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WELCOME TO THE MEETING OF CITY COUNCIL.
[CALL TO ORDER]
WE'RE AT FRISCO CITY HALL, THE GEORGE A.PURFOY MUNICIPAL CENTER AND COUNCIL CHAMBER, 6101 FRISCO SQUARE BOULEVARD IN FRISCO, TEXAS.
IT IS 5 P.M. ON MONDAY, JUNE 30TH, 2025, AND I WILL CALL THE MEETING TO ORDER.
UM, WE'RE JOINED BY THE ENTIRE COUNCIL THIS EVENING.
UH, THE FIRST ITEM IS THE PLEDGE OF ALLEGIANCE.
I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS ON A NATION UNDER GOD, INDIVISIBLE WITH LIBERTY AND JUSTICE.
I PLEDGE ALLEGIANCE TO THE TEXAS ONE STATE UNDER GOD, ONE INDIVISIBLE.
AND OUR FIRST ITEM IS CITIZEN INPUT.
[CITIZEN INPUT]
IS THERE ANYONE THAT WOULD LIKE TO SPEAK DURING CITIZEN INPUT? MOVE US TO OUR REGULAR AGENDA.[Consider and act upon adoption of an Ordinance to increase an exemption to ad valorem property taxes for residence homesteads in the City of Frisco. (Budget/DC)]
ITEM 2 IS CONSIDER AND ACT UPON ADOPTION OF AN ORDINANCE TO INCREASE AN EXEMPTION TO OUTLORUM PROPERTY TAXES FOR RESIDENTS' HOMESTEADS IN THE CITY OF FRISCO.GOOD EVENING, MAYOR COUNCIL DEREK CONN, CHIEF FINANCIAL OFFICER FOR THE CITY.
I'M GONNA BE A QUICK PRESENTATION, UH, THIS AFTERNOON, UM, TALKING ABOUT THE HOMESTEAD EXEMPTION.
I DO WANT TO ACKNOWLEDGE TODAY IS THE LAST DAY TO TAKE ACTION ON THE HOMESTEAD EXEMPTION, UH, TO BE EFFECTIVE, UH, FOR THE JANUARY 1ST, 2025 OR FISCAL YEAR 26 TAX BILLS.
UM, SINCE WE LAST SPOKE AT OUR BUDGET AND AUDIT COMMITTEE WORK SESSION AND THEN COUNCIL WORK SESSION, VALUES HAVE INCREASED.
UM, WE'VE SEEN REVALUES INCREASE BY ABOUT $900 MILLION.
UM, THAT'S JUMPED THE NEW VALUATION TO $52.4 BILLION AND WE'LL SEE THAT REFLECTED HERE IN A LATER SLIDE ON HOW THAT IMPACTS THE TAX RATE.
UH, MARKET VALUES AND TAXABLE VALUES HAVEN'T CHANGED SINCE OUR PRIOR DISCUSSIONS.
CURRENTLY, UH, COLIN CAD, UH, HAS 22.4% UNDER PROTEST OR PERCENT OF PROPERTIES UNDER PROTEST.
THEY DID NOTIFY US THIS MORNING THAT THEIR GOAL THIS YEAR IS TO GET TO 10%.
THEY'RE NO LONGER EXPECTING TO GET THOSE FULLY RESOLVED.
UM, DANE COUNTY HASN'T MADE, UH, ANY FORMAL ANNOUNCEMENTS ON WHAT THEIR GOAL IS, BUT I EXPECT THEM TO FOLLOW SUIT.
A QUICK REMINDER ON SB 2 AND THE IMPACT, UH, WHEN GOING TO THE VOTER APPROVAL TAX RATE, WHICH HAS BEEN THE STRATEGY OF COUNCIL OVER RECENT YEARS, UH, WHEN THE TAX BASE GOES DOWN, THE TAX RATE MUST GO UP AND IT ALSO HOLDS TRUE IF THE TAX BASE, UH, WERE TO GO UP, THE TAX RATE WOULD GO DOWN.
A REMINDER ON THE CURRENT EXEMPTIONS, THE CITY HAS, WE'RE AT 15% ON OUR HOMESTEAD EXEMPTION TODAY.
UH, WE HAVE AN OVER 65 OR DISABLED PERSONS EXEMPTION AT $80,000 AND WE DO HAVE A SENIOR TAX FREEZE IN PLACE.
SO GETTING INTO THE DETAIL, THESE ARE THE NUMBERS THAT THE COUNCIL SAW AT THEIR WORK SESSION.
