Consider/Discuss/Act on a Resolution Adopting the Budget Policies and Guidelines for Fiscal Year 2026-27

This resolution formally adopts the Budget Guidelines for Fiscal Year 2026-27 for the City of McKinney. These guidelines direct city staff in developing the upcoming budget, aligning it with Council goals such as Strategic & Economic Growth, Operational Excellence, and Enhancing Quality of Life. Key directives include:

• Revenue Estimates: Must be detailed, conservative, and realistic, using credible data sources and historical performance.
• General Fund Expenditures: To be proposed as fully funded and balanced, maintaining a conservative tax levy and a General Fund reserve of at least 25% of budgeted expenditures.
• Personnel: Staffing adjustments will follow the 10-Year Financial Plan and performance management data. Police and Fire pay will adhere to Meet and Confer agreements with market adjustments.
• Utility Fund: Focus on long-term sustainability and implementation of rate adjustments based on annual rate studies.
• Economic Development Funds (MEDC/MCDC): Budgets will include roadway development based on estimated sales tax revenue, with year-end adjustments for actual revenue.
• Capital Funds: Support for the Equipment and Facilities Replacement Fund is prioritized. The city will fund depreciation where possible to minimize debt and cash fund infrastructure.

The resolution was passed and approved on March 17, 2026, by the City Council.