HomeMy WebLinkAboutIR 10526 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10526
To the Mayor and Members of the City Council December 15, 2020
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SUBJECT: REORGANIZATION IN TIF ACCOUNTING AND PID ADMINISTRATION
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This Informal Report is to communicate an upcoming change in departmental responsibility for the
accounting functions for Tax Increment Financing Districts (TIFs) and the Administration of Public
Improvement Districts (PIDs).
Background / Current Structure
Tax increment financing is a tool authorized by Chapter 311 of the Texas Tax Code by which local
governments can publicly finance needed structural improvements and enhanced infrastructure within a
defined area called a reinvestment zone. Currently, the Economic Development Department (Economic
Development) handles all areas of TIF administration, including accounting functions.
A Public Improvement District is a defined geographical area established to provide specific types of
improvements or maintenance which are financed by assessments against the property owners within the
area. PIDs provide a development tool that allocates costs according to the benefits received. A PID can
provide a means to fund supplemental services and improvements to meet community needs that could not
otherwise be constructed or provided. Chapter 372 of the Texas Local Government Code authorizes the
creation of PIDs by cities. Currently, the Financial Management Services Department (Finance) handles all
areas of PID management.
New Structure
Finance and Economic Development have partnered together in an effort to better align job duties and
responsibilities, taking advantage of each department's expertise. The following reorganization will take
place in January 2021:
• The PID Administrator will move to Economic Development, where the positon will continue to
manage the relationships between the City, PID Management Companies and PID Boards. This
includes (but not limited to): preparing the 5 year assessment and budget plan, determining the
assessment rate, ensuring PIDs are aware of and follow City policy and State Law, and addressing
any issues the PID Boards and Management Companies have regarding their PID.
• All accounting functions for both TIFs and PIDs will reside in Finance to better take advantage of
staff's expertise. These duties will include (but not limited to): preparing various reconciliations,
preparing various financial reports, billing tax entities, receiving TIF contributions, and assisting
Economic Development in other TIF related financial administrative functions.
For questions regarding this reorganization, please contact Reggie Zeno, Financial Management Services
Director at 817-392-8517 or Robert Sturns, Economic Development Director at 817-392-2663.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS