Frisco City Council Approves 2023 Budget and Factory Tax


Frisco City Council approved the second reading of the resolution that officially adopts the city’s 2023 budget at its Tuesday, Oct. 25 meeting. City staff estimated about $65 million in expenses and $90.5 million in revenue and reserves, leaving the total ending fund balance for all funds at about $25.5 million.

The city also passed a mill tax of 0.798 mills. It is the same as last year since it cannot be increased without an election. According to a report from Chief Financial Officer Leslie Edwards, the levy is expected to generate $205,574 in property tax revenue.

“When you look and see that’s not even a fraction of a percentage of our actual tax base, we’re a sales tax economy here, not a property tax (one),” the Mayor Hunter Mortensen at the October 11 meeting where the first reading of the budget was discussed.

The budget was mainly discussed at the September 27 board meeting. During this meeting, officials decided to increase the sustainability grants for the Pay-as-you-Throw and Universal Recycling programs from $40,000 to $98,000. Forecast sales tax revenue was also adjusted based on August sales tax figures, resulting in a $385,000 decrease in forecast revenue for 2023.

“We have a big sales tax base in the grocery store. About 25% of our sales tax base is grocery related, which helps the City of Frisco and our prospects. We will keep an eye on how the sales tax comes in,” Edwards said Oct. 11.

Spending in 2023 has been similarly reduced and capital projects have been spread over additional years. However, city staff said some of that was offset by the addition of $750,000 in work to the Marina Park site. Park expenditures have been transferred to the five-year capital improvement fund plan.

The three largest funds at the end of 2023 are the water fund, which has a projected closing balance of approximately $10 million, the general fund of $9.3 million, and the marina fund. of $3.7 million. The three largest proposed expenditures are $21.9 million for the general fund, $19.7 million for the capital improvement fund and $13 million for the housing fund.

Budgeted projects include workforce housing on Galena Street, construction of Slopeside Hall at Frisco Adventure Park, and updating the park and public restrooms at the Visitor Information Center. The city has also budgeted for things like a transportation master plan, fiber infrastructure and implementation, and a county-wide child care tuition assistance program.

The staff report notes that in the event of an economic downturn, the city has a seven-month reserve in the general fund. Additionally, the budget can be modified to reduce less essential items as needed. Some of the budgeted expenses are placeholders pending city council approval, including $78,150 to hire an additional police officer to serve Frisco Elementary.

“I believe what you see at the end of the day in the audited financial statements is usually a much better number than we expected,” Edwards said. “That’s because we conservatively budgeted income, it’s likely to be higher. We conservatively budgeted expenses, it’s likely to be lower. If that’s the case, then our fund balance will be much higher.


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