Tax reinvestment zones fund businesses, infrastructure From the cover
In a nutshell
A closer look
current year. The di erences between these values are the increments that are designated to the TIRZ funds, rather than transferred to the city’s general fund, Shelton said. Collin County also contributes to McKinney’s TIRZ funds, designating 50% of the county’s annual tax increment in each zone to them. “It serves as a savings account for projects within that zone,” Shelton said. “Essentially you’re saying this is an area that needs rein- vestment, and we’re going to use this mech- anism to do so because otherwise that same reinvestment … would have to come from the general fund.”
The city’s two TIRZ districts were each established in East McKinney in 2010. Since then, millions of dollars in city taxes have been reserved and designated to be reinvested in projects related to infrastructure and historic preservation in that area. The funds collected by each zone are derived from the property and sales taxes the city collects annually. Each zone collects and uses funds from tax generated only in their de ned geographic areas. The amount collected by the zones annually is determined by comparing the amount of taxes collected in the year each was estab- lished with the amount of tax collected in the
The city has seen steady growth in collections for both zones, with the collections reaching a new high in 2023. The TIRZ zones collected nearly $9.5 million combined in 2023, according to unaudited numbers from the city of McKinney. The funds collected are reserved for eligible projects and can be considered for approval by the TIRZ board, which includes the members of City Council as well as a representative from the Collin County Commissioners Court and one other member of the community. Funds collected in TIRZ 1 can be used for infrastructure and historical preservation projects, including renovation and maintenance projects on historic buildings, that contribute to the revitalization of the downtown area. TIRZ 2 funds can be used for infrastructure and development projects at McKinney National Airport, according to city documents.
TIRZ 1 spans nearly 1,000 acres and includes the downtown area as well as portions on or adjacent to SH 5. TIRZ 2 spans over 3,600 acres and includes McKinney National Airport.
380
75
TIRZ 1
TIRZ 2 Total collected
$9.49M
$10M
$6.71M
VIRGINIA PKWY.
$5.27M
$8M
TIRZ 1
TIRZ 2
$4.01M
$6M
$3.94M
ELDORADO PKWY.
5
$4M
$2M
546
$0
2021
2019
2020
2022
2023*
121
FRISCO RD.
N
*UNAUDITED COLLECTION TOTALS SOURCE: CITY OF MCKINNEY COMMUNITY IMPACT
SOURCE: CITY OF MCKINNEY COMMUNITY IMPACT
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Sat & Sun | February 24-25, 2024 | 11 am to 5 pm 610 Elm Street 75069 (inside the Cotton Mill Atrium Hallway) Free Admission | Food & Beverages Available
www.millhousefoundation.org/artfest
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