HomeMy WebLinkAboutTax Increment Finance (TIF)-Agenda Packets-07/30/2018City of Colleyville Page 1
City of Colleyville
Tax Increment Financing
District Board
Agenda
City Hall
100 Main Street
Colleyville, Texas 76034
817. 503.1000
www.colleyville.com
Monday, July 30, 2018
12 Noon
Executive Conference Room
Third Floor, City Hall
1.CALL TO ORDER
2.CONSENT: READING AND PUBLIC HEARING- RESOLUTION R-18-01
2a Approval of the July 24, 2017 Tax Increment Financing District Board Meeting
Minutes
2b Approval of the January 31, 2018 Tax Increment Financing District Board
Meeting Minutes
3.PRESENTATION AND DISCUSSION
3a Review and discuss the status of the Colleyville Tax Increment Financing
District
4.ADJOURNMENT
I hereby certify this agenda was posted on City Hall bulletin boards Thursday, July 26,
2018 by 5:00 p.m.
Christine Loven, TRMC
City Secretary
A quorum of the Colleyville City Council and/or any other Colleyville Board, Commission, or
Committee may be in attendance at this meeting.
Any matter on this agenda may, at the discretion of the governing body, be opened for
public comment and discussion.
If you plan to attend this public meeting and have a disability that requires special
accommodations, please advise the Executive Secretary at least 48 hours in advance at
817.503.1110, and reasonable accommodations will be made to assist you.
RESOLUTION R-18-01
A RESOLUTION APPROVING MINUTES OF THE TAX INCREMENT
FINANCING DISTRICT BOARD OF DIRECTORS MEETING
WHEREAS,the Colleyville Tax Increment Financing District Board of
Directors held a meeting on July 30, 2018.
NOW, THEREFORE, BE IT RESOLVED BY THE TAX INCREMENT
FINANCING DISTRICT BOARD OF DIRECTORS OF THE CITY OF
COLLEYVILLE TEXAS:
Sec 1. THAT the minutes of the Tax Increment Financing District
Board of Directors meeting held July 24, 2017 are hereby
approved.
Sec. 2.THAT the minutes of the Tax Increment Financing District
Board of Directors meeting held January 31, 2018 are hereby
approved
AND IT IS SO RESOLVED.
APPROVED BY A VOTE OF ___ AYES, NAYS, AND ABSTENTIONS ON
THIS THE 30TH DAY OF JULY 2018.
ATTEST: COLLEYVILLE TAX INCREMENT
FINANCING DISTRICT BOARD
Christine Loven, TRMC Richard Newton
City Secretary Chairman
City of Colleyville Page 1
City of Colleyville
Tax Increment
Financing District Board
MINUTES
City Hall
100 Main Street
Colleyville, Texas 76034
817. 503.1000
www.colleyville.com
Monday, July 24, 2017
12:00 p.m.
Executive Conference Room
Third Floor, City Hall
The Tax Increment Financing District Board of Directors meeting was called to
order by Chairman Richard Newton on July 24, 2017, at 12:00 p.m.
ROLL CALL: Chairman Richard Newton, Vice Chairman Mike Taylor, Directors
Bobby Lindamood, Mark McClendon, Scott Rule, and John Eubanks.
ABSENT: Directors Nancy Coplen, Tammy Nakamura, and Rebecca Barksdale
ALSO PRESENT: City Manager Jerry Ducay, Assistant City Manager/Economic
Development and Communications Director Mark Wood, Strategic Services
Manager Adrienne Lothery, Chief Financial Officer Shereen Gendy, and Assistant
City Secretary Christine Loven
2. CONSENT: READING AND PUBLIC HEARING- Resolution R-17-01
2a Approval of the minutes of the Tax Increment Financing District
Board of Directors meeting of July 25, 2016
Chairman Newton read Resolution R-17-01 in its entirety.
Chairman Newton opened the public hearing at 12:04 p.m.
There was no one present wishing to speak and Chairman Newton closed the
public hearing at 12:04 p.m.
Vice Chairman Taylor moved to approve Resolution R-17-01. Director Lindamood
seconded the motion.
