Cedar Park Type A projects $1.1 million net increase in 2026 budget; board amends PG Cedar Park agreement and elects officers

Cedar Park — The Cedar Park Type A Economic Development Corporation board reviewed a fiscal 2026 preliminary budget that projects $1.1 million in net revenues and an available fund balance of about $15.3 million after meeting a $4.7 million reserve requirement, Finance Department staff said at the board's meeting.

"For every purchase at a brick-and-mortar store or for online purchases shipped to an address within Cedar Park, our businesses, residents, and visitors pay sales tax of 8.25% or 8.25¢ on every dollar. Of that amount, 2¢ is collected by the city, and of that 2¢, the three-eighths of a cent is received by the Type A Economic Development Corporation to fund economic development initiatives," Finance Department staff member Erica Solis told the board while presenting the budget preview.

Why it matters: The Type A fund relies primarily on the city sales-tax allocation and covers debt service, economic development agreements, staff support, and grant programs. The board's preliminary numbers and decisions will feed into the citywide budget adoption process, which the City Council is scheduled to finalize on Sept. 11; the Type A board must adopt its budget beforehand.

Key budget figures and proposals presented by Solis include: FY2026 sales-tax revenue conservatively budgeted to grow 2% over projected FY2025 ending collections; total FY2026 revenues of approximately $9.7 million and expenses of about $8.5 million; a projected $1.1 million increase to the fund balance; a reserve requirement set at $4.7 million (described as roughly two months of budgeted sales-tax collections plus one year of debt service); and an estimated available fund balance after that reserve of $15.3 million.

Solis highlighted two new budget requests included in the preliminary FY2026 figures: a $400,000 innovation grant intended to attract fast-scaling startups to Cedar Park, and a new administrative assistant position budgeted at $80,995 (base salary plus benefits) with a one-time $5,000 equipment allowance and a one-time $75,000 office renovation that would be funded by Type A. Solis said staff support costs — the city departments' provision of services to the Type A corporation — are budgeted at $816,000, up roughly 3% from the prior year.

Debt service was the largest single expense in the presentation. Solis said annual debt-service payments for the H-E-B Center are expected to continue at about $3.2 million per year through fiscal 2033, when that debt will be paid off, and that the outstanding principal as of 2025 is $21.9 million. She also noted the city's contractual share of H-E-B Center capital costs is increasing from 33% to 50% for at least a two-year period, and the Type A contribution was increased to mirror that change.

Solis said the board will not take action on the preliminary budget that evening and that staff will return at a specially called meeting for the board to consider adopting the Type A budget before the City Council's scheduled adoption. "This will have to be a special called meeting since council will adopt the budget on September 11," Solis said.

Other business and formal actions: The board recessed into executive session under Chapter 551 of the Texas Government Code to discuss economic development negotiations and legal matters involving economic development performance agreements, including matters related to Alcony's Real Estate Group and PAG Cedar Park Group. After returning to open session, the board approved minutes, adopted a resolution to amend the economic development performance agreement with PG Cedar Park Group, LLC, and completed elections for board officers.

Votes at a glance - Approval of minutes from the July 21, 2025 meeting: motion approved by voice vote (all in favor), no recorded opposition. - Resolution authorizing an amendment to the Type A economic development performance agreement with PG Cedar Park Group, LLC: motion made and seconded; approved by voice vote (all in favor). - Election of officers: board approved officers by voice vote (all in favor). Recorded officer outcomes in the meeting transcript were: president (June Price), vice president (Brian Rice), secretary (Scott Smith), treasurer (Erica Solis). The board confirmed approval of officers separately for each office.

What board members asked and staff responses: Board members asked for clarification on debt-service composition (principal vs. interest) and the timeline on the city's percentage share for H-E-B Center costs; staff said the share change will hold for about two years and reiterated plans to explore refunding or defeasance of bonds with the city's financial adviser. Solis also noted that FY2025 sales-tax collections through June were trending about 8.6% over year-to-date budget and that the FY2025 projected ending collections were expected to finish about 7% over budget, which drives much of the increased beginning balance for 2026.

Background and next steps: Staff presented a list of active economic development agreements with expected FY2026 payments totaling about $2.4 million. The board was told staff will return at a specially called meeting to ask the board to consider adopting the Type A budget, after which the city will include the board-approved Type A budget in its presentations to council ahead of the council's planned Sept. 11 final adoption.

Closing: After the formal actions, several board members offered brief closing remarks praising the board's work and the city's economic momentum; staff said they will reach out to schedule the special called meeting to adopt the Type A budget.