Tracy presents Reinvestment Zone No. 1 annual report; board approves

Tracy, presenting the Reinvestment Zone No. 1 annual report for the year ended Sept. 30, 2025, told the board the packet summarizes the zones projects, financing plan and encumbrances and will be sent to each participating taxing entity.

The finance presentation showed tax-increment collections of a little over $37,000,000 against a budgeted $36,100,000 and interest income of about $3,200,000. Land sales accounted for roughly $1,400,000, with some sales rolling forward because they remain pending. Tracy said outstanding bonds totaled $162,800,000 in principal with $76,200,000 in future interest payable; 55.42% of the debt is scheduled to retire within 10 years.

Tracy summarized uses and balances: total uses for the year were about $58,800,000; the zone began FY25 with a $77,000,000 fund balance, recorded a net decrease of approximately $17,800,000 and closed the year with an available fund balance of about $59,100,000. She noted approximately $73,200,000 of programmed projects will roll into FY26 as encumbrances or uncompleted contracts and explained that some interest earnings (about $1,600,000) are reserved for IRS arbitrage rebate obligations.

Board members asked clarifying questions about the financing-plan columns and carry-forwards; Tracy said the packet includes an adopted financing plan and subsequent columns that show actual FY25 amounts, encumbrances and the revised FY26 financing plan. After discussion, the board approved the annual report by voice vote and the chair recorded the motion as carried.

The board directed staff to transmit the approved annual report to Temple ISD, the city and the other participating taxing entities as described in the packet.