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HomeMy WebLinkAboutTIF1 2021-10-11 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, OCTOBER 11, 2021 REGULAR MEETING: 5:00 p.m. Held in the Community Room A. CALL TO ORDER B.1 CITIZEN PRESENTATION An opportunity for citizens to address the Tax Increment Reinvestment Zone No. 1 on matters which are not scheduled for consideration by the Tax Increment Reinvestment Zone No. 1 or another City Board or Commission at a later date. In order to address the Tax Increment Reinvestment Zone No. 1 during citizens presentation, a Public Meeting Appearance Card must be completed and presented to the recording secretary prior to the start of the Tax Increment Reinvestment Zone No. 1 meeting. B.2 PUBLIC COMMENTS An opportunity for citizens to address the Tax Increment Reinvestment Zone No. 1 on matters which are scheduled on this agenda for consideration by the Tax Increment Reinvestment Zone No. 1, but not scheduled as a public hearing. In order to address the Tax Increment Reinvestment Zone No. 1 during public comments, a Public Meeting Appearance Card must be completed and presented to the recording secretary prior to the start of the Tax Increment Reinvestment Zone No. 1 meeting. C. ACTION ITEMS C.1 Approve minutes of the June 27, 2016 Tax Increment Reinvestment Zone Number 1/1A oar Meeting. Monday, October 11, 2021 Tax Increment Reinvestment Zone No. 1 Agenda Page 1 of 2 C-2 Consider the appointment of a Vice-Chair and Secretary for Tax Increment Reinvestment Zone Number 1/1A. C-3 Discuss and accept Tax Increment Reinvestment Zone Number 1/1A An 2020. CA Receive a stgjga report regarding the project and financial status of Tax Increment Reinvestment Zone Number 1/1A and recommend the North Richland ills City Council take action to close Tax Increment Reinvestment Zone Number 1/1A. D. 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, October 8, 2021 by 3:00 PM. Assistant City Secretary Traci Henderson 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, October 11, 2021 Tax Increment Reinvestment Zone No. 1 Agenda Page 2 of 2 IrLp NOKTH KICHLAN HILLS TAX INCREMENT REINVESTMENT ZONE NUMBER 1/1A MEMORANDUM FROM: The Office of the City Manager DATE: October 11, 2021 SUBJECT: Approve minutes of the June 27, 2016 Reinvestment Zone Number 1/1A Board Meeting PRESENTER: Mark C. Mills, Director of Finance SUMMARY: The minutes are approved by majority vote of the Board of Directors at the Tax Increment Reinvestment Zone Number 1/1A ("TIF 1/1K) Board meetings. GENERAL DESCRIPTION: Action minutes are prepared for each Board meeting. The minutes for the previous meeting are placed on the agenda for review and approval by the Board of Directors. Upon approval of the minutes, an electronic copy will be uploaded to the City's website. RECOMMENDATION: Approve minutes of the June 27, 2016 Tax Increment Reinvestment Zone Number 1/1A Board Meeting. MINUTES CITY OF NORTH RICHLAND HILLS, TEXAS TAX INCREMENT REINVESTMENT ZONE NO. 1 BOARD OF DIRECTORS MEETING 4301 CITY POINT DRIVE—CITY COUNCIL WORKROOM NORTH RICHLAND HILLS, TX 76180 MONDAY, JUNE 27, 2016 - 5:15 P.M. Present: Oscar Trevino, Chairman Mayor Scott Turnage Council Member Tim Welch Council Member Dolores Webb Birdville I.S.D. Rebecca Barksdale Precinct Administrator for Commissioner Gary Fickes, Northeast Sub Courthouse, Precinct #3 Mark McClendon Tarrant County College Absent: Scott Rule Tarrant County Hospital District David Whitson Council Member Rita Wright Oujesky Council Member Other Staff Present: Mark Hindman City Manager Karen Bostic Assistant City Manager Paulette Hartman Assistant City Manager Jimmy Perdue Director of Public Safety Mike Curtis Managing Dir. of Dev. Services Cara White 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 5.15 p.m. 2. APPROVE MINUTES OF THE NOVEMBER 9, 2015 TAX INCREMENT REINVESTMENT ZONE NO. 1 BOARD MEETING Council Member Scott Turnage moved to approve the minutes of the November 9, 2015 Board meeting. Dolores Webb seconded the motion. Motion to approve carried 5-0. 3. DISCUSS AND ACCEPT TAX INCREMENT REINVESTMENT ZONE NO. 1 AND 1A 2015 ANNUAL REPORT Kent Austin, Director of Finance, presented the 2015 TIF No. 1 and TIF No. 1A Annual Report. Total revenues from property taxes and investment income for fiscal year 2015 were $185,817. Total expenditures, which include only debt service, were $695,852. Outstanding principal and interest as of September 30, 2015 totaled $2,118,379. As in prior years, a summary of the incremental change in TIF1 and TIF 1A shows that the value of TIF1A has decreased, so there is nothing to be assessed to the participating entities. All revenue is derived from TIF No. 1. Kent Austin introduced Managing Director of Development Services Mike Curtis to provide an overview of construction activity in Zone 1A. Curtis explained that there were three projects involved. First was the drainage project in TIF 1, which was completed several years ago. TIF 1A