Plano is encountering a new hurdle as the city approaches its next budget cycle: there is less land available for development, a situation that threatens the city’s overall financial stability and prospects for growth.
City Manager Mark Israelson has proposed a cautious budget for the upcoming fiscal year, indicating a shift from growth-centric spending to a maintenance-focused approach.
This proposed budget notably includes no new allocations for city services beyond public safety and foregoes raises for non-public safety staff. However, a one-time bonus of $1,000 for all city employees, including those in public safety, is slated for December, according to KERA News.
Karen Rhodes-Whitley, the city’s budget director, spoke at a city council meeting on Monday about the significant challenges posed by the diminishing available land in Plano proper.
This development also comes as Plano ISD faces financial strains over declining enrollment.
In 2023, the school board formed a committee of more than 70 parents, staff members, city employees, and community members to assess the future of its schools. As previously reported by The Dallas Express, having operated under a budget deficit since 2017, the district’s board recently made the tough decision to close four Plano schools in response to its ongoing financial pressures.
The Plano City Council is scheduled to hold two additional meetings on August 11 and 15 to discuss its proposed budget and tax rate. A town hall meeting to engage with residents about the budget is set for August 22, and a public hearing on the tax rate is planned for August 26.
The final budget adoption and property tax rate are scheduled for September 9, and the new budget will take effect October 1.