The city of McKinney’s proposed budget for fiscal year 2026-27 totals $880 million and includes funding for general operations, water and wastewater services, and more.
Officials are also proposing a nearly 1.4% increase to McKinney’s property tax rate, according to a staff presentation. McKinney City Council members are expected to consider and take action on the proposed budget and tax rate in September following a citizen input meeting later this month.
The overview
Council members and city staff reviewed the proposed FY 2026-27 budget during an Aug. 7 workshop. Council members are scheduled to consider and take action on the budget and tax rate on Sept. 1, according to a staff presentation.
City officials are proposing a property tax rate set at $0.417876 per $100 of assessed valuation. That rate is higher than last fiscal year’s rate, which was approved at $0.412284 per $100 valuation.
The proposal comes as McKinney’s total taxable property value is projected to increase. Taxable value is slated to increase by more than $1.5 billion this fiscal year, Assistant City Manager Trevor Minyard said. It’s a smaller increase than previous fiscal years.
“In the previous fiscal years, we were seeing anywhere from $3 [billion] to $4 billion of additional taxable value added to the tax roll,” Minyard said. “This year, that number is [$1.5 billion].”
The proposed tax rate would result in about a $38 decrease in the tax bill of the average homeowner in McKinney, Minyard said. The median home taxable value in McKinney is $518,167, which would translate to $2,165 in property taxes, according to the staff presentation. That’s a decrease from last year’s $2,203 tax bill for median-valued homes.
Breaking down the budget
The city budget is made up of dozens of different funds, including a general fund that budgets for major services that are provided by the city, such as public safety, public works and parks.
In FY 2026-27, the fund budgets for $247.7 million in revenue and $247.7 million in expenses. Both revenue and expenses are increasing about $15.5 million over the previous fiscal year budget.
The expenditure increase would cover the cost of increased personnel, material costs and project funding, according to the proposed budget. City officials are proposing funding for 32 new positions. City departments that could receive funding for additional personnel include:
- Police department: 9 personnel
- Fire department 10 personnel
- Parks and recreation department: 2 personnel
- Public works: 7 personnel
- Development services: 4 personnel
What’s next
City officials will host a public input meeting for the proposed budget and tax rate on Aug. 18. Council members are expected to consider and vote on the budget and tax rate during a Sept. 1 meeting.
FY 2026-27 will start Oct. 1 and run through Sept. 30, 2027. A complete copy of the proposed budget can be accessed through the city’s website. The presentation slides used Aug. 7 are also accessible through the city’s website.
