Allen City Council directed City staff to further reduce the proposed rate from $0.505 to $0.498 per $100 in taxable value following a public hearing on August 14. For a home appraised at $250,000, the annual city tax would total $1,245 - a little over $100 per month. The proposed rate represents a $0.012 drop from Allen's current tax rate of $0.510.
City of Allen Chief Financial Officer Eric Cannon had outlined the initial rate drop during the first of two public hearings. The second was held on August 28.
“We are always trying to bring the best value we possibly can for our taxpayers, while still providing the services our citizens are accustomed to,” said Cannon.
Allen’s total tax revenue would still increase due to two factors. Newly-constructed properties, including everything from residential neighborhoods to corporate headquarters, added $2.1 million to the tax rolls in 2017. Another $2 million is expected due to increased values of existing properties. View the proposed tax rate.
“The goal of our budget is to maintain our current service levels of a growing community while addressing new and aging infrastructure,” said Cannon.
The City of Allen receives a small fraction of the total taxes paid by property owners. For every ten dollars residents are taxed, $2.15 goes to the City of Allen. Allen ISD collects $6.69, Collin County receives $0.82 and $0.34 goes to Collin College.
“When you look at surrounding cities that offer similar personnel and services, our rates are very competitive,” noted Cannon, displaying a chart with the tax rates of nearby cities including Addison ($0.55), Richardson ($0.62516), Mesquite ($0.734) and Dallas ($0.7825).
Property taxes fund slightly more than half of Allen’s proposed general fund budget for 2018-2019. The balance comes from sales tax (18.7%) and charges for services (12.7%), along with franchise fees, licenses and permits, fines and other sources.
Personnel costs are responsible for nearly 64% of the general fund budget—a ratio in line with other cities and service organizations. The 2018-2019 proposed budget includes 20 new staff positions to help serve Allen’s growing population and expanding city facilities and services. View the full budget proposal.
If the proposed budget is approved, the bulk of the city’s General Fund (41.1%) would be spent on public safety, including ten new positions in the Police and Fire departments. Culture and recreation—which includes funding for Parks and Recreation and Allen Public Library—represents 27.4% of the proposed General Fund budget. General government (19.9%), public works (6.2%), community development (3.0%) and transfers out (2.4%) make up the balance.
Allen City Council will vote to adopt the final budget and tax rate on September 11.