THIS IS JUST A REMINDER OF WHAT THE TAX RATES AND SAVINGS LOOKED LIKE AT A $51.5 BILLION DOLLAR VALUATION AND THEN WE'LL SWITCH OVER TO THE UPDATED SLIDE.
AND THESE ARE THE TAX RATES AT THE CURRENT VALUATION.
I DO WANT TO PREFERENCE AS A REMINDER THAT JUST AS QUICKLY AS THE VALUATIONS WENT UP THAT THEY ARE CURRENTLY STILL ESTIMATES, UH, WE WILL NOT END AT 42 OR 52.4 BILLION.
THAT NUMBER WILL CHANGE, UM, BUT WE BELIEVE IT'S A PRETTY ACCURATE ESTIMATE.
WE DON'T EXPECT THAT NUMBER TO MATERIALLY CHANGE, BUT AGAIN WE SAW LAST YEAR THAT THINGS CAN CHANGE IN THE FINAL WEEK.
I'LL RUN THROUGH ONE OF THESE EXAMPLES, UM, LOOKING AT THE, THE PROJECTED FY 26, THE 15%.
WHAT WE'RE LOOKING AT HERE IS THE AVERAGE MARKET VALUE AND FOR FISCAL YEAR 26 IS 804,000, UH, WITH A 15% EXEMPTION, UH, THEY'VE SEEN AN EXEMPTION OF 120,000, LEAVING THEM WITH A TAXABLE VALUE OF 683,000.
UH, THIS WOULD REPRESENT A TAXABLE VALUE INCREASE OF 2.19%. UH, BECAUSE WE DID SEE A LARGE GROWTH TO THE PROPERTY TAX BASE AND WITH SB2 IN PLACE AND ASSUMING GOING TO THE VOTER APPROVAL TAX RATE, UH, THE TAX RATE WOULD BE FORCED DOWN.
IT WOULD GO DOWN TO 0.406 OR 4.5% DECREASE FROM THE CURRENT YEAR.
UH, THE RESULT TO THE RESIDENT UNDER THIS SCENARIO WOULD BE A TAX BILL TO THE CITY.
UH, THAT WOULD DECREASE BY 2.4%. YOU CAN SEE HOW THAT PLAYS THROUGH, UH, GOING TO A 17.5% HOMESTEAD EXEMPTION AND A 20% HOMESTEAD EXEMPTION.
UNDER A 20% HOMESTEAD EXEMPTION, UH, THE TAX BILL WOULD BE REDUCED FOR THE
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CITY PORTION BY APPROXIMATELY $120.SO I'LL STOP THERE AND SEE IF THERE'S ANY QUESTIONS FROM COUNCIL.
WHEN YOU SAY STOP THERE, IS THAT THE END OF YOUR COMPLETE PRESENTATION OR YOU HAVE MORE TO THE NEXT IS JUST IMPORTANT DATES AND QUESTIONS.
IF I MAY, IF I MAY MAKE A COMMENT ON THAT LAST SLIDE, THERE'S A NOTE AT THE BOTTOM THAT SAYS THAT THESE NUMBERS ASSUME ADOPTING THE VOTER APPROVAL TAX RATE.
AND THAT IS SOMETHING WE TALKED ABOUT WITH COUNSEL.
AND THAT IS SOMETHING THAT WE BELIEVE IS NEEDED OVER THE FORESEEABLE FUTURE AND CONTINUE TO FUND OUR OPERATIONS IN A RESPONSIBLE WAY.
THE PURPOSE OF GETTING TO THIS, UH, HOMESTEAD RATE WAS NOT JUST TO, UM, DO IT AT ALL COSTS, BUT TO MAKE SURE THAT WE COULD DO IT IN A WAY THAT WAS FINANCIALLY SUSTAINABLE.
IF, UH, THE, IF IN THE FUTURE THE COUNCIL DEVIATES FROM A UH ADOPTING THE VOTER APPROVAL TAX RATE, THEN THIS WILL PUT US IN A POSITION WHERE WE HAVE TO MAKE HARDER DECISIONS RELATED TO RELATE TO OUR, UH, SERVICES AND ORDER ARE PROVIDED.
UH, SO I JUST WANNA MAKE SURE THAT THAT'S ON THE RECORD, UH, THAT THIS IS, UH, SOMETHING THAT IS POSSIBLE, UH, IF WE CONTINUE THAT COUNCIL POLICY.
