Summary

Budget, taxes, and zoning approved

McKinneySep 2, 20252 min read

At a glance

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McKinney City Council approved the FY 2025-26 budget, ratified a property tax revenue increase of $12,556,433, set the tax rate at 0.412284, and adopted several fee and land-use changes, including a 6-1 approval for a fuel sales permit at Coit Road and Virginia Parkway.

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Planned Development Downtown City-Owned Property Redevelopment

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City Council Regular Meeting

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TransportationBudget & TaxCommerceHousing

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What this means

The council adopted the city’s new budget for the fiscal year starting October 1, 2025, and approved a property tax rate of 0.412284. City officials said the budget will raise $12,556,433 more in property taxes than last year, including $7,317,780 from new property on the tax roll. The council also approved changes to some city service fees and advanced several zoning and permit decisions, including a new fuel sales permit near Coit Road and Virginia Parkway.

Key decisions

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Adopted the FY 2025-26 city budget.
Ratified a property tax revenue increase of $12,556,433, or 7.54%.
Adopted a property tax rate of 0.412284, described as a 3.58% increase in the tax rate.
Approved changes to city service fees.
Approved a specific use permit for passenger vehicle fuel sales at the southeast corner of Coit Road and Virginia Parkway by a 6-1 vote, with Councilmember Jones voting no.
Took no action on a McDonald's drive-through permit request at 3300 Virginia Parkway and tabled it to the next regular meeting.
Indefinitely tabled a rezoning request at the northwest corner of North Tennessee Street and East Heard Street.
Approved an ordinance requiring short-term rental platforms to collect and remit hotel occupancy taxes to the city.

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Meeting information

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City Council Regular Meeting

Sep 2, 2025, 6:00 PMCouncil Chambers 401 E. Virginia Street McKinney, TX 75069scheduled

