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McKinney staff present FY2027 budget proposal with modest tax-rate increase
Summary
City staff presented a FY2027 budget that would increase the tax rate 0.005 (0.5 penny) above the no-new-revenue rate—1.76%—while proposing targeted investments in fire staffing, pothole maintenance, IT security and parks; council members pressed staff on staffing counts and alternatives to raising the tax rate.
City staff presented the City of McKinney’s proposed fiscal year 2027 budget, calling for a tax levy recommendation described as “no new revenue plus 1.76%,” which the city manager’s office and finance staff said is below regional inflation and intended to preserve service levels.
Paul Grimes, who opened the workshop, walked council members through departmental highlights and trade-offs, saying the proposal tries to align the council’s priorities with available revenues. He described the tax-rate math and population-adjusted spending: "our fiscal year 27 proposed budget is no new revenue plus 1.76%" and noted the city’s per-capita spending remains comparable to peers.
The proposal includes operational additions and capital allocations: 10 new sworn fire positions (three captains, three driver operators and four firefighters) to establish a dual-company deployment at Fire Station 1; $700,000 to expand the pothole maintenance program; $230,000 for sewer inflow and infiltration repairs; and $1.2 million in MCDC sales tax funds proposed for parks operations and equipment. Staff stressed these investments respond to population growth and long-term infrastructure needs.
Council members asked staff to identify alternative revenue sources and to quantify service impacts if some supplemental positions are not approved. Mark Holloway, the city’s chief financial officer, said the proposed budget keeps fund balances consistent with bond-rating practices while enabling ongoing capital programs. "We are proposing what we believe is responsible to taxpayers and yet responsive to the community's needs," Holloway said.
The council did not take a budget vote at the workshop; staff noted a public input session is scheduled for Aug. 18 and that the legal public hearing and adoption hearings are anticipated in September.
