McKinney’s two municipal utility districts set their tax rates for the upcoming fiscal year at recent board meetings. MUD 1 board members voted to decrease the district's tax rate by $0.025, while MUD 2 leaders maintained the same tax rate as the previous year.

The setup

There are two McKinney Municipal Utility Districts, which are special districts located in the city’s extraterritorial jurisdiction. The two districts encompass the Trinity Falls development, a 2,000-acre master-planned community.

The districts are not taxed by the city of McKinney, and instead tax rates are set by each district's board of directors. The tax revenue collected is used to pay for the development’s debt service, along with water, sewer and road infrastructure costs, according to the district’s website.

What you need to know


MUD 1 board members voted unanimously to lower the district's tax rate to $0.992525 per $100 valuation for fiscal year 2023-24 at a Sept. 14 meeting.

The new rate is just over a $0.025 decrease from the prior year, which was set at $1.019 per $100 valuation, according to the district’s website.

The tax rate consists of three pieces, including:
  • The maintenance and operations rate, which is $0.182525 per $100 valuation
  • The water, sewer and debt obligations rate, which is $0.48 per $100 valuation
  • The road debt service rate, which is $0.33 per $100 valuation
MUD 1 board member Jeremy Dorenkamp noted the district’s residents have seen incremental decreases in the tax rate over years rather than a single significant decrease in one year.

“If we can continue to incrementally [lower the tax rate], it is going to be beneficial for the community overall,” he said.
The MUD 2 board of directors voted unanimously at a Sept. 19 meeting to maintain the district's tax rate, which is set at $1.05 per $100 valuation. This rate has stayed the same since district officials first levied a tax rate in 2019, according to a representative of the district.


The MUD 2 tax rate includes:
  • A maintenance and operations rate of $0.175 per $100 valuation
  • A water, sewer and debt obligations rate of $0.53 per $100 valuation
  • A road debt service rate of $0.345 per $100 valuation
Learn more

For more information on McKinney MUD 1, visit www.mckinneymud1.com. For more information on McKinney MUD 2, visit www.mckinneymud2.com.