Aug 17, 2026 TIF #2

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LADIES AND GENTLEMEN, I HAVE 5:01 P.M. AND WE HAVE A QUORUM OF THE TIF NUMBER TWO THIS EVENING,

[1. CALL TO ORDER]

FIRST ITEM ON OUR AGENDA IS ITEM TWO CITIZEN APPEARANCES.

I HAVE NOT BEEN MADE AWARE OF ANYONE HERE THAT WOULD LIKE TO ADDRESS THIS BOARD ON AN ITEM THAT IS NOT ON OUR AGENDA.

IF YOU HAVE SUCH A REQUEST, PLEASE SIGNIFY. AND I SEE NONE.

SO WE'LL MOVE ON TO ITEM THREE A, WHICH IS TO CONSIDER AND TAKE POSSIBLE ACTION ON MINUTES FROM THE AUGUST 18TH,

[3.A. Consider and take possible action on the minutes from the August 18, 2025 Tax Increment Finance Reinvestment Zone #2 (TIF #2) Board meeting. (Staff Contact: Monica Solko, Deputy City Secretary)]

NUMBER TWO, BOARD MEETING MEMBERS, IF YOU'VE HAD A CHANCE TO LOOK AT THOSE MINUTES AND ARE READY TO MAKE A MOTION, I'M READY TO TAKE IT. I MAKE A MOTION TO APPROVE.

I'LL SECOND. HAVE A MOTION BY THE MAYOR, SECOND BY ALEXA TO APPROVE ALL THOSE IN FAVOR.

AND THAT MOTION PASSES WITH UNANIMOUS VOTE. I HAVE BEEN MADE AWARE THAT THERE IS A NEED FOR EXECUTIVE SESSION OF THE BOARD PRIOR TO GOING INTO THE NEXT ITEM,

[5. RECESS INTO EXECUTIVE SESSION]

MR. MAYOR PRO TEM WE JUST NEED TO READ THE REASON WHY WE'RE GOING BACK INTO EXECUTIVE SESSION.

AND THAT IS PURSUANT TO BE MORE COMPLICATED THAN THAT PURSUANT TO SECTION 551.071.

ALL RIGHT. SO WE WILL GO INTO EXECUTIVE SESSION PENDING OR TO SEEK THE ADVICE OF THE CITY ATTORNEY PURSUANT TO SECTION 551.07, ONE OF THE TEXAS GOVERNMENT CODE. WE'RE IN EXECUTIVE SESSION AT 502.

I'M SORRY. ALL RIGHT. THE TIF NUMBER TWO BOARD WILL RECONVENE INTO OPEN SESSION NOW AT 05:12 P.M..

[3.B. Consider and take possible action on a municipal services cost agreement with the city of Burleson. (Staff Contact: Kevin Hennessey, Director of Finance)]

THIS WILL BE PRESENTED BY KEVIN HENNESSY, DIRECTOR OF FINANCE.

SEEING THE MUNICIPAL SERVICES COST AGREEMENT BETWEEN THE CITY AND THE TIF.

SO A LITTLE BACKGROUND. THE TIF, AS WE KNOW, WAS STARTED IN 2005.

IT SPANS OVER 720 ACRES INCLUDING OLD TOWN GOING EAST TO SOUTH OF SPINKS, AS WELL AS WEST TO THE 175 CORRIDOR.

AND SINCE THAT DEVELOPMENT IN 2005, THERE'S BEEN SOME SUBSTANTIAL GROWTH VIA DEVELOPMENT AND REDEVELOPMENT AS WELL AS DURING THAT TIME FRAME, THERE'S BEEN SEVEN PROJECTS THAT HAVE BEEN COMPLETED FROM THE PLAZA DOWN TO THE BIG BUILDINGS, THE DEPOT IN MAIN SOME PARKING PEDESTRIAN AND ALSO SOME ADA IMPROVEMENTS AS WELL.

SO AS THAT AFOREMENTIONED GROWTH HAS OCCURRED, THERE'S ALSO BEEN AN INCREASE IN COST TO THE CITY TO PROVIDE MUNICIPAL SERVICES TO THE TIF ZONE, THE ZONE SUCH AS POLICE, FIRE, EMERGENCY SERVICES, AS WELL AS PARKS, STREETS AND SOME ADDITIONAL MAINTENANCE COSTS THAT HAVE COME ALONG WITH THOSE PROJECTS.

SO THE PROPOSED AGREEMENT BETWEEN THE CITY AND THE TIF TWO IS FOR ONE YEAR, AND IT IS TO ALLOW THE CITY TO COLLECT THE INCREMENTAL COSTS FOR THE FY 27 BUDGET FROM THE TIF TWO, AND THE AMOUNT OF $742,766.

AND SO THE AMOUNT TO BE PAID BY THE TIF ALSO IN THIS AGREEMENT SHALL NOT EXCEED THE TAX INCREMENT PRODUCED BY THE THE CITY PAID TO THE FUND.

SO WITH THAT YOU CAN RECOMMEND APPROVAL, NOT RECOMMEND APPROVAL.

STAFF DOES RECOMMEND APPROVAL. AND I AM WILLING TO STAND FOR ANY QUESTIONS THAT YOU MIGHT HAVE.

I'M GOING TO EXPLAIN THIS IN TERMS THAT I UNDERSTAND, WHICH I HOPE WILL TRANSLATE TO TERMS THAT PEOPLE WHO MIGHT HAVE AN INTEREST IN THE PROCEEDINGS TONIGHT MIGHT UNDERSTAND. BUT THE PURPOSE OF TAX INVESTMENT, TAX INCREMENT REINVESTMENT ZONES IS TYPICALLY TO ALLOW A MEANS OF FOSTERING DEVELOPMENT WITHIN AN AREA BY ESTABLISHING A BASELINE VALUE OF TAXABLE PROPERTIES WITHIN THAT ZONE, AND CAPTURING THE INCREASED TAXES THAT OCCUR AS THE LAND DEVELOPS AND AS IT INCREASES IN VALUE. AND THAT INCREASED AMOUNT IS INTENDED TO BE SPENT WITHIN THE ZONE TO FINANCE CAPITAL IMPROVEMENTS AND OTHER FINANCIAL ARRANGEMENTS TO ENCOURAGE DEVELOPERS TO COME IN AND DO SUCH THINGS.

[00:05:04]

THE OTHER ITEMS ON THE LIST MAINTENANCE. BUT YET THE FUNDS ARE STILL SET ASIDE TO BE SPENT WITHIN THAT ZONE.

THE CITY PROVIDING THOSE SERVICES IS PAYING FOR IT FROM AD VALOREM TAXES FROM CITY WIDE.

AND SO THE PURPOSE OF THIS RESOLUTION IS TO ARRIVE AT A FIGURE THAT STAFF BELIEVES IS A FAIR COMPENSATION FOR THE ADDITIONAL SERVICES THAT ARE NOW NECESSARY TO BE SPENT WITHIN THIS ZONE BECAUSE OF THE DEVELOPMENT THAT'S TAKEN PLACE.

SO IF STAFF IF THAT'S NOT GENERALLY CORRECT, I KNOW IT'S NOT PERHAPS SPECIFICALLY CORRECT, BUT I'M TRYING TO GET THE POINT ACROSS IS WHY WE'RE DOING THIS.

MAYOR PRO TEM, I DON'T KNOW THAT I COULD HAVE SAID IT ANY BETTER. AS THE ZONE CONTINUES TO DEVELOP AND MATURE IN THE CITY'S INCREMENTAL COST RISES, THEN THIS IS A. LAWS PROVIDE FOR OPERATIONAL COSTS TO BE FUNDED FROM THE TIF TO SUPPORT THOSE GENERAL OPERATIONS.

AND I UNDERSTAND THAT THIS ACTION PUTS A CEILING ON THAT AMOUNT, THAT IT CAN'T BE MORE THAN THE ADDITIONAL INCREMENTAL TAX.

HOWEVER, I WOULD LIKE TO BELIEVE THAT THIS NUMBER TWO STILL HAS SOMETHING IN ITS POCKET TO FOSTER FURTHER DEVELOPMENT BECAUSE THERE ARE STILL PROPERTIES THAT CAN BE IMPROVED, REDEVELOPED.

