[CALL TO ORDER]
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IS 5:38 P.M, AND I'M HAPPY TO CALL ON A MEETING OF THE CITY OF MCKINNEY REINVESTMENT ZONE NUMBER TWO. WE'RE LOCATED AT 401 EAST VIRGINIA STREET IN MCKINNEY, TEXAS. AND I DO NOT BELIEVE THAT THERE ARE ANY PUBLIC COMMENTS. IF SO, PLEASE COME FORWARD AT THIS TIME.
[Minutes of the Tax Increment Reinvestment Zone Two (TIRZ2) Board Meeting of May 7, 2024]
SEEING NONE, WE'LL MOVE ON TO ITEM NUMBER 20 5-261 SIX MINUTES OF THE TAX INCREMENT REINVESTMENT ZONE. NUMBER TWO BOARD MEETING OF MAY 7TH, 2024. I DON'T BELIEVE THERE'S ANY PRESENTATION ON THIS ITEM, SO I WOULD ENTERTAIN A MOTION TO APPROVE THOSE MEETINGS. SO MOVED SECOND. MOTION MADE BY MEMBER MCCALL AND THE SECOND BY MISS MEANT CALL ME. MOTION WAS MADE BY GEORGE FULLER AND SECOND BY MR. COUNCIL MEMBER MCCALL. MEMBER. ALL IN FAVOR? AYE.OPPOSED? THERE BEING NONE. I'LL CALL OUT THAT IT'S ALWAYS IMPORTANT TO MAKE A CLEAN RECORD IN THE EVENT OF ANY APPEALS. I JUST WANTED YOU GUYS TO KNOW THAT MOVING FORWARD, WE'LL MOVE
[Presentation of the Fiscal Year 2023-2024 TIRZ 2 Annual Report]
ON TO ITEM NUMBER 252617 PRESENTATION OF THE FISCAL YEAR 2023 TO 24 TOURIST TWO ANNUAL REPORT. THE FLOOR IS YOURS, MR. MILLER. WELCOME BACK. YES, IT'S BEEN A WHILE. GOOD EVENING.CHANCE MILLER, ASSISTANT FINANCE DIRECTOR. WE'LL BE GOING OVER THE TOURS. TWO 2024 ANNUAL REPORT. THIS IS REQUIRED BY THE STATE COMPTROLLER EVERY ONCE A YEAR. AND THEN WE ALSO REPORT IT TO YOU AT THAT TIME. THERE IS NO ACTION ITEM ON THIS SOLELY INFORMATION SHARING. LET'S GO DOWN TO THE NUMBERS. AS ALWAYS, FEEL FREE TO ASK ANY QUESTIONS. AS I GO THROUGH THIS, I'LL BE HAPPY TO ANSWER. FOR 2024, WE COLLECTED $3.1 MILLION IN PROPERTY TAX AND SALES TAX RELATED TO THE TOURS TWO AREA. WE COLLECTED $271,000 IN INTEREST INCOME. WE MOVED DOWN TO THE TOURIST TWO EXPENDITURE. WE HAD A 35,000 GENERAL AND ADMINISTRATIVE EXPENSE. WE ALSO HAD $2.8 MILLION THAT WAS SPENT ON THE TAXIWAY A4. THERE IS MOVING ON TO NUMBER THREE. THERE IS NO DEBT CURRENTLY ISSUED AGAINST TOURS TWO. AND WE'RE LOOKING AT PROPERTY VALUES AT NUMBER FOUR. WE CAN SEE THAT IN 2010 THE VALUES WERE 117 MILLION. AND TAX YEAR 2023 OR FISCAL YEAR 24, THEY ARE UP TO 408 OR CLOSE TO $408 MILLION, WHICH RESULTS IN A CAPTURED VALUE OF $290 MILLION. THIS WAS $218 MILLION LAST YEAR, SO THIS IS AN INCREASE OF CLOSE TO $80 MILLION AND ONE FISCAL YEAR, WHICH IS VERY STRONG. COLLIN COUNTY HAD A SIMILAR NUMBER AS WELL, AS THEY HAD 290 MILLION AND A CAPTURED VALUE, AND LAST YEAR WAS 218 MILLION AS WELL. SO A SIMILAR INCREASE FOR THE COLLIN COUNTY PORTION. NOW, IF WE LOOK AT NUMBER FIVE AND SEE HOW THAT TRANSLATES TO ACTUAL DOLLARS, THE CITY OF MCKINNEY PORTION MULTIPLIED BY OUR TAX RATE GETS US TO 1.24 MILLION. LAST YEAR IT WAS RIGHT AT 1 MILLION. SO THAT'S AN INCREASE OF 240,001 FISCAL YEAR. IF WE LOOK AT COLLIN COUNTY, WE COLLECTED 217,000. AND LAST YEAR THAT WAS 166,000. SO IT'S AN INCREASE OF 50,001 FISCAL YEAR. LOOKING AT SALES TAX BACK IN 2010, THE CAPTURED VALUE WAS 493,000 AND FISCAL YEAR 24. THAT WAS UP TO 2.1 MILLION. SO THAT RESULTS IN 1.6, SLIGHTLY OVER 1.6 MILLION. MOVING INTO THE TOURIST TWO FUND. THAT IS AN INCREASE OF 13.6% YEAR OVER YEAR FOR SALES TAX ON THE TOURIST TWO BOUNDARIES. THE CITY YEAR OVER YEAR INCREASE WAS 7.2%. SO THE AIRPORT ACTUALLY EXCEEDED THE CITY'S SALES TAX INCREASE.
