The Tax Increment Finance South Board unanimously authorized staff Aug. 20 to develop a project and financial plan seeking an extension of TIF 2’s termination date and a program to split future tax‑increment revenue between the city’s general fund and economic development uses.

The move sets the board on a path to present the plan to City Council before TIF 2’s current expiration on Dec. 31, 2025. Matt Watts, chief financial officer for the city of Garland and staff liaison for the TIF boards, framed the proposal around recent valuation growth and a consultant study underway.

“What a TIF is is a mechanism for financing that allows you to collect taxes and hold those inside of a what’s called a TIF fund to be utilized for a specific geographic area,” Watts said, describing the district’s origin in February 2004 and the district’s role in financing public infrastructure tied to Bass Pro Shop and surrounding property.

Watts told the board the district’s taxable value has grown substantially since creation. He cited a base value at creation of about $75 million, captured increment of roughly $340 million over time, and said the current taxable value within the TIF is about $415 million. For the proposed 2025–26 budget, staff is using a conservative revenue estimate of about $2,300,000 for the TIF.

The staff proposal the board endorsed for development into a formal project plan would allocate 50% of annual TIF revenue to the general fund for public safety operations along I‑30 — an amount Watts described as intended to help cover police and fire costs in the corridor — and 50% to support economic development projects within the TIF boundary and any approved expansions.

“The first item we would like to have recommended by the TIF board is for 50% of the TIF funds to go to the general fund for public safety operations along I‑30,” Watts said. He described that approach as conservative and consistent with consultant recommendations to reserve only a portion of increment for bonding or incentives.

Watts also told the board staff has engaged a consultant, David Pettit, to review the TIF boundary and parcel‑level opportunities. Pettit is evaluating whether to extend or adjust the TIF boundary to capture vacant parcels and potential development sites along I‑30 and around Harbor Pointe. Watts said he expects the consultant’s recommendations in September and would schedule a follow‑up TIF meeting to review them before making a recommendation to City Council.

Board members asked clarifying questions about how any extension would treat base value (the original 2004 base would remain for properties already in the district), whether added parcels would use a current base, and whether Dallas County participation would continue. Watts explained Dallas County historically participated beginning three years after TIF creation and that under county policy the county’s participation is time‑limited (about 17 years), so county participation in the current district is scheduled to end with the district’s current term unless a separate agreement is reached.

Watts said the TIF has one remaining incentive payment to property owners around Bass Pro included in the current plan and that the city paid off the original TIF bonds in early 2025. Board members also questioned the scale and purpose of the proposed transfer to the general fund; Watts said the $1,060,000 figure in the draft FY 2025–26 budget is a conservative estimate of half the current-year revenue and that the project plan would include assumptions and annual amendments as needed.

Board members signaled general support for the concept but several asked that the plan remain flexible. One member who participates on a separate EMS/fire stakeholder committee said they wanted to see recommendations from that committee before committing permanently to a 50% split. Watts said the project plan can be amended annually and that any final recommendation to City Council would include details on assumptions, phasing and safeguards.

On the record actions, the board: approved the minutes earlier in the meeting, reviewed the proposed FY 2025–26 revenue and expenditure assumptions for TIF 2, and then voted to proceed with developing a project and financial plan that contemplates extending the TIF termination date and a 50/50 split of tax increment receipts between the general fund for public safety along I‑30 and economic development within the district. The motion to move forward on extending the termination and updating the project and financial plans passed unanimously after a motion and second; the board counted seven affirmative votes.

Next steps set by staff: the consultant’s parcel and boundary review is expected in September, staff will circulate the consultant report and an updated presentation to board members in advance of a follow‑up meeting, and the board will consider a formal recommendation to City Council in October or November so Council can act before the Dec. 31, 2025 expiration if it chooses to do so.

The board did not take final action to change the TIF termination date at the Aug. 20 meeting; it authorized staff to develop the formal project plan and return with the consultant’s analysis and proposed ordinance language for the board’s and City Council’s consideration.

Votes at a glance

- Motion: Move forward with developing a project and financial plan to (a) consider extending the termination date of TIF 2 and (b) consider updating the project and finance plans to allocate 50% of TIF revenue to the general fund for public safety along I‑30 and 50% to economic development. Mover: Jennifer (first name recorded). Second: Jason (first name recorded). Outcome: approved unanimously (7–0).

Ending note: The board asked staff to circulate the consultant’s report as soon as it is available and agreed to schedule a follow‑up meeting in September; any final extension would require City Council action and could be amended in future budget cycles.