SUBJECT: Ordinance approving the Fiscal Year 2026 Operating Budget for the Lake Houston Redevelopment Authority and Fiscal Years 2026-2030 Capital Improvement Plan (CIP) Budget for Reinvestment Zone Number Ten, City of Houston, Texas (Lake Houston Zone).
RECOMMENDATION: City Council adopt an ordinance approving the Fiscal Year 2026 (FY26) Operating Budget for the Lake Houston Redevelopment Authority and the Fiscal Years 2026-2030 (FY26-FY30) CIP Budget for Reinvestment Zone Number Ten, City of Houston, Texas (Lake Houston Zone).
SPECIFIC EXPLANATION:
The Administration has undertaken a comprehensive review of the proposed FY26 TIRZ budgets and recommends approval of the FY26 Operating Budget for the Lake Houston Redevelopment Authority and FY26-FY30 CIP Budget for Reinvestment Zone Number Ten, City of Houston, Texas (Lake Houston Zone).
- Total Operating Budget for FY26 is $54,576,377 which includes $13,155,257 for required fund transfers and $41,421,120 for Project Costs.
- The FY26 Operating Budget includes $34,308,669 for capital expenditures committed primarily to the construction of the Northpark Drive Overpass from US 69 to Russell Palmer and the reconstruction of Northpark Drive.
- The FY26 Operating Budget also includes $301,500 for administration and overhead and $3,072,101 in developer reimbursements for the construction of water/wastewater and drainage facilities.
- The FY26 Operating Budget includes a municipal services cost payment of $205,530 to pay for the incremental increase in the cost of providing municipal services to the area.
- The FY26-FY30 CIP Budget totals $112,221,961 and includes the Northpark Drive Overpass construction and Northpark Drive street reconstruction. These projects are a recommendation from the Kingwood Mobility Study.
The Authority must advise the Chief Economic Development Officer of any budget amendments. Adjustments to the Project Costs in the Operating Budget that exceed the lesser of $400,000 or 5% of Project Costs require City Council approval.
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Gwendolyn Tillotson-Bell
Chief Economic Development Officer