We are in budget time at the City of Plano. As we went about the daunting task of creating the budget, our primary focus for utilization of your tax dollars was to maintain Plano's position in the market place as "The premiere city in which to live, work and play." We look to accomplish this mission by providing for a sustainable community, excellent city services, a diverse business center, with safe and efficient travel. The typical challenge continues to be the same. That is not to trivialize it, but to emphasize the fact that we continue to face the same issues - rising costs to run a city against a revenue stream made up of mostly an incrementally increasing property taxes and an unpredictable sales tax. Here are some key facts within the document that the council will seek to adopt for the year beginning 10/01/2007.

Did you know...

• The city budget along with the Capital Improvements Program (projects funded by bonds) is in excess of half a billion dollars!
• The city expects to collect a little over $61 million in sales tax revenues - 30% of the city's revenue stream.
• Over the past 5 years, the city's sales tax revenue has grown from $46 million to $61 million. That is a growth rate of 7% annually. (most of that growth is mainly due to sales activity in the commercial and industrial sectors - NOT from retail)
• Property tax revenues (business and residential) represent 38% of our revenue.
• We added $568 million of new property this past year to Plano's tax rolls, $410 million from commercial, and $168 million from residential.
• The tax rate remains the same at 47.35 cents per $100 of assessed valuation. (That means, if you own a $250,000 house in Plano, you pay less than $950 a year for your city services.)
• The total assessed property value in Plano for is $24.5 billion, a $1.7 billion increase (7.37%) from last year.
• Existing property values city wide increased by $1.1 billion or 4.88%, the BEST year in that category since 2002 (not bad for a city that is "built out").
• This year we will spend an additional $3.7 million on public safety.
• 25 out of the new 49 employees will be related to public safety. (Our citizens' safety continues to be a top priority.)
• 68% of the general funds expenditure ($222.5 million) is spent on salaries and wages.

The major accomplishment fiscally in the last year has been the impact of the newly established Economic Development Fund. Last year, the council raised the property tax rate by 2 cents and dedicated the funds to economic development.

That 2 cent increase generated $4.4 million which, when combined with the $1.6 million the city manager allocated from the general fund, provided a total of $6 million dedicated to economic development. It has placed us in a position where we can finally, adequately compete with other north Texas communities to attract and retain businesses in Plano. Our neighboring cities have taken notice, as well as the business community.

Here is a quick summary of the results of that fund...

• $2.7 of the $6 million has been offered and accepted by companies. The uses range from moving expenses, street improvements, and cash incentives, those funds absolutely influenced their decision to keep or move their business to Plano.
• That translates into 2300 jobs with an average salary of $70,000. (That average salary, by the way, is the envy of EVERY city near us.)
• Studies show that typical employees spend up to 40% of their salaries within a tight radius of where they work. Based on that, it is safe to assume that in addition to the likelihood that those employees will purchase property to live in Plano, they will spend approximately $6 million within our city limits.
• $3.3 million has been offered to businesses (has not been accepted yet) that can easily double the financial impact of the economic development fund.

The council continues to work hard to be fiscally responsible with your tax dollars. We must continue to explore creative ways to retain and attract business to Plano to subsidize the high quality of life our citizens expect and deserve. This way, Plano will remain "the shining star in the Lone Star State!"