McKinney City Council proposes 2026 budget featuring lower tax rate and increased funding

The McKinney City Council held a work session on August 8, 2025, focusing on the proposed budget for the fiscal year 2026. Key discussions included an overview of the budget, property tax rates, and funding allocations for various city services.

City Manager Grimes presented the proposed budget, highlighting a slight decrease in the tax rate from 0.415 to 0.412284, which is 2.88% above the no new revenue tax rate. This adjustment reflects the city's efforts to balance fiscal responsibility with the need for essential services. The budget process began later than usual this year, with a citizen budget survey conducted to gather community input on priorities. Consistent with previous years, the top priorities identified by residents were street maintenance and public safety.

The proposed budget also includes funding for step increases for city personnel and expanded resources for street maintenance. Additionally, there will be increased staffing across various departments, including public safety and parks and recreation. A new initiative focusing on inflow and infiltration in the water and wastewater systems is also part of the budget plan.

Trevor Minyard, the city's finance director, provided insights into property tax values and the overall financial landscape. The assessed valuation for the city is approximately $43.5 billion, with residential properties making up the majority of this value. Minyard noted a trend of increasing commercial property values, which the city aims to continue fostering.

The council discussed the implications of the proposed tax rate for homeowners, indicating that the tax levy for a median taxable home valued at $459,000 would increase from $1,908 to $2,043 under the new rate. The council emphasized the importance of maintaining a budget that is mindful of inflation and economic conditions while ensuring the delivery of essential services to the community.

As the council moves forward, they will continue to refine the budget and address community needs, with a focus on transparency and fiscal responsibility. The next steps will involve further discussions and adjustments before finalizing the budget for the upcoming fiscal year.