ORDINANCE relating to the Fiscal Affairs of the FIFTH WARD REDEVELOPMENT AUTHORITY on behalf of REINVESTMENT ZONE NUMBER EIGHTEEN, CITY OF HOUSTON, TEXAS (FIFTH WARD ZONE); approving the Fiscal Year 2019 Operating Budget for the Authority and the Fiscal Years 2019-2023 Capital Improvement Plan Budget for the Zone - DISTRICT B - DAVIS

SUBJECT:  Ordinance approving the Fiscal Year 2019 Operating Budget for the Fifth Ward Redevelopment Authority and a Fiscal Years 2019 – 2023 Capital Improvement Plan (CIP) Budget for Reinvestment Zone Number Eighteen, City of Houston, Texas (Fifth Ward Zone).

RECOMMENDATION: City Council adopt an ordinance approving the Fiscal Year 2019 Operating Budget for the Fifth Ward Redevelopment Authority and a Fiscal Years 2019 - 2023 CIP Budget for Reinvestment Zone Number Eighteen, City of Houston, Texas (Fifth Ward Zone).

SPECIFIC EXPLANATION:

The Administration has undertaken a comprehensive review of the proposed FY19 TIRZ budgets and recommends approval of the FY19 Operating Budget for the Fifth Ward Redevelopment Authority (Authority) and the FY19 – FY23 CIP Budget for Reinvestment Zone Number Eighteen (Zone).

• Total Operating Budget for FY19 is $9,020,397 which includes $562,750 for required fund transfers and $8,457,647 for Project Costs.
• The FY19 Operating Budget includes $7,243,047 in Developer Reimbursements primarily funded by the General Land Office (GLO).
• The FY19 – FY23 CIP Budget for the Zone totals $2,505,000 for affordable housing (land acquisition, design, and construction), sidewalks, cultural facilities, historic preservation and community parks.
• The FY19 Operating Budget includes $1,000,000 for capital expenditures and $92,800 for administration and overhead. 
• The FY19 Budget provides for the transfer of $194,876 to the City’s Housing and Community Development Department for Affordable Housing.
• The Authority must advise the Chief Development Officer of any budget amendments.  Adjustments to the budget that exceed the lesser of $400,000 or 5% of Project Costs require City Council approval. 
• The FY19 operating budget does not have a municipal service charge.

Attachments:  FY19 Operating Budget and FY19 – FY23 CIP Budget

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Andrew F. Icken, Chief Development Officer

Gwendolyn Tillotson      

Phone:  (832) 393-0937