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Home My WebLink AboutTIF2 2003-04-08 AgendasREINVESTMENT ZONE NUMBER 2, CITY OF NORTH RICHLAND HILLS BOARD OF DIRECTORS MEETING TUESDAY, APRIL 8, 2003 CITY HALL PRE-COUNCIL ROOM 4:45 P.M. AGENDA 1. Call to Order 2. Approval of July 24, 2000 Board Minutes 3. Discuss 2002 Annual Report 4. Adjournment POSTED Date Time City Secretary REINVESTMENT ZONE NUMBER 2, CITY OF NORTH RICHLAND HILLS BOARD OF DIRECTORS MEETING ~~ O D TUESDAY, APRIL 8, 2003 p CITY HALL PRE-COUNCIL ROOM 4:45 P.M. AGENDA 1. Call to Order 2. Approval of July 24, 2000 Board Minutes 3. Discuss 2002 Annual Report 4. Adjournment POSTED ~- 3 -aoo3 Date ~ : 30 p ,vi Time City Seaetery ~ ~ 0 `~c~ MINUTES OF THE TIF BOARD MEETING FOR REINVESTMENT ZONE #2 OF THE CITY OF NORTH RICHLAND HILLS, TEXAS BOARD OF DIRECTORS MEETING -ADMINISTRATIVE CONFERENCE ROOM, 2ND FLOOR ,CITY HALL -MONDAY, JULY 24, 2000 - 5:45 P M Members Present - Lyle Welch Frank Metts, Jr. Russ Mitchell JoAnnJohnson Dr. Larry Darlage Drenda Whitt Glen Whitley Mayor Pro Tem Council Member Council Member Council Member Tarrant County College Tarrant County Hospital District Tarrant County Commissioner Others Present - Larry J. Cunningham City Manager Greg Vick, Managing Director of Community Services and Facilities Larry Koonce Director of Finance David Medanich First Southwest Jane Sanford Tarrant County Lisa McMillen Tarrant County 1. CALL TO ORDER Mayor Pro Tem Welch called the meeting to order at 5:45pm. 2. APPROVAL OF MINUTES - NOVEMBER 1, 1999 MEETING Russ Mitchell moved to approve minutes from the November 1, 1999 meeting, seconded by Commissioner Whitley. The vote was unanimous in favor of the motion. 3. APPROVAL MINUTES - MARCH 16, 2000 MEETING Russ Mitchell moved to approved the minutes from the March 16, 2000 meeting, seconded by Dr. Larry Darlage, the vote was unanimous in favor of the motion. 4. TAKE ACTION APPROVING THE AMENDED FINAL PROJECT AND FINANCE PLAN FOR TAX INCREMENT INVESTMENT ZONE #2. Mayor Pro Tem Welch called on Greg Vick to explain the changes to the plan. Mr. Vick explained that the plan changes were driven by the reduction of the conference center by $2.5 million from $10.7 million to $8.7 million and the resulting decrease for the partipipating entities. Commissioner Glen Whitley moved to approve the amended finance and project plans and Council Member JoAnn Johnson seconded the motion. The vote was unanimous in favor of the motion. 5. ADJOURNMENT Commissioner Whitley moved to adjourn at 5:50pm, seconded by Council Member Metts, the vote was unanimous in favor of the motion. REPORT TO TIF NO.2 BOARD MEMBERS No. 2003-01 Date: December 31, 2002 Subject: Tax Increment Reinvestment Zone No. 2 Executive Summary For Fiscal Year Ended September 30, 2002 Attached for your information is "Tax Increment Reinvestment Zone No.2, Annual Report, For the Year Ended September 30, 2002". TIRZ No.2 was created by the City of North Richland Hills in 1999. The district was created to provide public improvements that would benefit the City of NRH, Tarrant County College, the County and Hospital District. Planned public improvements include a conference center, a recreation center, a library and infrastructure improvements in the Hometown NRH development. Total public improvements are estimated at $65.2 million. The District was created for twenty-eight years to provide for the retirement of planned debt issuance. The City of NRH and TCC agreed to contribute 100% for the full twenty-eight years. The County and Hospital District agreed to participate up to a fixed dollar amount that was anticipated to accumulate over afifteen-year period based on estimated property values. At the time the District was created the main developer, E-Systems, estimated that Hometown would be comprised of approximately 70% residential and 30% commercial and retail development. The District's boundaries also include other developments such as the Crossing (Kohl's) Center, Home Depot, Blue Line Ice, the Barnett property (Fountain Ridge subdivision) and UICI Office Complex. The plan (based on a study done by Zimmerman/ Volk) estimated that property values would increase by over $370 million in ten years. Over the life of the District, the values are estimated to generate approximately $82.2 million in tax revenues to pay for the planned public improvements. In 2000, the first year of the District, some unusual circumstances adversely affected the property values and property tax collections. The Crossing Center and Blue Line Ice experienced positive growth in property values in 2000 amounting to nearly $13.4 million. A reduction in value of nearly $8.7 million from the TAD roll for 2000 resulted from appraisal challenges. Additionally, other reductions