The URL can be used to link to this page

Home My WebLink AboutTIF1 2016-06-27 Agendas k4Ft, D HILLS CITY OF NORTH RICHLAND HILLS TAX INCREMENT REINVESTMENT ZONE NO. 1 AGENDA 4301 CITY POINT DRIVE NORTH RICHLAND HILLS, TX 76180 MONDAY, JUNE 27, 2016 REGULAR MEETING: 5:15 PM 1. CALL TO ORDER 2. GENERAL ITEMS 2.1 Approve minutes of November 9, 2015, Tax Increment Reinvestment Zone No. 1 Board meeting. 2.2 Discuss and approve 2015 Annual Report for the Tax Increment Reinvestment Zone No. 1 and No. 1A . 3. ADJOURNMENT Certification I do hereby certify that the above notice of meeting of the North Richland Hills City Council was posted at City Hall, City of North Richland Hills, Texas in compliance with Chapter 551, Texas Government Code on Friday, June 24, 2016 at 3:00 p.m. City Secretary This facility is wheelchair accessible and accessible parking spaces are available. Requests for accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact the City Secretary's office at 817-427-6060 for further information. Monday, June 27, 2016 Tax Increment Reinvestment Zone No. 1 Agenda Page 1 of 1 k4RH NORTH RICHLAND HILLS TAX INCREMENT REINVESTMENT ZONE NO. 1 (TIF NO. 1 ) MEMORANDUM FROM: The Office of the City Manager DATE: June 27, 2016 SUBJECT: Approve minutes of November 9, 2015, Tax Increment Reinvestment Zone No. 1 Board meeting. PRESENTER: Kent Austin, Director of Finance SUMMARY: The minutes are approved by majority vote of the Tax Increment Reinvestment Zone No. 1 Board. GENERAL DESCRIPTION: The Finance Department prepares action minutes for each Tax Increment Reinvestment Zone No. 1 Board meeting. The minutes for the previous meeting are prepared and provided for review of the Board. Upon approval of the minutes, an electronic copy will be uploaded to the City's website. RECOMMENDATION: Approve the minutes of the November 9, 2015 Tax Increment Reinvestment Zone No. 1 Board meeting. MINUTES OF THE TIF BOARD MEETING FOR REINVESTMENT ZONE #1 OF THE CITY OF NORTH RICHLAND HILLS, TEXAS BOARD OF DIRECTORS MEETING — COUNCIL WORK ROOM AT CITY HALL MONDAY, NOVEMBER 9, 2015 - 5:00 P.M. Present: Oscar Trevino, Chairman Mayor David Whitson Council Member Rita Wright Oujesky Council Member Scott Turnage Council Member Tim Welch Council Member Dolores Webb Birdville I.S.D. Rebecca Barksdale Precinct Administrator for Commissioner Gary Fickes, Northeast SubCourthouse, Precinct#3 Mark McClendon Tarrant County College Absent: Scott Rule Tarrant County Hospital District Other Staff Present: Mark Hindman City Manager Karen Bostic Assistant City Manager Paulette Hartman Assistant City Manager Chief Perdue Director of Public Safety George Staples City Attorney Kent Austin Director of Finance Marrk Callier Management Assistant Craig Hulse Director of Economic Development Kristin James Assistant to City Manager 1. CALL TO ORDER Mayor Trevino called the meeting to order at 5.00 p.m. 2. APPROVAL OF APRIL 28, 2014 BOARD MINUTES Council member Turnage moved to approve the minutes. Council member Whitson seconded the motion. Motion to approve carried 8-0. 3. CONSIDER APPOINTMENT OF VICE-CHAIR AND SECRETARY TO TAX INCREMENT REINVESTMENT ZONE NUMBER 1 Council member Whitson nominated Dolores Webb from B.I.S.D. to serve as Vice Chairman and Tim Welch from North Richland Hills City Council to serve as Secretary. Council member Turnage moved for nominations to cease. Motion to approve carried 8-0. Mayor Trevino announced Mark McClendon is replacing Dr. Larry Darlage as the representative of Tarrant County College following Dr. Darlage's retirement. Rebecca Barksdale was appointed by Tarrant County and is replacing Carolyn Sims. Ms. Sims has retired. 