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Home My WebLink AboutTax Increment Finance (TIF)-Agenda Packets-7/17/2012~`T Y~ City of Colleyville City Hall COLLEYVILLE 100 Main Street Colleyville, Texas 76034 Tax Increment Financing 817.503.1000 1- r. . ~ ~ District Board WWW•colleyville.com Agenda Tuesday, July 17, 2012 City Hall 11:30 a.m. Executive Conference Room 1. CALL TO ORDER 2. CONSENT: READING AND PUBLIC HEARING - Resolution R-12-01 2a Approval of the minutes of the Tax Increment Financing District Board of Directors meeting of July 20, 2011 3. PRESENTATION AND DISCUSSION 3a Presentation of the Annual Tax Increment Financing District Report 3b 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, Friday, July 13, 2012, by 5:00 p.m. Cynthia Singleton, TRMC, CMC City Secretary 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-12-01 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 20, 2011. 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 20, 2011, are hereby approved. AND IT IS SO RESOLVED. APPROVED BY A VOTE OF AYES, NAYS AND ABSTENTIONS ON THIS THE 17T" DAY OF JULY 2012. COLLEYVILLE TAX INCREMENT FINANCING DISTRICT BOARD David Kelly Chairman ATTEST: Cynthia Singleton, TRMC, CMC City Secretary ~~~';~;~,_... City of Colleyville +'~;~~~ ~~,~~~;:~ M i n utes - D raft Tax Increment Financing District Board of Directors City Hall 100 Main Street Colleyville, Texas 76034 817. 503.1000 www.colleyville.com Wednesday, July 20, 2011 11:00 AM Executive Conference Room, 3rd floor Chairman David Kelly called the Tax Increment Financing District Board of Directors meeting of July 20, 2011, to order at 11:05 a.m. Chairman Kelly welcomed and introduced Gavin Cator, Chief Executive Officer, Wodonga City Council, Victoria, Australia. ROLL CALL: Directors Carol Wollin, Mike Taylor, Michael Muhm, John Eubanks, Truitt Leake, Drenda Witt and Lisa McMillan attended for Carolyn Sims were present. Chairman David Kelly, City Manager Jennifer Fadden, Assistant City Manager and Chief Financial Officer Terry Leake, Economic Development Director Marty Wieder, Finance Manager Karen Hines and City Secretary Cynthia Singleton were also present. Director Tom Hart was absent. 2. 2a CONSENT: READING AND PUBLIC HEARING - Resolution R-11-01 R-11-01 Approval of the minutes of the Tax Increment Financing District Board of Directors meeting of June 24, 2010 Chairman Kelly read Resolution R-11-01 in its entirely. Chairman Kelly opened the public hearing. There was no one present wishing to speak and Chairman Kelly closed the public hearing. Director Wollin moved to approve Resolution R-11-01. Vice Chairman Taylor seconded the motion. City of Colleyville Page 1 Printed on 6/29/2012 Tax Increment Financing District Minutes - Draft July 20, 2011 Board of Directors The motion carried by the following vote: Aye: 8- Michael Muhm, David Kelly, Carol Wollin, Mike Taylor, Truitt Leake, John Eubanks, Lisa McMillan, Drenda Witt Absent: 1 - Tom Hart 3. RESOLUTION(S) READING AND PUBLIC HEARING 3a R-11-02 Appointing a Tax Increment Finance District Board of Directors Vice Chairman Chairman Kelly read Resolution R-11-02 in its entirety. Chairman Kelly opened the public hearing. There was no one present wishing to speak and Chairman Kelly closed the public hearing. Chairman Kelly opened the floor for nominations. Chairman Kelly nominated Director Mike Taylor as Vice Chairman for a term of two years and made a motion to approve Resolution R-11-02. Director Witt seconded the motion. There were no other nominations. The motion carried by the following vote: Aye: 8- Michael Muhm, David Kelly, Carol Wollin, Mike Taylor, Truitt Leake, John Eubanks, Lisa McMillan, Drenda Witt Absent: 1 - Tom Hart 4. REPORT 4a Presentation of the Annual Tax Increment Financing District Report Assistant City Manager and Chief Financial