O2019 – 0807 ORDINANCE relating to the Fiscal Affairs of FIFTH WARD REDEVELOPMENT AUTHORITY ON BEHALF OF REINVESTMENT ZONE NUMBER EIGHTEEN, CITY OF HOUSTON, TEXAS (FIFTH WARD ZONE); approving the Fiscal Year 2020 Operating Budget for the Authority and the Fiscal Years 2020-2024 Capital Improvement Plan Budget for the Zone - DISTRICT B - DAVIS

SUBJECT: Ordinance approving the Fiscal Year 2020 Operating Budget for the Fifth Ward Redevelopment Authority and a Fiscal Years 2020 – 2024 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 2020 Operating Budget for the Fifth Ward Redevelopment Authority and a Fiscal Years 2020 - 2024 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 FY20 TIRZ budgets and recommends approval of the FY20 Operating Budget for the Fifth Ward Redevelopment Authority (Authority) and the FY20 – FY24 CIP Budget for Tax Increment Reinvestment Zone Number Eighteen (Zone).

• Total Operating Budget for FY20 is $2,171,990 which includes $396,690 for required fund transfers as required by the tri-party agreement between the City, the Zone, and the Authority; and the interlocal agreement between the City, the Zone and Houston Independent School District.

• The FY20 Budget also includes $1,775,300 for Project Costs committed to property acquisition, streetscape enhancements along Lyons Avenue, environmental remediation, area parks and cultural facilities.

• The FY20 Operating Budget includes $460,000 in Developer Reimbursements

• The FY20 Operating Budget includes $93,500 for administration and overhead.
  
  
• The FY20 – FY24 CIP Budget for the Zone totals $2,495,000 for affordable housing (land acquisition, design, and construction), sidewalks, cultural facilities, historic preservation and community parks.

• The FY20 Budget provides for the transfer of $222,318 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 FY20 operating budget does not have a municipal service charge.
  
  Attachments: FY20 Operating Budget and FY20 – FY24 CIP Budget

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Andrew F. Icken, Chief Development Officer

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Gwendolyn Tillotson          

Phone: (832) 393-0937