HomeMy WebLinkAboutIR 7420 INFORMAL REPORT TO CITY COUNCIL MEMBERS NO. 7420
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;ko 5*-,' To the Mayor and Members of the City Council October 3, 1989
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WIX Subject:PROPOSED REVISION.-OF TAX ABATEKENT POLICY
On August 1, 1989, the City Council adopted a tax abatement pol -
icy for qualified commercial/industrial projects . At that time
staff explained that changes in the state law, which were to
become effective on September 1, 1989, would require a subsequent
revision of the policy . The plan was to reconsider the policy
statement for possible revisions after the budget process was
completed.
While staff can prepare a revised policy for City Council action,
we believe consideration should be given to building a consensus
among taxing authorities for any tax abatement policy the city
adopts . This can be done through public education and frank
discussion among representatives of the taxing units . Potential
misunderstandings should be resolved before another tax abatement
proposal is considered .
Therefore , it is recommended that the City Council request other
taxing authorities to appoint a representative to join council
members for a "Tax Incentives Committee" . The committee' s first
assignment would be to work with the City's Economic Development
staff on a comprehensive Tax Abatement Policy with a directive to
report back to City Council with a proposed revised policy by
December 12th. Perhaps for situations such as school districts,
where there are numerous districts within the city limits , the
Committee could begin with representatives from two districts and
then rotate at some future time to have representatives from
different school districts .
Please note that this committee would be composed of
representatives of taxing authorities . The purpose of this
committee is to allow other taxing units to have a forum for
input in any tax incentive program during its formation . While
this may appear to slow the process for the City Council , the
time may be regained when a prospect approaches the City and a
proposal is subsequently brought before the other taxing units .
If those taxing units have been a part of the team which
developed the tax incentive program, they are more likely to be
supportive.
[ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7420
;5 01-0 To the Mayor and Members of the City Council
October 3, 1989
Subject:PROPOSED REVISION OF TAX ABATEMENT POLICY
Please note that this committee is proposed to be a tax 'incentive
committee, not tax abatement . This broadens the outlook of the
committee to include tax increment financing and other
possibilities .
A possible structure for the proposed Tax Incentive Committee
might be as follows :
1 . City Council - 3
- recommend appointing three members
2 . County Commissioners - 1
- although Fort Worth city limits extend into other
counties, recommend beginning with representation from
Tarrant County
3 . School Board - 2
- recommend the committee begin with the board presidents of
a . Fort Worth Independent School District
b. Northwest Independent School District
Council may also wish to include a representative from the Junior
College District , Hospital District , Water Control District and
the Tarrant Appraisal District .
ouglas Harm7
City ity Manager
DH:saw
[ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS