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 2022 Operating Budget for the Authority and the Fiscal Years 2022-2026 Capital Improvement Plan Budget for the Zone - DISTRICT B - JACKSON

SUBJECT: Ordinance approving the Fiscal Year 2022 Operating Budget for the Fifth Ward Redevelopment Authority and a Fiscal Years 2022 – 2026 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 2022 Operating Budget for the Fifth Ward Redevelopment Authority and a Fiscal Years 2022 - 2026 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 FY22 TIRZ budgets and recommends approval of the FY22 Operating Budget for the Fifth Ward Redevelopment Authority (Authority) and the FY22 – FY26 CIP Budget for Reinvestment Zone Number Eighteen, City of Houston, Texas (Zone).

• Total Operating Budget for FY22 is $5,175,929 which includes $493,129 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 FY22 Budget also includes $4,682,800 for Project Costs committed to property acquisition, streetscape enhancements along Lyons Avenue, environmental remediation, area parks and cultural facilities.
• The FY22 Operating Budget includes $567,500 in Developer Reimbursements.
• The FY22 Operating Budget includes $88,800 for administration and overhead. 
• The FY22 – FY26 CIP Budget for the Zone totals $7,438,500 for affordable housing (land acquisition, design, and construction), sidewalks, cultural facilities, historic preservation and community parks.
• The FY22 Operating Budget provides for the transfer of $305,962 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 FY22 Operating Budget does not have a municipal service charge.

Attachments:  FY22 Operating Budget and FY22 – FY26 CIP Budget

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Andrew F. Icken, Chief Development Officer

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 Gwendolyn Tillotson                                          Phone: (832.393.0937)