McKinney officials unveil $232.1 million FY2026 general fund budget; consultants recommend modest water and wastewater increases

McKinney — City staff on Aug. 8 presented a proposed fiscal year 2026 budget that would set the general fund at about $232.1 million and an all-funds program near $942 million, while recommending water and wastewater rate adjustments to cover rising wholesale costs and planned debt service.

The budget managers said the proposed property tax rate would fall modestly to 0.412284 per $100 of valuation — a 0.3-cent cut from the current rate — and they described the rate as 2.88% above the state "no new revenue" calculation used in Texas property-tax notices. The City Manager, Paul Grimes, said the document "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."

Why it matters: the plan funds added staff and equipment for public safety, utilities and the airport while preserving investments in streets, parks and affordable housing. It also proposes a multiyear approach to utility rates because roughly 60–75% of McKinney's water and wastewater cost of service is a pass-through charge from the North Texas Municipal Water District (NTMWD); when the district raises rates, the city must pass most of that cost to customers.

Key budget figures and priorities - General Fund proposed: $232,100,000. All-funds budget (enterprise, CIP, insurance, etc.): nearly $942,000,000. - Proposed property-tax rate: 0.412284 (presented as 0.412 in slides); council staff said the proposed rate is 2.88% above the "no new revenue" figure used for truth-in-taxation calculations. - Staffing: the proposed budget includes roughly 59 new full-time equivalents across all funds, of which staff identified 10 new positions in public safety (police and fire); staff said some of the new positions are funded from…