Type A fund shows stronger‑than‑expected sales tax; finance staff reports $2.5M collections in first quarter

Erica Solis, a finance department staff member, presented the Type A economic development corporation first‑quarter (0.25) update covering actuals through Dec. 31, 2025. She said the adopted 2026 budget shows $9.7 million in revenues, about 97% of which is projected to come from sales tax, and budgeted expenses of $8.5 million.

Solis said the fund collected $2.5 million in sales tax in the first quarter, which she described as "5.12% over year‑to‑date budget" though 1.12% below the same month in the prior year. She told the board interest income is budgeted at $265,000 and that ‘‘we are at 61% of our budgeted revenue for the fiscal year,’’ noting staff generally model that line conservatively because it is market‑driven. Solis also said annual debt service for the H‑E‑B Center is $3.2 million remaining through fiscal 2033 and identified incentive payments made in the quarter, including $7,200 to AVEO Solutions Incorporated and $504,000 to New Hope Land.

The presentation included a new $75,000 capital cost line item and a note that the board-approved Type A budget covers an administrative FTE and office remodel costs that were transferred to capital projects. Solis said staff will continue to monitor quarter‑over‑quarter performance and watch incentive payment timing against budgeted expectations.