The city of McKinney’s property tax rate will remain the same when the next fiscal year begins Oct. 1.
At a glance
McKinney City Council members approved the fiscal year 2026-27 budget and property tax rate during a Sept. 1 meeting. The budget totals $880 million and allocates funding for McKinney’s general operations, water and wastewater services, capital improvements, and more.
The property tax rate will remain the same as last year’s rate at $0.412284 per $100 of taxable value. For a property with at the city's median home value of $518,165, this would translate to about $2,136 in property taxes paid to the city, according to a city document.
Also of note
Council members also approved a 9% increase to water rates and an 11% increase to wastewater rates. Both rates were increased due to increasing cost of services by the North Texas Municipal Water District, according to a city document.
For residents, that increase will result in a $21.60 monthly base charge for water use and a $31.20 monthly base charge for wastewater use, according to the budget document. Monthly volumetric charges were also increased. The new rates will take effect Oct. 1.
A closer look
The city budget is made up of dozens of different funds that are used for different purposes. For instance, it also tracks budgets for the city’s two Tax Increment Reinvestment Zones.
Expenses and revenues for the city’s general operations are tracked in McKinney’s general fund. It includes funding for services such as public safety, public works, parks and the city’s library system.
For FY 2026-27, the general fund budgets for $246.5 million in projected revenue and $246.5 million in projected expenses, according to a city news release. That’s a $1.2 million reduction from the $247.7 million general fund budget initially proposed by city officials in August.
To maintain the same property tax rate, city staff had to offset about $2.2 million in projected revenue loss. Staff are targeting up to $1.2 million in reductions to department operating expenses, capital equipment replacement funding and supplemental items, the news release states. Staff are also requesting a $1 million transfer from the McKinney Community Development Corp. to offset the revenue loss.
In a statement, City Manager Paul Grimes said the budget maintains core services such as “reliable public safety” and “well-maintained streets and parks.”
“This budget maintains those core services while making the adjustments necessary to keep our general fund balanced,” Grimes said. “As McKinney continues to grow, we will remain focused on protecting the services our residents value and the city’s long-term financial strength.”
