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Home My WebLink AboutPZ 2005-06-21 AgendasREINVESTMENT ZONE NUMBER 1, CITY OF NORTH RICHLAND HILLS BOARD OF DIRECTORS MEETING TUESDAY, JUNE 21, 2005 CITY HALL PRE-COUNCIL ROOM 4:00 P.M. AGENDA 1. Call to Order 2. Approval of April 8, 2003 Board Minutes 3. Discuss 2004 Annual Report 4. Adjournment ~~=~~ .. ~~~r~ \.. REINVESTMENT ZONE NUMBER 1, CITY OF NORTH RICHLAND HILLS BOARD OF DIRECTORS MEETING TUESDAY, JUNE 21, 2005 CITY HALL PRE-COUNCIL ROOM 4:00 P.M. AGENDA 1. Call to Order 2. Approval of April 8, 2003 Board Minutes 3. Discuss 2004 Annual Report 4. Adjournment '-' ~, \.., MINUTES OF THE TIF BOARD MEETING FOR REINVESTMENT ZONE #1 OF THE CITY OF NORTH RICHlAND HillS, TEXAS BOARD OF DIRECTORS MEETING - PRE COUNCil ROOM, CITY HAll TUESDAY, APRil 8, 2003 - 4:30 PM Members Present - Oscar Trevino, Chairman Dolores Webb Drenda Witt Jane Sanford Dr. Larry Darlage Scott Turnage David Whitson Others Present - Larry J. Cunningham Greg Vick, Joe Tolbert Lyle Welch Larry Koonce Karen Bostic Lisa McMillan \.. Glen Whitley Mayor Birdville ISD Tarrant County Hospital District Northeast SubCourthouse, Pct #3 Tarrant County College Council Member Council Member City Manager Assistant City Manager Council Member Council Member Director of Finance Managing Director Tarrant County Commissioners Court Administrator, Northeast SubCourthouse,Pct#3 1. CAll TO ORDER Mayor Trevino called the meeting to order at 4:30 pm. 2. DISCUSS ANNUAL REPORT Larry Koonce reviewed the status of the Annual Report and presented it to the Committee. After some brief discussion about the project, Drenda Witt motioned to accept the report and Jane Sanford seconded the motion. Vote was unanimous in favor of the motion. 3. ADJOURNMENT Mayor Trevino adjourned the meeting at 4:39 pm. \.. INFORMAL REPORT TO MAYOR AND CITY COUNCIL No. IR 2005-005 Á Date: T Subject: December 31, 2004 Tax Increment Reinvestment Zone No.1 Executive Summary For Fiscal Year Ended September 30, 2004 Attached for your information is "Tax Increment Reinvestment Zone No.1, Annual Report, For the Year Ended September 30, 2004". TIRZ No. 1 was created by the City of North Richland Hills in 1998. The District was created to provide public drainage improvements around the 300,000 square foot Richland Plaza Shopping Center (since renamed Richland Business Centre). The shopping center had declined to the point that nearly all tenants had vacated, and total values were a little over $1 million. It was believed that unless public drainage improvements were made to divert flooding from the Richland Plaza parking lot to Mackey Creek, the development was destined to further decay and decline. At the time the District was created, the City of NRH, Birdville Independent School District, Tarrant County, Tarrant County College, and Tarrant County Hospital District all agreed to participate at 1000/0 for the life of the District. Certificates of Obligation were sold in the amount of $850,000 for the TIF portion of the $1.3 million public drainage project (the balance was paid by the City of NRH). The TIF debt has a maturity of twenty years to 2018, with a ten-year call option in 2008. The TIF plan provides for the retirement of all outstanding debt at the call date if sufficient revenues are collected over the ten-year period. The Certificates were issued in 1998 and the public drainage improvements were completed in fiscal year 2000. In fiscal year 2004, the