Title
Consider a memorandum/resolution authorizing Tax Increment Reinvestment Zone interlocal agreements with Bell County and Central Texas College.
Summary
DATE: February 7, 2023
TO: Kent Cagle, City Manager
FROM: Edwin Revell, Executive Director of Development Services
SUBJECT: TIRZ Interlocal Agreements with Bell County and Central Texas College
BACKGROUND AND FINDINGS:
A Tax Increment Reinvestment Zone, also known as "TIRZ", is an economic development tool authorized by Chapter 311 of the Texas Tax Code, through which governments can designate a portion of tax increment to finance improvements to promote the development of a defined area, called a "Reinvestment Zone."
Killeen's TIRZ #2 was established on November 4, 2008. The TIRZ Board consists of seven (7) members:
* Positions One (1) through Four (4) are reserved for the City and appointed by the City Council;
* Positions Five (5) and Six (6) are reserved for Bell County; and
* Position Seven (7) is reserved for the Central Texas College District.
On November 30, 2022, the TIRZ Board met and voted to expand the boundaries of the TIRZ #2, extend the duration of the TIRZ by twenty (20) years to December 31, 2048, and update the Project and Financing Plan for the TIRZ #2. On December 13, 2022, the City Council held a public hearing and adopted an ordinance updating the TIRZ #2 ordinance.
The attached interlocal agreements set the terms and conditions for participation in the TIRZ by the other taxing jurisdictions. Per the attached agreements, Central Texas College will dedicate one hundred percent (100%) of the incremental taxes that will be generated by increased property value within the zone for the duration of the TIRZ. Bell County will dedicate 100% of its M&O and debt service tax rate, but the 2.33? Road District tax will not be included in the TIRZ.
THE ALTERNATIVES CONSIDERED:
The City Council has two (2) alternatives:
* Do not authorize Tax Increment Reinvestment Zone inter...
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