McKinney City Council approved a $641 million budget Sept. 15 with a tax rate of $0.508645 per $100 valuation—a decrease of almost 7/10 of a cent from the current rate of $0.5156 per $100 valuation.
This marks the fifth consecutive year the city’s property tax rate has decreased and the first year the city adopted what is called a no-new revenue tax rate, also known as the effective tax rate. This is the rate that would bring in the same amount of revenue that was collected in the previous fiscal year.
In a news release, city staff said the rate reduction would save McKinney taxpayers approximately $1.7 million. 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.
In addition, the city is expecting to bring in almost $4 million more in property tax revenue this year compared to last year because of new properties added to the tax roll, Chief Financial Officer Mark Holloway said.
The budget also includes a cost-of-living adjustment of 1.5% for all general government employees. In addition, sworn personnel will receive raises. About 47% of the general fund budget is allocated to fire and police funding, and among the 18 full-time personnel to be hired this year, six are being added to the police department and three are added to the fire department. This includes a mental health coordinator for the police department.
The city's adopted general fund budget totals $159 million for FY 2020-21. Funding will be allocated toward public safety, development, parks and recreation, libraries and more. See how the general fund budget is allocated below.
For additional information on the city’s budget, visit www.mckinneytexas.org/budget.