City approves creation of TIRZ #1

After a public hearing with no comments against, the Navasota City Council approved the first reading of Ordinance No. 1010-22, the creation of Tax Increment Reinvestment Zone No. 1 (TIRZ #1). Approval encompassed the designation of the TIRZ boundaries, the City’s rate of participation, a termination date and the creation of a board of directors.

Miller, Mayor Pro Tem Grant Holt, Mai, council members Pattie Pederson and Josh Fultz.

The purpose of TIRZ #1 is to finance $22 million in project costs related to infrastructure, mobility and connectivity, parks and recreation and economic development.

City Manager Jason Weeks stressed that a TIRZ is not a tax on residential or commercial property owners.

When a TIRZ is created, the city records the base tax value of the properties in the TIRZ at the time of creation. As development occurs and values increase, property taxes collected above the base value go into a TIRZ fund; however, during the creation process, city council determines what percentage of that revenue will go to the TIRZ fund with the remainder going to the General Fund. In this case, the rate will be 50% and the city council can change the participation rate by amending the ordinance. TIRZ #1 will terminate Dec. 31, 2052, and any unused TIRZ funds will go into the General Fund.

The boundaries of TIRZ #1 consists of approximately 2,980 acres of land located within the Navasota city limits and its ETJ (extraterritorial jurisdiction). It is bounded by SH 6 to the west, Navasota’s ETJ limit to the east, FM 3090 to the north and SH 105/Spur 515 and CR 446 on the south.

Approximately 274 acres is located in the northwest corner of SH 6 and Spur 515 and 30 acres is situated in the southwest corner of SH 6 and FM 3090.

At present, 94% of the property is undeveloped or in agriculture use with 3% commercial and 2% single family development. The current taxable value is $45.5 million with a projected taxable value in 2052 of $557.3 million.

City council member Bernie Gessner was absent from Monday’s meeting.

Excellent showing for COs

City council members then moved on to fund the east side utility capital improvement projects by approving the first and final reading of Ordinance No. 1013-22 authorizing the issuance and sale of City of Navasota, Texas Combination Tax and Limited Surplus Revenue Certificates of Obligation.

According to Managing Director James Gilley of U.S. Capital Advisors, the receipt of six bids was “an excellent showing.” The competitive auction bid process closed at 11 a.m. the morning of Nov. 14 and received a lot of national attention with 10 underwriters signing up to bid.

The best bid received was from FHN Capital Markets based in Memphis, TN, with an initial issuance cost of 4.196747% - just under 4.2%. According to Gilly, when the transaction closes Dec. 14, the City of Navasota will receive $6,760,000.

Gilly said they caught the market “at a good time” and “got the best deal on the market today.”

Per Texas Government Code Section 1201.028, only one reading is required.

Other council action:

•Approved Consent Agenda items which included October minutes and expenditures, the first reading of Ordinance No. 1011-22- tax roll ordinance for tax year 2022, Grimes County portion, the first reading of Ordinance 1012-22- tax roll ordinance for the tax year 2022, Brazos County portion and Resolution No. 722-22, the City of Navasota Investment Policy and Strategy.

Reports from City staff/ officials to council

•Human Resource Director Peggy Johnson introduced new Public Works employees Joshua Lipscomb and James Peavy, Navasota Police Department employees Trent Sorsby and Anthony Robbins and Utility Department employee Tonisha Moore.

•IT Specialist Hung Mai was recognized for five years of service to the City of Navasota. Firefighter Richard Hughes was also recognized for five years but was not present to receive his certifi cate.

•Public Works Director Jennifer Reyna gave an update on the west side streetscape project, the Utility CIP, the airport AWOS project and the Public Works warehouse transition.

•Director of Streets and Sanitation Jose Coronilla reported that the street project would be rebid. According to City Manager Jason Weeks, the rebid was prompted by an engineering error. Coronilla also gave a brief update on the Clean the Creek project.

•Marketing & Communications Coordinator Bobbie Ullrich summarized the Wine Press Travel Writers’ visit to Navasota Oct. 6-7.

•Navasota Police Chief Mike Mize reported on additions to personnel, actions being taken to address crime, the No Shave November fundraiser for a youngster with cancer and some recent and upcoming community related activities.

•Mayor Bert Miller noted that the announcement of the Texas Birthday Bash line-up will take place after the Thanksgiving break and that Chicken Express opened Monday morning.

View city council meetings in their entirety at www.navasotatx. gov/city-council/pages/meeting- videos.