IF THERE'S A CHANGE IN THAT POLICY, THEN THAT WILL HAVE A MATERIAL IMPACT ON HOW WE FUND OUR SERVICES.
RIGHT WELL THANK THANK YOU WES AND.
YOU KNOW, KIND OF A, A FEW OTHER THINGS THAT I'LL NOTE IS, YOU KNOW, I THINK WE, WE FIRST PASSED THE INITIAL HOMESTEAD EXEMPTION, I BELIEVE IN 2018, UM.
AND IT'S BEEN A GOAL OF COUNCILS EVER SINCE TO UM WORK OUR WAY TOWARDS THE STATE MAXIMUM OF 20%, UM, WHERE WE KIND OF DID A SERIES OF STEPS OVER THE LAST 8 YEARS, UM, TO GET TO THE CURRENT OF, OF 15%.
UM, YOU KNOW, I, I WANT TO APPLAUD THE WORK OF CITY STAFF, OUR BUDGET AND AUDIT COMMITTEE, UM, KIND OF ALWAYS HAVING THIS KIND OF IN THE BACK OF THEIR MIND AS A GOAL OF COUNCIL, UM, YOU KNOW, AS WE CONTINUE TO KIND OF, UM, YOU KNOW, BUILD TO THIS POINT, UM, YOU KNOW, THE HOMESTEAD DOES COME AT, UM, A TRADE-OFF, UM, BECAUSE, YOU KNOW, ANYTIME YOU IMPLEMENT, UM, TAX INCENTIVES, IT, IT BENEFITS ONE PARTY GREATER THAN THE OTHER AND SO THE TRADEOFF.
UM, YOU KNOW, IS CERTAINLY, UM, PUSHING MORE OF THE BURDEN TO OUR BUSINESSES, OUR COMMERCIAL, UM, TAX BASE.
YOU KNOW, NOW THAT SAID, AS WE KIND OF LOOKED AT IT, WE'VE LOOKED AT EQUITABLE SCENARIOS OVER ALL THE YEARS, YOU KNOW, HAVING TOOLS LIKE AN ECONOMIC DEVELOPMENT CORPORATION THAT, YOU KNOW, DOES TAKE TAXPAYER MONEY AND PROVIDE INCENTIVES TOWARDS THE COMMERCIAL SECTOR, YOU KNOW, HOW CAN WE USE TOOLS TO PROVIDE INCENTIVES TO THE RES, YOU KNOW, TO OUR RESIDENTS AND THAT THE ONLY WAY TO REALLY KIND OF DO THAT IS THROUGH RATE AND THROUGH HOMESTEAD EXEMPTION.
AND SO, UM, YOU KNOW, IT'S ALWAYS BEEN IMPORTANT TO ME FOR US TO GET TO 20%.
I KNOW THIS ENTIRE COUNCIL AND SO IT'S BEEN.
IT'S BEEN ROLLING UP THE SLEEVES.
IT'S BEEN LOOKING FOR THE STRATEGIC, UM, OPPORTUNITIES, UM, WHEN IT MADE SENSE FROM A BUDGET PERSPECTIVE WITHOUT, UM, UM, REDUCING ANY SERVICES THAT THE CITY'S DONE.
I MEAN, THIS MORNING WAS A PERFECT EXAMPLE, YOU KNOW, WHERE WE, UM, CUT THE RIBBON OR SPLIT THE HOSE OR WHATEVER YOU WANT TO CALL IT ON FIRE STATION NUMBER 10, YOU KNOW, A BEAUTIFUL $15 MILLION PLUS FACILITY THAT, YOU KNOW, IS, UM, FULLY STAFFED, UM, YOU KNOW, AND THEN ON THE SAME DAY TO ALSO BE ABLE TO.
UM, YOU KNOW, VOTE ON A POTENTIAL TAX DECREASE FOR OUR RESIDENTS, I THINK IS A PRETTY REMARKABLE DAY, UM, YOU KNOW, TO, TO, TO SEE KIND OF BOTH, BOTH ENDS OF IT, HOW WE'RE INVESTING YOUR TAX DOLLARS AND THE THINGS THAT YOU SAY WE WANT AS FAR AS PUBLIC SAFETY, UM, AND GROWING AREAS OF OUR TOWN, BUT DOING IT IN A VERY FINANCIALLY PRUDENT MANNER.
SO, UM, YOU KNOW, WITH THAT, UM, YOU KNOW, I KNOW THE BUDGET AND AUDIT COMMITTEE, UM.
I SPENT A LOT OF TIME KIND OF DIVING INTO THE DETAILS.
