The fund that pays for downtown McKinney facade grants, streetscapes and other improvements is about to spend down much of its savings, according to a five-year forecast prepared for the zone's board.
The board of Tax Increment Reinvestment Zone No. 1 meets at 5:15 p.m. Tuesday, Oct. 20, in the City Hall council chambers at 401 E. Virginia St. Staff will present the forecast along with changes to the zone's administration policy.
The board had asked for more financial detail before deciding funding requests, especially requests that run past a category's budget or fall in categories without a cap.
The projection
The zone began the 2025-26 fiscal year with about $28.5 million. Staff estimate it ended that year near $23.7 million, then project:
| Fiscal year ends | Total fund balance | Unrestricted balance | |---|---|---| | 2026-27 | $16.6 million | $12.7 million | | 2027-28 | $7.2 million | $2.7 million | | 2028-29 | $10.2 million | $5.0 million | | 2029-30 | $13.6 million | $7.8 million | | 2030-31 | $17.3 million | $10.8 million |
The rest of each year's balance is set aside for transportation, a reserve the forecast shows growing from about $3.9 million to $6.6 million over the period.
The steep drop through 2028 comes from spending in a category labeled district enhancement, budgeted at roughly $13 million in each of the next two fiscal years before falling back under $1 million a year. A catalyst category carries $9.4 million in the year that just ended and $3.4 million to $4.4 million a year from 2027-28 on.
The forecast also includes $500,000 for pilot and innovation projects in 2026-27 and about $1.4 million to $1.5 million a year for vacant and underutilized buildings.
A footnote on the staff presentation says the balances already account for anticipated projects that have not been awarded money yet.
