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Home My WebLink AboutTIF1 2003-04-08 AgendasREINVESTMENT ZONE NUMBER 1, CITY OF NORTH RICHLAND HILLS BOARD OF DIRECTORS MEETING TUESDAY, APRIL 8, 2003 CITY HALL PRE-COUNCIL ROOM 4:30 P.M. AGENDA 1. Call to Order 2. Discuss 2002 Annual Report 3. Adjournment POSTED ~- ~~ Date '~ ~ ..30 Din Time City Secretary Ey _~- 0 ' ~pa~Q .' . ,~ \w -... ~ >. ì REINVESTMENT ZONE NUMBER 1, CITY OF NORTH RICHLAND HILLS BOARD OF DIRECTORS MEETING TUESDAY, APRIL 8,2003 CITY HALL PRE-COUNCIL ROOM 4:30 P.M. AGENDA 1. Call to Order 2. Discuss 2002 Annual Report 3. Adjournment L MINUTES OF THE TIF BOARD MEETING FOR REINVESTMENT ZONE #1 OF THE CITY OF NORTH RICH lAND 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. tí.,. REPORT TO TIF NO. 1 BOARD MEMBERS No. 2003-oi Date: December 31, 2002 Subject: Tax Increment Reinvestment Zone No. 1 Executive Summary For Fiscal Year Ended September 30, 2002 Attached for your information is "Tax Increment Reinvestment Zone No. 1, Annual Report , For the Year Ended September 30, 2002 . 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, BISD, Tarrant County, Tarrant County College, and Tarrant County Hospital District all agreed to participate at 100% 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 for by the City of NRH). The TIF debt has a maturity of twenty years to 2018, with aten-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 sold in 1998 and the public drainage improvements were completed in fiscal year 2000. The developer's improvements did not appear on the tax rolls until January 2000 although the original plan anticipated at least 50% of the improvements would be made by January 1, 1999. Taxes were levied in the fall of 2000 and due by January 31, 2001. The TIF District then billed each taxing entity in March 2001. In FY 2001, the District experienced a positive cash flow for the first time. In FY 2002, the District received taxes in the amount of $ 180,921 from property owners. There are two property owners and 5 separate accounts which make up the District. There are no delinquencies for tax year 2001 (fiscal year 2002) and two accounts are current for tax year 2002 (fiscal year 2003), the deadline being January 31, 2003. For the year ending September 30, 2002, outstanding principal and interest totaled $ 949,461. Principal, interest and associated payments totaled $ 77,769 for fiscal year 2002. Cash balance was $ 119,220 as of September 30, 2002. Also attached to this executive summary is a "Comparison of Original Plan to Actual Development". The comparison shows that actual property taxes collected are slightly behind the original plan. As previously explained, this is because the developer improvements were completed later than originally anticipated. Public improvements and the associated debt were completed on schedule. The comparison also shows that improvement value (Captured Valuation) is greater than originally estimated. Taxable value in 2002, which will be collected in May of 2003 from participating entities, is nearly $1.2 million higher than originally estimated. As note 2 indicates, if the current values hold steady and property owners are able to pay the taxes on the TIF 1 properties, the plan to pay off the bonds in 2008 is viable. 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 a-mail Ikoonce(a)nrhtx.com. Respectfully submitted, Larry nonce Director of Finance City of North Richland Hills Tax Increment Reinvestment Zone No.1 Annual Report For the Year Ended September 30, 2002 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 2002: Property Tax Revenues $ 180,921 Interest Income $ 160 Total Revenues in Fiscal Year 2002 $ 181,081 Amount and Purpose of Expenditures of the Fund FY 2002: Principal, Interest, Issuance & Paying Agent Payments on Certificate Indebtedness Total Fund Expenditures in Fiscal Year 2002 $ 77,769 $ 77,769 Principal & Interest due on outstanding indebtedness as of September 30, 2002: Principal Outstanding $ 679,441 Interest Outstanding ~ $ 270,021 Total Principal & Interest Outstanding 9-30- 2002 $ 949,462 Captured Appraised Value shared by the Municipality 8 Other Taxing Entities and total amount of tax increments received Taxing Unit 1998 Base Year Appraised Value Taxable Value 2001 Captured Appraised Value 2001 Tax Ratel$100 FY 2002 Revenue Received FY 2002 City of North Richland Hills $1,152,929 $7,719,790 $6,566,861 $0.570000 $37,431 Birdville I.S.D. $1,152,929 $7,719,790 $6,566,861 $1.569800 $103,087 Tarrant County $1,152,929 $7,719,790 $6,566,861 $0.274785 $18,045 Tarrant County Hospital District $1,152,929 $7,719,790 $6,566,861 $0.234070 $15,371 Tarrant County College $1,152,929 $7,719,790 $6,566,861 $0.106410 $6,988 $180,921 This report submitted by Larry Koonce Director of Finance City of North Richland Hills, Texas K:acctltifs\TIF1 Anhual Report 2002.x1s City of North Richland Hills Tax Increment Reinvestment Zone No. 1 Comparison of Original Plan to Actual Development FY 2002 Original Financing Plan 1998 Fiscal Captured Tax Interest Total Certificate Cumulative Year Valuation Revenues Earnings Revenues Debt Coverage 1999 $ 2,500,000 $ 65,678 $ 30,863 $ 96,541 $ 96,541 $ - 2000 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 81,998 $ 59,209 2001 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 79,813 $ 120,603 2002 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 77,628 $ 184,182 2003 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 75,443 $ 249,946 2004 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 73,257 $ 317,896 2005 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 71,072 $ 388,031 2006 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 68,887 $ 460,351 2007 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 66,702 $ 534,856 2008 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 489,516 2 $ 186,547 Financing Plan As of September 30, 2002 (After Four Years) Interest Fiscal Captured Property Tax Earnings 8~ Total Certificate Cumulative Ynar Valuation Revenues Other Revenues Debt Coverage 1 ggg $ _ $ - $ 54,620 $ 54,620 $ 98,259 $ (43,639) 2000 $ - $ - $ 47,253 $ 47,253 $ 82,228 $ (78,614) 2001 $ 5,975,103 $ 164,558 $ 9,917 $ 174,475 $ 79,954 $ 15,907 2002 $ 6,566,861 $ 180,921 $ 160 $ 181,081 $ 77,768 $ 119,220 2003 $ 6,533,845 1 $ 184,991 $ - $ 184,991 $ 75,583 $ 228,628 2004 $ 6,533,845 $ 184,991 $ - $ 184,991 $ 73,398 $ 340,222 2005 $ 6,533,845 $ 184,991 $ - $ 184,991 $ 71,213 $ 454,001 2006 $ 6,533,845 $ 184,991 $ - $ 184,991 $ 69,027 $ 569,965 2007 $ 6,533,845 $ 184,991 $ - $ 184,991 $ 66,842 $ 688,114 2008 $ 6,533,845 $ 184,991 $ - $ 184,991 $ 488,259 2 $ 384,847 1 Fiscal year 2003 Captured Valuation is based on the most current 2002 TAD values after ARB adjustments. The TIF District will receive final values in March 2003 at which time each taxing jurisdiction will be billed. 2 The the $850,000 Certificates of Obligation sold in 1998 for drainage improvements were twenty- yearobligations 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 are able to pay the taxes on the TIF properties, the plan to pay off the bonds in 2008 is viable. K:acct/tifs/TIF1 Annual Report 2002.xlsOrig Plan vs actual ~ '. (- REPORT TO TIF NO.1 BOARD MEMBERS No. 2003-01 Å Date: T Subject: December 31 , 2002 Tax Increment Reinvestment Zone NO.1 Executive Summary For Fiscal Year Ended September 30, 2002 Attached for your information is "Tax Increment Reinvestment Zone No.1, Annual Report , For the Year Ended September 30, 2002". 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, BISD, 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 for 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 sold in 1998 and the public drainage improvements were completed in fiscal year 2000. The developer's improvements did not appear on the tax rolls until January 2000 although the original plan anticipated at least 50% of the improvements would be made by January 1, 1999. Taxes were levied in the fall of 2000 and due by January 31, 2001. The TIF District then billed each taxing entity in March 2001. In FY 2001, the District experienced a positive cash flow for the first time. In FY 2002, the District received taxes in the amount of $ 180,921 from property owners. There are two property owners and 5 separate accounts which make up the District. There are no delinquencies for tax year 2001 (fiscal year 2002) and two accounts are current for tax year 2002 (fiscal year 2003), the deadline being January 31, 2003. For the year ending September 30, 2002, outstanding principal and interest totaled $ 949,461. Principal, interest and associated payments totaled $ 77,769 for fiscal year 2002. Cash balance was $ 119,220 as of September 30, 2002. Also attached to this executive summary is a "Comparison of Original Plan to Actual