District received taxes in the amount of $157,634 from property owners. For the year ending September 30, 2004, outstanding principal and interest on the Certificates totaled $800,480. Principal, interest and associated payments totaled $73,398 for fiscal year 2004, and the end of the year cash balance was $317,276. Also attached to this executive summary is a "Comparison of Original Plan to Actual Development". The comparison shows that by the end of fiscal year 2005 cumulative revenues (property taxes and interest earnings) will be 1 020/0 of the original plan. Public improvements were completed on schedule, and the associated debt was issued in a timely manner. The comparison shows that improvement value (Captured Valuation) is greater than originally estimated. Values as of January 2004 (fiscal year 2005) stayed the same as the January 2003 values, and are nearly $190,000 higher than originally estimated. 2003 values had declined from 2002 values due to a protest in values by property owners and a subsequent adjustment by the TAD Appraisal Review Board based on that protest. As note 2 indicates, if the current values hold steady and property owners pay the taxes on the TI F 1 properties, the plan to payoff the bonds in 2008 is viable. ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS . \.. ~ \.. The Annual Report is filed with the Attorney General's Office as required by state law. This executive summary and attachments are provided to all the participating taxing jurisdictions. If you have any questions regarding this information please contact Larry Koonce, Director of Finance, City of NRH, at 817-427-6167 or e-maillkoonce(ã)nrhtx.com. Respectfully submitted, ~~.~ Larry Koonce Director of Finance Attachments: TIRZ No.1 Annual Report FY 2004 Comparison of Original TI F No. 1 Plan to Actual Development City of North Richland Hills Tax Increment Reinvestment Zone No.1 Annual Report For the Year Ended September 30,2004 (unaudited) \..,.. The following are the items required by the Section 311.016 of the Texas Property Tax Code to be reported to the Office of the Attorney General: Amount & Source of Revenue in the Tax Increment Fund FY 2004: Property Tax Revenues $ 157,634 I nterest Income $ 2,730 Total Revenues in Fiscal Year 2004 $ 160,364 Amount and Purpose of Expenditures of the Fund FY 2004: Principal, Interest, Issuance & Paying Agent Payments on Certificate Indebtedness $ Total Fund Expenditures in Fiscal Year 2004 $ 73,398 73,398 Principal & Interest due on outstanding indebtedness as of September 30, 2004: Principal Outstanding $ 594,161 Interest Outstanding $ 206,319 \.,.,,;~~~ Principal & Interest Outstanding 9-30- $ 800,480 Captured Appraised Value shared by the Municipality & Other Taxing Entities and total amount of tax increments received: Captured Tax Revenue 1998 Base Year Taxable Value Appraised Rate/$100 Received FY Taxing Unit Appraised Value 2003 Value 2003 FY 2004 2004 City of North Richland Hills $1,152,929 $6,717,796 $5,564,867 $0.570000 $31,720 Birdville I.S.D. $1,152,929 $6,717,796 $5,564,867 $1.617000 $89,894 Tarrant County $1,152,929 $6,717,796 $5,564,867 $0.272500 $15,164 Tarrant County Hospital District $1,152,929 $6,717,796 $5,564,867 $0.235397 $13,100 Tarrant County College $1,152,929 $6,717,796 $5,564,867 $0.139380 $7,756 $157,634 \..,.. Director of Finance City of North Richland Hills, Texas K:acct\tifs\TIF1 Annual Report 2004.xls \.. Fiscal Year Captured Valuation City of North Richland Hills Tax Increment Reinvestment Zone No.1 Comparison of Original Plan to Actual Development FY 2004 Original Financing Plan 1998 Tax Revenues Interest Earnings Total Certificate Revenues Debt Cumulative Coverage ............... . 