery Sales tax revenue in Plano has also taken a considerable hit over the last six months. In March, the city col- lected just over 20% more revenue than in the same month the year prior, according to the Texas State

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