Consider approval of a resolution terminating Tax Increment Reinvestment Zone Number One, City of Richland Hills, Texas; dissolving the Zone’s Board of Directors; authorizing the distribution of remaining tax increment funds in accordance with applicable law; and providing an effective date.

Staff Report & Agenda Item Details

With recent Council direction to formally dissolve TIRZ #1, this item is the formal process to do so. Tax Increment Reinvestment Zone No. 1 has reached the point at which the City can complete its statutory and financial closeout. Termination will end future tax-increment deposits, dissolve the TIRZ board after final closeout duties, and return future property-tax revenue to the participating taxing units’ normal funds.The FY 2027 budget model closes the Tax Increment Fund at zero. Staff should complete a final accounting of all revenues, expenses, contracts, debt, project commitments, and participating-unit obligations before the termination becomes effective. Financial Considerations:The current closeout schedule distributes the $1,136,907 estimated cash balance as follows: $1,002,065 to the City’s Strategic Initiatives Fund and $134,842 to Tarrant County. The amounts remain subject to final audit, any allowable closeout expense, and the proportional distribution required by state law.After termination, future City tax revenue previously captured by the zone will flow to the applicable City funds under the ordinary tax levy. The closeout transfer is one-time revenue and should not be treated as a recurring operating source.