Frisco raises stormwater utility fee 20 percent starting February

Frisco City Council voted in early January to raise the city’s monthly Stormwater Utility Fee by 20 percent, with the new rate taking effect Feb. 1, 2026. The adjustment is part of the budget decisions for FY2025-26 and city documents warn additional increases may follow in future years.

The fee is assessed based on impervious surface area, which means properties with more pavement and roof coverage pay more. For non-single-family properties the charge will move from $1.73 to $2.07 per 1,000 sq. ft. of impervious area. The utility fund pays for programs required by the Texas Commission on Environmental Quality, including pollution-prevention measures and public education about stormwater runoff.

City leaders framed the increase as necessary to maintain compliance with state stormwater regulations and to fund ongoing pollution-prevention work. For property owners and managers in Frisco this change translates into higher recurring costs that are most directly felt by commercial sites, multifamily developments, industrial parcels, and institutions with large parking areas or roofs. Homeowners in single-family neighborhoods may see smaller direct effects depending on the city’s residential rate structure and how HOAs or management companies allocate costs.

Policy implications extend beyond the immediate fee increase. Embedding the adjustment in the FY2025-26 budget signals that stormwater revenue will be a continuing source to meet regulatory obligations and program needs. City documents flag the likelihood of further increases, which could influence business operating budgets, lease negotiations, development pro formas, and long-term municipal planning. Developers and property owners should account for rising utility charges when evaluating projects and contracts.

From a governance perspective the increase underscores the tension local governments face between regulatory compliance and keeping service costs predictable. Stormwater programs reduce pollution and protect streams and drainage infrastructure, but funding those efforts through user fees concentrates costs on property owners with high impervious area rather than across broader tax bases. That allocation decision affects incentives for green infrastructure and redevelopment that reduces runoff.

Our two cents? Check your February bill and ask property managers or your HOA how the extra charge will be passed along. If you want to influence future rate decisions, follow city budget hearings and raise questions about long-term stormwater funding, alternatives like green infrastructure investments, and how the city will communicate future increases to residents and businesses.