The budget plans for a tax rate decrease amid increasing property values and proposes adding 59 new full-time employee positions to the payroll. Those new positions would be added across multiple funds including the city’s general fund.
City staff broke the proposed budget down during an Aug. 8 work session with McKinney City Council. Officials will host a public input session for residents in mid-August before council members are expected to vote on the proposed budget in September.
"Like all budgets, this one represents a point in time that captures what we understand to be the priorities of the city council," City Manager Paul Grimes said. "It identifies the resources needed during the next fiscal year to ensure that we can successfully carry out the strategic priorities set forth by the council."
What’s new
City officials are proposing a property tax rate set at $0.412284 per $100 valuation, according to the budget presentation. That’s lower than the previous fiscal year’s tax rate and lower than the tax rate ceiling approved by council members earlier in August.
The proposed rate is 2.8% above the no-new-revenue rate which is $0.398018, Chief Financial Officer Mark Holloway said. The tax rate is also lower than $0.419449 per $100 valuation which would require voter approval.
The average taxable value of a home in McKinney was $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 $2,280 to the city.
Officials are proposing a lower tax rate as property values are rising in the city. About $1.7 billion in new construction was added to the city’s tax base while existing property values have grown about 5%, according to the proposed budget.
Taxable value is slated to increase from $39.6 billion to $43.4 billion this fiscal year.
The city budget is made up of dozens of different funds including operating budgets for the McKinney Economic Development Corporation and McKinney Community Development Corporation. The general fund budgets for major services provided by the city such as public safety, public works and parks.
In FY 2025-26, the fund budgets for $232.2 million in revenues and $232.2 million in expenses. Both revenues and expenditures are increasing $12.7 million over the previous fiscal year.
- Police Department (5)
- Fire Department (5)
- Development Services Department (2)
- Parks and Recreation/Library Departments (4)
- Public Works Department (3)
The city’s Capital Improvement Program has more than $327.7 million programmed for major projects next fiscal year. Projects range from parks to streets, according to the budget presentation. Projects include:
- Graves and First Street reconstruction project ($10.5 million)
- College Street Service Center Campus renovations ($20.1 million)
- Old Settler’s Park and Aquatic renovations ($3.8 million)
What’s next
City officials will host a public input meeting for the proposed budget and tax rate on Aug. 19. Council members are expected to consider and vote on the budget and tax rate during a Sept. 2 meeting.
FY 2025-26 will start Oct. 1 and run through Sept. 30, 2026. A complete copy of the proposed budget can be accessed through the city’s website. The presentation slides used Aug. 8 are also accessible through the city’s website.
