The McKinney City Council voted to keep the city's property tax rate unchanged, marking the first time in a decade that the rate has not been reduced. The council rejected a recommendation from City Manager Paul Grimes to raise the rate, opting instead to hold it at 41.2 cents per $100 of property valuation.
This decision means the city will collect approximately $5.7 million more in property taxes than the previous year, a result attributed to new development rather than a rate increase.
Grimes had proposed increasing the rate to 41.8 cents, citing minimal growth in existing property values and a slight decline in residential values. Council member Justin Beller, who is among those targeted in a recall petition, stated that the decision to maintain the rate was driven by a desire to avoid adding new burdens to taxpayers.
He noted that this conservative approach to taxation existed prior to the current recall efforts.
Maintaining the current rate required the city to address a projected revenue reduction of roughly $2.2 million. To close this gap, the adopted budget includes approximately $1.2 million in cost cuts and $1 million in additional revenue generated through a transfer from the McKinney Community Development Corporation. The cost reductions involve adjustments to operating expenses and funding for equipment replacement across various city departments.
