HomeMy WebLinkAboutIR 8124 INFORMAL REPORT TO CITY COUNCIL MEMBERS No, 8124
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To the Mayor and Members of the City Council Ma 5, 1997
Subject: PROPOSED TAX ABATEMENT POLICY
The Texas Tax Code authorizes cities to create reinvestment zones and enter into tax
abatement agreements only after the City elects to become eligible to participate in tax
abatement and adopts a policy statement establishing guidelines and criteria to govern tax
abatement. State law allows a policy to remain in effect for a two-year period. The City
of Fort Worth established its first set of guidelines and criteria for tax abatement in 1989.
On February 21, 1998 the City Council passed M&C G-12143 that re-adopted the City's
tax abatement guidelines that were established in 1996. At that time the City Council,
through the Economic Development Committee, directed staff to begin reviewing the
policy for possible revisions. Since February, staff has developed proposed changes to
the policy. The changes being proposed address concerns previously voiced by the City
Council.
Proposed changes to the policy were presented to the City Council's Economic
Development Committee at its April 22A meeting. After reviewing the proposed
changes, the committee directed staff to present the changes to the full City Council at its
May 5`h work session.
Attached is a draft copy of the proposed tax abatement policy. According to state law,
these guidelines and criteria must be approved by a three-fourths (314) vote of the City
Council in order to amend the current policy and are effective for two (2) years from the
date of adoption. If endorsed by the full City Council at the work session, the item will
come before the Council as an action item for a vote at a later date.
Bob Terrell
City Manager
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ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS