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Liberty Hill EDC approves FY26 budget after stronger-than-expected sales-tax projections
Summary
The Liberty Hill Economic Development Corporation board approved the FY26 budget July 16 after staff reported sales-tax projections above earlier targets. The budget includes a proposal to dedicate 10% of sales-tax revenue to advertising, a $40,000 downtown façade grant line, and new fund-balance policy targets.
The Liberty Hill Economic Development Corporation board voted July 16 to adopt its fiscal year 2026 budget after staff presented updated sales-tax projections that outpaced earlier assumptions.
Treasurer (Speaker 7) told directors her updated model showed roughly $200,000 more in sales-tax revenue than originally targeted and a 12-month floating average that has crested at about $600,000 per month. Based on those figures, the budget as presented anticipates roughly $2.2 million in sales-tax revenue for FY26, with advertising set at 10% of that revenue (about $220,000) and $40,000 newly allocated for downtown façade grants.
"My sales tax projections do not include Costco because I don't have an actual data point," Speaker 7 said. She also described using a new software tool (Zactax) to analyze confidential sales-tax trends while preserving business-level confidentiality.
Executive Director (Speaker 4) and the treasurer outlined recommended financial policies for the EDC, including a proposed fund-balance floor of 25% and a ceiling of 33% with a plan for spend-down if the ceiling is reached. The recommendation also calls for an EDC-specific travel and training policy that mirrors city rules but contains carve-outs for EDC business needs.
Directors asked clarifying questions about restricted uses of confidential sales-tax data, the timing for including July numbers in the projection model and how façade grants would be administered. Staff said façade grants would be managed by the EDC and would follow the board's grant rules.
Board member (Speaker 9) moved to accept the FY26 budget "as it is"; Speaker 2 seconded. The chair called the voice vote and the motion passed.
The board did not set an immediate spending plan for the projected fund-balance increases; staff said they would return with options for formal allocation and policy language to guide future use.
