City Manager Paul Grimes discusses infrastructure projects and budget challenges

The McKinney Community Development Corporation held a meeting on August 28, 2025, focusing on budget projections, infrastructure improvements, and legislative impacts on local governance.

The meeting began with discussions on sales tax revenue projections for the upcoming year. Officials expressed cautious optimism about achieving a growth rate of 4 to 5%, despite ongoing uncertainties regarding federal policies. The budget for the next year was set conservatively at a 2.5% growth rate, reflecting a careful approach to financial planning.

A highlight of the meeting was the recognition of Ani Alvarez, who celebrated her first anniversary with the CDC. Members expressed their appreciation for her contributions and extended best wishes for her upcoming wedding.

City Manager Paul Grimes provided updates on several key infrastructure projects. He detailed planned improvements around Old City Hall and the Development Services Building, which will enhance pedestrian access and upgrade aging utilities. The project is expected to take 18 months, and residents were encouraged to stay informed through the city’s engineering website.

Grimes also addressed the ongoing budget process, noting that the city council is set to adopt a $232 million general fund budget on September 2. He highlighted the challenges posed by recent legislative changes, including a proposed reduction of the voter approval tax rate to 1%, which could limit the city’s budget flexibility and impact local governance.

Furthermore, Grimes discussed the implications of new legislation that could increase housing density and affect property conversions to multifamily units. While acknowledging the potential challenges, he noted that there could be opportunities for redevelopment in certain areas.

The meeting concluded with a commitment to adapt to legislative changes while continuing to prioritize the needs of the community. The CDC plans to bring forward strategies to address these challenges in the upcoming city council meetings.