to the roll were realized for reasons such as first-time absolute exemptions and first-time homestead and over sixty-five exemptions. For example, a church purchased property within the District, which had been taxable property in 1999 when the district was formed. to 2000, this property then became exempt from property taxes, resulting in a reduction to TIF 2 District values. The net effect of growth and reductions to all properties in TIF 2 for 2000 (fiscal year 2001) was an increase of only $3.2 million for the City of NRH and $3.5 for the other participating jurisdictions. The captured appraised value in 2001 (fiscal year 2002) was $26,420,678 for the City of NRH and $31,512,080 for the other participating jurisdictions. The District received $288,774 from all taxing jurisdictions in FY 2002. Property tax revenues of $339,583 were billed by the TIF in FY 2002 to the jurisdictions based on the net increase in property values as of January 1, 2001. Tarrant County withheld payment of $50,809 based on the unpaid taxes of Blue Line Ice. As of the writing of this report, Blue Line Ice owes over $217,000 to all the participating jurisdictions. NORTH RICHLAND HILLS, TEXAS The District issued no debt and had no expenditures in fiscal year 2000, 2001, or 2002. The City of North Richland Hills acquired .221 acres within the TIF in October of 2002 for approximately $95,000 (after fiscal year end). This represents a portion of the land that will ultimately be acquired for.the Hometown Library. If TIF cash flow justifies it, two activities will take place after May 2003. Those are, (1) the remaining Library land will be acquired and (2) a library architect will be selected. Also attached to this executive summary is a "Comparison of Original Plan to Actual Development". The comparison shows that actual property taxes collected are behind the original plan. As previously explained this is partly because of reductions to the tax roll from 1999 (the base year) to 2000. Actual tax revenues in fiscal year 2002 were $288,774 compared to the original plan estimate of $739,138. Taxes collected since inception total $333,604 compared to $887,474 estimated in the original plan. Cash balance including interest earnings equals $335,049. Tax revenues expected from participating jurisdictions in May of 2003 are $673,875, based on 2002 incremental value. The original plan estimated that $1,102,550 would be collected in 2003. 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(p?nrhtx.com. Respectfully submitted, G~~'(~ Larry Koonce Director of Finance . City of North Richland Hills - Tax Increment Reinvestment Zone No. 2 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 $ 288,774 Interest Income $ 1,002 Total Revenues in Fiscal Year 2002 $ 289,776 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 $ - Principal 8 Interest due on outstanding indebtedness as of September 30, 2002: Principal Outstanding $ - Interest Outstanding $ - Total Principal & Interest Outstanding 9-30- 2002 $ - Captured Appraised Value shared by the Municipality & Othe r Taxing Entities and total amount of tax increments received Captured Tax Property Tax 1999 Base Year Taxable Value Appraised Rate/$100 Revenue Billed Taxing Unit Appraised Value 2001 Value 2001 FY 2002 FY 2002 City of North Richland Hills $40,577,462 $66,998,140 $26,420,678 $0.570000 $150,598 Tarrant County $40,577,462 $72,089,542 $31,512,080 $0.274785 $86,590 Tarrant County Hospital District $40,577,462 $72,089,542 $31,512,080 $0.234070 $73,760 Tarrant County College $40,577,462 $72,089,542 $31,512,080 $0.106410 $33,532 $344,481 Less Adjustments to 2001 Billings Less billed unpaid by Tarrant County Taxes Collected FY 2002 This report submitted b . Lany Koon Director of Finance City of North Richland Hills, Texas $ (4,898) $ (50,809) $288,774 K:acct\tifs\TIF2 Annual Report 2002.x1s City of North Richland Hills Tax Increment Reinvestment Zone No. 2 Comparison of Original Plan to Actual Development FY 2002 Original Financing Plan (First Four Years) June 29, 2000 Property Tax Fiscal Year Captured Valuation Revenues 2000 $ - $ - 2001 $ 12,620,987 $ 148,336 2002 $ 62,888,445 $ 739,138 2003 $ 93,808,805 $ 1,102,550 Actual Development (First Four Years) Property Tax Fiscal Year Captured Valuation Revenues 2000 $ - $ - 2001 $3,523,615 $ 44,830 2002 $ 31,512,080 ~ $ 288,774 2003 $ 57,968,492 2 $ 673,875 3 1 Captured Valuation for FY 2002 is shown here as the values of Tarrant County, TCC and the Hospital District. The City of NRH's valuation for FY 2002 was $26.4 million. Differences are the exemptions granted by taxing jurisdictions. 2 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. 3 Assumes payment in full by taxpayers. K:acct/tifs/TIF2 Annual Report 2002.xlsOrig Plan vs actual