McKinney, Texas, proposes $880 million budget, nearly 1.4% property tax hike

McKinney officials are proposing an $880 million city budget and a nearly 1.4% increase in the property tax rate for fiscal year 2026-27, according to Community Impact. The decision would come as residents continue to contend with rising living costs.

What happened?

After city staff and council members went over the proposal during an Aug. 7 workshop, the next key date is Sept. 1, when council members are expected to take up the budget and tax rate.

For the year that starts Oct. 1, 2026, and runs through Sept. 30, 2027, the FY 2026-27 plan would pay for city operations, including general services and water and wastewater. It assumes a property tax rate of $0.417876 per $100 of assessed value, compared with $0.412284 in the previous fiscal year.

In the proposal, the general fund is balanced at $247.7 million on both the revenue and expense sides, which is about $15.5 million more than in the prior budget. Officials said that increase is tied to project funding as well as higher personnel and material costs.

Taxable property value in McKinney is expected to increase by more than $1.5 billion in FY 2026-27. Even so, that growth would be smaller than what the city has recorded previously.

Why does it matter?

A tax-rate increase can raise affordability concerns in a city where housing costs have already become a major source of strain. Property taxes are part of the cost of living, and those expenses can also affect renters as landlords respond to higher costs.

Even with the higher rate, the typical homeowner may pay less overall. Using a median taxable home value of $518,167, the estimated bill is about $2,165, versus $2,203 in the prior fiscal year, or roughly $38 less.

Slower growth in taxable value can make it harder for a city to fund the services residents rely on without relying more heavily on the tax rate.

Those decisions affect public safety response times, park maintenance, street repairs, development oversight, and investment as the city grows.

What's being done?

Before the Sept. 1 council vote, city officials plan to hold a public input meeting on Aug. 18.

The proposed budget sets aside money for 32 new jobs in several departments, Community Impact reported: nine in police, 10 in fire, two in parks and recreation, seven in public works, and four in development services.

The new positions would add capacity for emergency response, infrastructure upkeep, and development activity as McKinney continues to expand.

The full proposed budget and workshop presentation are available through the city's website before the vote.

The balancing act is becoming more difficult as growth slows. 

As Assistant City Manager Trevor Minyard said, "In the previous fiscal years, we were seeing anywhere from $3 [billion] to $4 billion of additional taxable value added to the tax roll. This year, that number is [$1.5 billion]."

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