WE HAVE SOME GREENFIELD PROPERTY NOW AT THE OLD CHURCH BUILDING, AND WE NEED TO HAVE THE ABILITY TO TO HELP THOSE COME TO FRUITION.

SO I'M COMFORTABLE THAT STAFF'S REACHED AN AMOUNT THAT COMPENSATES WHAT IT SHOULD COMPENSATE, BUT STILL LEAVES THE THE TIF, THE ABILITY TO DO MORE PROJECTS AND CONTINUE TO DEVELOP.

AM I CORRECT IN MY UNDERSTANDING THERE? YOU'RE 100% CORRECT.

OUR FINANCIAL FORECAST IS VERY CONSERVATIVE WITH REGARDS TO PERCENT FUND BALANCE AND OPERATIONAL EXPENDITURES.

SO AS WELL AS OUR REVENUE ESTIMATES, WE HAVE SUFFICIENT CAPACITY TO FUND BOTH REOCCURRING EXPENDITURES OR ONE TIME EXPENDITURES FOR IMPROVEMENT TO THE DISTRICT.

OKAY, GOOD. OTHER QUESTIONS. MEMBERS. I SEE NONE, SO I WILL ENTERTAIN A MOTION FOR ITEM THREE.

B I MAKE A MOTION TO APPROVE THIS. AGREEMENT.

THANK YOU. I'LL SECOND. ALL RIGHT. I HAVE A MOTION BY ALEXA AND A SECOND BY KENNY TO APPROVE THE MUNICIPAL SERVICES AGREEMENT.

ALL THOSE IN FAVOR? MOTION PASSES WITH UNANIMOUS VOTE.

NEXT UP IS TO IS ITEM THREE C TO CONSIDER AND TAKE POSSIBLE ACTION ON A RESOLUTION ADOPTING THE TAX INCREMENT FINANCING REINVESTMENT ZONE NUMBER TWO.

[3.C. Consider and take possible action on a resolution adopting the Tax Increment Finance Reinvestment Zone #2 (TIF #2) FY 2026-2027 annual budget. (Staff Contact: Kevin Hennessey, Director of Finance)]

THANK YOU AGAIN, MR. PRESIDENT AND BOARD. AND HERE WE'LL SEE WHAT TOMMY ALLUDED TO IN THE BUDGET.

SO AS WE KIND OF LOOK AT THE HIGHLIGHTS OF THE TWO PROPOSED BUDGET, WE ARE PROJECTING TO HAVE A BEGINNING FUND BALANCE FOR FY 27 OF JUST UNDER $704,000, AND PROPOSED REVENUES OF 1.5 AND EXPENDITURES OF 1.7, WITH THE PROPOSED ENDING FUND BALANCE BEING A LITTLE OVER $545,000. SO THERE ARE SOME SEVERAL SUPPLEMENTALS THIS YEAR IN THE TIF TWO FUND.

THE RESTORATION OF MERIT TO OCTOBER 1ST. AS WE REMEMBER, LAST YEAR, THERE WAS A SUPPLEMENTAL REDUCTION PROPOSED TO MOVE THE EFFECTIVENESS OF THE MERIT TO JANUARY 1ST. COUNCIL DID SEE FIT IN THAT PROPOSAL TO REVERT THAT BACK TO OCTOBER 1ST FOR THE 26 FISCAL YEAR. THIS SUPPLEMENTAL DOES SO FOR 27 AND ON INTO THE FUTURE.

THERE ALSO WAS SOME INTERNAL COMPENSATION STUDIES DONE BY OUR HR DEPARTMENT IDENTIFYING SOME LABOR POSITIONS AND PUBLIC WORKS AND PARKS THAT DESERVED A MARKET ADJUSTMENT. THIS SHOWS THE AMOUNTS THAT ARE RELATIVE TO THE EMPLOYEES THAT WE DO HAVE WORKING IN THE TIF AREA FOR THE PARKS OVER HERE IN THE OLD TOWN AREA.

