Moving the Frisco Bay Marina Budget from an Enterprise Fund to the General Fund
The Town of Frisco has operated the Frisco Bay Marina as an enterprise fund for over 25 years, after taking over the day-to-day operations from a private company in 2004. An enterprise fund is a separate, self-supporting municipal accounting fund used for government services financed primarily through user fees rather than taxes. Essentially, the Marina operates like a private business, requiring that revenue cover expenses. Over the last 25 years, the Marina has seen significant changes and growth. Until recently, the Marina Fund has been able to support this expansion, but with the need to prioritize the upkeep of aging infrastructure and increased staff wages and benefits in an area with a high cost of living, the Marina is struggling to operate as an enterprise fund and now requires an annual subsidy from the general fund to make the finances whole and continue to prioritize community needs.
In September 2025, Town of Frisco staff hired ClingerHagerman, LLC (CH) to complete an operational and financial analysis of the Frisco Bay Marina to assist the Town in assessing long-term financial sustainability, operational efficiency, and strategic opportunities for improvement. CH concluded the following:
- Financial performance indicates that Marina revenues are relatively stable at ~$2.4 million annually. However, salaries and benefits have grown disproportionately since 2023. Revenue generation is also limited due to greater Town policy constraints.
- Operational characteristics reveal that the Marina operates near break-even on an annual basis. The annual debt payment ~$350,000 from the “Big Dig” in 2019 creates a substantial fixed cost.
- Pricing and utilization indicate that the majority of Marina services operate at or near full capacity with long waitlists. Rental rates are competitive, while slip and mooring rates are below regional averages.
- Staffing and operations rely on five year-round staff and ~40-50 seasonal employees. The Marina works well with other departments and has continued to reduce silos and improve cost sharing over the years.
- Capital priorities include facility enhancements and fleet renewals. The enterprise fund structure restricts the Marina’s ability to efficiently share Town resources and limits flexibility to reinvest in critical infrastructure, including aging capital assets as well as ongoing maintenance and repairs directly related to Marina operations.
- Community and customer relations are strong. It is noted that an important ongoing consideration is balancing affordability with financial sustainability. The Marina contributes ~$8-9 million annually in economic impact to the Town of Frisco.
Overall, the Frisco Bay Marina demonstrates strong operational fundamentals, exceptional demand, and high community value. Its primary challenges are structural, including rising labor costs, fixed debt obligations, and limited reinvestment flexibility, rather than market or management deficiencies. The Town has an opportunity to strengthen long term sustainability through measured pricing adjustments, fund structure evaluation, and regional collaboration.
Economic Impact of Moving from an Enterprise Fund to the General Fund
Moving from an enterprise fund to the general fund means that the capital fund must absorb the debt and the current and future capital projects planned for the Marina. The ultimate question is whether this change is doable and practical. The movement within funds is an exercise in accounting, and staff are confident that this can be done. The Marina will still be expected to function more like a business whereby revenues exceed expenses, and staff will be held accountable for approved yearly budget. The debt of ~$350,000 annually would be paid out of the capital fund. The equivalent of 10% of revenue is already being transferred into the enterprise fund from the general fund to cover annual shortcomings in the enterprise fund. For 2025, that amount was $245,000.
Council Discussion and Direction
Council voiced support for moving the Marina from an enterprise fund into the general fund and emphasized the need to continue to strive to have revenue cover expenses, while respecting the desire to keep the Marina as affordable and accessible as possible for the Frisco community. Council directed staff to return at a future meeting with an ordinance to move the Marina into the general fund.
Community Development Department Action Plan Update
In November 2025, staff presented to Town Council a Community Development 2026 Action Plan: Housing, Planning, and Sustainability. The purpose of this plan is to outline the top priorities for the Community Development divisions in 2026. The action items identified have been developed off the recently approved Strategic Housing Plan, Comprehensive Plan, and Climate Action and Resiliency Plan (“CARP”). Each of the plans was developed through a collaborative process involving extensive data collection, community engagement, and expert analysis. Staff analyzed the list of priorities as outlined in the plans and recommended action items based on priorities and budget limitations. The items outlined for 2026 were supported by the community, Planning Commission, and Town Council. After reviewing the plan at their November 11, 2025 meeting, the Council supported the Community Development Department moving forward as outlined. Staff has begun working on the items listed in the Action Plan for Quarter 1, 2026, and the staff report included an outline of the items and associated progress being made.
Council Discussion and Direction
Staff asked for feedback on next steps with the 8th and Pitkin Street property, regulations around drive-through businesses, and regulations around residential units in the Light Industrial District.
8th and Pitkin Street property- Council gave staff direction to moving forward with applying for the University Technical Assistance Program (“UTAP”) program to coordinate and host a charrette, collect community input along with staff, and Town Council input, and then develop design plans.
