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TIF 3 board reviews FY27 proposed budget, projects $11.3 million year-end balance
Summary
City finance staff presented the TIF 3 FY27 proposed budget, noting an anticipated ad valorem tax revenue of about $5,000,000 (estimate pending certified values), a proposed 1¢ overall tax-rate reduction with a ~3¢ shift from debt service to operations and maintenance, and a projected ending fund balance of roughly $11.3 million.
At the July 22, 2026 meeting of the TIF 3 board, Allison Steadman, the city’s chief financial officer, walked the board through the FY27 proposed operating budget for the tax increment financing zone and the assumptions that underpin its revenue projections.
Steadman said the budget was prepared before the appraisal district’s certified values arrive and cited an estimated ad valorem tax revenue of “about $5,000,000.” She told the board the proposal also includes a citywide tax-rate change that would reduce the overall rate by one cent while shifting roughly three cents from the debt-service portion of the rate to the operations-and-maintenance portion to support general fund services and public-safety staffing. "Ad valorem tax revenue projected about $5,000,000," Steadman said. The city is expecting certified values imminently and staff will present updated figures to city council next week.
Steadman described the budget approach as conservative: revenue assumptions use an assumed 1.5% annual growth in taxable value for the TIF and staff explicitly set conservative interest and other income assumptions so the TIF can absorb unanticipated expenditures. She also explained the budget includes a required general and administrative (G&A) allocation to cover staff financial and legal time, noting that the percentage used varies by TIF because each zone’s staffing and responsibilities differ.
On the expense side, staff flagged a year‑one debt-service transfer of about $1,400,000 connected to the Holford Youth and Recreation soccer facility, with projected peak debt service around $1,800,000 annually in later years. Based on the assumptions and placeholder project buckets included in the plan, Steadman said the proposed FY27 expenditures would leave TIF 3 with an ending fund balance of about $11,300,000.
Board members asked for detail about who is counted in the G&A allocation and whether the budget would be formally recommended. Steadman said staff can provide a follow-up breakdown by email and requested the board’s consensus to report support back to council. Committee member (S2) moved to approve the board’s agreement with the proposed budget and Andy Hesser seconded the motion; the board recorded a second and discussion concluded with staff offering to distribute further detail for review.
The budget remains a staff proposal to be considered by city council and could be updated after the appraisal district’s certified values are posted and staff runs the final financial flow. Steadman said the full impact of certified values will be available by the council discussion on August 4 and that staff will email any material updates to the TIF board.