THERE'S ALSO AN ITEM FOR SOME DISTRICT VALET FOR THE OLD TOWN 65,000 FOR THE YEAR, SOME SOME PAVER REPLACEMENTS DOWN

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THERE WAS SOME DISCUSSION. IF THE FULL 25,000 WOULD BE NEEDED THE ULTIMATE DECISION WAS TO LEAVE THE 25 IF NEEDED, BUT FOR STAFF TO BE AS PRUDENT AS POSSIBLE WITH THE SELECTION OF WHICH FURNITURE DO IN FACT NEED TO BE REPLACED.

THERE'S ALSO THE PLAY AREA ALLOCATION HERE IN THE PLAZA FOR HAVE THAT TO BE REDONE AND REDESIGNED, AND THEN A NEW CHRISTMAS TREE FOR THE PLAZA. THE TOTALS IN 770 OR EXCUSE ME, $274,658 FOR ONE TIME COSTS AND THEN 6.2 IN ONGOING COSTS.

WE CAN SEE HERE'S THE THIS IS OUR THE FORMAT OF OUR THREE YEAR SUMMARY THAT WE HAVE IN OUR PROPOSED BUDGET.

THE NEXT SLIDE HERE HAS. IN THE FY 2027 PROJECTED COLUMN THAT HAS THE.

THE PROPOSED BUDGET. AND THEN FOUR YEARS INTO THE INTO THE FUTURE PROJECTED THROUGH FISCAL YEAR 2031.

SO YOU SEE, THERE IS A MINOR DIP IN THE CHANGE IN FUND BALANCE FOR THE PROPOSED FISCAL YEAR.

BUT WE NOTE THAT IS ALL FROM ONE TIME COSTS. THE ONE TIME COSTS FOR THOSE SUPPLEMENTALS EXCEEDS THAT AMOUNT THAT WE ARE DIPPING INTO THE FUND BALANCE.

AND SO WE DO SEE THERE ARE INCENTIVES AND CURRENT DEBT SERVICE CHARGES THAT GO INTO THE FUTURE, PROJECTED AT ALMOST JUST ABOUT $1 MILLION BETWEEN THE TWO OF THEM.

950 SOME THOUSAND DOLLARS TO BE ABLE TO SUPPORT THE FUND GOING FORWARD BEYOND THOSE MAINTENANCE ITEMS. SO THE PROJECTED FIVE YEAR FORECAST HAS THE ENDING FUND BALANCE AT THE END OF 2031, A LITTLE OVER $1.1 MILLION AND JUST ABOVE 79% OF EXPENDITURES FOR THE FUND BALANCE. SO THE OPTIONS THIS EVENING ARE TO RECOMMEND APPROVAL OF THE TIF 2 FUND 27 PROPOSED BUDGET, NOT RECOMMEND THE PROPOSED BUDGET.

STAFF DOES INDEED RECOMMEND APPROVAL, BUT I WILL STAND FOR ANY QUESTIONS THAT YOU MIGHT HAVE.

QUESTION MEMBERS. DOES THIS BUDGET INCLUDE THE EXPENDITURE WE JUST VOTED IN FAVOR OF? YES, SIR, YOU ARE CORRECT. IT DOES INCLUDE ALL THE FUNDING.

YEAH. SO WE DO NOT HAVE THE ECONOMIC DEVELOPMENT INCENTIVES AND THE CURRENT DEBT SERVICE ARE NOT A PART OF THOSE COSTS.

SO IF WE ADD THE PERSONNEL SOME OF THE EXPENDITURES INTO THE AGGREGATE, THEN WE CAN GET TO THAT TOTAL COST.

OKAY. OTHER QUESTIONS. I'LL ENTERTAIN A MOTION ON ITEM THREE C.

I'LL MAKE A MOTION TO APPROVE. SECOND. MOTION BY MAYOR FLETCHER.

SECOND BY ALEXA TO APPROVE. ALL THOSE IN FAVOR.

I SEE ALL HANDS UP. MOTION PASSES WITH UNANIMOUS VOTE.

BOARD MEMBERS HAVE. WE REQUEST FOR ANY FUTURE AGENDA ITEMS OR REPORTS TO THE BOARD.

I SEE NONE. WE HAVE ALREADY DISPENSED WITH OUR EXECUTIVE SESSION, SO WE WILL ADJOURN THE MEETING AT 5:23.

* This transcript was compiled from uncorrected Closed Captioning.