LASTLY, LOOKING AT THE FUND BALANCE AT THE VERY BOTTOM, YOU CAN SEE HOW IT'S INCREASED OVER TIME. AND WE ARE CURRENTLY AT 8.2 MILLION, WHICH 808,000 OF THAT IS RESTRICTED FOR TRANSPORTATION PURPOSES. AT THIS TIME. I'LL BE HAPPY TO ANSWER ANY QUESTIONS OVER THE FIRST TWO ANNUAL REPORT. MR. MILLER ASKED YOU IN OUR LAST MEETING IF YOU HAD A MAP OF THE BOUNDARIES OF CHURCH TWO OR CHURCH ONE, DO YOU HAVE ONE FOR CHURCH TWO I DO NOT, IT LOOKS LIKE, BUT I WILL HAVE THAT FIXED. LET ME POINT SOMETHING OUT TO YOU. WHEN YOU WERE GIVEN THE LAST PORTION OF YOUR PRESENTATION, YOU SAID THE AIRPORT DID SUBSTANTIALLY BETTER THAN TWO YEARS. ONE SO COULD YOU GENERALLY DESCRIBE THE BOUNDARIES OF CHURCH TWO? CHURCH TWO IS EAST OF THE TRES ONE
[00:05:04]
BOUNDARIES, AND IT DOES GO A LITTLE BIT MORE EAST THAN YOU MIGHT KNOW, BUT THEN IT GOES ALL THE WAY UP TO THE 380 KIND OF BOUNDARY UP THERE. THAT'S MY BEST WAY TO DESCRIBE IT. OKAY.AND WHAT IS THE LARGEST ASSET OWNED BY THE CITY IN TRES TWO? THAT WOULD BE THE AIRPORT. THAT WOULD BE THE AIRPORT. AND SO WOULD IT BE A FAIR STATEMENT TO MAKE TO THE GENERAL PUBLIC THAT TRES TWO WAS CREATED TO FUND FUTURE DEVELOPMENT AT THE AIRPORT, CORRECT. IN 2010? THAT WAS PART OF THE PROJECT PLAN WAS THE AND WE CAN LOOK AT THAT THROUGH THE ORDINANCE AND WHAT WAS APPROVED IN 2010. AND IN YOUR REPORT, YOU HAD MENTIONED TAXIWAY A FOUR WAS FUNDED BY TRES TWO. IS THAT A GENERAL AVIATION TAXIWAY? TO YOUR KNOWLEDGE? I BELIEVE SO, BUT I'M GOING TO BE HONEST, I'M NOT AS FAMILIAR WITH ALL THE AIRPORT TERMINOLOGY AND WHAT ALL THE TAXIWAYS DO. BESIDES, IT BRINGS THE AIRPLANE OUT THERE. BUT YES SIR. AND IT WAS A VERY UNFAIR QUESTION OF ME TO EXPECT YOU TO FINANCE THAT. AND I WILL POINT OUT TO YOU THAT THAT IS A GENERAL AVIATION RUNWAY. AWESOME. AND SO THAT RUNWAY WAS ACTUALLY FOR THE PURPOSES FOR WHICH TRES TWO WAS INITIATED BY PRIOR COUNCILS, WELL BEFORE ANYONE SITTING HERE, CORRECT? YES, SIR. FOR THE PURPOSES OF FUNDING DEVELOPMENT AT THE AIRPORT. MR. POPE. MR. BARRY SHELTON, THANK YOU. YOU KNEW I HAD THAT. NO PROBLEM. SO I HEARD THE QUESTION ABOUT THE FUNDING FOR TAXIWAY A-4. SO THAT IS THE PERPENDICULAR TAXIWAY, WHICH IS A GENERAL AVIATION TAXIWAY THAT OPENED UP THE THREE PROPERTIES. SO ENCORE WIRE HAS RECENTLY BUILT THEIR HANGAR AND