Highlights: City of Allen’s Fiscal Year 2024-25 Budget

Last week, the Allen City Council approved its budget for fiscal year 2024-2025, along with updated tax rates and fees. Here’s what your business needs to know about the latest City budget.

Tax Rate

The City Council voted to adopt a tax rate of 41.75 cents per $100 valuation, a reduction from the current rate of 42.05 cents. This decision marks the 32^nd consecutive year that the City Council has reduced the City’s property tax rate, which peaked in 1993 at more than 76 cents per $100 valuation.

Residential Solid Waste

The monthly residential waste collection fee will see a $1 increase, coming to a total of $19.09 per month. Of the five cities in the North Texas Municipal Water District (NTMWD) solid waste family – Allen, Frisco, McKinney, Plano, and Richardson – Allen’s $1/month increase was tied for the smallest year-over-year increase, and Allen’s new monthly rate of $19.09 is the lowest rate when compared to the other four cities.

Water Security

The NTMWD draws from several sources to supply the district with water. One source, the Bois d’Arc Reservoir, was intended to serve the needs of the district until 2050. However, due to population growth, that projection is now 2036. The cost of water is expected to increase roughly 10% annually, meaning it will essentially double during the next decade. The City of Allen has a Capital Improvement Program (CIP) to build new infrastructure and replace old infrastructure.

Water and Wastewater

The commercial water and sewer rate will see an increase of 7.4%. However, this rate increase is smaller than the 15% increase seen in FY2023 and 11.7% increase seen in FY2024. The City of Allen’s water and wastewater rates for both residential and commercial consumers remain below the majority of nearby cities.