Here is the current statistics with city of Frisco.
As you may know each city has a set of expenses and most of it paid by the revenue city gets from its property taxes. Property taxes come from 2 different sources, Commercial and Residential.
In Frisco our expenses have gone up significantly as the BOND DEBT has increased and also as city ages the infrastructure maintenance costs goes up. Also we need to be careful of how we spend. If the expenses are not controlled then we need to pay for these expenses obviously.
The more the taxes we can collect from commercial the less the burden on the residents. For Eg Plano has close to 50% tax revenue coming from commercial which puts less burden on residents. Our current city council has NOT been successful in attracting & retaining commercial in Frisco at the same pace at which they have approved the # of residential permits and sub divisions. Currently city of Frisco has 22% of its revenue coming from Commercial and rest of the burden falls on home owners.
How did we get to this situation ?
Our city council member is only experienced with residential real estate and they have been unable to keep this balance of commercial.
Increased Spending – Despite having a huge increase in our revenue our expenses have increased significantly. Our current revenue budget is $507MM each year.
Example 1A. We have more than $1Bn in debt. This debt and interest is paid with our property tax tax revenue.
Example 1B. City of McKinney built its library for $7.7 MM and has 2 libraries.
Plano spent $3.4 MM for 1 library and has 5 libraries spread across the city.
Current city council is proposing to move the current library and build A single library for entire city of Frisco. The price tag mentioned for this is $62MM excluding the land cost. This will be an additional debt that our property taxes will pay the interest for. Usually bonds are for 20 years.