TIRS Board No. 1 accepts 2025 annual report as staff outlines fund balances, plans for cultural arts center

The TIRS Board No. 1 unanimously accepted the authority’s 2025 annual report on Feb. 2 after a staff presentation laying out recent tax-increment receipts, project balances and plans for a proposed cultural arts center.

Town staff member Lee Rodriguez, the CIP and TIRS manager, told the board the total increment for fiscal year 2024–25 was “about $7,600,000, of which $5,200,000 was the Town of Flower Mound’s increment” and that the county’s share was roughly $2.3 million. Rodriguez said that represents about a 70/30 split between the town and the county.

Rodriguez said the fund’s ending balance as of Sept. 30, 2025 was “about $27.27 million.” He noted roughly $3 million of that balance is allocated to outstanding debt service for town hall and a library renovation, about $1 million remains in the Peters Colony Memorial Park budget and about $700,000 is set aside for the Rippey Road project, leaving an adjusted balance staff described as approaching $22 million for future programming.

Why it matters: the board learned how much incremental tax revenue is available to support capital projects in the TIRS plan and how near-term debt-service obligations affect the pool of funds available for new projects.

Board members pressed staff on how predictable the annual increment will be going forward. One board member noted last year’s roughly $7.5 million inflow and asked whether the board could rely on that amount each year. A staff speaker cautioned the amount can fluctuate and described an expectation that participating tax increment percentages will taper while assessed values rise, a combination the staff said could result in similar annual totals in the near term but is not a guaranteed fixed revenue stream.

The cultural arts center dominated much of the board’s questions. Rodriguez said the project remains in predesign and that a conceptual feasibility study had been completed earlier. “There was a feasibility study done,” he told the board, while also noting that operating costs and firm construction estimates will be refined during predesign and presented later to the town council. “This is simply too early to know how much the facility is gonna cost right now,” a staff member said.

Staff described a $50,000,000 placeholder figure programmed into the TIRS plan for the cultural arts center and said Denton County is participating on the project steering committee and would contribute increment as part of the joint effort. Rodriguez said the board’s extension was adopted with this project in mind and that the extension is the primary reason the board remains in existence.

Board members also asked about parking and a previously funded garage. Staff said a parking analysis is underway and noted that $1,000,000 of TIRS funds were used toward a parking garage; the town’s access and usage arrangements for that garage are governed by the garage owner’s agreement.

On procedure, a board member asked whether accepting the report constituted approval of spending. Staff clarified the board was voting to accept the report “as offered”; any spending, debt issuance, or formal commitments would require separate actions and later council approval.

A motion to approve the report as issued was made, seconded and approved by roll call; the board voted unanimously to accept the 2025 annual report. Staff said the report will proceed to the town council for formal approval.

What’s next: staff will continue predesign work on the cultural arts center and will return with more detailed cost and operating-cost estimates; council-level approvals will be required for any spending or debt issuance related to the project.