Agenda

WATCH THE MEETING LIVE
This meeting will be streamed live on the City’s website. Members of the public who wish to watch this meeting may watch online at: https://mckinneytx.new.swagit.com/views/130
CALL TO ORDER
INVOCATION AND PLEDGE OF ALLEGIANCE
Invocation given by Senior Pastor Charles Wattley, St. Mark Baptist Church Pledge of Allegiance led by McKinney Commandery - Knights Templar
INFORMATION SHARING ITEMS
Proclamation for National Preparedness Month
Proclamation for Grandparents Day
PUBLIC COMMENTS ON AGENDA ITEMS (for Non-Public Hearing Items)
If you wish to address the City Council on a posted item on this agenda, please fill out a "Request to Speak" card and present it to the City Secretary prior to the meeting. Speakers wishing to address the City Council regarding any non-public hearing item on this agenda shall have a time limit of three (3) minutes per speaker, per agenda item. The Mayor may reduce the speaker time limit uniformly to accommodate the number of speakers or improve meeting efficiency. Pursuant to Section 551.007 of the Texas Government Code, any person wishing to address the City Council for items listed as Public Hearings will be recognized when the Public Hearing is opened.
CONSENT AGENDA
These items consist of non-controversial or housekeeping items required by law. Items may be considered individually by any Council member making such request prior to a motion and vote on the Consent Items.
Consent MINUTES
Minutes of the City Council Work Session of August 19, 2025
Minutes of the McKinney Armed Services Memorial Board Meeting of July 9, 2025
Minutes of the McKinney Arts Commission of May 15, 2025
Minutes of the Parks, Recreation, and Open Space Advisory Board Meeting of June 12, 2025
Minutes of the Parks, Recreation, and Open Space Advisory Board Meeting of July 10, 2025
Consent ORDINANCES
Consider/Discuss/Act on an Ordinance Amending Chapter 98, “Taxation,” Article IV, “Hotel Occupancy Tax,” of the Code or Ordinances of the City of McKinney, Texas, by Requiring Short-Term Rental Platforms to Collect and Remit the Applicable Hotel Occupancy Taxes to the City.
Consent RESOLUTIONS
Consider/Discuss/Act on a Resolution Adopting a Ten-Year Water Rate Study with Willdan Financial Services
Consider/Discuss/Act on a Resolution Adopting the Fiscal Year 2025-2026 Financial Policies
Consider/Discuss/Act on a Resolution Adopting the Fiscal Year 2025-26 Investment Policy
Consider/Discuss/Act on a Resolution Adopting the Revised City of McKinney Procurement Policy and Procedures Manual
Consider/Discuss/Act on a Resolution Approving a Negotiated Settlement Between the Atmos Cities Steering Committee (“ACSC”) and Atmos Energy Corp., Mid-Tex Division Regarding the Company’s 2025 Rate Review Mechanism Filing; Declaring Existing Rates to Be Unreasonable; Adopting Tariffs That Reflect Rate Adjustments Consistent With the Negotiated Settlement; Finding the Rates to Be Set by the Attached Settlement Tariffs to Be Just and Reasonable and in the Public Interest; Approving an Attachment Establishing a Benchmark for Pensions and Retiree Medical Benefits; Requiring the Company to Reimburse ACSC’s Reasonable Ratemaking Expenses; Determining That This Resolution Was Passed in Accordance With the Requirements of the Texas Open Meetings Act; Adopting a Savings Clause; Declaring an Effective Date; and Requiring Delivery of This Resolution to the Company and the ACSC’s Legal Counsel
Consider/Discuss/Act on a Resolution Approving the First Amended and Restated Bylaws of the McKinney Public Facility Corporation
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute a Contract and All Necessary Change Orders with Maya Underground Contractors, LLC, for the Construction of the Aerial Wastewater Crossing Improvements (US Highway 380 & Throckmorton Street) and Railroad Crossing Improvements Project
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute a Contract and All Necessary Change Orders with Mountain Cascade of Texas, LLC. for the Construction of the Honey Creek Sanitary Sewer Trunk Main Project
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute a Contract with Alliance Geotechnical group, Inc. for Geotechnical and Materials Testing Services for the Construction of the Honey Creek Sanitary Sewer Trunk Main Project and Authorizing Any Necessary Supplemental Agreements
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute a Contract with Cigna Health and Life Insurance of Hartford, CT to Provide Medical/Third Party Administrator (TPA) and Dental, CaremarkPCS Health, L.L.C. of Woonsocket, RI to Provide Pharmacy Benefits Management (PBM), Community Eye Care, LLC of Charlotte, NC to Provide Vision and Neely EAP, PLLC of Helotes, TX to Provide Employee Assistance Program (EAP)
END OF CONSENT AGENDA
REGULAR AGENDA AND PUBLIC HEARING ITEMS
This portion of the agenda consists of items requiring individual consideration by the Council. Pursuant to Section 551.007 of the Texas Government Code, any person wishing to address the City Council for items listed as Public Hearings will be recognized when the Public Hearing is opened.
Conduct Public Hearing to Consider/Discuss/Act on the Adoption of the Budget Appropriation Ordinance for FY 2025-26 In accordance with Texas Government Code §551.043, the City of McKinney Proposed Budget for Fiscal Year 2025-26 is posted on the City of McKinney webpage at https://www.mckinneytexas.org/210/Budget and the Taxpayer Impact Statement is provided on this agenda. To view, click the links below.
Consider/Discuss/Act on an Ordinance to Ratify the Property Tax Revenue Increase in the Fiscal Year 2025-26 Budget as a Result of the City Receiving More Revenues from Property Taxes than the Previous Fiscal Year
Conduct a Public Hearing to Consider/Discuss/Act on an Ordinance Adopting a Tax Rate for Fiscal Year 2025-26 (Tax Year 2025)
Consider/Discuss/Act on an Ordinance to Change Rates/Fees for City Services
Conduct a Public Hearing to Consider/Discuss/Act on a Request to Rezone the Subject Property from “ML” Light Manufacturing District to “PD” – Planned Development District, Generally to Allow for Multi-Family and Non-Residential Uses and Modify the Development Standards, Located on the Northwest Corner of North Tennessee Street and East Heard Street (WITHDRAWN)