DO YOU WANT TO KIND OF COMMENT ON WHY YOU THOUGHT IT WAS A GOOD YEAR THIS YEAR TO MAKE THAT JUMP? IN YEARS PAST, YOU KNOW, WE'VE THINGS HAVE BEEN A LOT CLOSER AND WE WEREN'T SURE WHAT WAS GONNA HAPPEN WITH VALUES.
THERE WAS MORE UNCERTAINTY, SO WE HAD TAKEN A CONSERVATIVE APPROACH WITH THE HOMESTEAD EXEMPTION AND, AND IN A COUPLE OF CASES WE'RE ACTUALLY ABLE TO LOWER THE TAX RATE WHEN THE MATH WORKED OUT AT THE END OF THINGS.
I THINK THIS IS THE FIRST YEAR SINCE WE'VE BEEN LOOKING AT THE HOMESTEAD EXEMPTION WHERE THERE'S FAR LESS UNCERTAINTY THIS YEAR IN A LOT OF DIFFERENT THINGS THAN WE'VE HAD IN, IN, IN PRIOR YEARS.
SO, UM, OBVIOUSLY STAFF HAS HAD OUR, UH, OUR VISION IN MIND AND WHAT OUR GOALS WERE.
AND, UH, SO WHEN THEY BROUGHT THIS TO US A COUPLE OF MONTHS AGO AND WE THINK WE CAN GET THERE, UM, YOU KNOW, YOU, YOU START LOOKING AT THE, THE FIGURES AND, OH, YEAH, LET'S GET US TO 20%, UM, AND THEN WE'RE DONE.
WE'RE MAXED OUT AT WHAT THE STATE HAS US THAT WE CAN MAX IT OUT AT, AND THEN THE CALCULUS NEXT YEAR BECOMES.
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SIMPLY THE TAX RATE.SO, UM, I, I THINK THEY'VE DONE GREAT WORK IN, IN TRYING TO KEEP OUR, UM, OUR IDEAS AND OUR GOALS IN MIND AND UH I THINK THIS IS THE FIRST YEAR THAT REALLY TRULY UM HIGHLIGHTS, YOU KNOW, THAT THAT BALANCE AND THAT BALANCE THAT YOU HAD ON THE PRIOR SLIDE I THINK IS PERFECT FOR THAT, UM, TO SHOW, YOU KNOW, WHAT THE DIFFERENT EFFECTS ARE AND AND THE FACT THAT THIS IS GONNA SHIFT A LITTLE BIT OVER TO OUR LARGER COMMERCIAL PROPERTIES, UM, SO.
ANY OTHER COMMENTS OR QUESTIONS? I, I HAVE ONE JUST THIS IS DIRECTED TOWARDS UH COUNCILMAN WOODARD, UM, FOR A COUPLE OF YEARS ON BUDGET AND AUDIT, HE WAS THE CHAIRMAN AND I WAS ON IT, AND HE HAD TO, UH, TEMPER MY ENTHUSIASM TO GET TO THIS 20% A COUPLE OF YEARS EARLIER THAN WE DID, UM.
EXPLAIN TO ME THE TAX RATE AND THE HOMESTEAD EXEMPTION AND HOW IT ALL WORKS.
SO SINCE THIS IS HIS LAST NIGHT, I JUST WANT TO TELL HIM THANK YOU FOR UH.
I GUESS PUTTING SOME CONSTRAINTS ON ME FOR MY ENTHUSIASM FOR DOING THIS, BUT WE FINALLY DID IT.
I'M GLAD, UH, YOU GET TO BE A PART OF THIS, AND I'M VERY EXCITED ABOUT IT.
SO JUST ONE MORE THANK YOU TO, UH, TO BILL.
UM, MR. MARON, I KNOW IT'S NOT A PUBLIC HEARING, BUT WE DO HAVE OUR TWO COUNCIL MEMBERS ELECT HERE AND CONSIDERING THEY'RE GONNA BE VOTING ON THE BUDGET LATER THIS YEAR, I WANT TO OFFER THEM THE OPPORTUNITY IF THEY WANTED TO GET UP AND SAY ANYTHING AS WELL, IF COUN WHEN COUNCIL'S DONE WITH THEIR COMMENTS.
THAT'S ALL THE OTHER COME, YEAH, YEAH, YOU'RE WELCOME TO HAVE SYSTEM INPUT INPUT IF YOU'D LIKE.
APPRECIATE THAT TO GIVE US AN OPPORTUNITY TO SPEAK.