Development". The comparison shows that actual property taxes collected are slightly behind the original plan. As previously explained, this is because the developer improvements were completed later than originally anticipated. Public improvements and the associated debt were completed on schedule. The comparison also shows that improvement value (Captured Valuation) is greater than originally estimated. Taxable value in 2002, which will be collected in May of 2003 from participating entities, is nearly $1.2 million higher than originally estimated. As note 2 indicates, if the current values hold steady and property owners are able to pay the taxes on the TIF 1 properties, the plan to payoff the bonds in 2008 is viable. NORTH RICHlAND HillS, TEXAS Ll.. ¡ 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 C questions regarding this information please contact Larry Koonce, Director of Finance, City of NRH, at 817-427-6167 or e-maillkoonce@nrhtx.com. Respectfully submitted, ;:LAHl~ ~;Zonce Director of Finance \.., \-, - " .... ¡ City of North Richland Hills Tax Increment Reinvestment Zone No.1 Annual Report For the Year Ended September 30,2002 ~ Lhe 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 2002: Property Tax Revenues $ 180,921 Interest Income $ 160 Total Revenues in Fiscal Year 2002 $ 181,081 Amount and Purpose of Expenditures of the Fund FY 2002: Principal, Interest, Issuance & Paying Agent Payments on Certificate Indebtedness $ 77,769 Total Fund Expenditures in Fiscal Year 2002 $ 77,769 Principal & Interest due on outstanding indebtedness as of September 30, 2002: Principal Outstanding $ 679,441 ''1terest Outstanding .' $ \..rotal Principal & Interest Outstanding 9-30- 2002 $ 270,021 949,462 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 2001 Value 2001 FY 2002 2002 City of North Richland Hills $1,152,929 $7,719,790 $6,566,861 $0.570000 $37,431 Birdville I.S.D. $1,152,929 $7,719,790 $6,566,861 $1.569800 $103,087 Tarrant Cou nty $1,152,929 $7,719,790 $6,566,861 $0.274785 $18,045 Tarrant County Hospital District $1,152,929 $7,719,790 $6,566,861 $0.234070 $15,371 Tarrant County College $1,152,929 $7,719,790 $6,566,861 $0.106410 $6,988 $180,921 This report submitted by : ~L~ \.".arry Koonce CJ ( Director of Finance City of North Richland Hills, Texas K:acct\tifs\TIF1 Annual Report 2002.xls ..-.'.... ~ ....~ " City of North Richland Hills Tax Increment Reinvestment Zone No.1 Comparison of Original Plan to Actual Development FY 2002 Original Financing Plan 1998 .- \..., Fiscal Year Captured Valuation 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 $ 59,209 2001 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 79,813 $ 120,603 2002 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 77,628 $ 184,182 2003 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 75,443 .$ 249,946 2004 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 73,257 $ 317,896 2005 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 71,072 $ 388,031 2006 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 68,887 $ 460,351 2007 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 66,702 $ 534,856 2008 $ 5,375,000 $ 141,207 $ $ $ 2 $ 186~547 . - 141,207 489,516 Financing Plan As of September 30, 2002 (After Four Years) -... Fiscal Year Captured Valuation Interest Property Tax Earnings & Total Certificate Revenues Other Revenues Debt Cumulative Coverage 1999 $ - $ - $ 54,620 $ 54,620 $ 98,259 $ (43,639) 2000 $ - $ - $ 47,253 $ 47,253 $ 82,228 $ (7:8,614) 2001 $ 5,975,103 $ 164,558 $ 9,917 $ 174,475 $ 79,954 $ 15,901 2002 $ 6,566,861 $ 180,921 $ 160 $ 181,081 $ 77,768 $ 119,220 $ 1 $ 184,991 $ $ 184,991 $ 75,583 $ 228,628 2003 6,533,845 - 2004 $ 6,533,845 $ 184,991 $ - $ 184,991 $ 73,398 $ 340~222 2005 $ 6,533,845 $ 184,991 $ - $ 184,991 $ 71,213 $ 454.,001 2006 $ 6,533,845 $ 184,991 $ - $ 184,991 $ 69,027 :$ 569,965 2007 $ 6,533,845 $ 184,991 $ - $ 184,991 $ 66,842 $ 688,114 $ $ $ $ 2 .:$ 384,847 2008 $ 6,533,845 184,991 - 184,991 488,259 \-, 1 Fiscal year 2003 Captured Valuation is based on the most current 2002 TAD values after ARB adjustments. The TIF District will receive final values in March 2003 at which time each taxing jurisdiction will 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 are able to pay the taxes on the TIF properties, the plan to payoff the bonds in 2008 is viable. K:acct/tifslTlF1 Annual Report 2002.xlsOrig Plan vs actual