Title
Consider/Discuss/Act on a Resolution Waiving Payment in Lieu of Taxes for McKinney Housing Authority for Fiscal Years 2012 and 2013
Summary
MEETING DATE: November 5, 2013
DEPARTMENT: Financial Services
CONTACT: Rodney D. Rhoades, Chief Financial Officer
RECOMMENDED CITY COUNCIL ACTION:
· Approve the Resolution
ITEM SUMMARY:
· McKinney Housing Authority (MHA) has requested the City Council to waive the Payment In Lieu Of Taxes (PILOT) for years 2012 and 2013.
· This resolution will waive the PILOT totaled $39,030.71. Amounts for each year are as follows:
o Year 2012 $16,845.42
o Year 2013 $22,185.29
· The waiving of PILOT results in corresponding reduction in revenues in the General Fund.
BACKGROUND INFORMATION:
· In 1949, the City of McKinney entered into a Payment In Lieu of Taxes (PILOT) Agreement with McKinney Housing Authority (MHA) whereby MHA agreed to remit PILOT instead of property taxes. The agreed payment is 10% of the aggregate shelter rent charged by the authority each fiscal year.
· The last PILOT payment received from MHA was in June 2011
· In September 2008, the City Council waived the PILOT for year 2005 to year 2007, totaling $60,498.71.
· In January 2006, the City Council waived the PILOT for year 2002 to year 2004, totaling $85,747.70.
· City staff has previously worked with MHA to get them to file the required paperwork (Computation of Payment In Lieu Of Taxes or form HUD-52267) and work out a payment schedule.
· MHA submitted the required paperwork with the City in August 2013, and also sent a letter requesting that the payment be waived. Total amount for year 2012 to 2013 is $39,030.71.
FINANCIAL SUMMARY:
· The waiving of PILOT will reduce revenues in the General Fund.
BOARD OR COMMISSION RECOMMENDATION:
· N/A