The motion to approve carried by the following vote:
Aye: 6 - Chairman Richard Newton, Vice Chairman Mike Taylor, Directors Bobby
Lindamood, Mark McClendon, Scott Rule, and John Eubanks
Absent: 3 - Directors Nancy Coplen, Tammy Nakamura, and Rebecca Barksdale
3. PRESENTATION AND DISCUSSION
3a Review and discuss the status of the Colleyville Tax Increment
Financing District
City of Colleyville Page 2
Tax Increment Financing District MINUTES July 24, 2017
Strategic Services Manager Adrienne Lothery presented the annual update of the
TIF and briefed the Board.
Vice Chairman Taylor said he challenges the date of Hall-Johnson Road being
added to the TIF, believing it was part of the original TIF, not added by
amendments. Manager Lothery stated she will check and respond appropriately.
Director McClendon stated he has seen that the most successful TIFs have been
those who have a clear vision. Meaning, it is fine to have a plan for allocation of
the money, but not to continue to think the funds must be spent within a specific
category. Director McClendon stated having a vision of where the City wants to
be will allow for success for all TIF partners.
Director Eubanks asked staff for a reconciliation of TIF revenues and
expenditures, and a planned projects strategy. Manager Lothery noted there are
several new employees at the City with a fresh perspective and she believes
2018 going forward will provide for projects and vision.
Director McClendon stated early completion of projects allows the City to have
full use of funds throughout the City, not only within the confines of the TIF
boundaries.
Manager Lothery noted the TIF consultant has indicated there may be
opportunities to fund projects which feed the TIF District, but are not within the
boundaries, and the City will be evaluating those opportunities and will bring the
information to the Board.
City Manager Ducay stated in the coming months, the records will be reviewed
and the City will bring forward a five-year plan and an accounting of expenditures
versus project categories, a forecast of future revenues, and balances available
for allocation.
There was general discussion regarding the costs of the Highway 26 and Glade
Road projects and the development of a project plan.
Director Taylor noted there is a new City Council, new City Manager, and new
Directors and there needs to be a change in the project plan and accountability.
4. ADJOURNMENT
There being no further business before the Tax Increment Financing District
Board, Chairman Newton adjourned the meeting at 1:10 p.m.
APPROVED BY A VOTE OF _ AYES, _ NAYS, AND _ ABSTENTIONS, ON THIS THE
30TH DAY OF JULY 2018.
City of Colleyville Page 3
Tax Increment Financing District MINUTES July 24, 2017
Minutes taken and prepared by:
Christine Loven, TRMC
City Secretary
City of Colleyville Page 1
City of Colleyville
Tax Increment
Financing District Board
MINUTES
City Hall
100 Main Street
Colleyville, Texas 76034
817. 503.1000
www.colleyville.com
Wednesday, January 31, 2018
12:00 p.m.
Executive Conference Room
Third Floor, City Hall
The Tax Increment Financing District Board of Directors meeting was called to
order by Chairman Richard Newton on January 31, 2018, at 12:00 p.m.
ROLL CALL: Chairman Richard Newton, Vice Chairman Mike Taylor, Directors
Nancy Coplen, Bobby Lindamood, Tammy Nakamura, Mark McClendon, and John
Eubanks.
ABSENT: Directors Scott Rule and Rebecca Barksdale
ALSO PRESENT: Councilmember Kathy Wheat, City Manager Jerry Ducay,
Assistant City Manager Adrienne Lothery, Chief Financial Officer Shereen Gendy,
Accounting Manager Karen Hines, Intern Brittany Huff, and City Secretary
Christine Loven
2. PRESENTATION AND DISCUSSION
2a Overview of the TIF regulatory history
Assistant City Manager Adrienne Lothery introduced the City’s TIF consultant
David Pettit of Economic Development, who provided a foundational background
on the TIF, highlighted Chapter 311 of the Tax Code which outlines the two
procedures for creating and amending a TIF, and explained changes which have
occurred in legislation over the last decade.
Mr. Petit explained the length of the TIF, the caps which were put in place by
GCISD and TCC; amendments to the projects and financing plans, and boundary
amendments.
2b Presentation and discussion of the TIF revenues and expenditures
reconciliation
Strategic Services Manager Adrienne Lothery recognized the Finance Department
for their work in creating the reconciliation.
