Budget Gets Final Approval

McKinney City Council gave final approval to the city’s fiscal year 2026-27 budget on Sept. 1 after a presentation from Chief Financial Officer Mark Holloway. He said the plan is built on steady sales tax performance and projects about 3.5% sales tax growth next year.

The budget includes compensation increases for city employees. Holloway said non-sworn personnel would receive step increases plus a 1% cost-of-living adjustment, while sworn personnel would receive planned step increases. He also highlighted expanded street maintenance funding, including the addition of a new pothole patching crew.

Staff said the budget adds 29 positions across the general fund, along with related equipment. Those additions include five positions in general government, two in development services, seven in public works, 13 in public safety and two in parks. The public safety total includes three police positions and 10 fire positions. Holloway also noted that four certified police officers and one sergeant were added during the second half of the current fiscal year for staffing at the commercial service terminal, funded outside the general fund.

According to the presentation, general fund revenues for fiscal year 2026-27 are projected at about $246 million. Holloway said about 71% of that comes from property and sales taxes, with the rest from sources including franchise fees, licenses and permits. On the spending side, he said 48% of the general fund budget is made up of fire and police services.

One resident spoke against the proposed budget before the vote, criticizing the city’s debt load, the property tax proposal and water-related increases, and asking council to table the plan. Council later approved the budget by roll call vote.