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HomeMy WebLinkAboutTIF2 2014-04-28 Agendas REINVESTMENT ZONE NUMBER 2, CITY OF NORTH RICHLAND HILLS BOARD OF DIRECTORS MEETING NORTH RICHLAND HILLS CITY COUNCIL WORKROOM 7301 NORTHEAST LOOP 820 NORTH RICHLAND HILLS, TX 76180 MONDAY, APRIL 28, 2014 6:15 P.M. AGENDA 1. Call to Order 2. Approval of April 22, 2013 Board Minutes 3. Discuss and approve TIF No. 2 2013 Annual Report 4. Adjournment MINUTES OF THE TIF BOARD MEETING FOR REINVESTMENT ZONE #2 OF THE CITY OF NORTH RICHLAND HILLS, TEXAS BOARD OF DIRECTORS MEETING - COUNCIL WORK ROOM AT CITY HALL MONDAY, APRIL 22, 2013 - 4:15 P.M. Present: Oscar Trevino, Chairman Mayor Tito Rodriguez Council Member Rita Wright Oujesky Council Member David Whitson Council Member Scott Turnage Council Member Tim Welch Council Member Carolyn Sims Precinct Administrator for Commissioner Gary Fickes, Northeast SubCourthouse, Precinct #3 Absent: Dr. Larry Darlage Tarrant County College Scott Rule Tarrant County Hospital District Others Present: Mark Hindman City Manager Karen Bostic Assistant City Manager Jared Miller Assistant City Manager Jimmy Perdue Director of Public Safety Mike Curtis Managing Director Vickie Loftice Managing Director Larry Koonce Director of Finance John Pitstick Director of Planning & Development Craig Hulse Director of Economic Development Kristin James Assistant to City Manager 1. CALL TO ORDER Mayor Trevino called the meeting to order at 4:21 p.m. 2. APPROVAL OF OCTOBER 13, 2009 BOARD MINUTES Council member Welch moved to approve the minutes. Council member Rodriguez seconded the motion. Motion to approve carried 7 -0. 3. APPOINTMENT OF VICE -CHAIR AND SECRETARY Council member Turnage nominated Rita Wright Oujesky to serve as Vice Chairman. Council member Whitson seconded the motion. Motion to approve carried 7 -0. Council member Turnage nominated Tim Welch to serve as Secretary. Council member Wright Oujesky seconded the motion. 4 Motion to approve carried 7 -0. 4. DISCUSS AND APPROVE TIF NO. 2 2012 ANNUAL REPORT Larry Koonce, Director of Finance, provided an overview of TIF No. 2 Annual Report. The TIF was created in 1999 with three projects: a $10.2 million library, a $21.9 million recreation center and an $8.2 Tarrant County College conference center and fine arts center. Since that time the values have grown over $200 million. In the past year the values increased by $12.5 million or about six percent. This is producing about $2.6 million in tax revenue per year which was sufficient to cover all of the debt service and expenditures for fiscal year 2012. The year ended with approximately $12 million in cash. Cash is on hand for the TCC project. The other two projects have been completed. The drainage project for the Library is still in progress. Mayor Trevino asked City Manager, Mark Hindman, to address the plans of the TCC Board and the upcoming function of the City. Mr. Hindman informed the members on May 10, 2013 representatives for Tarrant County, County Hospital District, TCC, and Birdville I.S.D. have been invited to a reception at 6:00 p.m. and to the Sounds of Spring Concert starting at 7:00 p.m. This is an opportunity to show the members what is happening within the District. Interest has been shown in the placement of the TCC facility and the development in the area. Council member Wright Oujesky moved to approve the 2012 Annual Report. Council member Rodriquez seconded the motion. Motion to approve carried 7 -0. 5. DISCUSS AND APPROVE AMENDING THE BYLAWS OF REINVESTMENT ZONE NUMBER 2, CHANGING THE MONTH OF ANNUAL MEETINGS FROM NOVEMBER TO APRIL. RESOLUTION 2013 -001 Larry Koonce, Director of Finance, presented the item. Members are being asked to consider a resolution to authorize changing the month of annual meetings from November to April. North Richland Hills City Council approved the item on March 25, 2013. Council member Whitson moved to approve Resolution No. 2013 -001. Council member Turnage seconded the motion. Motion to approve carried 7 -0. 