City of Irving Popular Annual Financial Report, FY2024-25

ANNUAL REPORT

Message from The Mayor

Welcome to the City of Irving’s Fiscal Year 2024-25 (FY25) Annual Report! Turn the pages for an inside look at the city’s FY25 budget and financial position, as well as the progress, priorities and projects that keep Irving moving forward.

Irving continues to focus on maintaining a high quality of life for residents by providing strong essential services, implementing strategic infrastructure investments and prioritizing responsible financial management. The city balances critical services like public safety, water utilities and solid waste collection with exceptional community amenities and programs such as parks, recreation and aquatic facilities, libraries and special events.

The mission is simple: to deliver exceptional service every day.

A strong economy is huge for Irving’s success in attracting major employers, fostering local businesses and creating jobs that strengthen our community and support the city’s continued growth. Irving’s strong business community continues to thrive and leads the DFW region in Fortune 500 headquarters per capita.

The Annual Report is a great tool to better understand how tax dollars are used, learn about major projects and milestones from the past year, and see how city leadership is planning for the future. Additional financial information is available at IrvingTX.gov/Budget.

Thank you for reading!

Richard H. Stopfer Mayor

Irving City Council

The City of Irving is governed by a council-manager form of government where the City Council sets city policy and the City Manager is responsible for implementing that policy and managing city operations.

The council consists of a mayor and eight council members who are elected for three-year terms. Elected officials are under a mixed system, which includes three at-large districts (Mayor, place 2 and 8), and six single-member districts (places 1, 3, 4, 5, 6 and 7).

Council Meetings

Irving City Council meetings are held on designated Thursdays at 7 p.m. in the Council Chambers at Irving City Hall, 825 W. Irving Blvd.

Work sessions are held prior to council meetings and begin at various times depending on the agenda. Work sessions are open to the public in the first floor Council Conference Room at Irving City Hall, 825 W. Irving Blvd. Check specific meeting agendas to confirm start times. Visit IrvingTX.gov/AgendaS for

dates, agendas and instructions for speaking at council meetings.

Meetings are streamed live at ICTN.tv and on local cable channels. On-demand meeting archives are available at IrvingTX.gov/ICTN or ICTN.tv. SCAN ME

Founded in 1903 and Incorporated in 1914 2,184 Full-Time-Equivalent City Employees 20 Appointed Boards, Commissions and Committees with Almost 200 Irving Residents Serving Various Volunteer Functions

City Council District Map

City Ordinances

Irving is in the Heart of North Texas & Home to One of the Most Diverse Zip Codes in the Nation – 75038

Irving, TX

Message from The City Manager

The financial data highlighted in the Popular Annual Financial Report (PAFR) is designed to provide a summary view of the city’s financial activities for Fiscal Year 2024-25 (FY25). Information included in this report can be found in greater detail in the FY25 Annual Comprehensive Financial Report (ACFR) located at IrvingTX.gov/ financial-reports or by contacting the Finance Department by mail at 825 W. Irving Blvd., Irving, TX 75060 or by phone at (972) 721-2401. The financial report was prepared in accordance with Generally Accepted Accounting Principles (GAAP) and was audited by independent certified public accounting firm Forvis Mazars.

Strategic thinking, planning and management play a strong role in the City of Irving’s organizational culture. The city’s organizational strategy, Future in Focus, consists of five focus areas and 18 operating strategies. Based on input from city leadership, residents biannual survey and key stakeholders, the plan works in tandem with the city’s five-year capital plans, City Council priorities and annual budgets.

Future in Focus encompasses key initiatives that allow the city to stay focused on what matters most, which is to deliver exceptional services and promote a high quality of life for residents, businesses and visitors.

History of Irving

Settlers came to the area that is now Irving in the 1850s, and communities such as Sowers, Kit, Shady Grove, Union Bower, Finley, Estelle and Bear Creek sprang up in the last half of the 19th century. The new town of Irving, founded in 1903 by J.O. Schulze and Otis Brown, eventually included most of these settlements. Irving was officially incorporated April 14, 1914.

Visit the Irving Archives and Museum, located in the Jack D. Huffman Community Building, 801 W. Irving Blvd., to learn more about Irving's history.

