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McKinney CDC hears May financial report: sales tax up after adjustments, retail trade remains strong
Summary
Assistant finance director Chance presented the MCDC financial report for May, reporting roughly $2.5 million in revenue for the month, expenditures near $300,000, and a 1.8% raw increase in sales-tax collections for the reporting period (March sales). Adjusted for audit collections, period-to-period sales-tax growth was about 5.9%.
The McKinney Community Development Corporation received its monthly financial report for May on Thursday and heard staff describe stable revenues, modest monthly expenditures and encouraging retail sales indicators heading into the summer months.
Assistant Finance Director Chance reviewed revenue and expense totals. He reported roughly $2,200,000 in sales-tax collections for the reporting period (collections in May attributable to March sales), about $300,000 in interest and other revenue tied to leased office space and miscellaneous receipts, with total month revenues presented about $2,500,000. Expenditures for the month included approximately $50,000 in operational expenses, $180,000 in project expenses and about $70,000 in nondepartmental charges for a monthly outlay near $300,000.
On sales-tax trends, Chance said the raw comparison showed a 1.8% increase for the period; he said an identified negative audit-adjustment reduced the headline figure and that, when that audit item was removed, period-to-period collections rose 5.9%, which staff said is in line with neighboring cities. He compared McKinney’s year‑to‑date trend to nearby jurisdictions: Allen (decrease of 1% year to date), Frisco (2.5% year to date) and Plano (7.4% year to date). Staff noted retail trade remains a strong indicator at about 5% and that the current budget assumption for next year’s sales tax is a 2.5% growth rate.
Chance closed by saying staff would answer questions and that more detailed reports were available in the meeting packet.
Context City staff said audit‑related adjustments have caused monthly volatility in the reported sales-tax numbers; staff emphasized the period-to-period measure (excluding audit adjustments) as a more useful short-term indicator. The report covers the eighth month of the fiscal year and informs upcoming budget deliberations.
Quotes "If you factor that out, we had... a 5.9% increase, which is in line with our other sister cities," Chance said about sales-tax collections once audit adjustments are excluded.
Ending The board received the report and did not take action. Staff said the budget process will continue through the summer with a formal presentation to city council scheduled for an August workshop and adoption expected in early September.