4. DISCUSS AND ACCEPT TAX INCREMENT REINVESTMENT ZONE NUMBER 1 AND 1A 2014 ANNUAL REPORT Kent Austin, Director of Finance, presented the 2014 TIF No. 1 and TIF No. 1A Annual Report. Total revenues from property taxes and investment income for fiscal year 2014 is $186,956. Total expenditures which include project and debt service is $296,617. Outstanding principal and interest as of September 30, 2014 is $2,819,497. A summary of the incremental change in TIF1 and TIF 1A shows the value of TIF1A has decreased so there is nothing to be assessed to the participating entities. All of the income comes from TIF No. 1. The Board had no questions. Delores Webb moved to accept TIF No. 1 and TIF No. 1A 2014 Annual Report. Council member Wright Oujesky seconded the motion. Mayor Trevino commented some of the issues on TIF No. 1A are the result the time period from when it was done in 2008 and also some of the issues encountered on Boulevard 26. With the construction of City Hall and development of the surrounding area it is hopeful the dynamics of TIF No. 1A will change. Motion to approve carried 8-0. 5. ADJOURNMENT Mayor Trevino adjourned the meeting at 5.07 p.m. k4RH NORTH RICHLAND HILLS TAX INCREMENT REINVESTMENT ZONE NO. 1 (TIF NO. 1 ) MEMORANDUM FROM: The Office of the City Manager DATE: June 27, 2016 SUBJECT: Discuss and approve 2015 Annual Report for the Tax Increment Reinvestment Zone No. 1 and No. 1A A . PRESENTER: Kent Austin, Director of Finance SUMMARY: State law requires that each Tax Increment Reinvestment Zone submit an annual report detailing its financial activity for the year. The report is due 150 days after the end of the entity's fiscal year, which equates to January 31. GENERAL DESCRIPTION: An executive summary and financial report are provided for the fiscal year ended September 30, 2015. The zone had no project activity, only payment of debt service. RECOMMENDATION: Accept the 2015 Annual Report, as presented by staff. MR,H CITY OF NORTH RICHLAND HILLS MEMO TO: Mayor and City Council FROM: Kent Austin, Director of Finance SUBJECT: Tax Increment Reinvestment Zone No. 1 and 1A Executive Summary Annual Report September 30, 2015 DATE: January 29, 2016 Attached for your information is the combined Tax Increment Reinvestment Zone No. 1 and 1A Annual Report for the Year Ended September 30, 2015. TIF No. 1 TIF No. 1 was created by the City of North Richland Hills in 1998. The TIF was created to provide public drainage improvements around the 300,000 square foot Richland Plaza Shopping Center. 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 TIF No. 1 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 100% for the life of the TIF. 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. The Certificates were issued in 1998 and the public drainage improvements were completed in fiscal year 2000. In fiscal year 2015, the TIF No. 1 received taxes in the amount of $174,849 from property owners. For the year ended September 30, 2015, outstanding principal and interest on the original Certificates totaled $123,225. Principal, interest and associated payments totaled $49,364. Cash balance at fiscal year-end was $978,624. The Hills, a 300,000 square foot business center in the southernmost part of North Richland Hills, includes all of the taxable property in the original TIF1. The captured appraised value of all the property in TIF1 for FY 2015 was $7,339,211, a loss of$1.4 million compared to FY 2014. TIF 1A In November 2008 the City of North Richland Hills expanded TIF1. The boundaries of the expansion of TIF1 included all commercial properties in the Boulevard 26 corridor area (except North Hills Hospital and Calloway Creek property) from the southern City limits to Loop 820. The expanded zone encompasses approximately 392 acres, with a 2008 base value of real property of $83.7 million. The TIF1 expansion (TIF1A) will legally expire in 2018, concurrent with the original TIF. The incremental growth in value of property within the expanded area at the time of creation was estimated to be $30 million over 10 years. This