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Department: Budget & Performance Management
Director: Karen Rhodes-Whitley, Director of Budget & Performance Management
Agenda Item: FY 2026-27 Property Tax Revenue Ratification
Recommended Action: Items for Individual Consideration
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Item Summary
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Consideration of an Ordinance to ratify the property tax revenue in the 2026-27 Budget as a result of the City receiving more revenues from property taxes in the 2026-27 Budget than in the previous fiscal year; and providing an effective date. (The first Public Hearing was held on August 24, 2026. The second Public Hearing is being held on September 14, 2026, prior to the adoption of this Ordinance.)
Effective September 1, 2025, in accordance with Texas Government Code Section 551.043(c), the City of Plano Proposed Budget for Fiscal Year 2026-27 is posted at www.plano.gov and the Taxpayer Impact Statement for a Median-Valued Homestead tax bill comparison is posted as follows:
MEDIAN-VALUED HOMESTEAD: $452,109
FY2025-26 (Tax Yr 2025) Estimated property tax bill at the current tax rate of $0.43760 (per $100): $1,978
MEDIAN-VALUED HOMESTEAD: $464,574
FY2026-27 (Tax Yr 2026) Estimated property tax bill at the proposed tax rate of $0.43760 (per $100): $2,033
FY2026-27 (Tax Yr 2026) Estimated property tax bill at the No New Revenue tax rate of $0.43322 (per $100): $2,013
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Background
As required by Local Government Code 102.007, adoption of a Budget that raises more property tax revenue than was generated the previous year requires three votes by the City Council (a) one vote to adopt the Budget, and (b) one vote to adopt the tax rate, and (c) a separate vote to "ratify" the property tax revenue increase reflected in the Budget.
This Ordinance ratifies the property tax revenue increase as reflected in the 2026-27 Budget by adding the following statement:
THIS BUDGET WILL RAISE MORE TOTAL PROPERTY TAXES THAN LAST YEAR'S BUDGET BY $7,724,388 OR 2.73% AND OF THAT AMOUNT $2,866,130 IS TAX REVENUE TO BE RAISED FROM NEW PROPERTY ADDED TO THE TAX ROLL THIS YEAR.
Financial Summary/Strategic Goals
This item has no financial impact.
Adoption of this Ordinance relates to the City's Strategic Plan Critical Success Factor of Excellent, Innovative, and Accountable City Government.
Attachments
Memo
Ordinance