McKinney CDC finance director: April revenue spike driven by debt issuance; sales tax receipts down year-to-date

Chance Miller, assistant finance director, briefed the McKinney Community Development Corporation on the CDC’s April financials and broader regional revenue trends.

Miller said the CDC recorded about $32.1 million in revenues for April, largely due to the issuance of debt, which accounting rules under the Governmental Accounting Standards Board (GASB) require the city to record as revenue when issued and to show related expenditures in subsequent months. Operational expenditures for the period included roughly $286,000 in operating costs and about $573,000 in project costs, the majority of which Miller said were community grants. Nondepartmental expenses included about $240,000 of bond-issuance costs tied to the debt issuance.

On sales tax, Miller said April collections apply to February economic activity and showed a 5.4% decrease for that period, bringing year-to-date figures to a 2.7% decline compared with the prior year. The assistant finance director noted regional variance: Allen showed stronger gains, Frisco and Plano had different trajectories, and North Texas overall was softer. Miller said preliminary May numbers looked closer to a 2% increase and that summer months will be important for meeting the budget targets.

Miller told the board the city is monitoring retail-trade trends as the principal driver of the April decrease. He said staff will continue to update the board as final data for the summer months and the budget season become available; the city manager’s recommended budget is expected to be prepared through July and presented at an August budget work session.

Speakers and sources: the presentation and figures were given by Chance Miller; he referenced GASB accounting practice in explaining the April revenue spike from debt issuance.