includes two projects: an intersection project at Boulevard 26/Glenview and burial of overhead utilities along Boulevard 26. The intersection project is under construction; the drainage and sidewalks are largely installed. Landscaping remains to be done and may be deferred until the fall. Agreements are in place for overhead utility burials with AT&T and Oncor. The City's utility consultant is finalizing construction documents. Advertising and award of bid are expected to take two months. Burial of utilities will occur along Boulevard 26 from Glenview to Parchman Street. Mayor Trevino asked about the cost of the project. Curtis said the estimated cost is nearly $2,000,000. The Board had no further questions. Dolores Webb moved to accept the TIF No. 1 and TIF No. 1A 2015 Annual Report. Council member Turnage seconded the motion, which was approved 6-0. 4. ADJOURNMENT Mayor Trevino adjourned the meeting at 5.21 p.m. IrLp NOKTH KICHLAN HILLS TAX INCREMENT REINVESTMENT ZONE NUMBER 1/1A MEMORANDUM FROM: The Office of the City Manager DATE: October 11, 2021 SUBJECT: Consider the appointment of a Vice-Chair and Secretary for Tax Increment Reinvestment Zone Number 1/1A. PRESENTER: Mark C. Mills, Director of Finance SUMMARY: The Board of Directors is being asked to appoint a Vice-Chair and Secretary. GENERAL DESCRIPTION: The officers of the Board of Directors include a Chairperson ("the Chair"), a Vice- Chairperson ("the Vice-Chair"), and a Secretary. The Chair of Tax Increment Reinvestment Zone Number 1/1A ("TIF 1/1K) is appointed by the North Richland Hills City Council for a one-year term. Mayor Oscar Trevino was appointed Chair for a one-year term ending December 31, 2021 at the City Council's January 25, 2021 Council meeting. In accordance with the Bylaws for Tax Increment Reinvestment Zone Number 1/1A, the Board of Directors is to appoint the Vice-Chair and Secretary. Each will serve a two-year term. The previous officers are- Vice-Chair Vacant (formerly Dolores Webb); and Secretary Tito Rodriguez. The Vice-Chair shall be a member of the Board, shall have such powers and duties as may be assigned to them by the Board, shall exercise those powers and duties, and shall exercise the powers of the Chair during that officer's absence or inability to act. Any action taken by the Vice-Chair in the performance of the duties of the Chair shall be conclusive evidence of the absence or inability to act of the Chair at the time such action was taken. The Secretary shall keep the minutes of all meetings and shall have charge of records, documents and instruments as the Board may direct, all of which shall at all reasonable time be open to inspection, and he/she shall in general perform all duties incident to the IrLp NOKTH KICHLAN HILLS office of Secretary subject to the control of the City Council and the Board. If a Board member is named Secretary, a member of the city of North Richland Hills staff will be designated to assist in the performance of these functions on their behalf. City staff is responsible for providing notice of meetings and preparing meeting agendas. RECOMMENDATION: Appoint a Vice-Chair and Secretary for Tax Increment Reinvestment Zone Number 1/1A. IrLp NOKTH KICHLAN HILLS TAX INCREMENT REINVESTMENT ZONE NUMBER 1/1A MEMORANDUM FROM: The Office of the City Manager DATE: October 11, 2021 SUBJECT: Discuss and accept Tax Increment Reinvestment Zone Number 1/1A Annual Reports for 2016, 2017, 2018, 2019, and 2020. PRESENTER: Mark C. Mills, Director of Finance SUMMARY: Each Tax Increment Reinvestment Zone is required to submit an annual report detailing its financial activities for the year. GENERAL DESCRIPTION: Each Tax Increment Reinvestment Zone ("TIF") is required to submit an annual report detailing its financial activities for the year. While the annual reports were filed and distributed to each participating entity on an annual basis, the reports were not formally presented to the Board of Directors. Copies of the following annual reports have been attached to this item for the Board's review and consideration: • 2016 Tax Increment Reinvestment Zone No. 2 Annual Report; • 2017 Tax Increment Reinvestment Zone No. 2 Annual Report; • 2018 Tax Increment Reinvestment Zone No. 2 Annual Report; • 2019 Tax Increment Reinvestment Zone No. 2 Annual Report; and • 2020 Tax Increment Reinvestment Zone No. 2 Annual Report. Following the presentation, staff will request that the Board vote to accept the annual reports. RECOMMENDATION: Accept Tax Increment Reinvestment Zone Number 1/1A Annual Reports for 2016, 20177 20187 2019, and 2020. MitH CITY OF NORTH RICHLAND HILLS MEMO TO: Mayor and City Council FROM: Mark C. Mills, Director of Finance SUBJECT: Tax Increment Reinvestment Zone No. 1 and 1A Executive Summary Annual Report September 30, 2016 (Amended) DATE: October 6, 2021 (Amended) Attached for your information is the combined Tax Increment Reinvestment Zone No. 1 and 1A Annual Report for the Year Ended September 30, 2016. TIF No. 1 In 1998, the City of North Richland Hills created TIF No. 1 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 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 City of North Richland Hills paid the balance. 