Council members are expected to adopt the tax rate and approve the city’s fiscal year 2025-26 budget in September after a workshop and a public input meeting later this month.
Council members voted 5-0 to propose a tax rate of $0.413921 per $100 valuation during an Aug. 5 meeting. Council members Geré Feltus and Rick Franklin were not present for the vote.
The overview
The proposed tax rate was referred to as the “tax rate ceiling” and will likely not be the final tax rate approved Sept. 2, according to city officials.
That rate is higher than FY 2025-26’s no-new-revenue tax rate of $0.398018 and lower than $0.419449, which would require voter approval. The voter-approval tax rate is set 3.5% higher than the no-new revenue rate, Chief Financial Officer Mark Holloway said.
The rate ceiling proposed by council is also lower than the city’s property tax in FY 2024-25 which was approved at $0.415513 per $100 valuation. Though the tax rate could be lower, the average McKinney homeowners could still pay more in property taxes due to increasing property values.
The average taxable value in McKinney increased from $514,460 in 2024 to $552,966 in 2025, according to Collin Central Appraisal District’s 2025 certified totals. At the proposed rate, the average McKinney homeowner could pay about $2,288 to the city.
Quote of note
“The rate that we just proposed is lower than our existing rate and it is likely higher than the rate that we will adopt on the second of September,” Council member Patrick Cloutier said. “Council is going to be working with staff and our constituents with respect to going through and digesting the proposed budget and seeing any changes we might make.”
Breaking it down
The overall tax rate is composed of two separate rates that serve different purposes, according to Holloway’s presentation.
- Interest and sinking
- Generates revenue to meet existing debt service payments
- Maintenance and operations
- Generates revenue for general operations such as salaries and supplies
Taxable value in McKinney is expected to total $43.4 billion this year, according to Holloway’s presentation.
“With values going up over time you would expect to see the property tax rate coming down,” Holloway said. “This is exactly the story that you see here.”
What’s next
Council members are hosting a budget workshop at 8:30 a.m. Aug. 8 at McKinney City Hall, located at 401 E. Virginia St. City officials will also host a public input meeting on the FY 2025-26 budget later this month before council members take a final vote in September.
- Aug. 8: budget workshop
- Aug. 19: public input meeting on the budget
- Sept. 2: Public hearings and adoption of the city’s tax rate and budget
