City Council to Address Loss of Federal Funding and Upcoming Budget Adoption

The McKinney Economic Development Corporation held a meeting on August 19, 2025, to discuss several key issues affecting the city and its budget. The meeting began with a focus on the ongoing special session regarding various legislative matters, including proposed reductions in property tax caps from 3.5% to 2.5%. This change is expected to impact residents significantly.

The city is currently in the budget process, proposing a budget increase of 2.88%, which totals approximately $950 million. The operating budget is projected to be around $231 million. A public hearing for budget adoption is scheduled for September 2, where the tax rate will also be set. The proposed tax rate is 0.412, reflecting a reduction due to rising property values.

A significant topic of discussion was the withdrawal of $15 million in federal assistance for the Lower 5 Plaza project, which has raised concerns about funding alternatives. The city plans to meet with the city council to evaluate options following this funding loss.

Additionally, an engineering project in downtown McKinney was highlighted, with a public open house meeting set for August 27 at 6 PM. This project involves the reconstruction of utilities and streets around Tennessee, Lamar, Hunt, and Kentucky Streets, paving the way for future redevelopment near the old City Hall and library.

The meeting concluded with an update from the Community Development Corporation, which approved several promotional grants in its last meeting. The board expressed its commitment to supporting local initiatives and enhancing community development.