Tuesday, August 18, 2009

Plano rethinking Property Tax Hike

The Plano City Council was considering a 1.51 cent tax rate increase (compared to Coppell's 5 cent) that would put their tax rate at 48.86 cents (compared to our 69.86 cents ). It would have cost the average Plano homeowner $30 a year . . and the Plano City Council is reconsidering? Where is the Coppell City Council?

Why aren't our City Council members asking City Staff for additional budget options?


Plano rethinking property tax hike
10:56 PM CDT on Monday, August 17, 2009
By THEODORE KIM / The Dallas Morning News
tkim@dallasnews.com
Plano is reconsidering a plan to raise the property tax rate in favor of wringing more cuts from City Hall as it continues to craft a new budget.
Following an all-day work session on Saturday, the City Council agreed to send budget officials back to the drawing board to find more savings. The city has already made several rounds of cuts.
Several council members said they want choices before signing off on Plano's second tax rate increase since 1990.
Council member Ben Harris said finding more cuts would "paint a clearer picture as to what the options are."
City Manager Tom Muehlenbeck is expected to detail ideas for extra cuts at the council's regular meeting Monday.
The move is unusual for Plano, which typically avoids budget discord - at least in public. And it comes late in the year: The new budget, which will total around $400 million pending council approval, takes effect Oct. 1.
More broadly, the debate demonstrates how this aging suburb faces mounting pressure to balance rising costs with slowing job and housing growth. Several area cities in worse financial shape, including Dallas, have chosen deep budget cuts to stave off tax increases.
Plano's residential tax rate remains relatively low compared with the rate charged in neighboring communities. Plano also offers various residential tax exemptions.
Yet Plano faces the prospect of having to raise its tax rate both this year and next - a hard sell politically. Officials are projecting shortfalls through at least 2012, fueled in part by a commercial real estate slump.
"It's easier to do no tax increases this year than it will be next year," council member Mabrie Jackson said.
Last month, city officials proposed a budget plan that would raise the tax rate by 1.51 cents to 48.86 cents per $100 of assessed valuation. Should the increase move forward, those with homes assessed at $250,000, Plano's average, would pay an additional $30 a year.
Council member Harry LaRosiliere blamed Plano's budget predicament on the economic downturn and shrinking revenues. He called the next several years of budget planning critical.
"We've come to the decision," he said. "Do we want to continue our level of services? Do we want to pay for it or not?"


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