Access Amenities Lifestyle

Home of DFW International Airport and Proximity to Dallas Love Field Airport

Trinity Railway Express (TRE) with Two Stations in Irving Connecting Passengers to Destinations Throughout Dallas and Tarrant Counties

Dallas Area Rapid Transit (DART) Commuter Rail Line and Local Buses

Four 18-hole Championship Golf Courses

More than 92 Parks, 33+ Miles of Trails, Three Libraries and a Municipal Golf Course

Smithsonian-Affiliated Arts Center, Four Museums, Three Symphonies and Award-Winning Theater Productions

Home of Toyota Music Factory, Irving’s all-in-one destination where live entertainment, diverse dining and a lively, walkable vibe come together for an unforgettable day or night out.

Vibrant Economy

8 Fortune 500 Headquarters

3 Fortune 1,000 Headquarters

Year 2024-25

A Look Back

LeE Aquatic park Pool Opening & Senter Park groundbreaking

Lee Aquatic Park, located at 3000 Pamela Drive, opened in May 2025 and welcomed 10,417 visitors in its first season.

Senter Park's existing outdoor pool was demolished and will be replaced with an indoor aquatics center that Irving residents of all ages can enjoy year-round.

New Website + CRM

Launched a new website, intranet, Customer Relationship Management (CRM) portal (Report a Concern) and mobile app.

Senter Park Recreation Center Rendering FiscaL Year 2025-26

A

Look Ahead

state-of-the-art campus Ribbon-Cutting

In October 2025, the Mayor, City Council, City Manager and the Irving business community celebrated the ribboncutting for the new Wells Fargo's state-of-the-art campus in Las Colinas.

Mustang Multi-Generational Community Center & Indoor Aquatics Facility Rendering

New facility groundbreaking In July 2025, city leaders, park board members and other dignitaries broke ground on the new Mustang Multi-Generational Community Center and Indoor Aquatics Facility — the largest state-of-the-art recreational investment in Irving’s history. The new facility is expected to open early 2027

Drone Program

Through the effective use of technology, the Real Time Crime Center implemented the Drone First Responder Program deploying drones as the first units to respond to emergency calls.

Fire Station No. 8

The new $15.3

million Fire Station No. 8, located at the former DART Transit Station at 5601 Riverside Drive, will be completed in early summer 2026

FY25 General Fund

$293.8 Million Budget

$288.5 Million Actual Expenditure

The General Fund is the city’s main operating fund used to account for day-to-day operations except those required to be reported in other funds. The majority of city departments and personnel are budgeted in this fund. References to General Fund budget include funds aggregated with the General Fund as reported in the Annual Comprehensive Financial Report.

The majority of General Fund revenues are generated from tax revenues. These are primarily comprised of property taxes and sales taxes at city rates of $0.5891 per $100 valuation and 1% of taxable sales, respectively.

Irving City Council Adopted a Balanced $924.5 Million Operating Budget, which Includes the General Fund and Several Dedicated Funds.

Financial Highlights

Thousands)

33%

The General Fund accounts for 33% of all funds combined.

67% Dedicated Funds  16% Water and Sewer System Funds

13% Debt Service Funds  11% Special Revenue Funds

 27% Other Funds Include Internal Services, Grants, Solid Waste Services, Hotel/Motel Tax and Municipal Drainage Utility

Financial Highlights

General Fund Revenues and Expenditures

Property tax and sales tax collections represent the largest sources of revenue for the General Fund. When combined with Franchise Fee revenue, tax collections comprise 86% of total General Fund revenues.

FY25 revenues increased by $15.7 MILLION, resulting in 5.37% more revenue over the prior fiscal year.

Revenues

Expenditures increased from $270.9 million to $288.5 million in FY25, primarily driven by Public Safety costs.

Expenditures

Financial Highlights

Sales Tax Revenues

Sales tax revenues are the second largest source of funding for general fund revenues. Total sales tax revenues represented below include amounts recorded in the General Fund and Special Revenue Funds. For the prior three years the city collected:

(in Thousands)

FY25 SALES TAX ALLOCATION

Out of every dollar spent on taxable goods and services in Irving, 8.25% in sales tax is generated and allocated to the State of Texas, Dallas Area Rapid Transit (DART) and the City of Irving.

