CDC staff: revenues finish slightly under budget; personnel and maintenance shifts change outlook

Heather (staff member) presented the Highland Village Community Development Corporation’s year-end revenue and FY2027 outlook, saying year-to-date actuals through May 31, 2026, indicate total revenues will finish “about $47,000 under budget.” She told the board that sales tax — the fund’s largest source — has been “pretty flat” since 2023 and that the city expects about $1,830,000 in sales-tax revenue for 2027.

Board members pressed staff on how revenues are recognized and how fees are classified. Heather explained the city’s two-month lag in collections: May remittances reflect March sales, and the city accrues late collections into the fiscal year as appropriate. She also clarified that rental income includes the DoubleTree barn and pavilions and that developer linear-park fees are allocated to 4B because they enhance the trail system. A board member noted rental income and park fees were not broken out the same way in prior reports and asked staff to clarify classifications in the next update.

The presentation also covered expenditures: Heather said personnel is expected to finish roughly $79,000 under budget because four positions funded from 4B were reallocated and had different pay/insurance, while supplies and professional services are expected to be about $79,000 over budget, largely for a design cost tied to an FM 407 connection and an erosion-control study. The board asked for better data on how many hours staff spend on 4B work; in response staff said the work-order system can track hours by project and will be used to provide more granular metrics for future budget comparisons.

The board directed staff to incorporate discussed changes into the next presentation and to provide updated slides and supporting details at the follow-up meeting.