Officer Terry Leake presented the Annual Tax Increment Financing (TIF) District Report and answered questions of the Board of Directors. City of Colleyville Page 2 Printed on 6/29/2012 Tax Increment Financing District Minutes - Draft July 20, 2011 Board of Directors Assistant City Manager and Chief Financial Officer Terry Leake reviewed expenditures and revenues and reported the Grapevine-Colleyville Independent School District (GCISD) made a one-time true-up payment for the tax years 2005 through 2008, due to a change in school funding tax laws. Discussion ensued regarding the legislation, which allowed the one-time payment from GCISD, current and projected tax contributions and incremental values of each entity and cash balance of the TIF. 5. PRESENTATION 5a Review and discuss the status of the Colleyville Tax Increment Financing District Assistant City Manager and Chief Financial Officer Terry Leake reviewed the status of the Colleyville Tax Increment Financing District and answered questions of the Board of Directors. Assistant City Manager and Chief Financial Officer Terry Leake stated the Colleyville TIF was created in 1998 to accelerate commercial development in an underdeveloped area along SH26 and the TIF provides for debt issuance for infrastructure improvements. Assistant City Manager and Chief Financial Officer Terry Leake reviewed the contributed tax rate by entity, taxable values, outstanding bond issues, incentified developer asset repurchase agreements for The Village and Town Center, the developer asset repurchase agreement payment process and the adopted project plan. Discussion ensued regarding the overall tax rate collected, timeline of collections, percentage of commercial and residential properties under appeals and method of taxes collected. Ms. Leake stated approximately 98.25% of the tax has been collected and noted taxes are collected by the Grapevine-Colleyville Independent School District. Ms. Leake further reported the GCISD tax office does an excellent job of collecting taxes and is very customer service oriented. Discussion continued regarding the value of the original TIF agreement and payments. Assistant City Manager and Chief Financial Officer Terry Leake explained payments under the developer asset repurchase agreement are only made if the developer builds the specified asset as listed in the agreement and stated the annual payment is based on the taxes received from the increase in the taxable assessed value from the date of the agreement. General discussion continued regarding project termination dates, caps and cash values and the ratification process for project plan changes. City of Colleyville Page 3 Printed on 6/29/2012 Tax Increment Financing District Minutes - Draft July 20, 2011 Board of Directors The Board of Directors requested a status update outlining financials, outstanding debt, and cash balance on hand be forwarded to the Directors and included in the annual presentation. 6• ADJOURNMENT There being no further business before the Tax Increment Financing District Board of Directors, Chairman Kelly adjourned the meeting at 12:10 p.m. APPROVED BY A VOTE OF AYES, NAYS AND ABSTENTIONS ON THIS THE DAY OF 2012. Minutes taken and prepared by: Cynthia Singleton, TRMC, CMC City Secretary City of Colleyville Page 4 Printed on 6/29/2012 ~'~Y~;~ City of Colleyville CityHall CC}LLEYVILLE Tax Increment Financing 100 Main Street Colleyville, Texas 76034 District Board www.colleyville.com ~'F { AS Agenda Briefing Agenda Number 3a Agenda Date 07/17/2012 Number 3a Type Presentation Department City Manager Title Presentation of the Annual Tax Increment Financing District Report Explanation Terry Leake, City of Colleyville Assistant City Manager / Chief Financial Officer, will present the attached Annual Tax Increment Financing District Report for Fiscal Year 