Title
Consider and take action on a resolution approving an amended and restated interlocal agreement with the City of League City Section 4B Industrial Development Corporation for the use of 4B sales tax proceeds for eligible park facilities, including maintenance and operations costs and debt service reimbursement (Assistant City Manager - CFO)
Background:
If approved, this item will amend the existing interlocal agreement between the City and the City’s 4B development corporation.
The existing interlocal agreement addresses (1) reimbursement of debt service obligations incurred to construct Hometown Heroes Park and (2) up to 30 percent of annual corporation revenue if the balance of the special fund set aside for maintenance and operations of amateur athletics facilities falls below $1 million.
In addition to the current obligations for Hometown Heroes Park and the Hike & Bike Trails, the proposed amendment will allow for 4B to fund (1) reimbursement of debt service obligations incurred to construct Pat Hallisey Park, (2) future maintenance and operations of Pat Hallisey Park, (3) future maintenance and operations of Lobit Park, and (4) a minimum of 35% of the sales tax to be transferred from the corporation to the special fund set aside for maintenance and operations of amateur athletics facilities.
The change to the calculation of the percentage of the sales tax to be transferred from the corporation to the M&O fund will no longer be triggered by the balance of the fund balance but presented by City staff annually as part of the budget process. If approved, beginning fiscal year 2027, the percentage of 4B Funds accrued to be committed by the 4B Corporation to the M&O Fund will be projected for the following fiscal year based on annual budget estimates of the City, in no event less than thirty-five percent (35%) of 4B Funds accrued. Such projection will be based on an amount sufficient to pay existing Debt Service (both existing for Hometown Heroes ...
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