McKinney City Budget and Tax Rate
McKinney leaders are considering a $942 million budget and lower tax rate that includes funds for dozens of new city employees and millions for its expanding airport as the city benefits from continued growth in population and property value.
The city has ballooned more than tenfold since 1990, from around 21,000 residents to over 224,000 today as part of a regional population boom. Property in McKinney is coveted — WalletHub recently named it the hottest real estate market in the nation and RentCafe dubbed McKinney the best city in America for renters.
With more people comes more demand for city services and more property and sales tax to support them.
“We are well-positioned for the robust growth in North Texas to continue,” City Manager Paul Grimes said to the City Council earlier this month. “Our challenge will be to keep up and build the infrastructure, namely roads, utilities, public safety, parks and recreation, etc. to support this growth.”
Growth and Development
The city’s growth is driven by its desirable location, strong economy, and high quality of life. As a result, the city is experiencing an increase in property values, with the average market home value expected to grow slightly from $574,579 to $578,991.
The city’s population growth has also led to an increase in demand for city services, including public safety, streets, and green space. To address this demand, the city is proposing to add nearly 60 new city staff, including nine airport staff, 18 personnel for wastewater and water operations, 10 police and fire staff, and a planetarium coordinator for the Roy and Helen Hall Memorial Library project.
Tax Rate and Revenue
Even with higher demand and home values, the city is considering lowering its tax rate for the tenth year in a row. The recommended budget proposes lowering the tax rate from 41.6 cents per $100 of property valuation to 41.2 cents — a 0.4 cent decrease.
The city’s property and sales tax revenues are expected to increase, with the sales and use tax revenue expected to grow by 3.5% and reach $47 million in the upcoming fiscal year. The city’s taxable value is expected to increase by 9.4% to over $43.4 billion.
The proposed budget will raise more property taxes than the current budget by $12.5 million or 7.5%, and of that amount, $7.3 million will be tax revenue to be raised from new property.
Airport Expansion
The city’s airport fund is proposed to receive nearly $16 million, less than 2% of the city’s total budget. The McKinney National Airport is seen as an economic engine for the region, and the city is investing in its expansion, including a $79 million passenger terminal project.
However, voters have struck down bond funding for the expansion, and the project is moving forward with other sources of funding, including tax revenue, state funds, and city money.
Community Concerns
The executive director of Volunteer McKinney, an organization that supports nonprofits and connects people with service opportunities in Collin County, expressed concerns about the budget’s potential changes. The organization typically receives $75,000 a year from the city’s general fund, but city leaders discussed moving those funds to the city’s community support grant program.
“That would put Volunteer McKinney in a very compromising position,” said Stephanie Robinson, the executive director. “We have not prepared for that type of funding loss, which we typically are allocated every October.”
Public Hearing and Decision
On Sept. 2, city leaders will host a public hearing for the budget and decide on the proposed spending plan and tax rate. The new budget covers the period between Oct. 1 and Sept. 30, 2026.
Conclusion
The city of McKinney is experiencing rapid growth and development, driven by its desirable location, strong economy, and high quality of life. The proposed budget and tax rate are designed to support this growth, while also addressing community concerns and investing in key infrastructure projects.
Frequently Asked Questions
Q: What is the proposed budget for the city of McKinney?
A: The proposed budget is $942 million.
Q: What is the proposed tax rate for the city of McKinney?
A: The proposed tax rate is 41.2 cents per $100 of property valuation, a 0.4 cent decrease from the current rate.
Q: How will the city’s airport expansion be funded?
A: The airport expansion will be funded through a combination of tax revenue, state funds, and city money, after voters struck down bond funding for the project.
Q: What is the city’s plan for addressing community concerns about the budget?
A: The city is working on a solution to address concerns about the budget, including the potential impact on organizations such as Volunteer McKinney.