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 2016, TIF No. 1 received $176,236 in taxes from property owners. For the year ended September 30, 2016, outstanding principal and interest on the original Certificates totaled $78,875. Principal, interest and associated payments for fiscal year 2016 totaled $44,357. 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 TIF No. 1. The captured appraised value of all the property in TIF1 for fiscal year 2016 was $7,339,211, flat compared to fiscal year 2015. TIF No. 1A In November 2008 the City of North Richland Hills expanded TIF No. 1. The boundaries of the expansion of TIF No. 1 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. TIF No. 1 expansion (referred to as TIF No. 1A) will legally expire in 2019, 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 fiscal year 2016 principal, interest and associated payments totaled $637,312. Property values within the TIF No. 1A boundary for tax year 2015 (fiscal year 2016) totaled $70 million; a $13.1 million loss in value since 2008. Because no incremental value was realized, $0 property tax dollars have been collected since the district was expanded in 2008 through fiscal year 2016. For the year ended September 30, 2016, outstanding principal and interest on the Certificates and GO bonds totaled $1,357,985. Fortunately, when TIF No. 1 was expanded by TIF No. 1A, the City was able to incorporate the existing balances and future tax revenues to be collected from TIF No. 1 to pay for TIF No. 1A projects. In 2008 the combined TIFs began with over $1 million cash from net operations of TIF No. 1 since 1999. 10/ Mark C. Mills Director of Finance Attachments: Tax Increment Reinvestment Zone (TIRZ) No. 1 and No. 1A Combined Annual Report— Year Ended September 30, 2016 (Amended) City of North Richland Hills Tax Increment Reinvestment Zone No.1 and 1A Annual Report-Amended Year Ended September 30,2016 Amount&Source of Revenue in the Tax Increment Fund FY 2016: Change Amended Property Tax Revenues Collected $ 176,236 Investment Income $ 16,836 Total Revenues in Fiscal Year 2016 $ 193,072 Amount and Purpose of Expenditures of the Fund FY 2016: Principal,Interest,Issuance&Paying Agent Payments on Certificate Indebtedness $ 681,668 $ - $ 681,668 Project Expenditures FY 2016 $ - $ 380,133 $ 380,133 Total Fund Expenditures in Fiscal Year 2016 $ 681,668 $ 380,133 $ 1,061,801 Principal&Interest due on outstanding indebtedness as of September 30,2016: Principal Outstanding $ 1,405,000 Interest Outstanding $ 31,860 Total Principal&Interest Outstanding 9-30-2016 $ 1,436,860 For TIF1 Captured Appraised Value shared by the Municipality&Other Taxing Entities and total amount of tax increments received: Captured Tax Property Tax 1999 Base Year Taxable Value Appraised Rate/$100 Revenue FY Taxing Unit Appraised Value 2015 Value 2015 FY 2016 2016 City of North Richland Hills $1,152,929 $8,492,140 $7,339,211 $0.570000 $41,833.50 Birdville I.S.D. $1,152,929 $8,492,140 $7,339,211 $1.453900 $106,704.79 Tarrant County $1,152,929 $8,492,140 $7,339,211 $0.264000 $19,375.52 Tarrant County Hospital District $1,152,929 $8,492,140 $7,339,211 $0.227897 $16,725.84 Tarrant County College $1,152,929 $8,492,140 $7,339,211 $0.149500 $10,972.12 $195,611.77 Total billings outstanding ($19,375.52) Taxes Collected FY 2016 $176,236.25 For TIF1A Captured Appraised Value shared by the Municipality&Other Taxing Entities and total amount of tax increments received: Captured Tax Property Tax 2008 Base Year Taxable Value Appraised Rate/$100 Revenue FY Taxing Unit Taxable Value 2015 Value 2015 FY 2016 2016 City of North Richland Hills $83,563,510 $70,439,319 ($13,124,191) $0.570000 $0.000 Tarrant County $83,628,193 $70,482,482 ($13,145,711) $0.264000 $0.000 Tarrant County Hospital District $83,628,193 $70,482,482 ($13,145,711) $0.227897 $0.000 Tarrant County College $83,635,193 $70,482,482 ($13,152,711) $0.149500 $0.000 $0.000 Total billings outstanding $0.000 Taxes Collected FY 2016 $0.000 p This report submitted b � Mark C.Mills Director of Finance City of North Richland Hills,Texas Tax Increment Finance Zone(TIRZ)No.1 and No.1A-2016(Amended) MitH CITY OF NORTH RICHLAND HILLS MEMO TO: Mayor and City Council FROM: Mark C. Mills, Director of Finance SUBJECT: Tax Increment Reinvestment Zone No. 1 and 1A Executive Summary Annual Report September 30, 2017 (Amended) DATE: October 6, 2021 (Amended) Attached for your information is the combined Tax Increment Reinvestment Zone No. 1 and 1A Annual Report for the Year Ended September 30, 2017. TIF No. 1 In 1998, the City of North Richland Hills created TIF No. 1 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 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 City of North Richland Hills paid the balance. 