Page 95 - KennedaleFY24AdoptedBudget

OVERVIEW: TIF #1 NEW HOPE ROAD FUND

Tax Increment Financing (TIF), authorized by Texas Tax Code Chapter 311, states local
governments can publicly finance needed structural improvements and enhanced
infrastructure within a defined area – a Tax Increment Reinvestment Zone (TIRZ) – to
encourage desired development. The tax increment is derived from the difference in
appraised value between the year in which the reinvestment zone is established (base year)
and each year the reinvestment zone is in existence.

An important element of the City's strategic plan - Imagine Kennedale 2015 - was to convert
properties in the southwestern portion of the City to residential use. The City updated the
Comprehensive Land Use Plan and created a Tax Increment Reinvestment Zone (TIRZ) to fund
off-site infrastructure improvements, namely the extension of water and sewer service,
reconstruction of New Hope Road, and the addition of hike and bike trails along Kennedale
Branch. TIRZ participation agreements with Tarrant County, Tarrant County College District,
and the Tarrant County Health District were completed in 2013. The City has not yet seen
significant development in the TIRZ but continues cooperating with owners and prospective
developers to convert the racetrack properties. A water and sewer study to plan for the
extension of the utility services is complete.

Participants

City of Kennedale 100% -- $2,481,849 Maximum
Tarrant County 75% -- $2,481,849 Maximum
Tarrant County College District 50% -- $939,000 Maximum
Tarrant County Hospital District 50% -- $1,427,690 Maximum

FUND 21 TIF NEW HOPE ROAD FUND
Account Description FY22 Actual FY23 Budget FY23 Est Actuals FY24 Budget

21-4401-00-00 INVESTMENT INCOME 1,145 100 2,200 2,200
21-4516-00-00 INTERGOV-TARRANT COUNTY 29,616 34,058 35,206 35,206
21-4517-00-00 INTERGOV-TARRANT HOSPITAL 20,115 20,700 20,700 21,000
21-4518-00-00 INTERGOV-TARRANT COLLEGE 11,852 13,630 13,630 14,000
TOTAL REVENUES $ 62,727 $ 68,488 $ 71,736 $ 72,406

Account Description FY22 Actual FY23 Budget FY23 Est Actuals FY24 Budget

21-5580-00-00 ENGINEERING SERVICES - - 30,000 150,000
TOTAL EXPENDITURES $ - $ - $ 30,000 $ 150,000

REVENUES OVER (UNDER) EXPENDITURES $ 62,727 $ 68,488 $ 41,736 $ (77,594)

Account Description FY22 Actual FY23 Budget FY23 Est Actuals FY24 Budget
21-4519-00-00 INTERGOV-CITY OF KENNEDALE 137,938 155,593 157,883 160,000
21-4945-00-00 TRANSFER IN - ROADWAY IMPACT 10,000 10,000 10,000 10,000
21-5702-00-00 TRANSFER OUT - DEBT SERVICE (228,229)
TOTAL OTHER FINANCING SOURCES (USES) $ 147,938 $ 165,593 $ 167,883 $ (58,229)

NET CHANGE IN FUND BALANCE $ 210,665 $ 234,081 $ 209,619 $ (135,823)

BEGINNING FUND BALANCE — OCT 1 $ (231,687) $ (21,022) $ (21,022) $ 188,597

ENDING FUND BALANCE — SEPT 30 $ (21,022) $ 213,059 $ 188,597 $ 52,774

CITYOFKENNEDALE.COM/BUDGET 92