Consider approval of an ordinance terminating Tax Increment Reinvestment Zone Number One, City of Richland Hills, Texas, subject to completion of final closeout requirements; dissolving the Board of Directors; authorizing the proportional distribution of remaining tax increment funds; authorizing administrative actions; and providing an effective date.

Staff Report & Agenda Item Details

<span style="margin-left:0in;">The proposed ordinance approves termination but makes the Zone's termination date contingent on a written certificate executed by the City Manager, Finance Director, and City Attorney. The certificate must confirm that project costs, debt and interest, contracts, claims, participating-taxing-unit obligations, and other liabilities have been paid, discharged, or lawfully provided for; final tax increment payments have been received or accounted for; and required closeout actions have been completed or provided for.</span><br><br><p style="margin-left:0in;">Until that certification is filed, the TIRZ Board remains in place solely for any legally required closeout action. On the certified termination date, the Board dissolves. City staff will then complete final receipts, proportional distributions, reporting, and closure of the tax increment fund under the authority granted by the ordinance.</p><p style="margin-left:0in;">The current closeout estimate is $1,136,907. The estimated distribution is:</p><div align="center" style="margin-left:0in;"><table border="1" cellspacing="0" cellpadding="0" width="624"><thead><tr><td valign="top" style="width: 470px; vertical-align: top;"><p style="margin-left:0in;"><strong>Recipient / Use</strong></p></td><td valign="top" style="width: 154px; vertical-align: top;"><p style="margin-left:0in;"><strong>Estimated Amount</strong></p></td></tr></thead><tbody><tr><td valign="top" style="width: 470px; vertical-align: top;"><p style="margin-left:0in;">City of Richland Hills — Strategic Initiatives Fund</p></td><td valign="top" style="width: 154px; vertical-align: top;"><p style="margin-left:0in;">$1,002,065</p></td></tr><tr><td valign="top" style="width: 470px; vertical-align: top;"><p style="margin-left:0in;">Tarrant County</p></td><td valign="top" style="width: 154px; vertical-align: top;"><p style="margin-left:0in;">$134,842</p></td></tr><tr><td valign="top" style="width: 470px; vertical-align: top;"><p style="margin-left:0in;"><strong>Total estimated balance</strong></p></td><td valign="top" style="width: 154px; vertical-align: top;"><p style="margin-left:0in;"><strong>$1,136,907</strong></p></td></tr></tbody></table></div><p style="margin-left:0in;"><em>Final amounts are subject to audit, final receipts, closeout expenses, remaining obligations, and the statutory proportional-allocation formula. The City's share is one-time revenue and should not be treated as an ongoing operating source. The FY 2027 budget model assumes the TIF fund will close at a zero balance after closeout.</em></p>

This motion is scored as EXPANDS_GOVERNMENT (Impact Weight: 7.5/10). Under the Bastiat Liberty Watchdog Index, measures that increase tax rates or fee schedules, issue new debt or Certificates of Obligation, expand regulatory/zoning restrictions on private land use, or authorize unbudgeted spending expansions reduce an official's Freedom Score when voted YES (and reward dissenting NO votes).