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Finance staff presents Q1 Type A fund update showing $2.5M in sales tax collections
Summary
A finance department staff member reported Quarter 1 actuals for the Type A economic development fund: $2.5 million in sales tax collected (5.12% over YTD budget), revenues budgeted at $9.7 million, expenses $8.5 million, and noted $3.2 million annual debt service through FY2033 and incentive payments in Q1.
A finance department staff member presented the quarter‑1 financial update for the Type A economic development fund, reporting $2.5 million in sales tax collections for the quarter and that the fund is tracking 5.12% ahead of its year‑to‑date budget projection.
“We've collected 2 and a half million dollars in quarter 1, which is 5.12 over year to date budget,” the presenter said, summarizing preliminary collections through Dec. 31, 2025. The presenter said 97% of the fund's revenue is expected from sales tax and that the fund’s adopted revenue budget for 2026 is $9,700,000; interest income is budgeted at $265,000.
On the expense side, the presenter said the 2026 budget shows $8,500,000 in expenditures, “but the majority of that” is debt service on the HEB Center, with payments of $3,200,000 a year remaining through fiscal year 2033. The presenter also noted staff support transfers of $816,000 that are made at the start of the fiscal year to reflect city department services provided to Type A.
The report showed interest income at about 61% of the fiscal‑year budgeted level and cautioned that interest revenue is market‑driven and conservatively projected. Expenditure categories noted as already fully spent included the HEB center improvements and an approved personnel and office remodel package tied to a new administrative assistant FTE; a new capital cost line of $75,000 was flagged as fully expended because the funds were transferred to the capital projects fund.
The presenter listed incentive payments made in Q1 that were not budgeted for 2026: a $7,200 payment to AVEO Solutions Incorporated and a $504,000 payment to New Hope Land, describing those payments as related to previously approved agreements and timing of trigger metrics. The presenter said staff will continue to monitor collections and incentive payments quarter to quarter.
Board members asked no additional questions during the update, and the presentation concluded with thanks from the chair.
