McKinney city officials are proposing an $849 million budget for the upcoming fiscal year, with a general fund budget of $202.6 million and a $0.03 decrease in the property tax rate.

The gist

McKinney City Manager Paul Grimes and city staff members presented budget highlights to City Council members at an Aug. 11 work session.

The proposed budget includes a lower tax rate, increased water and wastewater rates, and additional public safety personnel roles. Public input opportunities are planned for the coming weeks prior to a Sept. 5 meeting when McKinney City Council members are expected to call a vote on the proposed budget and tax rate.

“The proposed budget is a reflection of the valuable input provided by our community as well as our unwavering commitment to accountability, transparency and engagement. Our top priority is to continue providing essential services while investing in the future of our community, as envisioned by our mayor and City Council," Grimes said of the budget in a news release.

The breakdown

Here are a few changes being considered in the proposed budget for fiscal year 2023-24.

Property tax rate: If adopted, the proposed budget includes the lowest property tax rate in recent years, according to the city’s website. The budget includes a proposed tax rate of $0.427513 per $100 valuation, which is a three-cent decrease from the previous year. The proposed tax rate consists of two pieces including:
  • The maintenance and operations, or M&O, rate, which is proposed to be $0.286688 per $100 valuation
  • The interest and sinking, or I&S, rate, which pays for the city’s principal and interest on its debts, and is proposed to be is $0.140825 per $100 valuation
The lowered proposed tax rate is the result of tax base growth, including $1 billion in new construction and an 11.9% increase in values for existing properties, according to city documents. The city’s estimated taxable value is expected to increase from $31.2 billion in FY 2022-23 to $35.9 billion in FY 2023-24, according to the presentation.

Despite the proposed lower tax rate, the city is expected to raise about 7% more total property taxes than the previous year’s budget, according to city documents.

Water and wastewater rates: The proposed budget includes increased water and wastewater service rates. The water service rate is proposed to be increased by 7%, while the wastewater service rate is proposed to be increased by 8%. The rate increases are a result of a 9% increase in water service costs to the city from the North Texas Municipal Water District, according to the presentation.

Additional public safety and city personnel: The proposed budget includes over 1,500 authorized city and public safety personnel roles. The budget includes a proposed increase of 48 full-time positions and one part-time position, according to city documents. Some of the new positions proposed in the budget include:
  • One risk manager
  • One deputy city marshal
  • Six primary first responders
  • One police sergeant
  • Two detectives
  • Six firefighters
  • One graduate fire protection engineer
  • One assistant director of parks and recreation
Planned future projects: The budget allocated funding for some capital improvement projects, including:
  • $8.2 million for a taxi lane rehabilitation project at McKinney National Airport
  • $30 million for Craig Ranch Soccer Complex
  • $10 million for the renovation of Old Settlers Park and Gilda Garcia Garza Aquatic Center
  • $8 million for furnishings and technology at the new city hall
  • $43.5 million for utility relocations along US 380
The presentation also noted some planned projects that are not proposed to be funded in the upcoming budget, including a new municipal court facility, a new senior center, renovations to Robert and Helen Hall Library and four future fire stations, according to city documents.

What else?

McKinney’s Chief Financial Officer Mark Holloway noted council should consider when to call the next bond election.

The city is expected to expend its funding for streets, public works and other infrastructure projects in mid-2025, Grimes said. Holloway noted council could consider calling a bond election in either 2024 or 2025 to consider funding opportunities.

If council chooses to call a bond election for 2024, the final date to call the election would be Feb. 16, 2024, for the May 4, 2024, spring election day. A bond committee could be convened as soon as September, according to the presentation.

“It just makes more sense to me that we put it on the ballot in [2024] so whoever is sitting here in [2025] doesn't have to deal with that issue, or at least has some certainty of what they have to deal with,” Council Member Charlie Philips said of a potential bond election.

Stay tuned

A citizen input meeting for the proposed budget is expected to be held Aug. 15, according to the presentation. An additional public hearing opportunity for comments on the budget and tax rate will be held at 6 p.m. Sept. 5 at McKinney City Hall.

Residents are also able to provide feedback on the proposed budget online here. McKinney City Council is expected to vote on the budget at the Sept. 5 meeting.

For more information on the proposed budget, visit