Frisco leaders will have a special meeting next week to vote on holding a referendum on city funding of the Collin County arts hall.

The decision to meet Monday afternoon came after an hours-long discussion among city council members Tuesday night that pushed past midnight. It focused on whether Frisco should be pitching in $19 million to help fund the Arts of Collin County when the city faces a financial squeeze. The city has already contributed $2.6 million toward the arts hall. Discussions centered on the remaining $16.4 million that was authorized by Frisco voters in 2002.

The council's debate came on the heels of a $5 million loan guarantee that the city of Allen approved last week that appeared to clear the obstacles for the center's groundbreaking this spring. Now, the Frisco City Council's moves could add to questions about when the arts hall might be built.

Council member Pat Fallon said Tuesday night that Frisco officials told voters in 2002 that the city would not fund the project if voters in McKinney, Plano or Allen didn't support it too. Months after Frisco voters approved the funding, McKinney voters defeated the proposal.

"I think we should put this back to the voters because the city gave its word," Fallon said. "We said in 2002 that this will be a four-city deal or this won't go forward. We'll find out if it's the will of the people."

Council member Scott Johnson said now isn't the right time to approve the sale of bonds when the city has had to raise fees and keep jobs unfilled during a recession.

"In this economy, art is a luxury," Johnson said. "We have things that are a necessity and that's our police and our fire."

Council members Scott Cheney and David Prince also supported the move toward a referendum. Bob Allen and Bart Crowder said they opposed such a move.

Arts hall Executive Director Mike Simpson, who has led a fundraising blitz since taking the position 14 months ago, wanted to know why council members hadn't expressed their concerns earlier. He served as Frisco mayor when voters approved the 2002 bond package.

"Why didn't someone come to me when they were first elected and say this was a bad decision made in 2002?" Simpson asked. "Why did we wait until we had the finances for the most part done? I just wish someone had brought this up earlier."

The much-discussed Collin County arts hall is mostly supported by $57 million worth of public funds from the cities of Allen, Frisco and Plano. Private donations are expected to make up the bulk of the remaining costs. The total project cost is $68.9 million, down from $69.9 million after the contractor knocked $1 million off.

If the three city councils don't act soon, Simpson cautioned, construction costs could rise.

The split-level arts center, which will sit on 124-acre site near State Highway 121 and Custer Road in Allen, would open in 2012 if all three cities agree to move ahead now.

The arts hall would host concerts, Broadway shows, graduations and other events that won't compete with other nearby venues, including the Dr Pepper Arena in Frisco, Simpson said.

But if Frisco voters decide to pull out of arts hall project, it’s unclear whether the cities of Allen and Plano would step in to cover their share. Once open, the Arts of Collin County will also require an estimated $1.5 million annual subsidy from the three cities. The amounts are based on each city’s population. Simpson said Frisco share in 2012 would likely total $375,000 a year.

Mayor Maher Maso said Tuesday night he didn't know when the question could be placed on the ballot. He said he didn't know whether Frisco residents could learn about the arts hall enough to vote for it in May.

"I'm not sure when the city will be prepared to move forward," he said.

Staff Writer Valerie Wigglesworth contributed to this report.