McKinney reports $1.24M increase in TIRS 2 tax revenue this fiscal year

The McKinney City Council meeting on March 31, 2025, focused on the financial performance and updates regarding the McKinney Reinvestment Zone Number Two (TIRS 2). Key discussions included revenue generation, property value increases, and expenditures.

During the meeting, it was reported that TIRS 2 generated $271,000 in interest income. Expenditures included $35,000 for general and administrative costs and a significant $2.8 million spent on Taxiway A4. Notably, there is currently no debt issued against TIRS 2, which positions the zone favorably for future financial planning.

A major highlight was the substantial increase in property values within the zone. In 2010, property values were recorded at $117 million, while for the tax year 2023, they surged to approximately $408 million. This represents a captured value increase of $290 million, up from $218 million the previous year, marking a robust growth of nearly $80 million in just one fiscal year. Collin County mirrored this trend, also reporting a captured value increase to $290 million.

The financial implications of these increases were significant. The City of McKinney's portion of the captured value translated to $1.24 million in revenue, an increase of $240,000 from the previous year. Similarly, Collin County's revenue rose by $50,000 to $217,000. Sales tax revenue from TIRS 2 boundaries also saw a notable rise, increasing from $493,000 in 2010 to $2.1 million in fiscal year 2024, reflecting a year-over-year growth of 13.6%.

The meeting concluded with a report on the fund balance, which has grown to $8.2 million, with $808,000 earmarked for transportation purposes. Council members expressed interest in obtaining a map of the TIRS 2 boundaries for future reference, indicating ongoing engagement with the zone's development and planning.

Overall, the meeting underscored the financial health and growth potential of McKinney's Reinvestment Zone Number Two, highlighting its role in the city's economic development strategy.