Top 10 Sales Tax Categories

Retail Trade Information

Accommodation and Food Services

Wholesale Trade Manufacturing

Professional, Scientific and Technical Services

Utilities Construction

Administrative/Support, Waste Management and Remediation Services

Real Estate, Rental and Leasing $20,263,204 $9,462,481 $7,726,386 $5,983,360 $5,075,189 $4,444,603 $4,320,973 $3,566,755 $3,310,337 $2,385,169

Values

According to the Dallas Central Appraisal District (DCAD), the Total Estimated Taxable Value for the 2024 Tax Year is $42.0 Billion an Increase of $3.0 Billion over the Prior Year.

New Residential Construction Added 591 New Properties with an Average Value of $155,052 and New Commercial Construction Increased by 51 Properties with an Average Value of $7.7 Million.

The Average Taxable Value for an Irving Home is $306,927 with an Average Market Value of $427,297.

Financial Highlights

Property Tax

The largest share of property taxes collected goes to one of three Independent School Districts (ISDs) serving Irving residents: Irving ISD, Carrollton-Farmers Branch ISD or Coppell ISD. Other taxing authorities include the city and Dallas County Entities including School Equalization, Parkland Hospital and the Dallas County Community College.

FY25 Total Property Tax Bill Breakdown

Based on Average Single-Family Taxable* Home Value of $306,927 with a 20% Homestead Exemption

The City’s Debt Service Reserve Balance in FY25 remains at $17.9 Million

The city keeps two funds—an Interest and Sinking Fund and a Reserve Fund—to help cover debt

ordinance. As of September 30, 2025, the Reserve Fund meets the required $15.07

Reserve REQUIREMENTS

City Reserves

The city has a Fund Balance Policy to target a minimum General Fund balance for operations that is 30% of annual revenues. This financial policy ensures an adequate fund balance in operating funds to maintain liquidity, as well as provide the city with capital in the event of unexpected financial impacts, such as economic downturns and natural disasters. As of Sept. 30, 2025, the city has a general fund reserve rate of 31%. 31%

as

The city’s net position is a key indicator of its financial health, reflecting the extent to which its assets are available to meet obligations. This measure provides a comprehensive view of the city’s overall financial standing, including its ability to fulfill commitments and invest in future projects and services.

$1,667,617,000

Over time, increases or decreases in the city’s net position may be an indication of whether the financial situation of the city is improving or deteriorating.

The City of Irving’s overall net position increased 13% or $158 Million in FY25 from FY24.

Statement of Activities

(Changes in Net Position)

Irving’s fiscal year runs Oct. 1 to Sept. 30. The city’s statement of activities for fiscal years ending Sept. 30, 2023-2025 are shown in the chart below.

ACTIVITIES/CHANGES IN Net Position

(in

of September 30, 2025

General Fund Balance

Net Investment in Capital Assets

The most significant portion of net position ($1.258 Billion) is invested in capital assets. Irving uses these capital assets to provide a variety of public goods and services to its residents. For that reason, these assets are not available for future spending. Irving’s investment in capital assets is reported net of related debt.

Restricted Net Position

This portion of net position ($168.6 Million) is restricted, representing funds that are limited to construction activities, payment of debt or specific programs by law.

Unrestricted Net Position

The remaining portion of net position ($240.8 Million) is unrestricted, representing resources that are available for services.

General Fund balance represents city reserves and amounts nonspendable, committed assigned or unassigned for special purposes. These are shown for the fiscal years ending Sept. 30, 2023-2025 in the chart below.

Financial Highlights Financial Glossary of Terms

Capital Assets

Capital assets represent a significant portion of the city’s financial position used to deliver services and community needs.

Major Capital Asset Additions

Conflans Road Extension $43.0 M MacArthur Boulevard Street Improvements

M Irving Boulevard-Strickland to Sowers

Improvements

M

Assigned funds: Amounts set aside by the city for specific purposes that are not restricted or committed.

Committed fund balance: Amounts that can only be used for a specific purpose by formal action from City Council.

