McKinney City Council adopted its lowest tax rate in recent history and an $849 million budget at its Sept. 5 meeting.

Staff is budgeting about $202.6 million in new general fund revenue as part of the total $849 million budget. The adopted budget includes a property tax rate of $0.427513 per $100 valuation, which is a $0.03 decrease from the previous year.

What you need to know

The tax rate consists of two pieces, including:
  • The maintenance and operations, or M&O, rate, which is $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 $0.140825 per $100 valuation
The newly adopted rate is the lowest in recent history but will still bring in more total property tax revenue than the previous year, according to the presentation. The FY 2022-23 tax rate was $0.457485 per $100 valuation.

The decreased tax rate was a result of an 11.9% increase in existing property values, growing the city’s estimated taxable value from $31.2 billion in FY 2022-23 to $35.9 billion in FY 2023-24, according to city documents.

Diving in deeper

McKinney Chief Financial Officer Mark Holloway noted in his presentation to City Council a 5% increase in sales tax revenue over the previous year.

For FY 2023-24, city officials expect property taxes to make up 51% of the budget and sales taxes to make up 21% of the budget. The previous year's property taxes made up 52% of the budget, and sales taxes also made up 21%.

“Really happy to see the property tax portion of that pie continuing to shrink while the number goes up; the amount that we're actually using from property taxes in the general fund side on a percentage basis is shrinking with sales tax continuing to grow,” Holloway said.

What else?

The general fund budget will also introduce 49 staffing additions, which include:
  • A risk manager
  • A deputy city marshal
  • Six primary first responders
  • A police sergeant
  • Two detectives
  • Six firefighters
  • One graduate fire protection engineer
  • An assistant director of parks and recreation
The budget also includes step pay increases for city staff and sworn personnel, according to the presentation.

Also of note

The adopted budget includes increased water and wastewater service rates. The adopted water service rate includes an increase of 7%, while the wastewater service rate was 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 a presentation at an Aug. 11 meeting.

Learn more

For additional information on the city’s budget, visit