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 2017, TIF No. 1 received $191,014 in taxes from property owners. For the year ended September 30, 2017, outstanding principal and interest on the original Certificates totaled $41,000. Principal, interest and associated payments for fiscal year 2017 totaled $37,884. 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 TIF No. 1. The captured appraised value of all the property in TIF1 for fiscal year 2017 was roughly $7.98, up compared to $7.3 million in fiscal year 2016. TIF No. 1A In November 2008 the City of North Richland Hills expanded TIF No. 1. The boundaries of the expansion of TIF No. 1 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. TIF No. 1 expansion (referred to as TIF No. 1A) will legally expire in 2019, 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 fiscal year 2017 principal, interest and associated payments totaled $628,162. Property values within the TIF No. 1A boundary for tax year 2016 (fiscal year 2017) totaled $73.6 million, a $9.9 million loss in value since 2008. Because no incremental value was realized, $0 property tax dollars have been collected since the district was expanded in 2008 through fiscal year 2017. For the year ended September 30, 2017, outstanding principal and interest on the Certificates and GO bonds totaled $730,065. Fortunately, when TIF No. 1 was expanded by TIF No. 1A, the City was able to incorporate the existing balances and future tax revenues to be collected from TIF No. 1 to pay for TIF No. 1A projects. In 2008 the combined TIFs began with over $1 million cash from net operations of TIF No. 1 since 1999. Mark C. Mills Director of Finance Attachments: Tax Increment Reinvestment Zone (TIRZ) No. 1 and No. 1A Combined Annual Report— Year Ended September 30, 2017 (Amended) City of North Richland Hills Tax Increment Reinvestment Zone No.1 and 1A Annual Report-Amended Year Ended September 30,2017 Amount&Source of Revenue in the Tax Increment Fund FY 2017: Change Amended Property Tax Revenues Collected $ 191,014 Investment Income $ 16,074 Total Revenues in Fiscal Year 2016 $ 207,088 Amount and Purpose of Expenditures of the Fund FY 2017: Principal,Interest,Issuance&Paying Agent Payments on Certificate Indebtedness $ 666,046 $ - $ 666,046 Project Expenditures FY 2016 $ - $ 1,342,624 $ 1,342,624 Total Fund Expenditures in Fiscal Year 2016 $ 666,046 $ 1,342,624 $ 2,008,671 Principal&Interest due on outstanding indebtedness as of September 30,2017: Principal Outstanding $ 760,000 Interest Outstanding $ 11,065 Total Principal&Interest Outstanding 9-30-2016 $ 771,065 For TIF1 Captured Appraised Value shared by the Municipality&Other Taxing Entities and total amount of tax increments received: Captured Tax Property Tax 1999 Base Year Taxable Value Appraised Rate/$100 Revenue FY Taxing Unit Appraised Value 2016 Value 2016 FY 2017 2017 City of North Richland Hills $1,152,929 $9,123,384 $7,970,455 $0.570000 $45,431.59 Birdville I.S.D. $1,152,929 $9,123,384 $7,970,455 $1.453900 $115,882.45 Tarrant County $1,152,929 $9,123,384 $7,970,455 $0.264000 $21,042.00 Tarrant County Hospital District $1,152,929 $9,123,384 $7,970,455 $0.227897 $18,164.43 Tarrant County College $1,152,929 $9,123,384 $7,970,455 $0.149500 $11,915.83 $212,436.30 Total billings outstanding ($21,422.19) Taxes Collected FY 2016 $191,014.11 For TIF1A Captured Appraised Value shared by the Municipality&Other Taxing Entities and total amount of tax increments received: Captured Tax Property Tax 2008 Base Year Taxable Value Appraised Rate/$100 Revenue FY Taxing Unit Taxable Value 2016 Value 2016 FY 2017 2017 City of North Richland Hills $83,563,510 $73,623,800 ($9,939,710) $0.570000 $0.000 Tarrant County $83,628,193 $73,690,455 ($9,937,738) $0.264000 $0.000 Tarrant County Hospital District $83,628,193 $73,690,455 ($9,937,738) $0.227897 $0.000 Tarrant County College $83,635,193 $73,690,455 ($9,944,738) $0.149500 $0.000 $0.000 Total billings outstanding $0.000 Taxes Collected FY 2016 $0.000 This report submitted by Mark C.Mills Director of Finance City of North Richland Hills,Texas Tax Increment Finance Zone(TIRZ)No.1 and No.1A-Year Ended September 30,2017(Amended) MitH CITY OF NORTH RICHLAND HILLS MEMO TO: Mayor and City Council Board of Directors—Tax Increment Reinvestment Zone No. 1 / No. 1A FROM: Mark C. Mills, Director of Finance SUBJECT: Tax Increment Reinvestment Zone No. 1 and 1A Executive Summary Annual Report September 30, 2018 (Amended) DATE: October 6, 2021 (Amended) Attached for your information is the combined Tax Increment Reinvestment Zone No. 1 and 1A Annual Report for the Year Ended September 30, 2018. TIF No. 1 In 1998, the City of North Richland Hills created TIF No. 1 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 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 City of North Richland Hills paid the balance. The TIF debt had a maturity of twenty years to 2018 and is now retired. The Certificates were issued