UM, AND I WON'T SPEAK FOR BURP, BUT I'M REALLY EXCITED TO GET STARTED AND, UM, TODAY I'M REALLY EXCITED THAT YOU GUYS ARE PASSING THIS.
I THINK IT'S A GREAT, UM, THING FOR THE CITIZENS OF FRISCO.
AS YOU KNOW, MOST CITIZENS ARE REALLY STRUGGLING NOWADAYS AND, UM, TWO INCOME FAMILIES.
UM, I'VE HAD MANY LAYOFFS OF MY CLIENTS.
UM, IT'S NOT REALLY TALKED ABOUT, SO THIS IS GONNA BRING SOME REAL RELIEF FOR SOME OF, UH, SOME OF THE FRISCO RESIDENTS, AND, UH, I THINK IT'S A GREAT THING THAT YOU GUYS, UM, WERE ABLE TO GET THIS DONE IN, IN, IN SHORT ORDER.
SO I COMMEND YOU GUYS FOR, UM, ALL OF YOU AND LADIES TOO, UM, UM, TO GET THIS PASSED FOR THE PEOPLE OF FRISCO.
SO I APPRECIATE YOU LETTING ME SPEAK.
COUNCILMAN WOODARD, UH, THANK YOU FOR YOUR SERVICE TO THE CITY OF FRISCO.
UH, REALLY GRATEFUL FOR AN OPPORTUNITY TO ADDRESS THE COUNCIL.
UH, COUNCILWOMAN MINOR SHAGEN, THANK YOU FOR YOUR SERVICE TO THE CITY OF FRISCO AS WELL.
UH, I THINK THAT, UH, THIS IS AN HISTORIC MOMENT FOR THE CITY OF FRISCO, AND IT SPEAKS VOLUMES, UH, TO THE STRENGTH OF THIS COUNCIL, UH, TO BE ABLE TO PASS, UH, A, A HOMESTEAD EXEMPTION TAX, UH, A HOMESTEAD EXEMPTION TAX RELIEF OF 20%.
UH, THERE ARE A LOT OF SENIOR CITIZENS AS WELL AS, UH, PEOPLE WHO ARE DISABLED WHO WILL DEFINITELY BENEFIT FROM THIS AND THE PEOPLE WHO QUALIFY.
I THINK IT IS VERY HONORABLE AND NOBLE OF ALL OF YOU, UH, TO ADDRESS THIS, AND ESPECIALLY COMING OUT OF SESSION AND AS YOUR TWO'S, UH, LAST EFFORTS IN CITY COUNCIL, MY HATS OFF TO YOU.
SO THANK YOU SO MUCH FOR, UH, VOTING FOR THIS, AND, UM, I HOPE, UH, BOTH MYSELF AND JARED, UH, DO A GOOD JOB, SO I APPRECIATE ALL OF YOU.
AND JUST TO, TO CLARIFY, EVERY HOMEOWNER WILL RECEIVE THE THE BENEFITS OF THE INCREASE IN THE HOME HOMESTEAD EXEMPTION.
WE DO HAVE SEPARATE UM EXEMPTIONS AS WELL THAT PEOPLE.
UM, UM, TAKE ADVANTAGE OF, UM, AS WELL, UM, THERE'S NO OTHER COMMENTS, COUNSEL, I'LL DEFER TO YOU FOR A MOTION.
JUST, UH, ONE SUGGESTION YOU'VE GOT TWO ORDINANCES BEFORE YOU TONIGHT, ONE OFFERING A 17.5% EXEMPTION AND THE OTHER OFFERING A 20% EXEMPTION.
SO IN YOUR MOTION, IF YOU'D MAKE CLEAR WHICH OF THOSE TWO ORDINANCES YOU PREFER.
MOVE TO APPROVE THE ORDINANCE WITH THE 20% HOMESTEAD EXEMPTION.
MOTION BY BILL SECONDED BY TAMMY, ALL IN FAVOR.
AND UM, BEFORE WE ADJOURN, THIS IS, UM, THE LAST OFFICIAL ACTION BY UM TWO
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COUNCIL MEMBERS AND I WANTED TO PRESENT THEM WITH A UH QUICK GIFT.YEAH, MINE'S BIGGER THAN YOURS.
ALL RIGHT, COS I LOOK FOR A MOTION TO ADJOURN.
I MY TAMMY IN FAVOR PASSES 60.
THAT'S
* This transcript was compiled from uncorrected Closed Captioning.