McKinney | August 2022

EXPENSES TRANSPORTATION New construction Reconstruction

Over the last 10 years, McKinney has spent more than $140 million on roadway improvements.

$30M $25M $20M $15M $10M

Since 2012, the amount invested in new construction of roads has increased nearly five-fold.

$5M

2015 2016 2013 2014 2017 2018 2012

2019 2020 2021

SOURCE: CITY OF MCKINNEY/COMMUNITY IMPACT NEWSPAPER

“That’s the value of roadways,” he said. “Investors always look to your transportation infrastructure to say, ‘How are people going to get around in this community? Before we make an investment, we want to know that this community actually invests in their roadways.’” MEDC Board President Michael Jones said not only will the roads attract new businesses, but it has the added benefit of improving the quality of life for exist- ing McKinney residents, and economic development helps create “a vibrant community for our residents.” MCDC Board Chair Angela Richard- son-Woods agreed. “Our roadways are the critical connec- tors for McKinney’s current and future businesses as well as their employees and customers,” Richardson-Woods said in the city news release. While the funds from this initiative can only be used for selected new road- ways, it frees up money from the city’s capital improvement budget to improve the city’s other existing corridors. That includes streets on the east side of the city or west of US 75 that are aging and need work, Grimes said. The pavement condition scores in these areas range anywhere from 10-54 on a scale of 100. “Our engineering department and our public works department will work to prioritize those for roadway mainte- nance,” he said. How it works When people spend money, such as when dining or shopping in McKinney, it generates a half-cent sales tax revenue that goes specifically toward funding community projects and events or eco- nomic development. With the new res- olution for roadway investments, any new sales tax above a certain threshold will be split three ways between com- munity projects, economic develop- ment and maintaining roadways. “One of the key pillars of economic

development is infrastructure,” Grimes said. “You have to be able to get people to and from work, or customers need to be able to get to and from retail.” Staff estimates that McKinney will receive about $40 million in total sales tax revenue during fiscal year 2021-22. That amount will be used as a baseline for future years. If in the next fiscal year that revenue grows to a total of $50 mil- lion in sales tax revenue, the extra $10 million would be split between the road- way investment fund and the two differ- ent development corps, Grimes said. In that situation, that would translate to $5 million going to roadway investments, and the remainder will go to the MCDC and the MEDC at $2.5 million apiece. According to a news release, this ini- tiative is expected to commit $150 mil- lion-$300 million to roadways through 2035. Added benefits This investment fund means the bur- den of paying for improved streets does not fall only on McKinney residents, but rather on visitors who come to the city to eat or shop, Grimes said. “People who pay sales taxes often- times … don’t live in McKinney, but they come and use our restaurants, or they go to Costco or Target,” Grimes said. “We’re actually spreading the commitment to pay over a wider group of taxpayers.” Several options were discussed to fund roadways, but using sales tax was a hybrid approach that marks a “signif- icant policy shift,” Grimes said at the June 7 work session. “That’s the benefit of public delibera- tion,” Grimes said. “This is why you have work sessions, and you work through these issues and you come up with a solution that works for everybody as much as possible.”

Spend Life Well-Balanced.

McKinney Craig Ranch 6401 S. Custer Rd. McKinney, Texas (972) 569-8301

McKinney Redbud 1700 N. Redbud Blvd. McKinney, Texas (972) 548-3010

FirstUnitedBank.com

For more information, visit communityimpact.com .

Member FDIC.

MCKINNEY EDITION • AUGUST 2022