City Council Workshop or Special Called Meeting

SPECIAL CALLED JOINT MEETING OF CITY COUNCIL AND THE DOWNTOWN REVITALIZATION COMMITTEE WEDNESDAY - DECEMBER 4, 2024 - 5:30 PM Notice of AGENDA Liberty Hill City Council Chamber / Municipal Court Courtroom 2801 Ranch Road 1869, Liberty Hill, TX 1) WELCOME AND CALL TO ORDER FOR CITY COUNCIL AND FOR DOWNTOWN REVITALIZATION COMMITTEE a. Establish Quorum b. Invocation c. Pledge of Allegiance "I pledge allegiance to the Flag of the United States of America, and to the Republic for which it stands, one Nation under God, indivisible, with Liberty and Justice for all." d. Texas Pledge "Honor the Texas flag; I pledge allegiance to thee, Texas, one State under God, one and indivisible" 2) PUBLIC COMMENTS Regarding items not on this agenda/Public Comments: Those desiring to speak on a topic not listed on the agenda, please complete a speaker form and present to the City Secretary before the meeting. Speakers will have three minutes each to speak, this time cannot be transferred or shared. Committee and Council members may not take action during this item and any responses will be limited to factual statements, recitation of existing policy, or request for the topic to be placed on a future agenda. Regarding topics listed as an agenda item/During specific agenda item: Committee and Council Members request that speakers complete a speaker form, indicate which agenda item they are interested in speaking about, and submit form to the City Secretary before the agenda item is addressed. Speaker forms may be emailed to the City Secretary before the meeting at esimpson@libertyhilltx.gov. 3) REGULAR AGENDA ITEMS a) Presentation from representatives of P3 Works, financial consultants, regarding the Downtown Tax Increment Reinvestment Zone (TIRZ) as adopted by City Council with 1  Ordinance # 2023-O-052 on November 29, 2023. (M. Etienne) Agenda Cover Sheet for Downtown TIRZ 12.4.2024 T Mccord.docx TIRZ No.4 Overview for Dec 4 2024 DRC and CC Special Joint Meeting.pdf 2023-O-052_Creation of Downtown TIRZ.pdf 4) FUTURE AGENDA ITEMS / CLOSING REMARKS OR ANNOUNCEMENTS 5) ADJOURNMENT OF CITY COUNCIL AND DOWNTOWN REVITALIZATION COMMITTEE The City Council, Boards, and Commissions reserve the right to reconvene, recess, realign, change the order of business, or adjourn into Execu ve Session at any me during the course of the mee ng, prior to adjournment, to discuss any item listed above, as authorized by Texas Government Code Sec on §551.071 (Consulta on with A orney), §551.072 (Delibera ons about Real Property), §551.073 (Delibera ons about Gi s and Dona ons), §551.074 (Personnel Ma ers), §551.076 (Delibera ons about Security Devices), and §551.087 (Development). In compliance with the Americans with Disabili es Act, the City of Liberty Hill will provide reasonable accommoda on for persons a ending mee ngs. To be er serve you, requests need to be received 48 hours prior to the meeting. Contact the City Secretary at 512-778-5449 – Extension 125. POSTING CERTIFICATION: I, ELAINE SIMPSON – CITY SECRETARY – CITY OF LIBERTY HILL certify that the attached notice of meeting was duly posted on the bulletin board at City Hall located at 926 Loop 332, Liberty Hill, Texas 78642 and on the City website (www.libertyhilltx.gov) on the ______ day of ____________________, 202_ at ______. Elaine Simpson – City Secretary. REMOVAL CERTIFICATION: I ELAINE SIMPSON – CITY SECRETARY – CITY OF LIBERTY HILL certify that the attached notice of meeting was removed from the bulletin board at City Hall located at 926 Loop 332, Liberty Hill, Texas 78642 on the ______ day of __________________, 202_ at _______. INITIALS _______ 2  SPECIAL CALLED CITY COUNCIL JOINT MEETING WITH DOWNTOWN REVITALIZATION COMMITTEE SPECIAL CALLED JOINT MEETING OF CITY COUNCIL AND THE DOWNTOWN REVITALIZATION COMMITTEE WEDNESDAY - DECEMBER 4, 2024 2801 Ranch Road 1869 - Liberty Hill AGENDA ITEM 3.a Presentation from representatives of P3 Works, financial consultants, regarding the Downtown Tax Increment Reinvestment Zone (TIRZ) as adopted by City Council with Ordinance # 2023-O-052 on November 29, 2023. (M. Etienne) 3 City Council Meeting Date: Dec. 4th, 2024 Item No. Requested By: City Manager Paul Brandenburg