Demystifying McKinney's Airport

Many McKinney citizens think the McKinney Airport is a great economic development tool for our city. They believe an airport sets McKinney apart from other cities. Others think that the McKinney Airport is a drain on our economy that will never bring in enough to make the investment worth it. Still some reject the McKinney Airport because they don’t like the noise and they don’t want to become like Addison.

Regardless of what you think about the airport, you should know how much city money is coming into the airport through the various funding mechanisms, how much money the airport makes a year, how the city plans to make the airport profitable, and by what year it is expected to make a profit. The city has been very patient and helpful answering the questions necessary for me to get answers. They made a flow chart for each year since they took over both the McKinney Airport and the Flight Based Operations (FBO). I believe they'll be putting the Powerpoints on the city website soon. Hopefully, they'll do this for every year.

Before 2013, the city of McKinney spent much, much more on the airport. In 2010-11, the McKinney Economic Development Corporation gave the McKinney Aiport a $5M grant.

Here are the city's Powerpoints from 2014, 2015, and 2016. The FBO was purchased in 2013:

Airport Funding Flow Chart.v3 on Scribd for full screen, follow link

What the three flow charts show is how much the McKinney National Airport really makes for the city each year in all tax revenue: that's Ad Valorem property tax and all sales and use tax (fuel sales too).

The flow chart also shows all the money the city gets as revenue either goes into the TIRZ #2 (see the sidebar for TIRZ info), it goes back into the Airport to fund it, or it goes into paying debt that was borrowed for the airport.

From what I've been able to gather, the airport needs to expand to make more money. However, expansion is very expensive. In 2015, citizens rejected a city bond to extra land for a new airport runway. More runway is supposed to equal more hangars and more fuel sales. We don't know how much we would have to feed into the airport to see more profits. We also do not know how much those additional profits would be. Would they be worth it or not?

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