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Farmers Branch TIRZ No. 2 board reviews TIF basics, approves 2024 financial report
Summary
The City of Farmers Branch Tax Increment Reinvestment Zone (TIRZ) No. 2 board heard a presentation on how TIF works and approved the zone's 2024 financial report, which showed $206,730 in tax increment deposits, $78,554 in expenditures and an incremental property value of about $153.2 million.
The City of Farmers Branch Tax Increment Reinvestment Zone No. 2 board on Thursday heard a presentation on tax increment financing and approved the zone's 2024 financial report.
Deputy Director of Economic Development Darren Garris opened the presentation, saying, "Tax increment financing is a tool that's used to capture the new tax, new tax development in the in the increment zone and is used to pay for public improvements in that area." Garris described the city's four TIRZ/TIF areas and said TIRZ No. 2 was established in 1999 and was extended by the council to expire in 2031; the city participates at a 25% rate and the zone encompasses roughly 154 acres.
Mark Furman, vice president with the city's public-finance administrator, presented the TIRZ No. 2 fiscal year 2024 financial report and said the report was prepared "pursuant to Texas Property Code Chapter 311." Furman reported $206,730 in city property-tax increments collected for the fiscal year and $78,554 in expenditures. Furman gave a line-item breakdown of expenditures as $40,995 for Valley View Lane roadway improvements, $2,400 for signage and $35,159 for the Denton Drive Veil Connector, describing those costs as engineering and soft costs. Furman also said no bonds have been issued specifically for TIRZ No. 2.
On property values, Furman reported the zone's base-year total value was $15,502,062 (the value recorded when the zone was created in 1999) and said the Dallas Central Appraisal District reported a 2022 total value of $168,711,840 for property inside the zone. Furman gave the incremental value that generates revenue for the zone as $153,209,778.
Councilman Roman asked how property-tax protests affect TIRZ calculations. Furman explained the board's practice is to use actual taxes paid when calculating credits and said adjustments or amendments to prior reports can be made if exemptions or rollbacks are applied later. "We look at the actual taxes paid rather than strictly looking at value," Furman said.
The board voted to approve the minutes from the prior meeting and then voted to approve the TIRZ No. 2 2024 financial report; the motions carried by voice vote. Furman said the next step is for city staff and the administrator to submit the report to the Texas Comptroller's office through the online portal.
The discussion contained procedural questions about tax protests and technical clarifications about how incremental revenue is calculated; there were no other substantive policy actions or bond issuances tied to the report.
