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$849 Million Budget Approved For McKinney, Texas

The city’s property tax will be lowered

McKinney City Council recently adopted a proposed $849 million budget for the 2024 fiscal year, which includes additional staff positions and lower property tax rates.

On Sept. 5, 2023, the council unanimously approved the budget as presented. Although both the budget and tax rate matters were open for public discussion, there were no comments from residents. 

As part of the overall $849 million budget, city staff projected approximately $202.6 million in new general fund revenue. The approved budget incorporates a property tax rate of $0.427513 per $100 valuation, representing a decrease of $0.03 compared to the previous year's rate. An increase in the city's taxable value can be attributed to the expansion of the tax base, which comprises $1 billion in new construction and an 11.9% rise in the values of existing properties.

City officials anticipate that property taxes will constitute 51% of the budget, while sales taxes will account for 21% of the budget. This represents a slight decrease from the previous year when property taxes comprised 52% of the budget, with sales taxes maintaining the same 21% share.

“As I mentioned several times, I’m really happy to see the property tax portion of that pie continuing to shrink while the number goes up,” McKinney Chief Financial Officer Mark Holloway said during the meeting. “The amount that we're actually using from property taxes in the general fund side on a percentage basis is shrinking with sales tax continuing to grow.” 

The budget encompasses several key elements, including a planned 8% rise in water and wastewater service rates. This increase is necessitated by a 9% uptick in water service costs and an 11.3% surge in wastewater service expenses from the North Texas Municipal Water District to the city. Improvement projects include $10 million for the renovation of Old Settlers Park and the Gilda Garcia Garza Aquatic Center, $30 million for the development of the Craig Ranch Soccer Complex, $8.2 million for a taxi lane at McKinney National Airport, $8 million allocated for technology upgrades and furnishings at the new city hall and $43.5 million budgeted for utility relocations along U.S. 380. 

In addition to the budgetary changes, the general fund budget will bring 49 new staff additions. This comprises positions such as a risk manager, a deputy city marshal, six primary first responders, a police sergeant, two detectives, six firefighters, a graduate fire protection engineer and an assistant director of parks and recreation. The budget presentation highlighted step pay increases for city staff and sworn personnel as part of the comprehensive budget plan.

To watch the full city council meeting, visit the link here.