McKinney ISD approves abatement for FY 2024-25 tax rate

The tax rate for McKinney ISD will be slightly lower for the 2024-25 fiscal year.

District Board of Administration discussed the tax rate during an Aug. 26 board meeting. The total rate approved by the board is $1.1252 per $100 valuation, a decrease of $0.0023 from Rate of FY 2023-24 of $1.1275 per $100 valuation.

The new rate was approved on a 6-0 vote, with board member Chad Green abstaining.

“MISD is not raising taxes,” said board member Stephanie O'Dell.

Overview

The new tax rate is divided into two parts:

• The first part is the maintenance and operation rate, which covers operating expenses such as payroll. The M&O rate is $0.7552 per $100 valuation.
• The second part is the interesting and sinking rate, or I&S, which pays for the district's principal and interest on its debts. The I&S rate is $0.37 per $100 valuation.

Although the tax rate was lowered, MISD residents can expect a higher tax bill. The tax bill for an average single family home valued at $575,311 could expect a tax bill of $5,346 from the district — a $75 increase from last year.

That's due to increased property valuations and not an increase in the district's tax rate, said Marlene Harbeson, MISD's chief financial officer.

In case you missed it

The District Administration Board approved a $392.82 million budget with a potential shortfall of $21.79 million for FY 2024-25 in June.

Here is a summary of the approved FY 2024-25 budget:

• $273.36 million in general fund spending
• $105.27 million in debt service fund expenditures
• $14.19 million in spending in the food service fund
• $21.79 million budgeted to balance the revenue shortfall

While $273.36 million in spending is budgeted in the general fund, district officials expect actual spending to be $267.35 million — a variance of $6 million. To address the budget shortfall, $21.79 million will be reallocated from the county's reserve fund balance.