Submitted/Prepared By: City Manager Paul Brandenburg & Terry McCord, Lead Accountant Type: Workshop AGENDA ITEM COVER SHEET ITEM/TITLE: Presentation and discussion on the Downtown TIRZ No.4. AGENDA ITEM WORDING : Presentation on the Downtown TIRZ by P3 Works. EXECUTIVE / BACKGROUND SUMMARY: P3 Works are the City’s administrators for the PIDs and TIRZs. They will present a power point on the Downtown TIRZ, the definition and how the TIRZ works, the creation process and the budget approved at the time of creation. In addition, they will discuss options with keeping, modifying or dissolving the TIRZ. FISCAL NOTES/FINANCIAL BACKGROUND/FINANCIAL IMPACT: P3 will discuss the financial values from the TIRZ. SUGGESTED WORDING FOR MOTION(S) REGARDING ORDINANCES OR RESOLUTIONS: No Action – Informational only ATTACHMENTS: 1. TIRZ No.4 Overview. Page 1 of 1 4  City of Liberty Hill Tax Increment Reinvestment Zone No. 4 (Downtown TIRZ) 5 What is a TIRZ?  A TIRZ (Tax Increment Reinvestment Zone) is authorized by Chapter 311 of the Texas Tax Code.  A TIRZ is a tool that Cities and Counties can use to finance infrastructure in a defined area  The TIRZ Board of Directors make recommendations to the governing body of the City or County on the implementation of the tax increment financing  Each taxing unit can choose what percentage, if any, it will contribute  A TIRZ obligates future tax revenues from each participating taxing unit to pay for project costs  TIRZ revenues can be used to offset annual installments of PID assessments 6 2  History  Created by Ordinance No. 2023-O-052 on November 29, 2023  Creation Ordinance:  The TIRZ board consists of the City Council (Mayor, Council Place 1, Council Place 2, Council Place 3, Council Place 4, Council Place 5.  Zone expires December 31, 2053 or earlier if all project costs have been paid  50% of incremental City taxes shall be dedicated to the TIRZ Fund  Defines boundary of the Zone  Makes findings required by Chapter 311 of Tax Code  Includes a schedule of estimated costs • At time of creation, 19% of the property within the boundary was residential (Chapter 311 of Tax Code caps @ 30%) • Approval of Bylaws, approval of Final Project and Finance Plan have not yet occurred. 7 3 Boundary 8 4  Public Improvements Reinvestment Zone Number Four, City of Liberty Hill, Texas Project Costs Public Improvement Category Costs1,2 Downtown Improvements Engineering and Consulting 8,750,000 Water CIP's 9,700,000 Fire flow 3,200,000 Wastewater CIP's 6,450,000 Safety Improvements 2,100,000 Curb Improvements 1,500,000 Signage 130,000 Sidewalks 1,500,000 Main Street Streetscape/Public Space Amenities 1,750,000 Parking Improvements 5,550,000 Property Acquisition 10,500,000 Stormwater Drainage Study 750,000 Channels and Culverts 2,400,000 Detention 100,000 Subtotal $ 54,380,000 Transportation Improvements Stubblefield Phase One 3,000,000 Stubblefield Phase Two 4,800,000 Stubblefield Phase Three 5,400,000 Subtotal $ 13,200,000 Other Improvements PEC line relocates 300,000 VFW Property Improvements 1,000,000 Subtotal $ 1,300,000 Public Improvements Subtotal $ 68,880,000 Administrative Costs $ 1,500,000 Total $ 70,380,000 (1) As provided by City Staff. (2) Costs to be prioritized in the Final Project and Finance Plan. 9 5  Base Value • 2023 is base year for the TIRZ • 369 parcels • Base year Assessed Value equals $199,996,613 10 6  2024 County AV Report Original Corrected 527 Parcels 375 Parcels $305,298,583 $204,069,682 11 7 Impact of TIRZ on Average Homestead with Corrected County Report No TIRZ TIRZ Annual City Tax Annual City Tax $1,495 - $1,500 $1,497 - $1,501 City NNR Tax Rate City NNR Tax Rate $0.467912 - $0.469286 $0.468470 - $0.469849 12 8 Options Keep TIRZ As-Is Dissolve TIRZ Modify TIRZ Pros: Implement Project and Finance Pros: All tax increment flows to The TIRZ could be modified in a Plan general fund variety of ways, including: Cons: Reduces future general fund Cons: Projects in Project and Finance • Term revenues Plan not built, or built with general • Participation Percentage Next Steps: fund • Size • Approve Bylaws Next Steps: • Eligible Projects • Approve Final Project and Finance • Approve Ordinance setting TIRZ Plan termination date 13 9 14 15 16 17 18 19 20 21 22