2011. Attachments 1. Annual Tax Increment Financing District Report - Fiscal Year 2011 TIF REPORT - CITY OF COLLEYVILLE FISCAL YEAR ENDED SEPTEMBER 30, 2011 TAX YEAR 2010 / FISCAL YEAR 2011 TAXABLE VALUE $315,809,194 1998 BASE VALUE $75,821,735 INCREMENTAL VALUE INCREASE $239,987,459 REVENUES: TAX INCREMENT REVENUES CITY OF COLLEYVILLE $854,115 GRAPEVINE COLLEYVILLE ISD $1,763,236 GRAPEVINE COLLEYVILLE ISD ** $816,135 TARRANT COUNTY $641,416 TARRANT COUNTY COLLEGE DISTRICT $331,095 TARRANT COUNTY HOSPITAL DISTRICT $512,591 TOTAL $4,918,588 ** THIS IS A SUPPLEMENTAL PAYMENT FOR TAX YEAR 2009 FOR DIFFERENCE IN ACTUAL TAX RATE AND $1.47 TAX RATE EXPENDITURES: SERIES 2001 BOND PAYMENT * $640,883 SERIES 2002 BOND PAYMENT* $47,299 TIF AGREEMENT PAYMENT - VILLAGE AT COLLEYVILLE $270,111 TIFPROJECT PLAN EXPENSE PAYMENT - STATE HIGHWAY 26 $4,850,000 TOTAL $5,808,293 * THESE BOND ISSUES WERE REFUNDED IN FY 2011 DEBT SERVICE SCHEDULE SERIES 2002 CERTIFICATES OF OBLIGATION FISCAL PRINCIPAL INTEREST TOTAL YEAR 2012 $40, 000 $1, 000 $41, 000 TOTAL $40,000 $1,000 $41,000 SERIES 2011 TAX INCREMENT REVENUE AND REFUNDING BONDS FISCAL PRINCIPAL INTEREST TOTAL YEAR 2012 $490,000 $149,950 $639,950 2013 $540,000 $139,650 $679,650 2014 $555,000 $128,700 $683,700 2015 $565,000 $114,675 $679,675 2016 $585,000 $97,425 $682,425 2017 $600,000 $79,650 $679,650 2018 $615,000 $61,425 $676,425 2019 $640,000 $39,400 $679,400 2020 $665,000 $13,300 $678,300 TOTAL $5,255,000 $824,175 $6,079,175 ~'~Y~;~ City of Colleyville CityHall CC}LLEYVILLE Tax Increment Financing 100 Main Street Colleyville, Texas 76034 District Board www.colleyville.com ~'F { AS Agenda Briefing Agenda Number 3b Agenda Date 07/17/2012 Number 3b Type Presentation and Discussion Department City Manager Title Review and discuss the status of the Colleyville Tax Increment Financing District Explanation Terry Leake, City of Colleyville Assistant City Manager / Chief Financial Officer, will provide an update of the Fiscal Year 2012 status of the Colleyville Tax Increment Financing (TIF) District. Attachments 1. Colleyville Tax Increment Financing District - Fiscal Year 2012 Update ^ o e v~ e a~ ncremen . . . . ~ na nc~ n ~s r~c Fisca I Yea r 2012 U pdate July 17, 2012 ~~~~ ~ CC7~.LE'Y VILLE _ ~~ • Cha pter 311 of the Texas Tax Code • To accelerate com mercia l development i n a n u nderdeveloped a rea (geog ra ph ic zone) or to renovate existi ng bl ig hted development i n a n a rea • Provides for debt issua nce for i nfrastructu re i m provements with i n the zone ~~~~ ~ CC7~.LE'Y VILLE _ ~~ • Entities contri bute ad va lorem taxes received from the i ncrementa I va I ue i ncrease on property with i n the zone • Debt issued for i m provements with i n the TI F District is repa id from the pa rtici pati ng entity's ad va lorem tax contri butions ~~~~ ~ CC7~.LE'Y VILLE _ ~~ • November 1998: Tax Increment Financing Rei nvestment Zone N u m ber One (Col leyvi I le TI F) is esta bl ished by Ord i na nce 0-98-1124* - 633 acres a long Col leyvi I le Blvd .(SH 26) - Base yea r(1998) taxa ble va I ue :$75,821,735 - Termination to occur December all project costs are paid and all wh ichever comes fi rst 31, 2018 or when debt is retired, *0-98-1131 amends 0-98-1124 and provides for a termination date of 12/31/2030 if g rowth i n TIF is i nsufficient - Estimated incremental taxable value at termination : $246,667,800 ~ ~' ~,~~. CC7~.LE'Y VILLE _ ~~ City of Colleyville Grapevine-Colleyville ISD* Ta rra nt Cou nty* * Tarrant County College Tarrant County Hospital District** $.355900 $.740000 $.264000 $.148970 $.227897 * GCISD contributes 74% of the compressed operations and maintenance tax rate ** Tarrant County and Tarrant County Hospital District participation capped at $4.35M and $3.85M respectively; participation estimated to end in FY2012 ~''~"~ ~ CC7~.~.