| | | | | | | | | 
City Council Agenda Request
October 2, 2018
| |
| | | | | | | |
AGENDA REQUEST NO: III.Q.
|
| | AGENDA OF: City Council Meeting |
| | INITIATED BY: Catherine Turner, Compliance Manager |
| | PRESENTED BY: Jennifer Brown, Director of Finance |
| | RESPONSIBLE DEPARTMENT: Economic Development |
|
| | | | | | | | | AGENDA CAPTION: | | Consideration of and action on the proposed Tax Increment Reinvestment Zone Number Four Fiscal Year 2019 Budget. |
|
| | | | | | | | | RECOMMENDED ACTION: | | Consideration of and action on approving the proposed Fiscal Year 2019 budget for Tax Increment Reinvestment Zone Number Four, as recommended by the Zone's board. |
|
| | | | | | | | | EXECUTIVE SUMMARY: | On September 17, 2018, the Board of Directors for Tax Increment Reinvestment Zone Number Four (TIRZ No. 4) approved a recommendation to the City Council for approving the proposed Fiscal Year 2019 budget. The recommendation is made in accordance with City Ordinance No. 1768, the Zone's creation ordinance which grants final budget approval to the City Council.
Fiscal Year 2018
The Zone is anticipated to collect $697,569 in incremental taxes in FY18 with an estimated $21,900 in interest income, bringing total revenues to $719,469, which is a $1,174 increase from the budget. Expenditures are projected at $100,500, which is in alignment with the budget. Because the expenditures have not changed, no amendment to the FY18 budget is needed. Given the revenues and expenditures, this leaves an ending fund balance of $2,222,543, which is $1,174 higher than budgeted due to total revenues coming in greater than anticipated.
Fiscal Year 2019
Revenues for FY19 are estimated based on the anticipated tax rates for each participating entity and the certified tax roll from the Fort Bend Central Appraisal District, including any abatements and exemptions. Total revenues are estimated at $852,650, including interest income. The FY19 property tax revenues are based on the incremental values and tax rates shown below.
|
Taxing Entity
|
Net Assessed Value
|
Base Value
|
Incremental Value
|
Tax Rate
|
Participation Rate
|
Tax Increment at 99.5%
|
|
City of Sugar Land
|
$203,236,311
|
$21,523,297
|
$181,713,014
|
.31762
|
50%
|
$287,136
|
|
Fort Bend County
|
$196,885,187
|
$72,152,791
|
$124,732,396
|
.46400
|
50%
|
$287,932
|
|
MUD 138
|
$131,954,283
|
$10,527,513
|
$121,426,770
|
.31762*
|
50%
|
$191,874
|
|
MUD 139
|
$58,881,880
|
$10,970,488
|
$47,911,392
|
.31762*
|
50%
|
$75,708
|
*MUD 138 and MUD 139 contributions to the Zone are equal to the amount collected on one half of the City’s tax rate.
Proposed expenditures for FY19 total $85,701, of which $50,000 is allocated towards legal support services and $35,701 allocated towards administrative support services. The FY19 proposed budget shows an ending fund balance of $2,989,492.
As a note, the TIRZ No. 4 Final Project Plan, which outlines the projects the Zone is intended to undertake and their priority order, was approved in February 2013. The Zone’s top priority as identified in this plan is parking. As planning for the development of Tract 5 continues, one key focus has been the development of shared structured parking. It is anticipated that both the Zone's fund balances and recurring revenue will be a crucial and integral funding mechanism for shared structured parking, recognizing this is an incredibly important element of the Tract 5 office and entertainment centric development.
With that, the Board approved the FY19 budget as proposed. Following approval by the Board, in accordance with the TIRZ No. 4 creation ordinance, the budget must be approved by City Council before it becomes effective. |
|
| | | | | | | |
| BUDGET |
| | EXPENDITURE REQUIRED: N/A |
| | CURRENT BUDGET: N/A |
| | ADDITIONAL FUNDING: N/A |
| | FUNDING SOURCE:N/A |
|
|