McKinney TIRZ 1 report shows about $100 million jump in captured value; board reviews finances

Chance Miller, the City of McKinney assistant finance director, presented the fiscal year 2023–24 annual report for Tax Increment Reinvestment Zone No. 1 during the March board meeting, saying the report is informational and required to be filed with the state comptroller.

"There is nothing to act on. We are required by the state to file this with the comptroller once a year," Miller said as he introduced the report.

The report showed substantial year-over-year growth in the zone’s captured value: the TIRZ base value remains $209,000,000, while the net taxable value rose to $792,800,000, producing a captured value of about $582,000,000 compared with $487,000,000 the prior year — an increase of roughly $100 million. Collin County’s captured value for the zone also rose to about $562,000,000 from $471,000,000 the previous year.

Miller summarized revenue and expenditures for the zone. For fiscal 2023–24, the presentation listed approximately $5,700,000 in property- and sales-tax-related receipts allocated to TIRZ 1 and about $1,800,000 in interest income. Sales-tax capture within the TIRZ boundaries was reported at about $2,800,000 for the year (up slightly from $2,720,000 the prior year); citywide sales tax increased 7.2 percent.

On the expenditure side, the board packet listed bond principal and interest payments totaling about $981,000, general and administrative expenses near $38,000, and a City Hall transfer of $11,500,000 (as presented in the report). The report also described grant-funded work paid from the TIRZ 1 fund, including restoration projects, façade improvements, fire suppression, environmental remediation, critical street maintenance and roof improvements.

Outstanding debt and near-term debt service were itemized. The report listed an outstanding balance of $15,870,000 at the end of fiscal 2024 and projected fiscal 2025 payments of $285,000 in principal and $690,000 in interest.

The TIRZ 1 fund balance was reported at $26,700,000, of which Miller noted about $2,100,000 is restricted for transportation projects; Collin County contributions to the fund are limited to transportation uses under the terms described in the report. Miller said there remained approximately $4,000,000 budgeted for an identified street project and roughly $600,000 budgeted for downtown projects pending board approval before disbursement.

Miller also offered budgeted projections for fiscal 2025: he stated the city portion of property-tax receipts to the zone is projected at about $2.29 million, Collin County property-tax receipts slightly over $500,000, sales tax slightly over $3,000,000 and investment income around $1,400,000, noting those figures depend on actual cash and activity in the zone.

Board members asked for the TIRZ map; Miller said the map is part of the annual report filed with the comptroller and that he would re-send it if it did not appear in the packet delivered to members.

The board took no formal action on the annual report, which was presented for information and compliance with the state filing requirement. Earlier in the meeting the board approved the minutes of the Dec. 3, 2024 TIRZ No. 1 meeting on a motion by Patrick Cloutier, seconded by Councilman Franklin; the motion passed unanimously. The meeting later adjourned on a motion by member Steve Lebo, seconded by Mayor Pro Tem Felthas, which also passed unanimously.

The board indicated a related TIRZ 2 discussion was coming on the agenda at a subsequent meeting date.