Manager Lothery reviewed the reconciliation, categories, and projects, and
answered questions of the board.
Vice Chairman Taylor asked if the reconciliation contained audited numbers.
Manager Lothery replied yes.
City of Colleyville Page 2
Tax Increment Financing District MINUTES July 24, 2017
Chairman Newton asked if there was a difference in the rate paid by GCISD
before the cap. Manager Lothery replied the M&O rate in 2005 was 1.47, today it
is 1.04.
There was general discussion regarding the layout of the reconciliation to avoid
confusion.
2c Presentation and discussion of the draft five-year plan
City Manager Jerry Ducay stated the five-year plan is preliminary and not
adopted by City Council with this budget, however, it will be adopted in the FY
2019 budget.
Manager Lothery presented the draft five-year plan and answered questions of
the Board.
Director Coplen asked if there were any plans for the TIF beyond 2022.
Chairman Newton stated this will be a rolling plan which if revisited and updated
annually with the projects as they become developed.
Vice Chair Taylor stated the columns within the report are confusing and need to
be clarified.
Director Eubanks asked if the five year plan is an indication of the intent to spend
funds. Chairman Newton stated it is a starting point for planning and the intent
will be to adopt the plan in July.
There was discussion of how to clarify the plan and segregate each entity to show
the contribution and improvements.
There was additional discussion regarding amendments to the TIF and
interpretation of the latitude allowed in the categories.
Vice Chairman Taylor stated on a personal note it has been a great blessing to
serve the City and he feels better about the TIF today because of the efforts of
the staff to provide the information for which they have asked for many years.
He thanked Mayor Newton and the staff.
Director Nakamura asked what happens to the TIF in 2030. Mr. Petit stated
there will be options to consider based on projects and legislation.
3. ADJOURNMENT
There being no further business before the Tax Increment Financing District
Board, Chairman Newton adjourned the meeting at 1:03 p.m.
City of Colleyville Page 3
Tax Increment Financing District MINUTES July 24, 2017
APPROVED BY A VOTE OF _ AYES, _ NAYS, AND _ ABSTENTIONS, ON THIS THE
30TH DAY OF JULY 2018.
Minutes taken and prepared by:
Christine Loven, TRMC
City Secretary
City of Colleyville Page 1
City of Colleyville
Tax Increment Financing
District Board
Agenda Briefing
City Hall
100 Main Street
Colleyville, Texas 76034
www.colleyville.com
Agenda Number 3a Agenda Date 07/30/2018 Number
Type Presentation and Discussion
Department City Manager
Title
Review and discuss the status of the Colleyville Tax Increment Financing District
Explanation
Adrienne Lothery, Assistant City Manager, will provide an update of the Fiscal Year
2018 status of the Colleyville Tax Increment Financing (TIF) District. A 5-Year working
plan for use of TIF funds will also be presented.
Attachments
1.Colleyville TIF Fiscal Year 2018 Update Presentation
2.TIF Annual Report - FY 2017
3.5-Year TIF Working Plan
Annual Board Meeting
City of Colleyville TIF Board
July 30, 2018
Background: Purpose of a TIF
•Chapter 311 of the Texas Tax Code
•To accelerate commercial development in an underdeveloped
area (geographic zone) or to renovate existing blighted
development in an area
•Entities contribute ad valorem taxes received from the
