Tax Increment Reinvestment Zone - City Council Report

What happened: The City Council motioned to approve the fiscal year 2021/2022 annual Tax Increment Reinvestment Zone (TIRZ) report in compliance with chapter 31 section 311 point 016 of the Tax Increment Reinvestment Zone report tax code.

Motion passed.

Why it matters: Public Works Director Alex Sanchez presented the report to the Council establishing the boundaries and Padre Blvd. enhancements.

So far, the enhancements for Padre Blvd. have included median light poles, crosswalk upgrades, signs, and pavement markings.

The report shows 285 accounts within the zone with a total balance of $286,914.48, and appraised values have increased by 15%.

• The City contributes 100% of the tax rate of 0.289143 per $100 assessed value.
• The County contributes 75% of Maintenance and Operations tax at a rate of 0.389519
• Total Contribution: $217,193.97

 City Council Report

Public announcements

Mayor Patrick McNulty announced a special meeting for SPI’s legislative agenda on Monday, Feb. 6, at 5:30 p.m.

Why it matters: The City plans to work with Louie M. Sanchez toward constructing a second access causeway to South Padre Island.

Regular Agenda

5.2

What happened: A motion to approve and submit Resolution No. 23-01 grant application for the Local Border Security Program to the Office of the Governor to help prevent and reduce border-related criminal activity.

Motion passed.

Why it matters: According to the agenda request form, the City uses the Local Border Security Program to help sustain law enforcement operations and enhance local law enforcement to prevent criminal activity. This grant is operating under the Homeland Security Grant Program.

Police Chief Claudine O’Carroll confirmed the resolution is general housekeeping.

5.3

What happened: A motion to approve the first reading of ordinance number 23-03 to reduce the speed limit along PR 100 between South Padre Island, North City Limits, and 28’ S of Kings Court.

Motion passed.

Why it matters: Last year, the City requested a speed survey from TxDOT on Padre Blvd (PR100) within the SPI North City Limits and 28’ S of Kings Court.

In December 2022, TxDOT performed a speed analysis and recommended going South of Hacienda Blvd to North of Orca Circle to change to 35 miles per hour.

Any violation of this Ordinance may be punished by a fine not to exceed Five Hundred Dollars ($500.00).

What now: After the signage change, Golf Carts can drive within the area without breaking state law.

5.5

What happened: A motion to establish a Short-Term Rental licensing fee of $125 due by May 1, 2023.

Motion passed.

Why it matters: According to the City’s agenda, the proposed fee would provide funding for the new STR program to keep track of STR compliance.

Based on the 2,600 STR permits, the proposed fee would generate $325,000 in 2023 and $650,000 in subsequent years.

While this amendment essentially adds a tax to the VRMA business community, which has no control over City ordinances due to non-residency, SPI-VRMA President Tom Goodman is optimistic and still sees the need for the system software.  

“We recognize the importance as an association to be good citizens within our community,” said Goodman.

What now: McNulty confirmed this month’s Planning and Zoning Committee meeting would look at the STR Ordinance to make recommendations.

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Island Matters | P.O. Box 2778 | South Padre Island, TX 78597