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Duncanville development corporation proposes strategic drawdown of $8M fund balance for capital and incentives
Summary
Duncanville economic-development staff told council the DCDC fund balance has grown to about $8 million and proposed a planned drawdown to invest in capital projects, incentives and strategic programs while preserving reserves and meeting advertising requirements tied to hotel-tax law.
Marlin Goff, economic development staff, reviewed the DCDC (Duncanville Economic Development Corporation) FY26-27 budget at the June 30 workshop and outlined a proposal to reduce an expanding fund balance to finance strategic capital projects and incentives.
Goff said the corporation forecasts ending the fiscal year with just over $8 million, a level he described as roughly 1,000 days of operating reserves. He argued that holding excessive unrestricted balance carries an opportunity cost and proposed a multi-year drawdown to support projects such as incentives, facility maintenance (including recent field-house repairs) and strategic capital contributions that meet statutory uses for type-B development corporations.
Staff noted constraints tied to hotel-tax rules for certain projects and that advertising and promotion requirements will still require roughly $171,000 annually from hot funds based on a $1.2 million revenue estimate. Goff also detailed recent transactions that affected fund balance, including the Toyota-property sale and certificate-of-deposit maturities.
Council discussion focused on balancing reserve policy (staff cited a 90-to-150-day policy band), timing for using bond and one-time funds, and how to align DCDC investments with priority corridors, gateway improvements and grants. Staff said some one-time funds already transferred from excess balance (roughly $4.1 million) had limited allocations and that council feedback would guide distribution among projects such as the Daniel Hike-and-Bike tie-in, field-house parking and park improvements.
Next steps: staff will circulate a prioritization worksheet for council to rank one-time requests and return with firm budget language and contract items at the August workshop and the city's July 31 proposed-budget submission.
