McKinney City Manager Paul Grimes announced Aug. 17 the fiscal year 2020-21 budget would include a proposed property tax rate of $0.508645 per $100 valuation. The city’s current property tax rate is $0.5156 per $100 valuation.
“City staff has worked hard to balance the budget in these times of economic uncertainty,” Grimes said in a statement. “While we anticipate a degree of lost sales tax revenue and various fees and continued economic uncertainty this next year, we have developed a fiscally prudent plan to offset those losses while providing a wide range of quality public services for our fast-growing community.”
The new rate is equal to the no-new-revenue tax rate under state law because it generates the same amount of property tax revenue from the same properties this year as it does in the upcoming budget year for the city. The change in an individual homeowner's tax bill to the city will depend on the change in their appraised value, which is set each year by the Collin Central Appraisal District.
McKinney City Council unanimously approved a ceiling tax rate of $0.5156 per $100 valuation for fiscal year 2020-21 during its Aug. 4 meeting. The ceiling tax rate, which is required by state law, is the highest amount that could be adopted during the budget process.
At the time, McKinney’s Chief Financial Officer Mark Holloway said the proposed property tax rate would be less than that ceiling rate. The Aug. 17 announcement
City staff said the rate reduction would save McKinney taxpayers approximately $1.7 million. If the proposed rate is approved by council, the 2020-21 fiscal year would be the fifth consecutive year McKinney’s property tax rate has decreased.
McKinney’s proposed $641 million total budget includes $159 million in the general fund. The city’s presentation on the proposed budget is available to view at www.mckinneytexas.org/budget.
Council has two public hearings scheduled for the tax rate and budget at City Hall, 222 N. Tennessee St., McKinney. The public hearings will be:
• Sept. 1: first public hearing on budget
• Sept. 15: second public hearing on budget, public hearing on tax rate, budget and tax rate adoption