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Home My WebLink AboutTax Increment Finance (TIF)-Agenda Packets-7/24/2024City of Colleyville Page 1 CITY OF COLLEYVILLE TAX INCREMENT FINANCING DISTRICT BOARD AGENDA 100 Main Street, Colleyville, Texas, 76034 Executive Conference Room - Third Floor WEDNESDAY, JULY 24, 2024 - 12:00 NOON 1.CALL TO ORDER 2.CONSENT: READING AND PUBLIC HEARING - RESOLUTION R-24-02 2a Approval of the minutes of the June 18, 2024, Tax Increment Financing District Board of Directors Meeting 3.PRESENTATION AND DISCUSSION 3a Review and discussion of 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 19, 2024, by 5:00 p.m. Christine Loven, TRMC City Secretary A quorum of any Colleyville board, commission, or committee may be present 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 City Secretary at least 48 hours in advance at 817.503.1133, and reasonable accommodations will be made to assist you. RESOLUTION R-24-02 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, 2024. 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 June 18, 2024 are hereby approved. AND IT IS SO RESOLVED. APPROVED BY A VOTE OF _ AYES, _ NAYS, ON THIS THE 24TH DAY OF JULY 2024. ATTEST: COLLEYVILLE TAX INCREMENT FINANCING DISTRICT BOARD Christine Loven, TRMC Bobby Lindamood City Secretary Chairman City of Colleyville Page 1 CITY OF COLLEYVILLE TAX INCREMENT FINANCING DISTRICT BOARD MINUTES 100 Main Street, Colleyville, Texas, 76034 Executive Conference Room - Third Floor TUESDAY, JUNE 18, 2024 - 4:00 PM 1. CALL TO ORDER Chairman Bobby Lindamood called the Tax Increment Financing District Board of Directors Meeting to order at 4:40 p.m. on June 18, 2024, and called the roll. PRESENT: Chair Bobby Lindamood and Directors Tammy Nakamura, Brandi Elder, Kimberly Holt Gunderson, Tim Raine, and Ben Graves. ABSENT: Directors Theresa Parsons, Ronnie Watkins, and Shannon Fletcher. 2. RESOLUTION(S): READING AND PUBLIC HEARING 2a Resolution R-24-01 Approval of a resolution amending Resolution R-12-04; approving an amended Project and Financing Plan Chair Lindamood read Resolution R-24-01 in its entirety. Natalie Moore, David Pettit Economic Development, provided a historical and current overview of the Colleyville Tax Increment Financing (TIF) District, and who participates. Ms. Moore reviewed the original project plan, and the 2012 amended project plan, before explaining the proposed amendment, which would update the project costs categories. There was discussion of the line item amendments, which Ms. Moore explained allows flexibility to reallocate funds within the TIF. The proposed amendment would allow allocation of $3.6 million to fund School Resource Officers in all GCISD Schools for the next four years. Chair Lindamood opened and closed the public hearing without any speakers. Director Graves made a motion to approve Resolution R-24-01, seconded by Director Elder. The motion was approved by the following vote: Tax Increment Financing District Board Minutes June 18, 2024 City of Colleyville Page 2 Ayes: 6 – Chair Lindamood, Directors Nakamura, Elder, Holt Gunderson, Raine, and Graves. Absent: 3 – Directors Parsons, Watkins, and Fletcher. 3. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 4:23 p.m. PASSED BY A VOTE OF AYES, NAYS, THIS 24TH DAY OF JULY 2024. Minutes taken and prepared by: Christine Loven, TRMC City Secretary City of Colleyville Page 1 CITY OF COLLEYVILLE TAX INCREMENT FINANCING DISTRICT BOARD BRIEFING Agenda Number 3a Agenda Date 7/24/2024 Number Type Presentation and Discussion Department Finance Title Review and discussion of the status of the Colleyville Tax Increment Financing District Explanation Staff will provide a FY2024 Update and review the FY2025 Colleyville Tax Increment Financing (TIF) District budget. Attachments 1.FY2024 Update & FY2025 Budget Presentation 2.TIF FY2024 Year -to-Date 3.TIF FY 2024 & 2025 CIP Budget 4.TIF FY 2025 Budget City of Colleyville Tax Increment Reinvestment Zone #1 FY2024 Update & FY2025 Budget City of Colleyville TIF Board July 24, 2024 Background: What is Tax Increment Financing(TIF)? •A public financing method