Balch Springs EDC (Type A) receives FY2025-26 budget update; city staff projects $3.39 million year-end balance

President David Ruffino opened the July 21, 2025, Balch Springs Industrial and Economic Development Corporation (Type A) meeting for a financial update as the city prepares the FY2025-26 budget.

Rebecca Osteen of the city finance department summarized the EDC’s fund 120 finances and projections, saying the beginning fund balance from the 2024 audit was $5,328,987 and that staff now projects total revenues of roughly $1,490,000 for the year. Osteen said interest income has exceeded prior estimates and was revised upward to $15,000. With expenditures projected to match the adopted budget, she said the projected ending fund balance is $3,394,429.

The update also covered debt and cash positions. Osteen reported a scheduled debt-service payment of about $233,000 for the fiscal year and stated the outstanding bond balance was listed at $1,868,750, with a current outstanding total of $1,849,736 after a February interest payment. She said total cash available across funds is approximately $5,859,000.

The presentation explained a change in revenue recognition for sales tax. "The city did not accrue back; they basically did an entry at the end of the fiscal year to adjust for that. This year, we decided we were gonna appropriate it the way that it should so that we could really project better for what we collect in that period," Osteen said, describing the accounting change that creates different month-to-month fluctuations in the sales-tax line.

Tan Baby, identified in the meeting as the city chief financial officer, said finance staff paused some routine transfers to review and ensure transfers are booked to the appropriate funds before completing them. "We discontinued transferring money, but the transfers are going to be caught up," Baby said, adding the department is ensuring proper entries are posted so transfers reflect the correct amounts and timing.

A major planned expenditure affecting the fund balance is the Alexander Village development. The board was reminded that the economic development agreement approved previously obligates the EDC to disburse an estimated $1,200,000 in the current fiscal year and an additional $300,000 in the coming fiscal year for Alexander Village-related road and infrastructure work. Staff said the developer must invest at least $3,200,000 in infrastructure before land conveyance and that the Alexander Road collector and related right-of-way will need to be recorded on the plat for TxDOT driveway-permit purposes.

On follow-up, staff said part of the delay in delivering the right-of-way stems from a hold-up with one property owner identified as a church that has not responded consistently to city outreach. Staff said they will continue attempting to negotiate and, if necessary, pursue condemnation only after further attempts to reach agreement and after consulting the city attorney.

Board members were told a proposed budget will be presented at the board’s next meeting on Aug. 18; staff emphasized the July presentation was a financial-status briefing to set expectations before the formal proposed budget is submitted.

Why it matters: the Type A fund finances economic development incentives and projects in Balch Springs; changes in revenue recognition, planned transfers and a large near-term commitment for Alexander Village will affect available cash for other projects.

Ending: Board members asked staff to return with the proposed FY2025-26 budget at the August meeting and to continue seeking resolution of the Alexander Road right-of-way so developer commitments can proceed.