Title
Consider/Discuss/Act on the 2013 Annual Report for Tax Increment Reinvestment Zone Number Two
Summary
MEETING DATE: March 18, 2014
DEPARTMENT: Finance
CONTACT: Rodney Rhoades, Chief Financial Officer
RECOMMENDED ACTION:
* Staff recommends approval of the 2013 Annual Report for TIRZ No. 2. The approval of the Board of Directors will be forwarded to City Council on April 1, 2014.
ITEM SUMMARY:
* The City of McKinney is required by the State of Texas to submit an annual report on activity in the TIRZ.
* Revenues for the TIRZ Fund are generated by a portion of property tax and sales tax captured in the zone.
* Due to Board approval of adjusting the TIRZ No. 2 reporting period from a calendar year basis to a fiscal year basis, the given revenue totals reflects activity from January 1, 2013 to September 30, 2013. All future TIRZ No. 2 reporting periods will be on a 12-month fiscal year basis.
* The ad valorem increment for the current reporting period totals $21,729, with $17,896 coming from the City of McKinney and $3,833 coming from Collin County.
* The sales tax increment for the current reporting period totals $138,878, all of which comes from the City of McKinney.
* TIRZ No. 2 had a single expenditure of $4,500 in G&A expenses for the 2013 reporting period.
BACKGROUND INFORMATION:
* TIRZ No. 2 was created in September 2010 by McKinney Ordinance No. 2010-09-035, as amended.
* The established base year for TIRZ No. 2 reporting was 2010.
* Chapter 311.016 of the Texas Tax Code requires an annual status report be filed with the chief officer of each taxing unit that levies property taxes in a reinvestment zone and the state comptroller.
* The report must include:
1. The amount and source of revenues;
2. The amount and purpose of expenditures;
3. The amount of principal and interest due on outstanding bonded indebtedness;
4. The tax increment base and current captured appraised value retained; and
5. The captured ...
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