McKinney keeps city tax rate flat, but utility bills are set to rise

McKinney residents will see the same city property tax rate in the next fiscal year, but that does not mean every city bill will stay flat.

The City Council approved its fiscal year 2026-27 budget and tax rate at a Sept. 1 meeting. The budget totals $880 million and covers general city operations, water and wastewater service, capital improvements and other funds used to run one of North Texas’ fast-growing cities. [1] [2]

The headline number for homeowners is the property tax rate: $0.412284 per $100 of taxable value, the same rate used last year. At the city’s median home value of $518,165, that rate would equal about $2,136 in city property taxes. [1] [3]

That figure is only the city portion of a resident’s tax picture. School districts, Collin County and other local taxing units can also affect the final bill. Still, the city’s decision matters because it shows how McKinney is trying to balance growth, service demand and taxpayer pressure without a visible rate increase.

The utility side is less static. Council members also approved a 9 percent increase to water rates and an 11 percent increase to wastewater rates, with both changes set to take effect Oct. 1. The increases are tied to rising service costs from the North Texas Municipal Water District. The new monthly base charges are $21.60 for water and $31.20 for wastewater, before volumetric charges. [1] [4]

The budget also shows the kind of tradeoff that rarely fits into a tax-rate headline. McKinney’s general fund is budgeted at $246.5 million in projected revenue and the same amount in projected expenses. The adopted general fund is $1.2 million lower than the $247.7 million version city officials initially proposed in August. [1] [3]

To keep the tax rate unchanged, city staff had to account for about $2.2 million in projected revenue loss. The reported plan includes up to $1.2 million in reductions to department operating expenses, capital equipment replacement funding and supplemental items, plus a requested $1 million transfer from the McKinney Community Development Corp. [1] [3]

The practical question for residents is not just whether the tax rate moved. It is where the pressure moved instead. A flat rate can still produce a higher bill if taxable values rise. A water or wastewater increase can show up monthly instead of annually. A smaller general fund can mean departments absorb tighter operating choices.

City Manager Paul Grimes framed the budget around maintaining core services, including public safety, streets and parks, while keeping the general fund balanced. [1]

For McKinney households, the Oct. 1 start date is the near-term marker. That is when the new fiscal year begins, the tax rate stays in place and the higher water and wastewater base charges begin turning from budget line items into monthly bills.