McKinney council adopts $232 million budget, sets property tax rate at $0.412284

The McKinney City Council on Sept. 2 adopted the fiscal year 2025–26 budget and approved a property tax rate of $0.412284, which the council said will raise $12,556,433 (7.5 percent) in total property tax revenue compared with last year, including $7,317,780 from new property on the tax roll.

City Finance Director Mark Holloway presented the budget, saying the general fund revenue budget is about $232,000,000 and that roughly 52 percent of general fund revenue is expected to come from property taxes and about 20 percent from sales taxes. Holloway said the budget decreases the tax rate by 0.0003 (0.3 cent) from 0.4155 to 0.412284 and budgets step increases for both sworn and non‑sworn personnel.

The council approved the budget appropriation ordinance (agenda item 25‑3126) by a record vote after a public hearing. Holloway noted the budget includes funding for 27 new positions across city funds, with a focus on public safety (five additions for police and five for fire). He also said the city will request a 4 percent increase to water rates and a 5 percent increase to wastewater rates for FY26 and a small adjustment to the solid‑waste fee. "This budget would decrease the property tax rate by 0.3 cents to 0.412284," Holloway said during his presentation.

Council members discussed the balance between sales tax growth and property tax pressure; one councilor noted sustained sales‑tax base growth has helped restrain property tax rates and urged continued focus on sales‑tax generating development.

The council then ratified that the budget will raise more property tax revenue than last year ($12,556,433) and adopted the property tax rate by roll call (agenda item 25‑3128). The ordinance implementing the rates and fees used to fund the budget (item 25‑3129) also passed; Holloway told the council the rates/fees item contains the water/wastewater increases and the small solid waste adjustment used to balance the adopted budget.

Council votes on the adoption and related items were recorded by roll call. The council did not receive public comment on the budget appropriation or tax‑rate items at the meeting.

The budget document and the ordinance establishing rates and fees were approved as presented; staff will proceed with implementation and the rate adjustments for utilities take effect as specified in the adopted fee schedule.

Details: The budget presentation highlighted that the city’s water line replacement program reduced treated‑water loss to roughly 7 percent (from about 28 percent in FY2014). The council-approved package includes step increases for sworn and non‑sworn employees and increases staffing in public safety. Water rates will increase 4 percent and wastewater rates 5 percent for FY26; the council approved the fees ordinance that funds those increases.