Dedicated funds: Amounts set aside for a specific purpose.

Deferred outflows of resources: Amounts pending recognition as expenses in future periods.

Deferred inflows of resources: Amounts pending recognition as revenues in future periods.

Franchise fees: Charges to utility companies for the use of public rights-of-way.

General fund: The main operating fund for the city.

Intergovernmental: Revenue recognized from grant awards and reimbursement of operating costs by other funds.

DEBT

Long-term debt represents borrowings used to finance the construction and purchase of capital assets used by the city.

In FY25, the city issued $54.1 Million in new debt to fund a variety of planned capital projects ranging from building and park facility improvements and renovations to water main replacements and drainage improvements.

Aaa/AAA are the highest ratings assigned to an issuer's bonds by the major credit-rating agencies. The city's strong credit worthiness allows Irving to borrow at reduced interest rates and reduced overall cost.

Net investment in capital assets: Capital assets, net of accumulated depreciation, reduced by outstanding capital-related debt.

Net position: The net position of the city is equal to city assets and deferred outflows reduced by liabilities and deferred inflows.

Nonspendable funds: Fund balance representing assets not in a spendable form (i.e. inventory).

Reserves: Amounts of fund balance that are not available for appropriation or are set aside for a specific future use.

Restricted fund balance: Amounts that can only be used for a specific purpose set by external entities.

Restricted net position: Restricted assets reduced by liabilities and deferred inflows of resources related to those assets.

Unassigned fund balance: Remaining amount that has not been assigned to other funds or been restricted, committed or assigned to specific purposes.

Unrestricted net position: Remaining net position not included in net investment in capital assets or restricted net position.

Accomplishments Awards

Maintained the Traditional Finances, Public Pension and Debt Obligations Transparency Stars – Texas Comptroller of Public Accounts

Won Leading Fleets Top 50 Award in 2019, 2020, 2021, 2022, 2024 and 2025 – Government Fleet

20 25 City of Irving YEAR IN REVIEW

Each year, the city releases the Year in Review document to provide residents with an overview of the achievements, highlights and accomplishments from that year.

Toyota Music Factory renovations

Completed Phase 1 of the Toyota Music Factory renovation, investing approximately $8.9 million in capital improvements to the Entertainment Center.

Won DFW Clean Cities Fleet Award seven consecutive years, 2018 through 2024

Mustangs 40th Celebration and Mustangs Memories won the TAMMIE Award for Virtual Experience Silver Award – Texas Association of Museums Media Innovation and Excellence

Recognized as a Top 50 List of Meeting Destinations in North America for industry-leading meetings, events and hospitality technology provider – CVENT

2025 winner of Best of Meetings Today in the category of Best South Convention & Visitors Bureaus/Destination Marketing Organizations – CVENT

Gold Medal for Best South Convention & Visitors Bureaus/Destination Marketing Organizations in the Southwest in the 2025 Stella Awards – Northstar

Selected as a finalist for the Marketing Idea of the Year Award – ASM Global’s Amplify Conference

new mural in the Heritage District

Completed a new mural at the O’Connor Bridge, providing an enhanced and welcoming gateway into the Heritage District.

Irving Police and Fire honored with Lifesaving Award – Medical City Las Colinas

Irving Public Library won Branding Iron Award in the Public LibraryPrint Marketing Category – Texas Library Association

Communications Department won 44 awards from state and national organizations –National Association of Telecommunications Officers and Advisors (NATOA), Texas Association of Telecommunications Officers and Advisors (TATOA) and Texas Association of Municipal Information Officers (TAMIO)

Planning and Zoning Commission and Staff Received 2025 Texas American Planning Association Award of Excellence – American Planning Association

The City of Irving Received 2024 Trailblazer Award – GovInvest

Earned Certificate of Achievement for Excellence in Financial Reporting for the Annual Comprehensive Financial Report for the 41st consecutive year – Government Finance Officers Association

Popular Annual Financial Report (Annual Report) won the Reporting Award – Government Finance Officers Association

Won the Water Conservation and Reuse Award, Watermark Award for Communications Excellence and Watermark Honorable Mention Award – Water Environment of Texas

City of Irving