Plano City Council Meeting – March 23, 2026

The Plano City Council convened in open session with all members present. The council first recessed into executive session to discuss legal and economic development matters. Following the executive session, the council received a five-year financial forecast presentation from Budget Director Karen Rhodes Whitley and consultants from New Gen Strategies and Solutions, and a departmental overview of Public Works from Director Abby Owens and Assistant Director Andrea Park. The meeting also addressed the consent agenda, with items A, C, and I removed by citizens, though no public speakers appeared.

Public Comments & Testimony

• No members of the public spoke; one potential speaker (Elvin Nelson) was called but was not present.

Discussion Items

Five-Year Financial Forecast (FY 2026-2031)

• Presenters: Karen Rhodes Whitley (Budget Director), Matthew Garrett and Steve Douge (New Gen Strategies and Solutions).
• Expenditure assumptions: General fund expenditures projected to grow at 3.2% per annum, from ~$430 million in FY26 to ~$500 million by FY31. Key drivers include fire shift changes ($21 million additional expense by FY31) and operational costs for new facilities from the $647 million bond referendum.
• Inflation assumptions: 3% per year for personnel (excluding fire shift), 5% for health benefits, 4.3–8% for water costs; general inflation based on 75th percentile of Federal Reserve survey of professional forecasters (2.8% down to 2.4% over the horizon).
• Revenue projections: Property tax and sales tax comprise ~75% of general fund revenue. Property tax growth tied to house price index (slightly negative in Oct. 2025, but long-term average ~5%); sales tax modeled using three-year average with a conservative buffer (budgeted at prior three-year actual plus 3%, net of audit adjustments). FY26 sales tax estimated at $131 million, FY27 at $129 million.
• Property tax base: Estimated FY26 total market value $83.3 billion, reduced by exemptions (20% homestead, senior freeze, 10% cap, etc.) to freeze-adjusted taxable value of $54 billion. Senior freeze foregone revenue ~$15 million in FY26, projected to increase.
• Tax rate scenarios: Under a no-new-revenue rate (flat on existing properties), revenues grow 2.4% annually vs. expenditures 3.2%, leading to deficits and days cash below target by FY28. Under the voter approval rate (3.5% additional revenue from existing properties), revenues grow 3.8% annually, maintaining 60-day working capital target through FY31, though contingent sales tax may be needed if rate is set lower.
• Future model runs: The city will model potential state legislative changes (lowering voter approval rate to 0%, 1%, 2%, 2.5%) and await appraisal district data (Collin County April 7, Denton County April 21).
• Water and sewer summary: Goal of 90 days operating reserve – currently met for all five years; new water district rates expected late April/early May. Sustainability/environmental waste rates not projected into red until 2030-31; municipal drainage rate increase (three-year cycle) addresses fourth-year deficit.

Public Works Overview (Part 1)

• Presenters: Abby Owens (Director) and Andrea Park (Assistant Director).
• Scope: Public Works covers water/wastewater, drainage, roads, sidewalks, traffic signals, solid waste, fleet, compost, and emergency response (storms, winter weather). Staff: ~364 employees.
• Fleet Services: Maintains ~2,500 pieces of equipment (29 technicians, 9 office staff). Equipment replacement uses a scoring system (life expectancy, maintenance costs, mileage). High Point fueling station under design, expected online early 2027.
• Environmental Waste Services: Serves 87,000 homes weekly for trash, bulky waste, and chemical collection; every-other-week recycling. Also manages commercial waste contract and green business program.
• Texas Pure Products (compost): Yard debris diversion program in partnership with Plano, Allen, Frisco, McKinney, Richardson, and the water district. Diverts ~50,000 tons/year from landfill; generates revenue and is cost-recovery positive.

Key Outcomes

• The financial forecast is the formal kickoff of the FY 2026-27 budget process; further updates will follow as appraisal district data and legislative changes are known.
• The council acknowledged the public works presentation; Deputy Mayor Pro Tem commended the department for proactive maintenance and the composting program’s success under new leadership.
• Items A, C, and I on the consent agenda were removed by citizens but no speakers appeared; the consent agenda was otherwise approved without discussion.
• Council will have individual budget meetings and receive periodic updates leading to full budget discussions in late July 2026.