Visit McKinney board approves FY 2026 operating plan; city council to consider adoption Sept. 2

The Visit McKinney board voted to approve its proposed fiscal year 2026 operating budget during its Aug. 26 meeting, advancing the agency's spending plan to the city manager and city council for final consideration.

Erin Wharton, executive director of Visit McKinney, told the board the organization expects hotel-occupancy-tax (HOT) collections to remain near $3.3 million for the year and that the Visit McKinney operating budget would increase by roughly $177,000 — from about $1.55 million to about $1.72 million. "Under the state, Texas state law, it is heavily governed on how you can spend that money," Wharton said, describing the legal restrictions on HOT expenditures and the requirement that each use meet statutory categories.

Wharton said the board submitted three supplemental requests this budget cycle: an increase for marketing and promotions, office reconfiguration to accommodate staff changes, and added travel and training for sales staff. She said the city manager's office recommended $115,000 in new funds; staff presented that recommendation as including $34,000 for travel and training and the remaining amount to be applied to marketing. Wharton said marketing remains the largest line item and that staff view increased marketing spend as necessary to sustain destination growth as new hotel rooms come online.

Board members discussed the timing and review process for finance reporting under new legislative-driven deadlines and the city's plan to shift reporting to be presented in arrears. Alicia Holmberg, finance committee chair, noted the board is currently about 83% through the fiscal year and that occupancy and revenue metrics showed a strong June, with year-to-date projections unchanged at about $3.3 million in HOT collections.

A motion to adopt the Visit McKinney FY 2026 budget as submitted to the city manager carried after a voice vote. The meeting record shows the motion was made from the floor and seconded; the board chair declared the motion passed after members indicated verbal approval. The board did not provide a roll-call tally in the meeting transcript.

The Visit McKinney board's approval forwards the budget to the city manager and then to the McKinney city council for final adoption; staff said the council is expected to hold public hearings and vote on the city budget on Sept. 2.

Wharton stood for questions after the vote and thanked staff and committee members for their work on the proposal.