McKinney city leaders have put forward a proposed budget of $880 million for the fiscal year beginning in October 2026. The plan includes a slight increase in the property tax rate, moving from $0.412284 to $0.417876 per $100 of assessed value. This proposal follows a workshop held on Aug. 7, where staff and council members reviewed the details.
The next scheduled step is a council vote expected on Sept. 1.
The general fund within the proposal is balanced at $247.7 million for both revenue and expenses. This figure represents an increase of approximately $15.5 million over the previous year. Officials attributed the higher costs to project funding needs, along with rising expenses for personnel and materials.
While the city anticipates that taxable property values will grow by more than $1.5 billion during this period, that amount is lower than the growth recorded in recent years.
Despite the higher tax rate, the estimated tax bill for a typical homeowner may decrease. Based on a median home value of $518,167, the projected cost is about $2,165, which is roughly $38 less than the $2,203 paid in the prior fiscal year. However, slower growth in taxable value presents challenges for funding city services without relying more heavily on tax rates.
These services include public safety, park maintenance, street repairs, and development oversight.
