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The original item was published from 8/23/2017 12:55:18 PM to 9/12/2017 7:10:02 PM.

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City of Allen Headline News

Posted on: August 23, 2017

[ARCHIVED] City Budget Includes Tax Rate Decrease, Water Rate Changes


Allen City Council is reviewing a $214 million city budget based on a tax rate reduction of a full cent. The full cent reduction was modified from the initial half cent reduction proposed at the first public hearing for the budget on August 8.

If approved, residents would pay the city $0.51 cents per $100 of taxable value – down from $0.52 cents last year. Despite the lower rate, a combination of new taxable properties and increased appraisal values would increase the City’s total property tax intake by $3.64 million, or 6.23%. See the official tax rate notice.

The 2017-2018 budget will also address rising water and wastewater costs by increasing rates. Residential customer rates have not been adjusted since February 2015. The residential rate increase works out to an additional $8.18 monthly charge for 10,000 gallons of water usage. The change would take effect on November 1.

Wholesale water rates have risen steadily since 2015, but a sufficient balance in the City’s Water/Sewer Fund allowed Allen to absorb the cost. As wholesale water prices continue to climb, a rate increase is needed to maintain operations and sustain operating reserves.

Despite the increase, Allen residents using 10,000 gallons per month will still pay less than residents in any of the other 12 cities that get their water and wastewater services from the North Texas Municipal Water District.  Allen’s water rate will also remain significantly lower than the state average. Learn more about Allen’s water costs.

If the proposed budget is approved, the bulk of the city’s General Fund (39.6%) would be spent on public safety. Culture and recreation—which includes funding for Parks & Recreation and Allen Public Library—represents 26.5% of the proposed General Fund budget. General government (23.8%), public works (5.2%), community development (3.3%) and transfers out (1.6%) make up the balance. The 2017-2018 proposed budget includes 20 new staff positions to help serve Allen’s growing population and expanding city facilities.

Allen City Council conducted a second public hearing on the proposed budget and tax rate during the August 22 meeting. Council members will vote to adopt the budget, tax rate, and new water/wastewater rates during the meeting on September 12.

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