Prior to adopting the actual tax rate, McKinney City Council members adopted a tax rate ceiling at an Aug. 6 meeting. The tax rate will be finalized at a Sept. 3 meeting, according to a presentation at the council meeting.
The gist
Council members set a maximum possible tax rate of $0.416922 per $100 valuation, which McKinney Chief Financial Officer Mark Holloway noted is lower than the city’s FY 2023-24 tax rate of $0.427513 per $100 valuation.
The actual recommended tax rate to be discussed as part of an Aug. 9 work session focused on the city’s fiscal year 2024-25 budget will be lower than the maximum rate, Holloway said.
Diving deeper
City Council members can set the rate as low as $0.402399 per $100 valuation, which would offset rising property values and result in the city seeing the same amount of revenue as the year before, Holloway said.
The voter-approval tax rate, which indicates the maximum rate council members could set without triggering an election, is $0.424943, according to the presentation.
The overall tax rate is made up of two rates: the maintenance and operations rate; and the interest and sinking, or debt service, rate. McKinney's property tax rate has seen annual decreases since 2016. In that same time period, the city has seen an over 60% increase in property values, resulting in higher average property tax bills, according to the city’s website.
A public hearing on the city manager’s recommended budget will be held Aug. 20.
On Sept. 3, the city will hold a second public hearing on the budget and plan to adopt the final version of the budget as well as hold a public hearing on the tax rate and adopt the new tax rate, according to the presentation.
