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Staff says higher tax increment will raise pass-through payments to taxing entities and partner reimbursements
Summary
CRA staff told the board increased tax increment raised required pass-through payments to taxing entities (CBD, State Street, Block 70/Echols, 9 Line) and reimbursements to partner agreements such as Grama and Delta Center; staff presented the calculations in slide detail and will finalize distributions in the amendment.
CRA staff said the principal purpose of Budget Amendment No. 3 is to reconcile higher-than-expected tax-increment receipts and to make the corresponding distributions to taxing entities and reimburse partner reimbursement agreements.
Danny explained: "As we said, when we receive the increment, a lot of what we then turn around and do is make a direct payment to the taxing entities." He pointed to slide detail showing project areas (Central Business District; State Street; Block 70/Echols; 9 Line) where higher increment drove higher payments and noted the right-side slide breaks down reimbursement agreements with partners such as Grama, Delta Center, and Northwest Quadrant.
Staff asked board members to focus on the 2026 budget vs. actual columns rather than the total column when reviewing the slide figures, saying the increase in actual increment is the reason for larger payments to taxing entities. Those distributions are handled under existing interlocal or reimbursement agreements and will be reflected in the amendment put on the public hearing calendar.
