McKinney City Council Approves FY27 Budget, 540 Apartments

By R.J. Morales | TX3DNews

McKINNEY, Texas — With much of the attention around McKinney City Hall focused on the Islamic center and recall effort, the City Council still had regular business to conduct Tuesday.

And there was plenty of it.

City adopts FY27 budget

Chief Financial Officer Mark Holloway said the city expects about $246 million in general fund revenue, with property and sales taxes making up roughly 71% of that total.

The budget adds 29 positions, including three in police and 10 in fire, and expands street maintenance with a new pothole-patching crew. It also includes step increases for city employees and a 1% cost-of-living adjustment for non-sworn employees.

Council adopted a property tax rate of $0.412284 per $100 of assessed value, the same nominal rate as last year.

The city expects to collect about $5.68 million more in property taxes, but new development accounts for that increase. More than $6.1 million will come from property newly added to the tax roll, while revenue from existing property is expected to decline by about $500,000.

“The median value of a home in McKinney decreased this year,” Holloway said, explaining that the median homeowner could see some savings on the city portion of the property tax bill. Individual results will vary.

Water and wastewater costs rise

Council also approved changes to water and wastewater rates, with Holloway saying most of the increase is coming from the North Texas Municipal Water District.

He said the district’s wastewater increase to McKinney is about 13%, while the city is passing through an 11% increase.

“We collect that in and send it directly to North Texas,” Holloway said.

McKinney is also continuing its water-line replacement program. Holloway said the city’s water loss has fallen from about 28% in fiscal year 2014 to roughly 8%.

540 apartments approved near future 380 bypass

The night’s closest vote came over Baxter Well Apartments and concerns about infrastructure in northwest McKinney.

Council considered annexation and MF36 multifamily zoning for approximately 17.3 acres along Baxter Well Road, about 1,200 feet west of FM 1461. The developer plans 540 market-rate apartments.

Planning Director Lucas Riley said the property is near the future U.S. 380 bypass and future Lake Forest Drive. City staff recommended approval, as did the Planning and Zoning Commission unanimously.

Resident Tisha Blanton urged council members to reject or delay the project.

“This is not an argument against growth or against multifamily housing,” Blanton said. “This is an argument about whether this particular density and location are structurally and environmentally appropriate.”

Some council members raised similar concerns.

One council member who lives nearby called the proposal “a massive apartment complex” and said, “We don’t have the infrastructure right now for this.”

Another council member opposed the project, saying, “That’s a lot of apartments in one area.”

Council members supporting the project argued development is coming to the area regardless and that bringing the property into McKinney would subject it to city development requirements while generating roadway impact fees and parkland.

“Infrastructure is brought by the developers,” one council member said. “They will complete the grid and bring the infrastructure into this area that is needed.”

Council approved the project 4-2.

Wildwood gas station and Eldorado commercial project approved

Council also approved two commercial development requests.

In Wildwood, formerly Honey Creek, council approved a specific-use permit for a future gas station near Laud Howell Parkway and Ridgeline Road. The property is already commercially zoned, but the city requires the permit for passenger vehicle fuel sales when residential zoning or uses are within 250 feet.

Staff and the Planning and Zoning Commission recommended approval, and no public opposition was received.

Council also rezoned about 9.8 acres of the former Globe Life campus near Eldorado Parkway and Custer Road for commercial use.

The applicant said the property is expected to develop similarly to District 121 near Alma Road and the Sam Rayburn Tollway. Asked whether that could mean restaurants and the type of active development found at District 121, the applicant said yes.

One item will have to wait. A proposed change to McKinney’s ordinance governing land for parks and recreational facilities was postponed until Sept. 15 after Parks Director Amy Kincaid said staff needed more time to make changes before adoption.

Away from the issues that have dominated recent City Hall debate, Tuesday’s votes dealt with matters residents will see more directly — taxes, utility rates, roads and the development that continues to come with McKinney’s growth.