Conduct a Public Hearing to Consider/Discuss/Act on a Specific Use Permit Request for a Drive-Through Restaurant (McDonalds), Located at 3300 Virginia Parkway, and Accompanying Ordinance
Conduct a Public Hearing to Consider/Discuss/Act on a Specific Use Permit Request for a Passenger Vehicle Fuel Sales (Movement Convenience Store), Located on the Southeast Corner of Coit Road and Virginia Parkway, and Accompanying Ordinance
Conduct a Public Hearing to Consider/Discuss/Act on a Request to Rezone the Subject Property from “C3” – Regional Commercial District to “I1” – Light Industrial District, located on the Northwest and Northeast Corners of State Highway 121 (Sam Rayburn Tollway) and Tina Drive, and Accompanying Ordinance
Conduct a Public Hearing to Consider/Discuss/Act on a Request to Rezone the Subject Property from “PD” - Planned Development District to “C2” - Local Commercial District, Located on the Northwest corner of FM 1461 and Aster Park Trail, and Accompanying Ordinance
Conduct a Public Hearing to Consider/Discuss/Act on a Request to Rezone the Subject Property from “PD” - Planned Development District to “C2” - Local Commercial District, Located on the West Side of North Stonebridge Drive and West of Coughlin Parkway, and Accompanying Ordinance
Conduct a Public Hearing to Consider/Discuss/Act on a Request to Rezone the Subject Property from “L1” - Light Industrial District and “C3” - Regional Commercial District to “I1” - Light Industrial District, Located on the East Side of North Central Expressway and Approximately 1,400 Feet South of Bloomdale Road, and Accompanying Ordinance
Conduct a Public Hearing to Consider/Discuss/Act on a Request to Rezone the Subject Property from “PD” - Planned Development District and “AG” - Agriculture District to “I1” - Light Industrial District, Located at 3933 County Road 317, and Accompanying Ordinance
END OF REGULAR AGENDA AND PUBLIC HEARING ITEMS
CITIZEN COMMENTS on Matters not on the Agenda
If you wish to address the City Council on a posted item on this agenda, please fill out a "Request to Speak" card and present it to the City Secretary prior to the meeting.
COUNCIL AND MANAGER COMMENTS
Council and Manager Comments relating to items of public interest: Announcements regarding local or regional civic and charitable events, staff recognition, commendation of citizens, traffic issues, upcoming meetings, informational update on City projects, awards, acknowledgement of meeting attendees, birthdays, requests of the City Manager for items to be placed on upcoming agendas, and condolences.
EXECUTIVE SESSION
In Accordance with the Texas Government Code: A. Section 551.071(2) Consultations with Attorney on any Work Session, Special Session, or Regular Session agenda item requiring confidential attorney/client advice necessitated by the deliberation or discussion of said items (as needed) - Legislative Update: SB 840 B. Section 551.072. Deliberations about Real Property - Downtown City-Owned Property Redevelopment
ACTION ON EXECUTIVE SESSION ITEMS
ADJOURN
PURSUANT TO TEXAS GOVERNMENT CODE SECTION 551.002, A QUORUM OF VARIOUS CITY BOARDS OR COMMISSIONS MAY BE PRESENT. NO BOARD OR COMMISSION ACTION WILL BE TAKEN. Posted in accordance with Texas Government Code, Chapter 551, on August 26, 2025. ________________________ Empress Drane, City Secretary Tenitrus Parchman, Deputy City Secretary
In accordance with the Americans with Disabilities Act, it is the policy of the City of McKinney to offer its public programs, services, and meetings in a manner that is readily accessible to everyone, including individuals with disabilities. If you are a person with a disability and require information or materials in an appropriate alternative format; or if you require any other accommodation, please contact the ADA Coordinator at least 48 hours in advance of the event. Email contact-adacompliance@mckinneytexas.org. Advance notification within this guideline will enable the City to make reasonable arrangements to ensure accessibility. ADA grievances may also be directed to the ADA Coordinator or filed online at http://www.mckinneytexas.org/ada.
Conduct Public Hearing to Consider/Discuss/Act on the Adoption of the Budget Appropriation Ordinance for FY 2025-26 In accordance with Texas Government Code §551.043, the City of McKinney Proposed Budget for Fiscal Year 2025-26 is posted on the City of McKinney webpage at https://www.mckinneytexas.org/210/Budget and the Taxpayer Impact Statement is provided on this agenda. To view, click the links below.
Conduct a Public Hearing to Consider/Discuss/Act on a Specific Use Permit Request for a Drive-Through Restaurant (McDonalds), Located at 3300 Virginia Parkway, and Accompanying Ordinance
Conduct a Public Hearing to Consider/Discuss/Act on a Request to Rezone the Subject Property from “C3” – Regional Commercial District to “I1” – Light Industrial District, located on the Northwest and Northeast Corners of State Highway 121 (Sam Rayburn Tollway) and Tina Drive, and Accompanying Ordinance
Conduct Public Hearing to Consider/Discuss/Act on the Adoption of the Budget Appropriation Ordinance for FY 2025-26 In accordance with Texas Government Code §551.043, the City of McKinney Proposed Budget for Fiscal Year 2025-26 is posted on the City of McKinney webpage at https://www.mckinneytexas.org/210/Budget and the Taxpayer Impact Statement is provided on this agenda. To view, click the links below.
Conduct a Public Hearing to Consider/Discuss/Act on a Specific Use Permit Request for a Drive-Through Restaurant (McDonalds), Located at 3300 Virginia Parkway, and Accompanying Ordinance
Conduct a Public Hearing to Consider/Discuss/Act on a Request to Rezone the Subject Property from “C3” – Regional Commercial District to “I1” – Light Industrial District, located on the Northwest and Northeast Corners of State Highway 121 (Sam Rayburn Tollway) and Tina Drive, and Accompanying Ordinance

Budget, taxes, and zoning approved

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