~LE ~,,., FY1998 Taxable Base Value: FY2012 Taxable Value: Incremental Value Increase: FY2012 New Construction: $75,821,735 $313,590,053 $237,768,318 $6,776,645 ~ ~' ~,~~. CC7~.LE'Y VILLE _ ~~ • Outsta nd i ng Bond Issues : Series 2011: $5,657,378 (Balance at September 30, 2012) • *Incentified Developer Asset Repurchase Agreements: - Village at Colleyville: $4,500,000 - Town Center: $2,582,500 * Payments are only made if the developer builds the specified assets in the agreement; the annual payment is based on the taxes received fr m h in r in h x I v I f h r r fr m o t e c ease t e ta ab e assessed a ue o t e p ope ty o the date of the agreement. ~4 ~' i~ ~~ ~~LLEY~ILLE ` ,~ • Town Center Va I ue : 49 637 608 , , • Incremental Increase: $46,644,549 • Vi I la e at Col le vi I le Va I ue : 41 645 826 g y , , • Incremental Increase: $38,504,687 ~~~~ ~ ~C]Z~,EY VILI.E ~ ,~ 1. Developer submits invoices and cancelled check copies by rei m bu rsa ble category 2. City Engineer reviews for completeness and category eligibility and certifies the improvement 3. Assista nt City Ma nager/Ch ief Fi na ncia l Officer determines amount eligible to be paid annually per Tarrant Appraisal District TIF value reports 4. TIF payments a re reviewed by the City's externa I auditors during the annual audit ~~~~ ~ CC7~.LE'Y VILLE _ ~~ • Total Agreement (March 2003) : $2,582,500 • No Termination of Agreement • Total Value Submitted to Date: $2,271,631 • Total Payments to Date: $2,271,631 • Total Remaining Obligation : $310,869 ~ ~' ~,~~. CC7~.LE'Y VILLE _ ~~ . . . . . . . . Original Agreement (Dec. 1999) : $5,000,000 Revised Ag reement (.7a n. 2001) :$7, 500,000 Renegotiated Agreement (May 2009) : $4,500,000 Agreement Terminates: May 16, 2014 Total Value Submitted to Date: $2,182,179 Tota I Payments to Date :$2,182,179 Total Remaining Obligation : $2,316,821 Project Plan Unallocated Funds: $3,000,000 ~ ~' ~,~~ ~C]Z~,EY VILI.E ~ ,~ Colleyville TIF Project Poan Total Village at Colleyville Revised Agreement Unallocated Project Poan balance Roadway Improvements SH26 Matching School Improvements City Hall Library Fire Station Town CenterAgreement Downtown Im rovements $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 Parkin , land, en ineerin $4,371,500 $700,000 $500,000 $980,000 $734,000 $1,457,500 Storm Draina e $200,000 $125,000 $75,000 Libra $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 Bo art $600 000 $600 000 Church Street $2 150 000 $1 100 000 $1 050 000 Riverwalk Drive $250 000 $250 000 PublicParkin Structure $1800000 $1800000 Main Street $700 000 $700 000 Ci Hall $3 500 000 $3 500 000 Fire Station $867 500 $867 500 John McCain Road $626 000 $626 000 School Im rovements $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 ~~~~ ~4 ~C]Z~,EY VILI.E ~ ,~ . . . . . . BI uebon net Drive Bogart Drive Ch u rch Street Hall-Johnson Road John McCain Road Riverwa I k Drive • City Hall • Central Fire Station • Library • School Improvements • State H ig hway 26 ~ ~' ~,~~ ~C]Z~,EY VILI.E ~ ,~ ^ Tinker/Sanders Intersection ^ Phase II SH26 project ^ Town Center Ag reement ^ Vi I lage at Col leyvi I le Ag reement ~~~~ ~ ~C]Z~,EY VILI.E ~ ,~ • FY 2012 Taxable Value of TIF is slightly less than the original projections for final value of the zone - Tota I projected va I ue of i ncrementa I i ncreased value 2018: $246,667,800 (Dec. 1998) - Total incremental value in 2012: $237,768,318 • Funds in excess of all outstanding obligations projected by the end of FY2013 - Cash balance of TIF at 9-30-2011 -$10,764,813 - Bonds are callable in 2016 and could be paid - Asset repu rchase ag reements ~~~~ ~ CC7~.LE'Y VILLE _ ~~ • $3M Project Plan Unallocated Funds - 2016 : AI I outsta nd i ng bonds become ca I la ble - Protect GCISD's pa rtici pation i n TI F su bject to recapture/Robin Hood for duration of TIF ~~~~ ~ ~C]Z~,EY VILI.E ~ ,~