project includes the burying of existing above ground utility lines on the North Richland Hills side of Boulevard 26 between Glenview and Rufe Snow. This project will also consist of constructing street and related landscape and streetscape improvements at the intersections of Rufe Snow Drive and Boulevard 26, and Glenview Drive and Boulevard 26. In 2010 The City of North Richland Hills issued certificates of obligation in the amount of $1,000,000 towards these projects. Shortly after September 30, 2013 fiscal year end, certificates of obligation in the amount of $2,000,000 were issued to complete the projects. During FY 2015 principal, interest and associated payments totaled $646,489. Property values within the TIF1A boundary for tax year 2014 totaled $71 million or nearly a $12.2 million loss in value since 2008. Because no incremental value has been realized, $0 property tax dollars were collected in FY 2015, or have been collected since the district was expanded in 2008. For the year ended September 30, 2015, outstanding principal and interest on the Certificates and GO bonds totaled $2,118,379. Fortunately, when TIF1 was expanded by TIF1A, the City was able to incorporate the existing balances and future tax revenues to be collected from TIF1 to pay for TIF1A projects. In 2008 the combined TIFs began with over $1 million cash from net operations of TIF1 since 1999. Combined Cash from TIF1 and TIF1A totaled $981,442 as of September 30, 2015. Aa4d--� K nt ustin D ector of Finance Attachments: TIRZ No.1 and TIRZ No.1A Combined Annual Report FY 2015 City of North Richland Hills Tax Increment Reinvestment Zone No.1 and I A Annual Report Year Ended September 30,2015 Amount&Source of Revenue in the Tax Increment Fund FY 2015: Property Tax Revenues $ 174,849 Investment Income(loss) $ 10,968 Total Revenues in Fiscal Year 2015 $ 185,817 Amount and Purpose of Expenditures of the Fund FY 2015: Principal,Interest, Issuance&Paying Agent Payments on Certificate Indebtedness $ 695,852 Project Expenditures FY 2015 $ Total Fund Expenditures in Fiscal Year 2015 $ 695,852 Principal&Interest due on outstanding indebtedness as of September 30,2015: Principal Outstanding $ 2,055,000 Interest Outstanding $ 63,379 Total Principal&Interest Outstanding 9-30- 2015 $ 2,118,379 For TIF1 Captured Appraised Value shared by the Municipality&Other Taxing Entities and total amount of tax increments received: Captured Tax 1998 Base Year Taxable Value Appraised Rate/$100 Tax Revenue Taxing Unit Appraised Value 2014 Value 2014 FY 2015 Billed FY 2015 City of North Richland Hills $1,152,929 $8,492,140 $7,339,211 $0.570000 $41,834 Birdville I.S.D. $1,152,929 $8,492,140 $7,339,211 $1.435000 $105,318 Tarrant County $1,152,929 $8,492,140 $7,339,211 $0.264000 $19,376 Tarrant County Hospital District $1,152,929 $8,492,140 $7,339,211 $0.227897 $16,726 Tarrant County College $1,152,929 $8,492,140 $7,339,211 $0.149500 $10,972 $194,225 Tax Revenues Outstanding ($19,376) Total Tax Revenues Collected TIFI $174,849 For TIFIA Captured Appraised Value shared by the Municipality&Other Taxing Entities and total amount of tax increments received: Captured Tax 2008 Base Year Taxable Value Appraised Rate/$I 00 Tax Revenue Taxing Unit Taxable Value 2014 Value 2014 FY 2015 Billed FY 2015 City of North Richland Hills $83,563,510 $71,341,621 ($12,221,889) $0.570000 $0 Tarrant County $83,628,193 $71,393,959 ($12,234,234) $0.264000 $0 Tarrant County Hospital District $83,628,193 $71,393,959 ($12,234,234) $0.227897 $0 Tarrant County College $83,635,193 $71,393,959 ($12,241,234) $0.149500 $0 $0 Tax Revenues Outstanding TIF1A $0 Total Tax Revenues Collected TIFIA $0 Total Combined Tax Revenues Collected TIFI and TIFIA $174,849 This This r port submitted b� Z44 t-x 1 Kent R.Austin Director of Finance City of North Richland Hills,Texas K:acct\tifs\TlFl and 1 A Annual Report 2015