Kennedale EDC debates FY2026 budget as Dollar General renovation, YMCA costs widen shortfall

Kennedale — Members of the Kennedale Economic Development Corporation spent more than two hours July 22 hashing out the proposed FY2026 budget as officials warned rising renovation estimates for the former Dollar General and a higher-than-expected YMCA price tag widened a budget gap.

The debate centered on whether the EDC should fund a $500,000 renovation for the town-center building that the board controls, a lift purchase budgeted at about $130,000, and a $250,000 grants line. Staff said the YMCA partnership originally budgeted at $500,000 now looks closer to $869,000, and that the city is losing about $8,500 a month in lease revenue from the vacated Dollar General space. Director Horton told the board, "This is the last EDC meeting before we take our budget to council for adoption. So, just your last opportunity to provide some input to Mr. Hull and myself on what we'll present to council." The draft budget at the time showed a projected net change in the fund balance of negative $721,000.

Why it matters: the EDC controls revenue that is meant to spur private investment in Kennedale’s town center and support local businesses. Large one-time expenditures or overruns could reduce the EDC’s reserve and limit future development incentives.

Most urgent items and board direction

Board members repeatedly returned to three linked items: the Dollar General building (town-center renovations), the potential YMCA tenant, and an equipment…