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TIDA outlines FY26–27 budget planning, warns of declining residential leasing revenue and proposes new reserve policy
Summary
TIDA finance staff briefed the board on the FY26–27 budget process, citing structural declines in residential leasing revenues and proposing a new reserve policy and structural budget changes to shift eligible costs to DDA subsidies and the CFD to protect operations.
TIDA’s finance manager briefed the board on the upcoming FY26–27 budget process and recommended structural changes to protect the authority cost budget amid declining residential leasing revenues.
Jamie Krugman (finance manager) said TIDA will present a two‑year budget in January and noted three budget components: the authority cost budget (funded by TIDA lease revenues), the city cost budget (development costs reimbursed by TICD) and costs eligible for funding by DDA subsidies and the Community Facilities District (CFD). Krugman told the board that in FY25 residential leasing revenues missed targets—“approximately $850,000 and $340,000 respectively” for two residential revenue categories—contributing to a lean operating margin despite underspending on staff positions.
To address volatility, staff proposed a new reserve policy to build cash reserves and suggested shifting eligible park‑related and other costs to CFD and DDA subsidy sources where appropriate. The presentation also flagged anticipated cost pressures including full staffing, utility increases and transport‑related investments to support ferry and shuttle services under development.
Board members urged exploration of interim uses for vacated housing to produce short‑term revenue (for example artist residencies or temporary nonprofit uses) and asked staff to ensure continued funding for public art programs, which currently rely on 1% development allocations that have been paused as the second phase of development is delayed.
Staff said they will return in January with a proposed reserve policy and a detailed structural plan for aligning authority costs with projected leasing revenues.
