The Texas Legislature, under Section 311 of the Texas Tax Code, created tax increment financing as a tool that local governments can use to publicly finance projects that will enhance an area’s economic vitality. This is accomplished by creating a fund that sifts a portion or amount of tax increment generated from municipal property taxes attributable to the area above the base year’s amount.  The yearly increment is then deposited into the tax increment fund.

The ordinance under consideration establishes the Tax Increment Financing Reinvestment Zone Number Six.  The duration of the zone will be 41 years and the increment will be set at 100%.

The Project and Finance Plan attached to the ordinance is a draft.  Council will vote on the final Project and Finance Plan after a Board of Directors is named, and the Board reviews the draft Project and Finance Plan and recommends approval.

This item has no immediate financial impact.  The public hearing is to consider an ordinance to establish Tax Increment Financing Reinvestment Zone Number Six (TIRZ #6) for a term of 41 years at 100% of the Captured Appraised Value in the zone, levied, and collected.  The total taxable value of real property in the Zone will be confirmed by the Appraisal District and the exact amount to be deposited will be determined each year.

Approval of this item to establish TIRZ #6 supports the City's Strategic Plan Critical Success Factors of Residential and Commercial Economic Vitality and Excellent, Innovative, and Accountable City Government.