PRESENTER: Presenter
Jared Werner, Assistant City Manager
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SUBJECT: Title
Discuss and consider approval of the FY 2025 Proposed Budget for the Reinvestment Zone No. 1/New Braunfels Development Authority.
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DEPARTMENT: City Manager’s Office
BACKGROUND INFORMATION:
As it typically is, the Reinvestment Zone No.1/NBDA Budget has been incorporated and will be approved as part of the City’s overall budget at their regular meeting on September 9th. Included on the following page is the FY 2025 Proposed Budget for the Creekside Town Center TIRZ related Funds (Reinvestment Zone No. 1). The budget reflects the projected revenues into the TIRZ (Tax Increment Reinvestment Zone) as well as the proposed expenditures. The Creekside TIRZ receives revenue from the ad valorem property tax increment in the zone as well as 3/8 cent of the sales tax generated within the TIRZ boundaries. Budgeted revenue includes $1.59 million in sales taxes and $3.86 million in property taxes.
Proposed expenditures in the TIRZ total $5,210,000 as follows:
• Administrative expenditures - $30,000 as reimbursement to the City for staff support;
• Developer reimbursements - $1,500,000 for reimbursement costs associated with two approved projects: phase II infrastructure and utility cost reimbursement for the future Top Golf site.
• Direct debt service payments (principal and interest) of $3,180,000
• Capital expenditures of $500,000 - costs to support any project closeout costs for the fire station and fire training field facilities/improvements. Funding also included to continue professional services associated with the Easy Alligator Creek Trail project.
The budget also separates out the reserve for debt service of $1,200,000 (as required under the debt covenants) from the unrestricted reserve ($5,451,749). The unrestricted reserve can be used for allowable infrastructure or identified project costs.
The captured tax year 2024 values for the Creekside TIRZ are approximately $780,000,000. A portion of the total values are still in the protest process, so the final value will likely change throughout the year as those matters are resolved.
ISSUE:
N/A
STRATEGIC PLAN REFERENCE:
☒Economic Mobility ☒Enhanced Connectivity ☐Community Identity
☒Organizational Excellence ☐Community Well-Being ☐N/A
FISCAL IMPACT:
N/A
Recommendation
RECOMMENDATION:
Approval of the proposed budget
