HomeMy WebLinkAbout22-1637RESOLUTiON NO. 22-1637
A RESOLUTION OF THE CITY OF DENTON APPROVING AN UPDATED INFRASTRUCTURE FINANCINGPOLICY FOR WATER AND SEWER DEVELOPMENT PLANNED LINES; REPEALING R91-008; ANDPROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the Denton Development Plan adopted by the City of Denton contains policies providing for theexpenditure of public funds to encourage balanced growth and economic development; and
WHEREAS, in furtherance of those policies, the annual Operating Budget approved by the City Councilallocates $1,000,000 each year for both Water and Sewer Line Infrastructure Financing to carry out the balancedgrowth and economic development policies of the Denton Development Plan; and
WHEREAS, on February 19, 1991, the City Council of the City of Denton adopted the Infrastructure FinancingPolicy (R9 1-008); and
WHEREAS, staff has recommended updates to the Infrastructure Financing Policy and the Public UtilitiesBoard and Planning and Zoning Comrnissiori have considered and recommendedadoption of amendments to theexisting Infrastructure Financing Policy; and
WHEREAS, the City Council reviewed the recommendations and finds that changes to the InfrastructureFinancing Policy benefit tha City of Denton by stimulating economic development. NOW, THEREFORE:
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
SECTION 1. That the Infrastructure Financing Policy, attached hereto as Exhibit A, is approved.
SECTION 2. That Resolution No. R91-008, adopted on February 19, 1991, approving the Guidelines forFunding and Selecting Development Plan Candidate Water and Sewer Lines, is repealed.
SECTION 3. That this resolution shall become effective immediately upon its passage and approval.
The motion to approve this resolutionCHIthehe \vas made by _ and seconded
resolution \vas passed anc) vote La - n:by
Aye
b/
Nay Abstain Absent
Gerard Hudspeth, Mayor:
Vicki Byrd, District 1 \/
\/,Brian Beck. District 2:
Jesse L. Davis. District 3:y,
Alison Maguire, District 4:If
Brandon Chase McGee, At Large Place 5:yr
b/Chris Watts. At Large Place 6:
PASSED AND APPROVED this the aIR day 2022of
CPN
ATTEST:
ROSA RIOS, CITY SECRETARY I\\\IttIll if I
k
APPROVED AS TO LEGAL FORM:MACK REINWAND, CITY ATTORNEY
Digitally signed by Scottgaga-- EEL,?.„..,...,.„,.By: c---/ -05'oo'
Deputy City Attorney
Exhibit A
INFRASTRUCTURE FINANCING POLICY
Funding Policy
The City of Denton Utilities Department policy is to facilitate local economic growth through a program ofInfrastructure Financing.
During its annual review of the Utility Department’s annual Operating Budget, the Public Utilities Board shallconsider the allocation of up to $2,000,000 annually to financi the construction of infrastructure water orsewer lines. This allocation shall consist of up to $1,000,000 for water and up to $1,000,000 for wastewater.
That portion of each annual allocation that remains unobligated at close of the fiscal year shall carry forwardinto the following fiscal year. However, the cumulative total of said unobligated annual allocations shall notexceed $2 million at any time.
Selection Policy
Infrastructure Financing shall be provided to:
1) Industrial prospects which have committed to building facilities in Denton.
2) Commercial, retail, or mixed-use prospects which have committed to building facilities in Denton. Priorityconsideration will may be given to projects which:
a) sell a majority of their goods or services to individuals or businesses outside of Denton, or
b) manufacture goods for consumption in Denton which were previously manufactured outside ofDenton.
3) Prospects which include development or redevelopment of Class A office space to attract and supportprofessional services and tech-oriented companies, particularly in downtown, or have committed tobuilding corporate headquarters facilities in Denton.
Projects must conform to the City’s public infrastructure master plans, including but not limited to the mobilityplan, water master plan, wastewater master plan, stormwater master plan.
All requests for Infrastructure Financing shall be subject to the economic analysis detailed in this Policy. This
analysis shall determine project costs and benefits over a ten year period. Infrastructure Financing may beallocated only if project benefits are equal to or exceed project costs.
Economic Analysis
For purposes of the economic analysis :
Project costs shaH consist of:
• Debt service associated with the subject utility line’s construction, and
Return on investment associated with the project and completed subject utility line.•
Project benefits shall consist of :
• Revenue from ad valorem tax on prospect’s local property, plant and equipment
Revenue from sales tax on prospect's products and services sold by the Denton facility
Revenue from sales tax on local purchases by the Denton-resident labor force generated byprospect's locating in Denton.
Revenue from sales tax on prospect's local purchase of its facility's construction materials througha Texas Direct Pay Permit. - (note labor is not taxable)
Revenue from that portion of the prospect's local consumption of Denton utilities that iscontributed toward -the return or investment.
•
•
•
•
•attract basic industries to Denton,
•retain existing industries in Denton, and
•encourage businesses to expand within City limits
The City of Denton Water Utilities Department’s policy is to support the City Council’s economic developmentgoals and efforts by offering basic industries economic incentives, principal among which is the Infrastru6tureFinancing Program. This Program will lower a basic industry’s total cost of locating to or expanding in Dentonby allowing thi City to absorb part of the cost to construct the following types of water and sewer mains:
•those water and sewer mains which are necessary to serve the new or expanded basic industry
•those water and sewer mains which are required by the City's subdivision ordinance or plans