FY 07-08 TIRZ Adopted BudgetBAYTOWN REINVESTMENT ZONE #1 FUND 216
BUDGET SUMMARY BY FUND
Actual Adopted" Estimated Adopted*
2005 -06 2006.07 2006.07 2007.08
ources of Funding
TIRZ Increment ** $ 167,389 $ 322,962 $ 207,309 S 316,373
Investment Interest 1,876 - 6,000 7,000
Developer contribution 462,382 500,000 462,385 600,000
Total Sources -$ 631,647 $ 822,962 $ 675,694 $ 923,373
Uses of Funding
Zone Adm. & Project Mgmt. $
Legal Services
Engineering Services
Capital Improvements
City Services
Total Uses S
35,025 S
46,748 S
38,214 $
30,600
13,250
15,000
12,000
12,000
5,653
-
-
-
462,382
500,000
462,385
600,000
44,039
75,000
66,679
80,925
560,349 $
636,748 $
579,278 S
723,525
Excess (Deficit) Sources
Over Uses $ 71,298 $ 186,214 $ 96,416 $ 199,848
Working Capital - Beginning 76,480 272,649 147,778 244,194
Working Capital - Ending $ 147,778 $ 458,863 S 244,194 $ 444,042
* TIRZ Budget approved by the Board of Directors of the Baytown Redevelopment Authority on September 4, 2007.
** If the county chooses to participate, they would generate an additional $31,438 in TIRZ increment in FY 07 -08 (Base
Historical Tax Increment Schedule
Historical Annexed
Area Tax
Schedule
Increment
Taxable
Cumulative
Taxable
Annual
Value
Increment
Value
Increment
2001 Base Year
$ 50,418,710
$
2002
$ 49,297,930
$ (1,120,780)
2003
$ 59,132,610
$ 8,713,900
2004
$ 72,826,380
$ 22,407,670
2004 Base Year
S 7,710
2005
$73,177,660
$22,758,950
2005
S 7,710
$
2006
$ 79,248,766
$ 28,830,056
2006
S 785,707
$ 777,997
Estimated 2007
$ 90,544,975
$ 40,126,265
Estimated 2007
$ 800,482
$ 792,772
BAYTOWN REINVESTMENT ZONE NUMBER ONE
BUDGET SUMMARY
Fiscal Year 2007 -08
Baytown Reinvestment Zone Number One (Zone) was established by City Council in ordinance number
9197 on August 9, 2001. The Zone was enlarged by City Council in ordinance number 9271 on November
20, 2001. The Zone was enlarged by City Council in ordinance number 9968 on December 9, 2004 to
facilitate the city's mobility plan and to provide for in -fill commercial development. Pursuant to Chapter
311 of the Texas Tax Code, the City of Baytown may designate a contiguous geographic area within the
City as a reinvestment zone if the area satisfies the requirements of certain sections of Chapter 311 of the
Texas Tax Code. The Zone financing plan outlines the proposed use of ad valorem taxes for
improvements in the reinvestment zone. The proposed improvements in the Zone are expected to
significantly enhance the value of all the taxable real property in the zone and will be of general benefit to
the City. The Board of Directors for the Zone consists of nine members of whom the City appoints six,
and three members include representatives from Harris County, Goose Creek Consolidated Independent
School District and Lee College respectively. The expiration date of the Zone is December 31, 2030, or an
earlier time designated by subsequent ordinance.
Property taxes levied by taxing units participating in the Zone on captured appraised value above the base
value are deposited into the tax increment fund. The base value is the value of all real property taxable by
the taxing units participating in the Zone as of January 1, 2001. As a result of the latest Zone enlargement,
2004 was established as the base year for that area.
2008 Estimated Funding Sources and Uses — Based on the most recent tax roll received from the Harris
County Appraisal District, $40,919,037 is the estimated amount of tax increment in the reinvestment zone
for the 2007 tax year. The estimated 2007 value for the reinvestment zone totals $91,345,457. Based on
this incremental growth and a 95% collection rate, the City tax incremental contribution to the fund will be
$286,507. Negotiations with Harris County will hopefully enable the County to contribute increment in
this fiscal year. Harris County participation is restricted to 75% of their base tax rate and any resulting
increment is restricted to funding for a County- approved project. Once the cost of this project is funded
(reimbursed), County participation will end. If an agreement were approved by both jurisdictions, the
County incremental contribution assuming a 95% collection rate is estimated to be $29,866. This
increment will be set -aside in a project - specific fund to retire the associated costs. In addition to the tax
incremental revenues, it is anticipated that developer contributions will total $600,000 for investments
associated with the residential developments.
Estimated payments to the City of Baytown from the Zone will total $80,295 which includes a
reimbursement of $14,325 that equals 5% of the increment revenues captured by the City for Zone
administration and project management and a $66,600 reimbursement for costs associated with the
provision of basic services in the residential area of the TIRZ.
Following are the increment values by development project:
PrQiect
Base Value
2007 Estimated Value
Increment
Legna
$ 1,667,180
$22,506,481
$20,839,301
Mall
$37,242,580
$47,284,308
$10,041,728
Eastpoint
$11,508,950
$20,754,186
$ 9,245,236
TOTAL
$50,418,710
$90,544,975
$40,126,265
04 Annexed Area
$ 7,710
$ 800,482
$ 792,772
Total
$91,345,457
$40,919,037
Estimated Project Costs
The estimated project costs for the Zone outlined in the Project and Reinvestment Zone Financing Plan
total $42,090,000, contingent on the level of participation by the local taxing entities. It is expected that
developers will advance funds for the public infrastructure improvements and will be reimbursed as
provided in separate agreements and other documentation between the developer and the Zone. This year's
developer contribution is estimated to be $600,000 for infrastructure associated with the residential
development.