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HomeMy WebLinkAboutIR 10526 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10526 To the Mayor and Members of the City Council December 15, 2020 Page 1 of 1 SUBJECT: REORGANIZATION IN TIF ACCOUNTING AND PID ADMINISTRATION 1875 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