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Home My WebLink AboutTax Increment Finance (TIF)-Agenda Packets-07/24/2017City 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 24, 2017 12 Noon Executive Conference Room Third Floor, City Hall 1.CALL TO ORDER 2.CONSENT: READING AND PUBLIC HEARING Resolution R1701 2a Approval of the minutes of the Tax Increment Financing District Board of Directors meeting of July 25, 2016 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 20, 2017, by 5:00 p.m. Amy Shelley, 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-17-01 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 24, 2017. 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 25, 2016 are hereby approved. AND IT IS SO RESOLVED. APPROVED BY A VOTE OF ___ AYES, NAYS, AND ABSTENTIONS ON THIS THE 24TH DAY OF JULY 2017. ATTEST: COLLEYVILLE TAX INCREMENT FINANCING DISTRICT BOARD Amy Shelley, TRMC Richard Newton City Secretary Chairman City of Colleyville Page 1 City of Colleyville Tax Increment Financing District Board MINUTES - DRAFT City Hall 100 Main Street Colleyville, Texas 76034 817. 503.1000 www.colleyville.com Monday, July 25, 2016 12:30 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 25, 2016, at 12:30 p.m. ROLL CALL: Chairman Richard Newton, Vice Chairman Mike Taylor, Directors Bobby Lindamood, Jody Short, Tammy Nakamura, Mark McClendon, Scott Rule, John Eubanks, and Rebecca Barksdale City Manager Jennifer Fadden, Deputy City Manager Chris Fuller, Assistant City Manager / Director of Public Safety Mike Holder, Public Works Director Jeremy Hutt, Strategic Services Manager Adrienne Lothery, Chief Financial Officer Brian Hogan, Accounting Manager Karen Hines, and City Secretary Amy Shelley 2. CONSENT: READING AND PUBLIC HEARING- Resolution R-16-01 2a Approval of the minutes of the Tax Increment Financing District Board of Directors meeting of July 27, 2015 Chairman Newton read Resolution R-16-01 in its entirety. Chairman Newton opened the public hearing at 12:34 p.m. There was no one present wishing to speak and Chairman Newton closed the public hearing at 12:34 p.m. Vice Chairman Taylor moved to approve Resolution R-16-01. Director Short seconded the motion. The motion to approve carried by the following vote: Aye: 9 - Chairman Richard Newton, Vice Chairman Mike Taylor, Directors Bobby Lindamood, Jody Short, Tammy Nakamura, Mark McClendon, Scott Rule, John Eubanks, and Rebecca Barksdale 3. PRESENTATION AND DISCUSSION 3a Presentation of the Annual Tax Increment Financing District Report Strategic Services Manager Adrienne Lothery presented this item and briefed the Board. City of Colleyville Page 2 TIF MINUTES - DRAFT July 25, 2016 Director Eubanks asked staff, with respect to revenue, how were the revenues arrived at, given the rate of .3559 times the incremental value; however, the GISD did not calculate out. Manager Lothery explained the calculations for the GCISD payments, and the $1.9 million is the 74 percent received from GCISD, and second payment of $820,000 is to make up the difference in the tax rate. Director Eubanks asked staff how the $1,904,000 was calculated. Manager Lothery explained that the total payment from GCISD is $2.5 million, and the arrangement is that Colleyville returns about 26 percent of that payment being $669,000 which means the TIF district nets the $1,904,000. Director Eubanks asked Mr. McClendon about the college rate. Mr. McClendon replied the rate used is .19500, which is the 2015-2016 rate. Director Eubanks stated the packet indicates the 2016 rate. Manager Lothery concurred, and stated the annual report shows what has already occurred for the year ended September 2015. Mr. McClendon added the revenue is set based on the prevailing rate, with the billing taking place in March with payments May 1. Accounting Manager Karen Hines added the rate used to calculate the $387,780 was .1495. 