in 1998 and the public drainage improvements were completed in fiscal year 2000. The property reference above as the Richland Plaza Shopping Center, a 300,000 square foot business center in the southernmost part of North Richland Hills, includes all of the taxable property in the original TIF No. 1. The captured taxable value of all the property in TIF1 for fiscal year 2018 was roughly $8.23 million, up compared to $7.97 million in fiscal year 20171. In fiscal year 2018, TIF No. 1 received $235,112 in taxes from participating agencies. For the year ended September 30, 2018, outstanding principal and interest on the original Certificates totaled $0. Since no pending or future expenditures remain for TIF 1, there will be no future billing and TIF 1 is essentially complete. TIF No. 1A In November 2008 the City of North Richland Hills expanded TIF No. 1. The boundaries of the expansion of TIF No. 1 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 1 Based on the February 2018 TIF Account Summary Listing compared to the March 2018 TIF Account Summary Listing, both provided by Tarrant Appraisal District. Page 1 property of$84 million. TIF No. 1 expansion (referred to as TIF No. 1A) will legally expire in 2019, 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 included the burying of existing above ground utility lines on the North Richland Hills side of Boulevard 26 between Glenview and Rufe Snow. This project also consisted 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 fiscal year 2018 principal, interest and other associated payments totaled $618,528. Taxable property values within the TIF No. 1A boundary for tax year 2017 (fiscal year 2018) totaled $94.7 million, a $21 million gain over the tax year 2016 (fiscal year 2017) value of $73.6 million. Prior to this year TIF 1A had realized no property value growth and the value increment remained at or below $0 until this year. Fortunately, when TIF No. 1 was expanded by TIF No. 1A, the City was able to incorporate the existing balances and future tax revenues to be collected from TIF No. 1 to pay for TIF No. 1A projects. In fiscal year 2018, TIF No. 1A received $97,678 in taxes from participating agencies. For the year ended September 30, 2018, outstanding principal and interest on the original Certificates totaled $111,705. It was determined that sufficient funding existed to make the final principal and interest payments for TIF 1A, therefore no further billing related to TIF 1A will occur. Once the final debt payment is made in August 2019, TIF 1A will essentially be complete. TIF Closure As mentioned previously, both TIF 1 and TIF 1A are essentially complete. North Richland Hills staff is currently performing a final analysis of the revenues, expenditures, and remaining balances for both TIF 1 and TIF 1A. Once this is complete, a TIF 1 / 1A Board meeting will be called in order to take any final actions necessary to finalize and close these TIFs. Mark C. Mills Director of Finance Attachments: Tax Increment Reinvestment Zone (TIRZ) No. 1 and No. 1A Combined Annual Report—Year Ended September 30, 2018 (Amended) Page 2 City of North Richland Hills Tax Increment Reinvestment Zone No.1 and 1A Annual Report-Amended Year Ended September 30,2018 Amount&Source of Revenue in the Tax Increment Fund FY 2018: Change Amended Property Tax Revenues Collected $ 332,791 Investment Income $ 14,008 Total Revenues in Fiscal Year 2018 $ 346,799 Amount and Purpose of Expenditures of the Fund FY 2018: Principal,Interest,Issuance&Paying Agent Payments on Certificate Indebtedness $ 659,532 $ - $ 659,532 Project Expenditures FY 2018 $ $ 17,447 $ 17,447 Total Fund Expenditures in Fiscal Year 2018 $ 659,532 $ 17,447 $ 676,979 Principal&Interest due on outstanding indebtedness as of September 30,2018: Principal Outstanding $ 110,000 Interest Outstanding $ 1,705 Total Principal&Interest Outstanding 9-30-2018 $ 111,705 For TIF1 Captured Appraised Value shared by the Municipality&Other Taxing Entities and total amount of tax increments received Projected Captured Tax Property Tax 1998 Base Year Taxable Value Appraised Rate/$100 Revenue FY Taxing Unit Appraised Value 2017 Value 2017 FY 2018 2018 City of North Richland Hills $1,152,929 $9,475,998 $8,323,069 $0.570000 $47,441.49 Birdville I.S.D. $1,152,929 $9,475,998 $8,323,069 $1.453900 $121,009.10 Tarrant County $1,152,929 $9,475,998 $8,323,069 $0.244000 $20,308.29 Tarrant County Hospital District $1,152,929 $9,475,998 $8,323,069 $0.224429 $18,679.38 Tarrant County College $1,152,929 $9,475,998 $8,323,069 $0.140060 $11,657.29 $219,095.55 Total billings outstanding $0.00 Prior Period Payments/Excess Payments: $ 16,016.68 Taxes Collected FY 2018 $235,112.23 For TIF1A Captured Appraised Value shared by the Municipality&Other Taxing Entities and total amount of tax increments received Projected Captured Tax Property Tax 2008 Base Year Taxable Value Appraised Rate/$100 Revenue FY Taxing Unit Taxable Value 2017 Value 2017 FY 2018 2018 