incremental value increase on property within the zone
•Provides for debt issuance for infrastructure improvements
within the zone
TIF Map
1998 TIF #1 created
2012 TIF #1a added
2030 TIF expires
TIF Taxable Value Update
1998 Taxable Base Value:$75,821,735
2016 Taxable Value (3/15/17):$384,869,207
2017 Taxable Value (2/26/18):$442,248,745
Incremental Value Increase:$366,427,010
2017 New Construction (2/26/18):$19,491,986
Expanded TIF Area Base Value:$30,796,078
2016 Taxable Value (3/15/17): $38,839,096
2017 Taxable Value (2/26/18): $39,918,884
Incremental Value Increase:$9,122,806
2017 New Construction (2/26/18):$0
TIF Participation
Entity Rate
City of Colleyville 100%
Grapevine Colleyville ISD 100% M&O*
Tarrant County 100%**
Tarrant County College District 100%
Tarrant County Hospital District 100%***
* 74% dedicated to $27 million in general public improvements and remaining 26%
dedicated to GCISD school improvements
** Participation capped at $4.35 million, cap reached in 2012
*** Participation capped at $3.85 million, cap reached in 2012
Background: FY 2018 Timeline
Dates Action
Summer 2017 Taxing entities adopt a tax rate for FY 2018
July 25, 2017 TAD certifies AV values for FY 2018
December 2017 City of Colleyville submits annual report for Fiscal Year
ended Sept. 30, 2017 (FY 2017) –due 90 days after FYE
January 31, 2018 Special TIF Board meeting –Update (Reconciliation)of
Financial Position & Preliminary draft of 5-year plan
March 2018 Final Updates to 2017 AV values received from TAD;
City of Colleyville invoices TIF partners for FY 2018
May 1, 2018 FY 2018 TIF payments due
July 2018 Annual TIF Board meeting -in July per bylaws
FY 2017 Revenue (based on 2016 values)
Tax Increment Revenues TIF #1
City of Colleyville $1,048,073
Tarrant County College District $449,064
Grapevine Colleyville ISD-Total Payment* $3,063,235
Grapevine Colleyville ISD**($796,441)
Grapevine Colleyville ISD***$976,988
Tarrant County #$0
Tarrant County Hospital District #$0
TOTAL $4,740,918
Tax Increment Revenues TIF #1A
City of Colleyville $27,276
Tarrant County College District $11,637
TOTAL $38,914
Interest TOTAL $167,072
*This is calculated based on the compressed M&O tax rate, as stipulated by State Law (H.B. 3646 [81])
** 26% of the payment is returned to GCISD per contract
*** Supplemental payment for difference in current M&O tax rate of $1.04 and $1.471 2005 M&O tax rate
# Contractual obligation for payment of incremental revenues met in 2012
Outstanding Debt
SERIES 2016 TAX INCREMENT REVENUE AND REFUNDING BONDS
FISCAL YEAR PRINCIPAL INTEREST TOTAL INTEREST RATE
2018 $610,000 $44,200 $654,200 2%
2019 $625,000 $28,725 $653,725 3%
2020 $645,000 $9,675 $654,675 3%
TOTAL $1,880,000 $82,600 $1,962,600
Project Plans
Original Project Plan
Downtown Improvements
Plaza
Professional Services
Public Parking, land, engineering
Storm Drainage
Library
Hall-Johnson Road
Bluebonnet Drive
SH 26
Tinker/Sanders Intersection
Bogart
Church Street
Riverwalk Drive
Public Parking Structure
Main Street
City Hall
Fire Station
John McCain Road
School Improvements
Total (orig. estimate) = $35,328,690
Amended Project Plan
Economic Development TIF Grants
Roadway Improvements
Trails & Public Amenities
Administrative Expenses
Total (orig. estimate) = $44,456,185
Notes:
•All $ projections for project costs are
estimates and are not a limitation
•Revenue from ISD participation may not be
used on any project category added by the
2012 amendment