that local governments use to fund infrastructure and community improvement projects in a designated area to encourage private investment. (Tax Code Chapter 311) •Mechanism –Designated Area: Known as a Tax Increment Reinvestment Zone (TIRZ). –Property Tax Redirection: Property taxes generated from increases in property values within the TIRZ are redirected to finance improvements in that area. •Purpose/Benefits –Encourage Development –Generate Revenue –Economic Growth –Cost Reduction Background: Establishment & Zone June 1998 – TIRZ #1 Established November 2012 – TIRZ Amended (#1A)* July 2024 – TIRZ Amended^ December 2030 – TIRZ Expires *- Boundaries expanded by 20 additional acres and new project cost added. ^ - Updated project cost categories to include operating costs for reinvestment zone project facilities, with no increase in overall costs. The zone encompasses approximately 653 acres, mainly along Colleyville Blvd. (SH 26). Background: Participation Active Entities Entity Participation Cap City of Colleyville 100% No Tarrant County College (TCC) 100% No Grapevine Colleyville ISD (GCISD)* 100% O&M See note Inactive Entities Entity Participation Cap Tarrant County Hospital District 100% $3.85 M Tarrant County 100% $4.35 M * - Note: GCISD participation is limited to projects from the original 1998 plan. Use 74% of contributions for public infrastructure and 26% for school improvement projects. Background: Project Costs Proposed Project Costs - TIRZ #1 TIF #1 (1998) TIF #1A (2012) Total Public Improvements $ 27,390,000 $- $ 27,390,000 School Improvements 7,938,690 - 7,938,690 Operating Reinvestment Zone Project Facilities*- 3,600,000 3,600,000 Roadway Improvements - 20,000,000 20,000,000 Trails and Public Amenities - 5,500,000 5,500,000 Economic Development Grants - 13,656,185 13,656,185 Administrative Costs - 1,700,000 1,700,000 Total $ 35,328,690 $ 44,456,185 $ 79,784,875 * - Added by amendment in July 2024 (Ordinance O-24-2287). This did not increase the total plan; the economic development grants category was reduced. TIF Increment History – 5-years TIF #1 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Taxable Value $ 487,999,511 $ 503,997,217 $ 491,306,744 $ 505,508,335 $ 552,687,664 1998 Base Year 75,821,735 75,821,735 75,821,735 75,821,735 75,821,735 Increment $ 412,177,776 $ 428,175,482 $ 415,485,009 $ 429,686,600 $ 476,865,929 New Construction 583,549 1,461,919 2,949,992 -275,100 TIF #1A FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Taxable Value $ 46,210,946 $ 46,180,191 $ 46,782,668 $ 48,792,836 $ 52,213,996 2012 Base Year 30,796,078 30,796,078 30,796,078 30,796,078 30,796,078 Increment $ 15,414,868 $ 15,384,113 $ 15,986,590 $ 17,996,758 $ 21,417,918 New Construction - - - - - The FY 2025 taxable values will be provided by PRAD later this month. To determine an entity’s contribution, multiply the “increment” by the adopted tax rate. Note: City of Colleyville’s taxable values only. Background: FY 2025 Timeline Dates Action July 25, 2023 TAD certifies values for FY 2024 December 2023 City of Colleyville submits annual report for Fiscal Year ended Sept. 30, 2023 (FY 2024) – due 90 days after FYE March 2024 Final Updates to property values received from TAD; City of Colleyville invoices TIF partners for FY 2024 May 1, 2024 FY 2024 TIF payments due June 18, 2024 TIF Board meeting to approve an amended project and financing plan June 2024 5-Year Capital Plan updated (FY25 – FY29) July 24, 2024 Annual TIF Board meeting July 25, 2024 New certified values released from TAD FY 2024 YTD Revenues/Expenses As of 7/15/2024, not final or audited. TIF PROJECT HIGHLIGHTS Supporting Local Business: Gift Card Program •FY 2024 Programs –Patriot $35 Gift Cards & $50 Colleyville Cares Cards •Valid through 8/31/2024 –Restaurant $35 Gift Cards •FY 2023 Programs –Christmas $35 Gift Cards & $50 Colleyville Cares Cards –Patriot $35 Gift Cards & $50 Colleyville Cares Cards Heroes Park Heroes Park is currently 90% designed, with plans to finalize and bid out the project shortly. Construction is set to start later this year. Gateways Beautification of main thoroughfare through