6. ADJOURNMENT Mayor Trevino adjourned the meeting. TIF No. 2 Subject: Discuss and Approve TIF No. 2 2013 Annual Report Board Meeting Date: 4/28/2014 Agenda Number: 2014 -01 Larry Koonce, Director of Finance City of North Richland Hills will present the attached executive summary and annual report for fiscal year ended September 30, 2013. The annual report has been submitted to the State Comptroller as required. After the presentation of financial status of TIF No. 2, we recommend the Board take action as to the acceptance of the report. NitH CITY OF NORTH RICHLAND HILLS MEMO TO: Mayor and City Council FROM: Larry Koonce, Director of Finance SUBJECT: Tax Increment Reinvestment Zone No. 2 Executive Summary for Fiscal Year Ended September 30, 2013 DATE: February 26, 2014 Attached for your information is the Annual Report of Tax Increment Reinvestment Zone No. 2, for the Year Ended September 30, 2013. TIF 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 North Richland Hills, Tarrant County College, Tarrant County and Tarrant County Hospital District. Planned public improvements include a conference center, a recreation center, a library and infrastructure improvements in the Home Town NRH development. Total public improvements are estimated at $65.2 million including developer infrastructure. The District was created for twenty -eight years to provide for the retirement of planned debt issuance for financing of the improvements. The City of NRH and Tarrant County College 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 approximately a fifteen -year period based on estimated property values. At the time the District was created the main developer, E- Systems, estimated that Home Town NRH 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 and the Barnett property. 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 were estimated to generate approximately $82.2 million in total tax revenues to fund the planned public improvements. The captured appraised value in 2012 (fiscal year 2013) was $221,657,159 for the City of NRH, and $241,447 for Tarrant County. The District billed $2,806,246 to taxing jurisdictions in March 2013. The library project was completed and the new library opened in the spring of 2008. The project was completed within the original TIF 2 finance plan budget of $10.2 million. In 2010 the City issued $18.8 million dollars for the construction and completion of the recreation center to be paid with TIF 2 revenues. The total cost of the project funded with TIF tax dollars was $21.9 million in accordance with the original project plan. Opening of the recreation center occurred in the spring of 2012. It is located within the TIF 2 boundaries, adjacent to the library. The fiscal year 2013 report (see attached) includes TIF 2 revenues and expenditures for the year, and outstanding principal and interest as of September 30, 2013. Revenues projected over the life of the TIF will pay for the outstanding principal and interest and all other original project plan costs. Larry Koo ce Director of Finance Attachment: TIRZ No. 2 Annual Report FY 2013 City of North Richland Hills Tax Increment Reinvestment Zone No. 2 Annual Report Year Ended September 30, 2013 Amount & Source of Revenue in the Tax Increment Fund FY 2013: Property Tax Revenues Collected $ 2,775,443 Investment Income $ 22,961 Total Revenues in Fiscal Year 2013 $ 2,798,404 Amount and Purpose of Expenditures of the Fund FY 2013: Principal, Interest, Issuance & Paying Agent Payments on Certificate Indebtedness $ 2,948,567 Recreation Center Project Expenditures $ 507,491 Total Fund Expenditures in Fiscal Year 2013 $ 3,456,058 Principal & Interest due on outstanding indebtedness as of September 30, 2013: Principal Outstanding $ 23,310,307 Interest Outstanding $ 6,078,046 Total Principal & Interest Outstanding 9 -30 -2013 $ 29,388,353 Tax Increment Base & Current Captured Appraised Value Retained by the Zone: Appraised Value shared by the Municipality Captured pp y P Y & Other Taxing Entities and total amount of tax increments received : Captured Tax 1999 Base Year Taxable Value Appraised Rate /$100 Property Tax Taxing Unit Appraised Value 2012 Value 2012 FY 2013 Revenue FY 2013 City of North Richland Hills $40,577,462 $261,677,347 $221,099,885 $0.570000 $1,260,269 Tarrant County $40,577,462 $281,802,968 $241,225,506 $0.264000 $636,835 Tarrant County Hospital ital District $40,577,462 $281,802,968 $241,225,506 $0.227897 $549,746 Tarrant County College e $40,577,462 $281,830,968 $241,253,506 $0.148970 $359,395 $2,806,246 Total billings outstanding $ (30,803) Taxes Collected FY 2013 $2,775,443 This report submitted by : y x `d / (7) 6 6' 1 111 Larry Koonce` Director of Finance City of North Richland Hills, Texas K:acct \tifs \TIF2 Annual Report 2013