•Only revenue from City participation can
be used on TIF Grants category
5-Year Plan
•Created a working draft of a 5-year plan shared at the
January 2018 TIF Board meeting
•City staff and GCISD staff have met twice to share
information and input
•Updated 5-Year plan presented today, as a guide for the
coming years
•Continue to update plan each year, and eventually create a
working draft of all years through TIF expiration (12/31/30)
Questions & Discussion
TAXABLE VALUE:
GCISD County & Hospital County College City of Colleyville
Colleyville TIF #1
TAX YEAR 2016 / FY 2017 TAXABLE VALUE $381,916,707 $386,049,207 $386,056,207 384,869,207
1998 BASE VALUE $75,593,230 $75,772,230 $75,779,230 75,821,735
INCREMENTAL VALUE INCREASE $306,323,477 $310,276,977 $310,276,977 309,047,472
Colleyville TIF #1A
TAX YEAR 2016 / FY 2017 TAXABLE VALUE $38,851,906 $38,851,906 38,839,096
2012 BASE VALUE $30,811,178 $30,811,178 30,796,078
INCREMENTAL VALUE INCREASE $8,040,728 $8,040,728 8,043,018
NOTE: Taxable value can vary slightly for each taxing entity based on differing exemptions
REVENUES:
Tax Increment Revenues TIF #1 -
CITY OF COLLEYVILLE (0.0033913 x TIF#1 incremental value)1,048,073
TARRANT COUNTY COLLEGE DISTRICT (0.0014473 x TIF#1 incremental value)449,064
GRAPEVINE COLLEYVILLE ISD -TOTAL PAYMENT* (0.01 x TIF#1 incremental value)3,063,235
GRAPEVINE COLLEYVILLE ISD **(0.26 x total payment)(796,441)
GRAPEVINE COLLEYVILLE ISD ***(0.26 x payment difference from current vs. 2005 M&O tax r 976,988
TARRANT COUNTY #CAPPED -
TARRANT COUNTY HOSPITAL DISTRICT #CAPPED -
TOTAL 4,740,918
Tax Increment Revenues TIF #1A -
CITY OF COLLEYVILLE (0.0033913 x TIF#1A incremental value)27,276
TARRANT COUNTY COLLEGE DISTRICT (0.0014473 x TIF#1A incremental value)11,637
TOTAL 38,914
Interest Income 167,072
*THIS IS CALCULATED BASED ON THE COMPRESSED M&O TAX RATE, AS STIPULATED BY STATE LAW (H.B. 3646 [81])
** 26% OF THE PAYMENT IS RETURNED TO GCISD PER CONTRACT
*** SUPPLEMENTAL PAYMENT FOR DIFFERENCE IN CURRENT M&O TAX RATE OF $1.04 AND $1.471 2005 M&O TAX RATE
# CONTRACTUAL OBLIGATION FOR PAYMENT OF INCREMENTAL REVENUES HAS BEEN MET
EXPENDITURES & DEBT PAYMENT:
Original Project Plan-
SERIES 2016 REFUNDING BOND INTEREST EXPENSE PAYMENT 62,069
SH 26 4,420
PLAZA - 89 VERANDA LN 41,024
PLAZA - 86 & 94 MAIN ST 342,238
PLAZA - COTTAGE LANE & TERRA COTTA WAY - LAND PURCHASE 812,094
PLAZA - VILLAGE HOA DUES 5,869
PROFESSIONAL SERVICES - ADMINISTRATIVE 21,850
MAIN STREET - VILLAGE BEAUTIFICATION & IMPROVEMENTS 18,239
JOHN MCCAIN ROAD REHAB 103,733
Debt Principal Payment
FISCAL YEAR 2017 - SERIES 2016 REFUNDING BOND PRINCIPAL PAYMENT 600,000
TIF ANNUAL REPORT - CITY OF COLLEYVILLE
FISCAL YEAR ENDED SEPTEMBER 30, 2017 (FY 2017)
Amended Project Plan-
ROADWAY IMPROVEMENTS - GLADE ROAD DESIGN 618,126
ROADWAY IMPROVEMENTS - GLADE ROAD PHASE 1A 1,059,029
ROADWAY IMPROVEMENTS - GLADE RD DESIGN PHASE 2,3,4 256,720
TRAILS & AMENITIES - COTTONBELT TRAIL REFUND OF TAXES (582)
TOTAL EXPENDITURES & DEBT PAYMENTS 3,944,828.96
CASH BALANCE:
TOTAL TIF CASH AND INVESTMENTS AS OF 9/30/2017 18,962,207
OUTSTANDING DEBT SERVICE SCHEDULE
SERIES 2016 TAX INCREMENT REVENUE AND REFUNDING BONDS
FISCAL YEAR PRINCIPAL INTEREST TOTAL INTEREST RATE
2018 $610,000 $44,200 $654,200 2%
2019 $625,000 $28,725 $653,725 3%
2020 $645,000 $9,675 $654,675 3%
TOTAL AS OF 10/01/2017 $1,880,000 $82,600 $1,962,600
Original
Project Plan
Grants
Category
Roadway
Improvements
Trails & Public
Amenities
Admin.