Colleyville and enhances brand identity. PROPOSED FY 2025 BUDGET FY 2025 Capital Plan Note: See separate CIP Plan for more information on projects and other funding. QUESTIONS? City of Colleyville ‐ TIF FY 2024 Y‐T‐D Original PP Amended PP Total Taxes: GCISD 2,280,848$ ‐$ 2,280,848$ Colleyville ‐ 1,293,970 1,293,970 TCCC ‐ 542,622 542,622 Other: CBC ‐ 38,255 38,255 Investment Income ‐ 26,224 26,224 Other/Misc ‐ 16 16 Total Revenue 2,280,848 1,901,087 4,181,935 Expenses: Economic Development ‐ 1,166,435 1,166,435 Colleyville Gateways 705,768 ‐ 705,768 Heroes Park ‐ 528,720 528,720 Admin Expenses 235,000 ‐ 235,000 Roberts Road ‐ 234,890 234,890 Glade Road ‐ 230,110 230,110 SH26 188,191 ‐ 188,191 Beautification ‐ 96,742 96,742 Village Expenses 66,612 ‐ 66,612 Engineering 51,845 ‐ 51,845 VOA Dues 33,781 ‐ 33,781 Professional Services 22,493 ‐ 22,493 City Hall Grounds 22,387 ‐ 22,387 Property Taxes 19,429 ‐ 19,429 Cheek‐Sparger ‐ 17,090 17,090 Trails/Amenities ‐ 8,185 8,185 Drainage 5,600 ‐ 5,600 Total Expenses 1,351,105 2,282,171 3,633,277 Operating Surplus/(Deficit) 929,743$ (381,085)$ 548,658$ FY 2024TIF Other TotalGlade at Roberts Road Intersection Improvements325,000 325,000 650,000 Recreation Center Fence and Signage150,000 200,000 350,000 Water Project 11: Tinker Road Water/Drainage/Road Reconstruction650,000 2,100,000 2,750,000 1,125,000$ 2,625,000$ 3,750,000$ FY 2025TIF Other TotalBedford Rd Roundabout (at Cheek‐Sparger) Design300,000 ‐ 300,000 Central Fire Station ‐ landscape, retainer wall, stamped concrete46,000 35,000 81,000 Cheek‐Sparger Road (Heritage to Bedford) Design2,000,000 ‐ 2,000,000 FY25 Annual Sidewalk Connectivity ‐ Montclair Construction400,000 800,000 1,200,000 FY25 Drainage Improvements50,000 50,000 100,000 FY25 Green Ribbon SH 26 & Longwood145,000 400,000 545,000 Heroes Park Construction7,000,000 ‐ 7,000,000 John McCain Rd Bridge and Curve Improvements Design50,000 ‐ 50,000 Plaza Stone Restoration125,000 ‐ 125,000 Roberts Road Phase II Construction1,000,000 400,000 1,400,000 SH26 Christmas Decorations100,000 ‐ 100,000 SH26 Electricity in Medians350,000 ‐ 350,000 Water Project 11 ‐ Tinker Road Water/Drainage/Roadway Rehab200,000 800,000 1,000,000 Wayfinding Signage ‐ Phase II100,000 ‐ 100,000 11,866,000$ 2,485,000$ 14,351,000$ City of ColleyvilleCIP PlanTax Increment Finance City of Colleyville2025 2026 2027 2028 2029 2030TIF Fund Projection Revised EstimateProposed BudgetRevenues:Current Taxes5,643,581 6,030,000 6,090,300 6,333,912 6,397,251 6,461,224 6,525,836 Investment Income/(Losses)54,463 25,000 25,250 26,260 26,523 26,788 27,056 Colleyville Business Ctr Rev44,077 ‐ ‐ ‐ ‐ ‐ ‐ Total Revenues5,742,121 6,055,000 6,115,550 6,360,172 6,423,774 6,488,011 6,552,892 Expenses:Administration ‐ VOA Dues105,449 35,000 35,700 36,414 37,142 37,885 38,643 Administration ‐ Property Tax Expense 19,429 20,000 20,400 20,808 21,224 21,649 22,082 Economic Development ‐ Economic Devlpmt Grant1,200,000 1,000,000 600,000 300,000 100,000 100,000 100,000 Eng Prof Svcs ‐ Salaries & Benefits67,359 70,223 73,014 75,757 78,770 81,903 85,161 Parks Maintenance ‐ Salaries & Benefits126,367 207,635 215,940 224,578 233,561 242,904 252,620 Colleyville Business Center117,249 ‐ ‐ ‐ ‐ ‐ ‐ GCISD SRO‐ 900,000 900,000 900,000 900,000 900,000 900,000 Total Expenses1,635,852 2,232,858 1,845,054 1,557,557 1,370,697 1,384,340 1,398,505 Operating Transfers:Total Operating Transfers In/(Out)(235,000) (235,000) (235,000) (235,000) (235,000) (235,000) (235,000) Operating Surplus/(Deficit)3,871,270 3,587,142 4,035,496 4,567,615 4,818,076 4,868,672 4,919,387 Proceeds from sale of land‐ ‐ 5,300,000 ‐ ‐ 13,000,000 ‐ Interfund Loan Repayment‐ ‐ ‐ ‐ ‐ (19,134,261) ‐ Capital Expenditures*(1,125,000) (11,866,000) (2,135,000) (2,830,000) ‐ (125,000) (8,600,000) Net Change in Available Funds2,746,270 (8,278,858) 7,200,496 1,737,615 4,818,076 (1,390,589) (3,680,613) Available Funds, beginning(3,186,418) (440,148) (8,719,006) (1,518,511) 219,104 5,037,180 3,646,591 Available Funds, ending(440,148) (8,719,006) (1,518,511) 219,104 5,037,180 3,646,591 (34,022) *‐ See more detail in CIP 5‐year Plan2024Projected Budget