PILLAR: Growing
AGENDA DATE: February 25, 2026
COUNCIL DISTRICT(S): 14 6
DEPARTMENT: Office of Economic Development
PRIORITY: Targeted Economic Growth
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SUBJECT
Title
A resolution accepting the FY 2024-2025 Annual Report on the status of Tax Increment Financing Reinvestment Zone Number Nineteen (Cypress Waters TIF District or District) and authorizing the City Manager to submit the annual report to the Chief Executive Officer of each taxing jurisdiction that levies taxes on real property in the District and to the State Comptroller, as required by state law - Financing: No cost consideration to the City
*In alignment with Economic Development Incentive Policy.
Body
BACKGROUND
State law (the Tax Increment Financing Act, Texas Tax Code, Section 311.016, as amended) requires that the City Council, as the City’s governing body, submit an annual report on the status of each reinvestment zone it has created to the Chief Executive Officer of each taxing unit that levies taxes on real property in the zone, as well as to the State Comptroller. On December 8, 2010, the City Council authorized Ordinance No. 28074, as amended, establishing Tax Increment Financing Reinvestment Zone Number Nineteen (Cypress Waters TIF District). On June 8, 2011, the City Council authorized the Project Plan and Reinvestment Zone Financing Plan for this District, by Ordinance No. 28224, as amended.
In 2015, the City Council approved various amendments to the TIF District’s Project Plan and Reinvestment Zone Financing Plan including a reduction in the budget for the District. The budget was reduced from $65,698,583.00 to $25,779,665.00 NPV, 2010 dollars. The TIF District is projected to meet this budget cap in 2026 with the collection of only a portion of the $9,270,161.00 in increment generated by the TIF District for fiscal year 2024-2025. As a result of meeting the budget cap, the TIF District will expire on December 31, 2026, unless the TIF District’s budget is increased and the term of the TIF District is extended through an amendment of the TIF District’s Project Plan and Reinvestment Zone Financing Plan approved by the TIF District Board and the City Council.
The Cypress Waters TIF District's assessed 2025 certified taxable value was $1,301,137,477.00. This represents an increase of approximately $1,301,066,160.00 (1,821,278%) over the base year value of $71,437.00. The District’s taxable value increased by $83,898,724.00 (7%) from the previous year’s final taxable value ($1,217,238,753.00). This increase in District taxable value over the base year taxable value will result in the partial collection in 2026 of approximately $1,745,369.00 (City $1,447,554.00; County $297,515.00) in incremental revenue for the District.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On June 26, 1996, the City Council authorized the establishment of Tax Increment Financing Reinvestment Zone Number Five, the City Center TIF District by Resolution No. 96-2248; and Ordinance No. 22802, as amended.
On February 12, 1997, the City Council authorized the Project Plan and Reinvestment Zone Financing Plan for the City Center TIF District, as amended by Resolution No. 97-0484; and Ordinance No. 23034, as amended.
On January 29, 2026, the Cypress Waters TIF District Board of Directors recommended that the FY 2024-2025 Annual Report be accepted and approved.
The City Council was briefed by memorandum regarding this matter on February 6, 2026. <https://dallascityhall.com/government/citymanager/Documents/FY25-26%20Memos/Upcoming%20Agenda%20Items%20FY%202024-2025%20Tax%20Increment%20Financing%20(TIF)%20District%20Annual%20Reports.pdf>
FISCAL INFORMATION
No cost consideration to the City.