Drive-through businesses– Council indicated that they do not want to distinguish between drive-through businesses connected to office spaces, such as banks, and drive-through restaurants. Council also gave staff direction to return with code language to prohibit drive-through establishments in the Central Core District (Main Street area) and Mixed Use District (primarily West Main Street) and to ask the Town attorney about restricting the number of drive-through businesses in the Commercial Oriented (Summit Boulevard/Highway 9) District. Council would also like more information about the options around the Lakepoint PUD and limiting drive-throughs there.
Residential Units in the Light Industrial District (east of a portion of Ten Mile Drive)- Council supports the general concept of allowing employee-occupied residential units in the Light Industrial District (Summit Boulevard area) and ensuring that on-premise employees have the first right of refusal and then any units would be available for area employees with a specific annual median income (AMI) cap.
Water Rate Ordinance
The ordinance establishes a quarterly minimum delivery charge of $57.43 per capital Equivalent Residential Unit (EQR). This fixed base rate supports system readiness and service availability regardless of consumption.
Updated Tiered Usage Charges (Conservation Pricing)
Customers are assessed tiered volumetric usage charges designed to encourage conservation and ensure high-use customers pay their proportional share of demand costs. Tier 4 is adjusted to begin at 35,001 gallons per quarter, strengthening conservation pricing and aligning with Council direction.
- Tier 1 1–8,000 gallons- $1.73 per 1,000 gallons
- Tier 2 8,001–16,000 gallons- $3.46 per 1,000 gallons
- Tier 3 16,001–35,000 gallons- $6.06 per 1,000 gallons
- Tier 4 >35,001 gallons- $9.08 per 1,000 gallons
Irrigation Rate
Irrigation-only accounts will be billed at a uniform rate of $5.29 per 1,000 gallons.
Annual Rate Escalator
The ordinance provides that the base rate and tiered charges will increase annually by 8.5% through 2029, effective January 1 of each year.
Updated Plant Investment Fees (Tap Fees)
Beginning April 1, 2026, the Plant Investment Fee is updated so that 1 capital EQR = $10,475.
Beginning January 1, 2027, tap fees will adjust annually through 2029 based on an inflationary escalator tied to construction inputs- annual adjustment equal to the twelve-month percentage change in the Producer Price Index.
Council Decision
Council approved Ordinance 26-05 on second reading.
Budget Appropriations
The Town Council approves a budget each year. From time to time, it is necessary to make changes to the budget as circumstances necessitate. Per the Town’s Charter, these changes must be adopted by Council ordinance.
2025 Appropriations
The proposed 2025 budget amendments include both increases and reductions to the 2025 Budget to accurately reflect project timing and funding availability. Certain supplemental appropriations add authority to the 2025 budget for revenues and expenditures discussed with Council during the year, while other amendments reduce 2025 appropriations for projects that were not completed and are being rolled forward to the 2026 budget.
Reductions to the 2025 budget effectively offset the corresponding increases to the 2026 budget, ensuring that unfinished projects maintain budget authority without duplicating appropriations across fiscal years. Upon adoption, these amounts are transferred from the 2025 budget to the 2026 budget and do not represent new spending commitments.
Overall, these revenues and expenditures were anticipated and reflected in the 2026 adopted budget book. Sufficient revenues and available fund balances exist within each respective fund to support the appropriations, and the proposed amendments do not negatively impact projected ending fund balances beyond what was previously presented to Council. The additional appropriations requested total net impact to the 2025 budget is a reduction of $2,066,721: $1,572,113 decrease to revenue and a $3,638,834 decrease to expenditures.
Council approved on first reading Ordinance 26-06 2025 Budget Supplemental Appropriations. Second reading will be during the February 24, 2026 Town Council meeting.
2026 Appropriations
Overall, funds are available within each fund’s ending balance to absorb the additional appropriations. The amounts described in this memo were generally included in 2025 projected amounts. Re-allocating the expenses from the 2025 budget to the 2026 budget does not decrease the total projected ending fund balance for 2026 below the amounts published in the 2026 adopted budget book. The additional appropriations requested total net impact to the 2026 budget are $1,727,049: $6,041,154 increase to revenue and $7,768,203 increase to expenditures.
Council approved on second reading Ordinance 26-07 2026 Budget Supplemental Appropriations.
Frisco Town Council Meetings: Ways to Participate
Frisco Town Council meetings are available to view via Civic Plus Resident Portal, Zoom, and YouTube, and are also held in person to make Town Council meetings easier to access for everyone.
The public can provide comment during meetings via Zoom or in person (not on YouTube), and a public comment period will be available at 7:00pm; during the consideration of ordinances; and at the discretion of Town Council during work session items, which are discussions that don’t require a formal vote by Town Council and do not require public comment. Again, this hybrid approach is intended to make Town Council meetings more accessible.