City of North Richland Hills $83,563,510 $94,661,839 $11,098,329 $0.570000 $63,260.48 Tarrant County $83,628,193 $94,738,031 $11,109,838 $0.244000 $27,108.00 Tarrant County Hospital District $83,628,193 $94,738,031 $11,109,838 $0.224429 $24,933.70 Tarrant County College $83,635,193 $94,738,031 $11,102,838 $0.140060 $15,550.63 $130,852.81 Total billings outstanding ($33,174.37) Prior Period Payments/Excess Payments: $0.00 Taxes Collected FY 2018 $97,678.44 This report submitted by Mark C.Mills Director of Finance City of North Richland Hills,Texas Tax Increment Finance Zone(TIRZ)No.1 and No.1A-Year Ended September 30,2018(Amended) MitH CITY OF NORTH RICHLAND HILLS MEMO TO: Mayor and City Council Board of Directors —Tax Increment Reinvestment Zone No. 1 / No. 1A FROM: Mark C. Mills, Director of Finance SUBJECT: Tax Increment Reinvestment Zone No. 1 and 1A Executive Summary Annual Report September 30, 2019 (Amended) DATE: October 6, 2021 (Amended) Attached for your information is the combined Tax Increment Reinvestment Zone No. 1 and No. 1A Annual Report for the Year Ended September 30, 2019. TIF No. 1 In 1998, the City of North Richland Hills created TIF No. 1 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 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 City of North Richland Hills paid the balance. The TIF debt had a maturity of twenty years to 2018 and is now retired. The Certificates were issued in 1998 and the public drainage improvements were completed in fiscal year 2000. The property reference above as the Richland Plaza Shopping Center, a 300,000 square foot business center in the southernmost part of North Richland Hills, included all of the taxable property in the original TIF No. 1. The captured taxable value of all the property in TIF No. 1 for fiscal year 2019 was roughly $10.04 million, up compared to $8.23 million in fiscal year 2018.1 There was no billing associated with TIF No. 1 in fiscal year 2019, though TIF No. 1 received $12,509 in taxes from participating agencies. For the year ended September 30, 2019, outstanding principal and interest on the original Certificates totaled $0. TIF No. 1A In November 2008 the City of North Richland Hills expanded TIF No. 1. The boundaries of the expansion of TIF No. 1 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$84 million. TIF No. 1 expansion (referred to as TIF No. 1A)will legally expire in 2019, 1 Based on the February 2018 TIF Account Summary Listing compared to the March 2018 TIF Account Summary Listing, both provided by Tarrant Appraisal District. 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 included the burying of existing above ground utility lines on the North Richland Hills side of Boulevard 26 between Glenview and Rufe Snow. This project also consisted 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 fiscal year 2019 principal, interest and other associated payments totaled $111,857. Taxable property values within the TIF No. 1A boundary for tax year 2018 (fiscal year 2019) totaled $100.17 million, a $5.47 million gain over the tax year 2017 (fiscal year 2018) value of $94.7 million. Prior to 2018 TIF No. 1A had realized no property value growth and the value increment remained at or below$0 until this year. Fortunately, when TIF No. 1 was expanded by TIF No. 1A, the City was able to incorporate the existing balances and future tax revenues to be collected from TIF No. 1 to pay for TIF No. 1A projects. It was determined that sufficient funding existed to make the final principal and interest payments for TIF No. 1A in August 2019, therefore no further billing related to TIF 1A occurred in fiscal year 2019. While no billing associated with TIF No. 1A was necessary in fiscal year 2019, it received $39,507 in taxes from participating agencies. TIF Closure Except for final steps, TIF No. 1 and TIF No. 1A are essentially complete. North Richland Hills staff is currently performing a final analysis of the revenues, expenditures, and remaining balances for both TIF No. 1 and TIF No. 1A. Once this is complete, a TIF No. 1 / No. 1A Board meeting will be called in order to take any final actions necessary to finalize and close these TIFs. Mark C. Mills Director of Finance Attachments: Tax Increment Reinvestment Zone (TIRZ) No. 1 and No. 1A Combined Annual Report—Year Ended September 30, 2019 (Amended) City of North Richland Hills Tax Increment Reinvestment Zone No.1 and 1A Annual Report-Amended Year Ended September 30,2019 Amount&Source of Revenue in the Tax Increment Fund FY 2019: Change Amended Property Tax Revenues Collected $ 52,015 Investment Income $ 59,765 Total Revenues in Fiscal Year 2019 $ 111,780 Amount and Purpose of Expenditures of the Fund FY 2019: Principal,Interest,Issuance&Paying Agent Payments on Certificate Indebtedness $ 111,857 $ - $ 111,857 Project Expenditures FY 2019 $ $ 269,080 $ 269,080 Total Fund Expenditures in Fiscal Year 2019 $ 111,857 $ 269,080 $ 380,937 Principal&Interest due on outstanding