TIRZ #2 board amends its FY2023-24 budget for a $150,000 missed loan payment to the City

The July 18, 2024 minutes say the CFO "informed the Board that the Finance Department had missed facilitating a payment from the East Gateway TIRZ to the City in connection to the reimbursement agreement the Board approved in 2023," and that the board wanted the catch-up payment brought back "as its own action item to amend the FY23-24 budget"; the board approved the FY2024-25 budget 6-0 the same day. On September 19, 2024 the board "elected to make a $150k payment for the loan payment due," and the budget amendment passed 7-0. ^[1][2]

The minutes call the obligation a "reimbursement agreement," a "note being repaid to the City" and a "loan payment," but do not name the agreement, its amount or its term, and the January 2023 TIRZ #2 minutes that would record its approval are not in the cached set. The FY2024-25 TIRZ #2 budget included $150,000 in debt service, and the revised 2024/25 estimate in the 2025/26 budget showed $71,066. The 2022 TIRZ #2 board minutes say the debt service line was added to the budget to repay the City for utility extensions in the zone (see clm-tz-tirz2-loan-origin-2022). ^{[3][4][5][6][7][8]}

At the same September 19, 2024 meeting the board met in executive session under Texas Government Code sections 551.087 (economic development negotiations) and 551.071 (consultation with attorney) and resumed open session "with no action being taken." ^[2]

The 2022 TIRZ #2 board minutes describe the obligation the 2024 minutes call a loan: the board added a $150,000 debt service line to its FY2022-23 budget to start repaying the City for utility extensions in the zone (a completed $98,000 sewer extension under I-40 and a planned water line estimated at about $1.7 million), with staff to bring a formal repayment agreement later. The 2022 minutes do not give the agreement's final amount or term. ^[7][8]