Northlake Development District board adopts FY 2026–27 budget, forwards plan to Northlake Town Council

The Northlake Development District board unanimously approved a proposed fiscal year 2026–27 budget and voted to forward the plan to the Northlake Town Council for final approval.

Nathan, a staff member who presented the budget, told the board the MDD’s revenues are driven largely by sales tax and that staff is "projecting a 20% or 26% decrease," which he attributed to a reallocation of sales-tax shares compared with prior EDC/CDC arrangements. He said the MDD will receive a half-cent of the sales-tax allocation and that staff used conservative revenue assumptions when preparing the proposal.

The budget presentation highlighted a roughly 3% increase in personnel expenditures driven mainly by rising health-care costs and a separate salary and cost-of-living request totaling just under $12,000. Staff noted that the fund pays for portions of four positions, including the economic development coordinator. Advertising and lease revenues are expected to remain flat; staff cited a Lamar billboard at 114 and 35W as an example of ongoing lease revenue.

On capital items, staff said a rollover includes costs for entry monument signage delayed by easement acquisition issues. The board was shown a proposed Northlake Commons Trail Connector project estimated at $260,000; Nathan said the project is included in the town’s capital improvements plan with funding identified as town general fund and/or MDD and that final funding allocation will be determined later.

Staff reported the EDC and CDC fund balances are proposed to transfer to the MDD; the EDC/CDC fund balance is projected to be just over $5,000,000 at the end of the fiscal year and the MDD ending fund balance based on the proposed budget was projected to be about $4,000,000. Nathan described the need to balance keeping reserves available for opportunities while deploying funds for projects that generate sales tax.

A motion to adopt the proposed FY 2026–27 budget was made by Darren and seconded by Laura; the president announced the motion carried unanimously. The board’s adopted proposal will be presented to the Northlake Town Council on July 23; the council hearing is scheduled for Aug. 13, and council consideration of adoption is scheduled for Aug. 20, all as stated in the presentation.

The board then convened an executive session at 6:00 p.m. under Section 551.087 of the Texas Government Code regarding Project Gotham; the board returned to open session at 6:35 p.m. and the president said no action resulted from the executive session. The meeting adjourned at 6:35 p.m.