indebtedness as of September 30,2019: Principal Outstanding $ Interest Outstanding $ Total Principal&Interest Outstanding 9-30-2019 $ For TIF1 Captured Appraised Value shared by the Municipality&Other Taxing Entities and total amount of tax increments received Projected Captured Tax Property Tax 1998 Base Year Taxable Value Appraised Rate/$100 Revenue FY Taxing Unit Appraised Value 2018 Value 2018 FY 2019 2019 City of North Richland Hills $1,152,929 $0 $0 $0.570000 $0.00 Birdville I.S.D. $1,152,929 $0 $0 $1.383900 $0.00 Tarrant County $1,152,929 $0 $0 $0.234000 $0.00 Tarrant County Hospital District $1,152,929 $0 $0 $0.224429 $0.00 Tarrant County College $1,152,929 $0 $0 $0.130170 $0.00 $0.00 Total billings outstanding $0.00 Prior Period Payments/Excess Payments: $ 12,508.69 Taxes Collected FY 2019 $12,508.69 For TIF1A Captured Appraised Value shared by the Municipality&Other Taxing Entities and total amount of tax increments received Projected Captured Tax Property Tax 2008 Base Year Taxable Value Appraised Rate/$100 Revenue FY Taxing Unit Taxable Value 2018 Value 2018 FY 2019 2019 City of North Richland Hills $83,563,510 $0 $0 $0.570000 $0.00 Tarrant County $83,628,193 $0 $0 $0.234000 $0.00 Tarrant County Hospital District $83,628,193 $0 $0 $0.224429 $0.00 Tarrant County College $83,635,193 $0 $0 $0.130170 $0.00 $0.00 Total billings outstanding $0.00 Prior Period Payments/Excess Payments: 39,506.66 Taxes Collected FY 2019 $39,506.66 This report submfied by Mark C.Mills Director of Finance City of North Richland Hills,Texas Tax Increment Finance Zone(TIRZ)No.1 and No.1A-Year Ended September 30,2019(Amended) MitH CITY OF NORTH RICHLAND HILLS MEMO TO: Mayor and City Council Board of Directors —Tax Increment Reinvestment Zone No. 1 / No. 1A FROM: Mark C. Mills, Director of Finance SUBJECT: Tax Increment Reinvestment Zone No. 1 and 1A Executive Summary Annual Report September 30, 2020 DATE: December 28, 2020 Attached for your information is the combined Tax Increment Reinvestment Zone No. 1 and No. 1A Annual Report for the Year Ended September 30, 2020. TIF No. 1 In 1998, the City of North Richland Hills created TIF No. 1 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 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 City of North Richland Hills paid the balance. The TIF debt had a maturity of twenty years to 2018 and is now retired. The Certificates were issued in 1998 and the public drainage improvements were completed in fiscal year 2000. There was no billing associated with TIF No. 1 in fiscal year 2020, and no revenue received from participating agencies. For the year ended September 30, 2020, outstanding principal and interest on the original Certificates remained $0. TIF No. 1A In November 2008 the City of North Richland Hills expanded TIF No. 1. The boundaries of the expansion of TIF No. 1 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$84 million. TIF No. 1 expansion (referred to as TIF No. 1A)will legally expire in 2019, 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 included the burying of existing above ground utility lines on the North Richland Hills side of Boulevard 26 between Glenview and Rufe Snow. This project also consisted 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 fiscal year 2020 principal, interest and other associated payments totaled $0 as the associate debt had been retired. Prior to 2019,TIF No. 1A had realized no property value growth and the value increment remained at or below $0 until 2018. Fortunately, when TIF No. 1 was expanded by TIF No. 1A, the City was able to incorporate the existing balances and future tax revenues to be collected from TIF No. 1 to pay for TIF No. 1A projects. It was determined that sufficient funding existed to make the final principal and interest payments for TIF No. 1A in August 2019, therefore no further billing related to TIF No. 1A occurred in fiscal year 2019 or 2020. TIF Closure Except for final steps, both TIF No. 1 and TIF No. 1A are essentially complete. North Richland Hills staff is currently performing a final analysis of the revenues, expenditures, and remaining balances for both TIF No. 1 and TIF No. 1A. Once this is complete, a TIF No. 1 / No. 1A Board meeting will be called in order to take any final actions necessary to finalize and close these TIFs. e. Mark C. Mills Director of Finance Attachments: Tax Increment Reinvestment Zone (TIRZ) No. 1 and No. 1A Combined Annual Report—Year Ended September 30, 2020 City of North Richland Hills Tax Increment Reinvestment Zone No.1 and 1A Annual Report Year Ended September 30,2020 Amount&Source of Revenue in the Tax Increment Fund FY 2020: Property Tax Revenues Collected $ - Investment Income $ 37,382 Total Revenues in Fiscal Year 2020 $ 37,382 Amount and Purpose of Expenditures of the Fund FY 2020: Principal,Interest,Issuance&Paying Agent Payments on Certificate Indebtedness $ - Project Expenditures FY 2020 $ Total Fund Expenditures in Fiscal Year 2020 $ Principal&Interest