1999 $ 2,500,000 $ 65,678 $ 30,863 $ 96,541 $ 96,541 :$:::::::::::::::::::;::::::: 2000 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 81,998 : $:::::::::: :$Ø~~()ø: 2001 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 79,813 ::$::::::::1~~~~:~:: 2002 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 77,628 : :$::::::: :j:$4~1 ij~:: 2003 $ 5,375,000 $ 141,207 $ $ 141,207 $ 75,443 .: $:':':': 249' 946:- - · ... ... .. ::. .::::::::.... .-t-. ..... .:: 2004 $ 5,375,000 $ 141,207 $ $ 141,207 $ 73,257 :: $::::::: :31:7: 89&:: - · ... . .. . ':-. :-:-:-:-. ..... ). ,'. . .-:' ................ . 2005 $ 5,375,000 $ 141,207 $ $ 141,207 $ 71,072 '. $....... 3'88' 03'1'" - ::. .:::::::: .:, . ..j.. . .:: ::: 2006 $ 5,375,000 $ 141,207 $ $ 141,207 $ 68,887 :. $':':': -:46.0:35'1:': - . .... . . . :::. ::::::::.. .'. .i. .'.: .::: ................ . 2007 $ 5,375,000 $ 141,207 $ $ 141,207 $ 66,702 '. $....... 534' 856" - ::. .:::::::: .'. ...:j.. : .'. .:: ................. . 2 ................ . ................. , ................ . 2008 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 489,516 ::~::::::: t~ø.;~~1::: \.., Fiscal Year 1999 $ 2000 $ 2001 $ 2002 $ Financing Plan As of September 30, 2004 (After Six Years) Captured Valuation - - 5,975,103 6,566,861 2003 $ 6,533,845 2004 $ 5,564,867 2005 $ 2006 $ 2007 $ 2008 $ 5,564,867 5,564,867 5,564,867 5,564,867 Interest Property Tax Earnings & Total Certificate Revenues Other Revenues Debt 1 $ $ $ $ $ $ $ $ $ $ 164,558 $ 180,921 $ 54,620 $ 47,253 $ 9,917 $ 160 $ 54,620 $ 47,253 $ 174,475 $ 181 ,081 $ 98,259 82,228 79,954 77,768 Cumulative Coverage :: $:::::: :::(~~~~~~): :: $:::::::: :(:18~6:14J "$' ···········1···5· "g' ·0' ·7···· :: :::::::::::,,:, i.·. : :::: ................ . ................ . ................ . ::~:: ::::: :1:~:~;~~~:: .. ...........,... ................ . ................ . ................ . 1,682 $ 186,673 $ 75,583 ::$»~~ø¡~:~~( 2,730 $ 160,364 $ 73,398 - - - - $ $ $ $ 157,557 $ 157,557 $ 157,557 $ 157,557 $ 71,213 69,027 66,842 466,242 ............,... . ................. . ............... . .,.............. . ................ . ................ . "$' ········3· ·1"7' "2' ·7' ·6···· . ..'. . ::-. ::::::::. ",:, i.:.·. .::: ............... . ................ . ................ . ................. . ................ . "$' ········4····0· ·3"'6' 2· "1' '.' · .... . .. ::. .:::::::..... ... "'. . .:. ::: ............... . ::$«~$Zi:1~ : ............... . ................. . ::$»ŠS2;ŠeS: : ... ,..... 2 ::¥¡:/~r¡(~~~ 1 Fiscal year 2005 Captured Valuation is based on the most current 2004 TAD values after ARB adjustments. The TIF District will received final values in March 2005 at which time each taxing jurisdiction was be billed. 2 The the $850,000 Certificates of Obligation sold in 1998 for drainage improvements were twenty- year obligations maturing in 2018. The plan provides for the redemption of outstanding bonds on the call date in 2008 if funds are available. If the current values hold steady and property owners pay the taxes on the TIF properties, the plan to payoff the bonds in 2008 is viable. \... - - $ 184,991 $ $ 157,634 $ 157,557 $ 157,557 $ 157,557 $ 157,557 $ K:acct/tifs/TIF1 Annual Report 20040rig Plan vs actual