3b Review and discuss the status of the Colleyville Tax Increment Financing District Strategic Services Manager Adrienne Lothery presented this item and briefed the Board. Chairman Newton asked staff if the annual report is mailed to everyone. Manager Lothery replied yes. Chairman Newton stated the board can meet whenever it is useful to the board. Director Eubanks asked staff if the cash balances are restricted to certain programs with no co-mingling. Manager Lothery replied ultimately yes, these funds will need to have been spent in accordance the original amounts outlined in the original project plan. She stated it is not to say that if one category has more cash than the other, and it could be paid back on an annual basis. She stated the actual category total authorization over the lifetime. City Manager Jennifer stated the TIF grant category funds could be utilized for other projects as deemed appropriate by City Council. Director Eubanks asked about funding projects from the $2.6 million on a cash basis. City Manager Jennifer Fadden replied currently the plan, for the expenditure of these funds, is on a cash a basis. She added the board and the City of Colleyville Page 3 TIF MINUTES - DRAFT July 25, 2016 City Council could look at issuing debt, in the future, should they desire to do so, and it would have to be in accordance with the structure of the TIF. Director Eubanks asked Chairman Newton if Glade Road is currently around $20 million. Chairman Newton stated it is going to be revisited next month to discuss the Glade Road project, all phases. Director Eubanks asked staff about the length of time to complete the Glade Road project, from start to finish. Public Works Director Jeremy Hutt replied the project is currently four phases, with an anticipated completion by 2023. Director Eubanks asked Chairman Newton about the funding for the project. Mayor Newton replied currently it is to be completed on a pure cash basis, no bonds. Director Lindamood asked Chairman Newton if there are other projects that could be completed with the TIF funds. Chairman Newton replied it has to be used within the TIF geographic boundaries. Director Lindamood asked Chairman Newton how those numbers could be adjusted for other projects. Chairman Newton replied the board and City Council would take action within the project list. Director Eubanks asked Chairman Newton about the Village at Colleyville. Chairman Newton replied it is done, with about $2.9 million being spent, but there may be a remaining balance. City Manager Jennifer Fadden explained the Village was entitled to $643,000 of the remaining $2.2 million in the assets that they had submitted. Director Eubanks asked Chairman Newton about Town Center and if it will likely to be paid out. Chairman Newton replied it depends, as they would have to build something else, and the agreement is still active, but nothing has happened. Director Eubanks asked staff how much money will be taken in between now and 2030. Manager Lothery replied she did not have that number prepared, but it is certainly enough to cover the category from the original project plan. 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 24TH DAY OF JULY 2017. City of Colleyville Page 4 TIF MINUTES - DRAFT July 25, 2016 Minutes taken and prepared by: Amy Shelley, 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 07/24/2017 Number Type Presentation and Discussion Department City Manager Title Review and discuss the status of the Colleyville Tax Increment Financing District Strategic Plan Explanation Adrienne Lothery, City of Colleyville Strategic Services Manager, will provide an update of the Fiscal Year 2017 status of the Colleyville Tax Increment Financing (TIF) District. Attachments 1.Colleyville TIF Fiscal Year 2017 Update Presentation 2.TIF Annual Report - FY 2016 2.4 Demonstrate stewardship of public resources Colleyville Tax Increment Financing (TIF) District Fiscal Year 2017 Update July 24, 2017 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 Background: Colleyville TIF History Nov. 1998 •Creation Ordinance O- 98-1124; boundaries are 633 acres along SH26 Nov. 1998 •Creation Ordinance amended by O- 98-1131, termination date moved to 12/31/2030 Dec. 1998 •Project and Financing Plan Adopted Feb. 2002 •Project and Financing Plan Amendment adjusting project costs categories (no increase in total) Apr. 2003 •Project and Financing Plan Amendment adjusting project costs categories (no increase in total) Nov. 2012 •Boundary of Zone expanded and added additional projects by Resolution R-12-04 –Original estimation of incremental taxable value at termination: $246,667,800 TIF Map TIF #1 1998 BaseValue: $75,821,735 TIF #1A 2012 BaseValue: $30,796,078 Background: FY 2017 Timeline Dates Action Summer 2016 Taxing entities adopt a tax rate July 25, 2016 TAD certifies AV values December 2016 City of Colleyville submits annual report for Fiscal Year ended Sept. 30, 2016 (FY 2016) –due 90 days after FYE March 2017 Final Updates to 2016 AV values received from TAD; City of Colleyville invoices TIF partners May 1, 2017 TIF payments due July 2017 Annual TIF Board meeting -in July per bylaws 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 FY 2016 TIF Revenue (based on 2015 values) Tax Increment Revenues TIF #1 City of Colleyville $942,549 Tarrant County College District $397,577 Grapevine Colleyville ISD-Total Payment* $2,620,216 Grapevine Colleyville ISD**($681,256) Grapevine Colleyville ISD***$835,692 Tarrant County #$0 Tarrant County Hospital District #$0 TOTAL $4,114,778 Tax Increment Revenues TIF #1A City of Colleyville $14,075 Tarrant County College District $5,900 TOTAL $19,975 *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 TIF Taxable Value Update 1998 Taxable Base Value:$75,821,735 2015 Taxable Value (3/1/16):$340,657,008 2016 Taxable Value (3/15/17):$384,869,207 Incremental Value Increase:$309,047,472 2016 New Construction (3/15/17):$9,041,624 Expanded TIF Area Base Value:$30,796,078 2015 Taxable Value (3/1/16): $34,750,725 2016 Taxable Value (3/15/17): $38,839,096 Incremental Value Increase:$8,043,018 2016 New Construction (3/15/17):$0 Outstanding Debt SERIES 2016 TAX INCREMENT REVENUE AND REFUNDING BONDS FISCAL YEAR PRINCIPAL INTEREST TOTAL INTEREST RATE 2017 $600,000 $55,781 $655,781 2% 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 $2,480,000 $138,381 $2,618,381 Original Project Plan Colleyville TIF Project Plan Total Village at Colleyville Revised Agreement Unallocated Project Plan balance Roadway Improvements SH26 Matching School Improvements City Hall Library Fire Station Town Center Agreement Downtown Improvements $2,200,000 $1,700,000 $500,000 Plaza $1,595,000 $875,000 $200,000 $520,000 Professional Services $650,000 $400,000 $250,000 Public Parking, land, engineering $4,371,500 $700,000 $500,000 $980,000 $734,000 $1,457,500 Storm Drainage $200,000 $125,000 $75,000 Library $240,000 $240,000 Hall-Johnson Road $1,900,000 $1,900,000 Bluebonnet Drive $670,000 $670,000 SH 26 $4,850,000 $4,850,000 Tinker/Sanders Intersection $220,000 $220,000 Bogart $600,000 $600,000 Church Street $2,150,000 $1,100,000 $1,050,000 Riverwalk Drive $250,000 $250,000 Public Parking Structure $1,800,000 $1,800,000 Main Street $700,000 $700,000 City Hall $3,500,000 $3,500,000 Fire Station $867,500 $867,500 John McCain Road $626,000 $626,000 School Improvements $7,938,690 $7,938,690 Total $35,328,690 $4,500,000 $3,000,000 $5,146,000 $5,070,000 $7,938,690 $5,250,000 $974,000 $867,500 $2,582,500 Original Project Plan-Current Colleyville TIF Project Plan Total Village at Colleyville Revised Agreement Unallocated Project Plan balance Roadway Improvements SH26 Matching School Improvements City Hall Library Fire Station Town Center Agreement Downtown Improvements $2,200,000 $998,875 $1,201,125 Plaza $1,595,000 $1,075,000 $520,000 Professional Services $650,000 $400,000 $250,000 Public Parking, land, engineering $4,371,500 $700,000 $500,000 $980,000 $734,000 $1,457,500 Storm Drainage $200,000 $125,000 $75,000 Library $240,000 $240,000 Hall-Johnson Road $1,900,000 $1,900,000 Bluebonnet Drive $670,000 $670,000 SH 26 $4,850,000 $4,850,000 Tinker/Sanders Intersection $220,000 $220,000 Bogart $600,000 $600,000 Church Street $2,150,000 $1,100,000 $1,050,000 Riverwalk Drive $250,000 $250,000 Public Parking Structure $1,800,000 $1,800,000 Main Street $700,000 $700,000 City Hall $3,500,000 $3,500,000 Fire Station $867,500 $867,500 John McCain Road $626,000 $626,000 School Improvements $7,938,690 $7,938,690 Total $35,328,690 $2,923,875 $4,576,125 $5,146,000 $5,070,000 $7,938,690 $5,250,000 $974,000 $867,500 $2,582,500 To Date: •Bluebonnet Drive •Bogart Drive •Church Street •Hall-Johnson Road •John McCain Road •Riverwalk Drive •City Hall •Central Fire Station •Library •School Improvements •State Highway 26 Phase I •Developer Asset Repurchase Agreements - Village at Colleyville and Town Center Recent/In Progress •Phase II SH26 project •Tinker/Sanders Intersection •Land purchase (next to City Hall) Original Project Plan Projects Amended Project Plan •November 2012 Amendment expanded TIF boundaries to include mostly additional vacant, underutilized land and some commercial property •Revenue from ISD participation may not be used on any project category added by the 2012 amendment •Projects funded include: –Whole Foods Grant –Glade Road Project Added by Amendment in 2012 Economic Development TIF Grant Program $ 17,256,185 Roadway Improvements $ 20,000,000 Trails & Public Amenities $ 5,500,000 Administrative Expenses $ 1,700,000 TOTAL $ 44,456,185 FY 2018 & Forward Renewed Focus: –Maximize remaining life of the TIF to achieve greatest community benefit –Transparency on planned projects Next Steps: –Complete an updated accounting of expenditures vs. project categories, forecast of future revenues, and balances available for allocation –Determine what currently planned City-funded projects might be eligible for TIF funding –Establish separate multi-year Capital Plan for TIF funded projects –Plan with TIF Board and City Council for future intended use of TIF funds Questions and Discussion TAXABLE VALUE: GCISD County & Hospital County College City of Colleyville Colleyville TIF #1 TAX YEAR 2015 / FY 2016 TAXABLE VALUE $337,614,826 $341,710,227 $341,717,227 $340,657,008 1998 BASE VALUE $75,593,230 $75,772,230 $75,779,230 $75,821,735 INCREMENTAL VALUE INCREASE $262,021,596 $265,937,997 $265,937,997 $264,835,273 Colleyville TIF #1A TAX YEAR 2015 / FY 2016 TAXABLE VALUE $34,757,825 $34,757,825 $34,750,725 2012 BASE VALUE $30,811,178 $30,811,178 $30,796,078 INCREMENTAL VALUE INCREASE $3,946,647 $3,946,647 $3,954,647 NOTE: Taxable value can vary slightly for each taxing entity based on differing exemptions REVENUES: Tax Increment Revenues TIF #1 - CITY OF COLLEYVILLE (0.003559 x TIF#1 incremental value)$942,549 TARRANT COUNTY COLLEGE DISTRICT (0.001495 x TIF#1 incremental value)$397,577 GRAPEVINE COLLEYVILLE ISD -TOTAL PAYMENT* (0.001 x TIF#1 incremental value)$2,620,216 GRAPEVINE COLLEYVILLE ISD **(.26 x total payment)($681,256) GRAPEVINE COLLEYVILLE ISD ***(.26 x payment difference from current vs. 2005 M&O tax rate)$835,692 TARRANT COUNTY #$0 TARRANT COUNTY HOSPITAL DISTRICT #$0 TOTAL $4,114,778 Tax Increment Revenues TIF #1A - CITY OF COLLEYVILLE (0.003559 x TIF#1A incremental value)$14,075 TARRANT COUNTY COLLEGE DISTRICT (0.001495 x TIF#1A incremental value)$5,900 TOTAL $19,975 *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: Original Project Plan- SERIES 2011 REFUNDING BOND PAYMENT $682,425 TEXAS DEPARTMENT OF TRANSPORTATION - SH 26 $1,318,251 SH 26 PHASE II DESIGN $195,881 Amended Project Plan- GLADE ROAD DESIGN $593,295 GLADE ROAD ROW ACQUISITION $9,507 CITY HALL/LIBRARY GENERATOR DESIGN $13,230 TOTAL $2,812,589 OUTSTANDING DEBT SERVICE SCHEDULE SERIES 2016 TAX INCREMENT REVENUE AND REFUNDING BONDS FISCAL YEAR PRINCIPAL INTEREST TOTAL INTEREST RATE 2017 $600,000 $55,781 $655,781 2% 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 $2,480,000 $138,381 $2,618,381 TIF ANNUAL REPORT - CITY OF COLLEYVILLE FISCAL YEAR ENDED SEPTEMBER 30, 2016 (FY 2016)