due on outstanding indebtedness as of September 30,2020: Principal Outstanding $ Interest Outstanding $ Total Principal&Interest Outstanding 9-30-2020 $ For TIF1 Captured Appraised Value shared by the Municipality&Other Taxing Entities and total amount of tax increments received Projected Captured Tax Property Tax 1998 Base Year Taxable Value Appraised Rate/$100 Revenue FY Taxing Unit Appraised Value 2019 Value 2019 FY 2020 2020 City of North Richland Hills $1,152,929 $0 $0 $0.570000 $0.00 Birdville I.S.D. $1,152,929 $0 $0 $1.383900 $0.00 Tarrant County $1,152,929 $0 $0 $0.234000 $0.00 Tarrant County Hospital District $1,152,929 $0 $0 $0.224429 $0.00 Tarrant County College $1,152,929 $0 $0 $0.130170 $0.00 $0.00 Total billings outstanding $0.00 Prior Period Payments/Excess Payments: $ Taxes Collected FY 2020 $0.00 For TIF1A Captured Appraised Value shared by the Municipality&Other Taxing Entities and total amount of tax increments received Projected Captured Tax Property Tax 2008 Base Year Taxable Value Appraised Rate/$100 Revenue FY Taxing Unit Taxable Value 2019 Value 2019 FY 2020 2020 City of North Richland Hills $83,563,510 $0 $0 $0.570000 $0.00 Tarrant County $83,628,193 $0 $0 $0.244000 $0.00 Tarrant County Hospital District $83,628,193 $0 $0 $0.224429 $0.00 Tarrant County College $83,635,193 $0 $0 $0.140060 $0.00 $0.00 Total billings outstanding $0.00 Prior Period Payments/Excess Payments: $0.00 Taxes Collected FY 2020 $0.00 This report submitted by: '" Mark C.Mills Director of Finance City of North Richland Hills,Texas Tax Increment Finance Zone(TIRZ)No.1 and No.1A-Year Ended September 30,2020 IrLp NOKTH KICHLAN HILLS TAX INCREMENT REINVESTMENT ZONE NUMBER 1/1A MEMORANDUM FROM: The Office of the City Manager DATE: October 11, 2021 SUBJECT: Receive a status report regarding the project and financial status of Tax Increment Reinvestment Zone Number 1/1A and recommend the North Richland Hills City Council take action to close Tax Increment Reinvestment Zone Number 1/1A. PRESENTER: Mark C. Mills, Director of Finance SUMMARY: Staff will make a presentation on the project and financial status of Tax Increment Reinvestment Zone Number 1/1A ("TIF 1/1A"). At the conclusion of that presentation, the Board will be asked to make a recommendation to the North Richland Hills City Council to take formal action to close TIF 1/1A. GENERAL DESCRIPTION: Created in 1998, TIF 1 was established to revitalize a 95-acre area off Boulevard 26 around the Richland Plaza Shopping Center. Through the TIF, significant public drainage improvements were made, which spurred private reinvestment and redevelopment of the area. TIF 1 was expanded in 2009 to include a total of 392 acres along Boulevard 26, Rufe Snow, and Glenview Drive. Under the expansion plan, a portion of property taxes from the district were designated for intersection and utility improvements within the district. The City of North Richland Hills, Birdville ISD, Tarrant County, Tarrant County College District, and Tarrant County Hospital District contributed a portion of the property tax revenue from the TIF District for public improvements. Through September 30, 2021, these entities had contributed a combined $3.8 million. Total revenue and resources of the TIF, inclusive of interest earnings and issued Certificates of Obligation, totaled $8 million. To-date the TIF has expended $7.8 million, including $4.5 million in debt related expenditures (principal, interest, issuance costs, paying agent fees, etc.) and $3.3 million in project expenditures. This TIF reached its term and expired in 2019. All projects related to this TIF are complete and all associated expenditures have been made. The Certificates of Obligation have been retired, with the final principal and interest payments being made in 2019. IrLp NOKTH KICHLAN HILLS Staff requests the Board make a recommendation to the North Richland Hills City Council to take formal action to close the TIF. RECOMMENDATION: Recommend the North Richland Hills City Council take action to close Tax Increment Reinvestment Zone Number 1/1A. NRH TIF 1/1A - STATUS UPDATE TIF 1/1A REVENUE Entity Contributions $3,807,606.87 Interest Income $420,332.39 Certificates of Obligation $3,850,000.00 TIF 1/1A Revenue $8,077,939.26 TIF 1/1A EXPENDITURES Prinicipal, Interest, Issuance, &Paying Agent on CO's $4,488,609.75 Mackey Creek Drainage Improvements $850,000.00 Utility Burial Project $2,460,114.63 TIF 1/1A Expenditures $7,798,724.38 Reconciliation: Projected Balance(Revenue Over Expenditures) $279,214.88 TIF 1/1A Balance $295,499.86 Reconciliation $279,214.88 Excess/(Deficit) $16,284.98 Projected Disbursement $295,499.86 Entity Contribution Contribution Percentage Disbursement NRH $869,928.39 22.85% $67,513.19 Tarrant County $276,056.80 7.25% $21,424.15 Tarrant County College $213,388.71 5.60% $16,560.62 Tarrant County Hospital $350,325.24 9.20% $27,187.96 Birdville ISD $2,097,907.73 55.10% $162,813.94 $3,807,606.87 100.00% $295,499.86