Page 116 - CityofKennedaleFY26AdoptedBudget

OVERVIEW: TIF #1 NEW HOPE ROAD FUND

Tax Increment Financing (TIF) authorized by Texas Tax Code Chapter 311 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 FY24 Actual FY25 Budget FY25 Projected FY26 Budget
21-4401-00-00 INVESTMENT INCOME 11,832 9,800 13,068 12,500
21-4516-00-00 INTERGOV-TARRANT COUNTY 39,002 35,206 35,206 40,000
21-4517-00-00 INTERGOV-TARRANT HOSPITAL 26,672 21,000 21,000 27,000
21-4518-00-00 INTERGOV-TARRANT COLLEGE 15,309 14,000 14,000 15,500
TOTAL REVENUES $ 92,814 $ 80,006 $ 83,274 $ 95,000

Account Description FY24 Actual FY25 Budget FY25 Projected FY26 Budget
21-5580-06-01 ENGINEERING SERVICES 94,084 150,000 2,000 150,000
TOTAL EXPENDITURES $ 94,084 $ 150,000 $ 2,000 $ 150,000

REVENUES OVER (UNDER) EXPENDITURES $ (1,270) $ (69,994) $ 81,274 $ (55,000)

Account Description FY24 Actual FY25 Budget FY25 Projected FY26 Budget
21-4519-00-00 INTERGOV-CITY OF KENNEDALE 192,715 160,000 192,715 192,715
21-4945-00-00 TRANSFER IN - ROADWAY IMPACT 10,000 10,000 10,000 10,000
21-5702-06-06 TRANSFER OUT - DEBT SERVICE (228,229) (228,229) (228,229) -

TOTAL OTHER FINANCING SOURCES (USES) $ (25,514) $ (58,229) $ (25,514) $ 202,715

NET CHANGE IN FUND BALANCE $ (26,784) $ (128,223) $ 55,760 $ 147,715
BEGINNING FUND BALANCE — OCT 1 $ 177,277 $ 150,493 $ 150,493 $ 206,253
ENDING FUND BALANCE — SEPT 30 $ 150,493 $ 22,270 $ 206,253 $ 353,968

CITYOFKENNEDALE.COM/FINANCE 115