Expenses
TOTAL
Amended
Project Plan
As of 6/7/18 Available Balances $ 13,679,789 $ 7,900,583
2018
Central Fire Station Capital Improvements & Repairs 147,322$ -$ -$ -$ -$
Cheek-Sparger Road (San Bar to Brown Trail) - DESIGN & ROW 399,000
Glade Road Design (Phase 2- Manning to Pool)170,000
Glade Road ROW (Phase 2)160,000
Glade Road median improvements (near Roberts Road)50,000
Senior Center Improvements 50,000
Riverwalk (at Glade) Median Improvements 40,000
Church Street Median Improvements 50,000
Fiber Project 250,000
John McCain Road - Roundabout improvements (public art)10,000
Glade Road & Pool - Roundabout improvements (public art)20,000
Jackson & Cheek Sparger - Roundabout improvements 70,000
SH26 Medians & ROW 1,000,000
SH26 ROW maintenance during reconstruction 25,000
Economic Development Grants 200,000
Land acquisition 2,500,000
Plaza at City Hall 100,000
4,122,322$ 200,000$ 779,000$ 140,000$ -$ 1,119,000$
Estimated 10/1/18 Available Balances 9,557,467$ 6,781,583$
2019
Cheek-Sparger Road (San Bar to Brown Trail) - Construction -$ -$ 425,000$ -$ -$
McDonwell School Rd Westcoat Dr Roundabout - ROW ACQUISITION 250,000
Glade Road ROW (Phase 2)200,000
Roberts Road - Design 354,000
Roberts Road - ROW Acquisition 500,000
City Hall - Backup Generator 181,000
Main Street (at SH26) Median Improvements 50,000
Wayfinding Signs to Downtown 350,000
Street furniture and public art 750,000
City Hall/Library - HVAC Replacement 327,600
TIF Debt Payment 653,725
Fiber Project 139,465
SH-26 Lighting 3,000,000
SH26 Medians & ROW 4,000,000
SH26 ROW maintenance during reconstruction 25,000
Economic Development Grants 750,000
Entrepreneur Center 100,000
Recreation Center Design 500,000
Land acquisition 2,000,000
Plaza at City Hall 1,750,000
Downtown Improvements- Creation of riverwalk area 500,000
Downtown Improvements- Entrance to The Village at Colleyville 500,000
John McCain Road - Roundabout improvements (landscape)50,000
Glade Road & Pool Roundabout improvements (landscape)50,000
14,776,790$ 850,000$ 1,729,000$ 50,000$ -$ 2,629,000$
(+) FY19 Revenue 3,757,590 1,800,000
Estimated 10/1/19 Available Balances (1,461,733)$ 5,952,583$
2020
Economic Development Grants 500,000$
Entrepreneur Center 100,000
Roberts Road - CONSTRUCTION 2,100,000
Glade Road (Phase 1 - SH26 to Manning) Construction 2,000,000
Glade Road (Phase 2 - Manning to Pool) - Construction 2,000,000
Recreation Center Construction 3,000,000
Trail - Little Bear Creek connection of CNC to Sparger Park 750,000$
Land acquisition
Fiber Project 139,465
TIF Debt Payment 654,675
3,794,140$ 600,000$ 6,100,000$ 750,000$ -$ 7,450,000$
(+) FY20 Revenue 3,945,469 1,890,000
Estimated 10/1/20 Available Balances (1,310,404)$ 392,583$
2021
City Hall - Flooring Rehab 87,808$
Glade Road (Phase 2 - Manning to Pool) - Construction 2,000,000
Land acquisition -
Recreation Center Construction 2,000,000
Parking lot/deck 3,000,000
Entrepreneur Center 100,000
Economic Development Grants 500,000
5,087,808$ 600,000$ 2,000,000$ -$ -$ 2,600,000$
(+) FY21 Revenue 4,142,743 1,984,500
Estimated 10/1/21 Available Balances (2,255,469)$ (222,917)$
2022
Library - Flooring Rehab 95,210$
Land acquisition 1,500,000
Storm Drainage improvements 1,000,000
Entrepreneur Center 100,000
Economic Development Grants 500,000
2,595,210$ 600,000$ -$ -$ -$ 600,000$
(+) FY22Revenue 4,349,880 2,083,725
Estimated 10/1/22 Available Balances (500,799)$ 1,260,808$
TIF 5-Year Working Plan
as of July 24, 2018