OPENED THAT UP ON THAT SITE. THE DPS HANGAR IS GOING ON THAT SITE VERY SHORTLY. AND THEN WE HAVE A GROUND LEASE WITH A LARGE TENANT THAT WILL BE BRINGING IN TWO NEW AIRCRAFT TO BUILD A HANGAR AND STORE THOSE AIRCRAFT. SO YES, THAT'S WHAT THE A-4 WAS. AND THOSE WERE HANGARS THAT WERE PREVIOUSLY BUILT ON THE WEST SIDE OF THE AIRPORT. CORRECT? YEAH. A-4 IS IT'S ON THE WEST SIDE. IT OPENED UP A TRACT OF LAND THAT ALLOWED THOSE THREE PROJECTS. SO WE ANTICIPATE PROBABLY ABOUT $200 MILLION IN NEW PROPERTY VALUE AT THE AIRPORT BASED ON THAT ONE PROJECT. DO YOU KNOW OFFHAND HOW MANY AIRCRAFT THAT ENCORE MAKES HOME AT THAT AIRPORT? I BELIEVE IT IS ONE CURRENTLY, BUT THEY ARE LOOKING TO BRING OTHER AIRCRAFT IN AS WELL. THE DPS HANGAR WILL HAVE, I BELIEVE, ONE HELICOPTER AND TWO FIXED WING AIRCRAFT, AND THEN THE THIRD TENANT, WHICH WILL BE ON THE FAR WEST SIDE OF THAT TAXIWAY A4, IS LOOKING AT BRINGING IN TWO BRAND NEW AIRCRAFT. I BELIEVE THEY'RE EACH ESTIMATED TO BE ABOUT $80 MILLION IN VALUE. AND THOSE EACH OF THOSE AIRCRAFT, WITH A POSSIBLE EXCEPTION FOR DPS BEING A GOVERNMENTAL AGENCY, PAY TAXES ON THAT. THE SAME AS I PAY ON MY RESIDENCE. YES, SIR. OUR TENANTS, THEY WILL PAY TAXES ON THEIR PRIVATELY OWNED HANGARS AND THEY WILL PAY TAXES ON THE AIRCRAFT AS WELL AS BUSINESS PROPERTY TAX. IN SHORT, THOSE AIRCRAFTS GENERATE A LOT OF MONEY FOR THE TOURISTS TO. ALL RIGHT. THANK YOU. AND I APPRECIATE YOU STEPPING UP TO HELP OUT ON MY POINT, I HEARD A QUESTION THAT CHANCE MAY NOT KNOW THE ANSWER TO. HE HAS EVERYTHING ELSE COVERED THOUGH.
THAT IS ALL THE QUESTIONS THAT I HAVE. ARE THERE ANY OTHER QUESTIONS BY ANY OTHER MEMBER OF THIS BOARD? THERE BEING NONE, I WOULD ENTERTAIN A MOTION TO ADJOURN. SO MOVED. SECOND AND ALL IN FAVOR? AYE. NONE OPPOSED. AND I WILL POINT OUT THAT MR. LEBO POINTED OUT TO ME THAT THIS WAS AN INFORMATION ONLY ITEM IN OUR LAST MEETING, BUT THANK YOU FOR THAT SURPLUS VOTE. I APPRECIATE YOUR SUPPORT. WITH THAT BEING TAKEN CARE OF, IS THERE A MOTION FOR US TO ADJOURN? SO MOVED. MOVED. SECOND. I BELIEVE THERE WAS A MOTION BY FRANKLIN, AND THEN I SECONDED FRANKLIN AND CLAUDIA FOR THE RECORD PURPOSES. ALL IN FAVOR? AYE, AYE. ANY OPPOSED? THAT ENDS ANOTHER EXCITING MEETING. I
* This transcript was compiled from uncorrected Closed Captioning.