The URL can be used to link to this page

Home My WebLink AboutTIF3 2023-11-13 Agendas t4RH NOKTH KICH�AND HILL CITY OF NORTH RICHLAND HILLS TAX INCREMENT REINVESTMENT ZONE NO. 3 AGENDA 4301 CITY POINT DRIVE NORTH RICHLAND HILLS, TX 76180 MONDAY, NOVEMBER 13, 2023 REGULAR MEETING: 5:30 PM Held in the Community Room A. CALL TO ORDER B. PUBLIC COMMENTS An opportunity for citizens to address the Tax Increment Reinvestment Zone Number 3 Board on matters which are scheduled on this agenda for consideration, but not scheduled as a public hearing. In order to address the Tax Increment Reinvestment Zone Number 3 Board during public comments, a Public Meeting Appearance Form must be completed and presented to the recording secretary prior to the start of the Tax Increment Reinvestment Zone Number 3 meeting. C. ACTION ITEMS C.1 Approve minutes of the November 14, 022 Tax Increment Reinvestment Zone Number 3 oar meeting. C.2 Discuss and accept the Tax Increment Reinvestment Zone Number 3 Annual Report for 2023. C.3 Consider the appointment of a Vice-Chair and Secretary for Tax Increment Reinvestment Zone Number 3 each to serve two-year terms beqinninq January 1, 2024 and ending December 31, 2025. D. ADJOURNMENT Certification Monday, November 13, 2023 Tax Increment Reinvestment Zone No. 3 Agenda Page 1 of 2 I do hereby certify that the above notice of meeting of the North Richland Hills Tax Increment Reinvestment Zone Number 3 ("TIF 3") was posted at City Hall, City of North Richland Hills, Texas in compliance with Chapter 551, Texas Government Code on Friday, November 10, 2023 by 3:00 PM. Alicia Richardson City Secretary/Chief Governance Officer 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, November 13, 2023 Tax Increment Reinvestment Zone No. 3 Agenda Page 2 of 2 IrLp NOKTH KICHLAN HILLS TAX INCREMENT REINVESTMENT ZONE NUMBER 3 MEMORANDUM FROM: The Office of the City Manager DATE: November 13, 2023 SUBJECT: Approve minutes of the November 14, 2022 Tax Increment Reinvestment Zone Number 3 Board meeting. PRESENTER: Mark C. Mills, Director of Finance GENERAL DESCRIPTION: The action minutes for the previous Board meeting are placed on the agenda for review and approval. Upon approval of the minutes, an electronic copy will be uploaded to the City's website. RECOMMENDATION: Approve minutes of the November 14, 2022 Tax Increment Reinvestment Zone Number 3 Board meeting. MINUTES CITY OF NORTH RICHLAND HILLS, TEXAS TAX INCREMENT REINVESTMENT ZONE NUMBER 3 BOARD OF DIRECTORS MEETING 4301 CITY POINT DRIVE — COMMUNITY ROOM NORTH RICHLAND HILLS, TX 76180 MONDAY, NOVEMBER 14, 2022 5:00 P.M. Present: • Oscar Trevino, Chair Mayor, North Richland Hills • Suzy Compton, Vice-Chair Councilmember, North Richland Hills • Rita Wright Oujesky, Secretary Councilmember, North Richland Hills • Scott Turnage Councilmember, North Richland Hills • Kelvin Deupree Councilmember, North Richland Hills • Tito Rodriguez Councilmember, North Richland Hills Others Present: • Mark Hindman City Manager • Paulette Hartman Deputy City Manager • Maleshia McGinnis City Attorney • Mark Mills Director of Finance • Glenn Mizell Assistant Director of Finance • Craig Hulse Director of Economic Development • Trudy Lewis Director of Budget Members Absent: • Mason Orr Councilmember, North Richland Hills • Rebecca Barksdale Precinct Administrator for Commission Gary Fickes, Northeast Sub Courthouse, Precinct #3 A. CALL TO ORDER Chairman Oscar Trevino called the meeting to order at 5.00 p.m. B.2 PUBLIC COMMENTS No Public Comments were made or received at this time. CA APPROVE MINUTES OF THE JANUARY 24, 2022 TAX INCREMENT REINVESTMENT ZONE NO. 3 BOARD MEETING Scott Turnage moved to approve the minutes. Suzy Compton seconded the motion. The motion to approve carried 6-0. C.2 DISCUSS AND ACCEPT THE NORTH RICHLAND HILLS TAX INCREMENT REINVESTMENT ZONE NUMBER 3 ANNUAL REPORT FOR 2022. Director of Finance Mark Mills made a brief presentation on the Annual Report of the TIF #3 for 2022. Each Tax Increment Reinvestment Zone is required to submit an annual report, to its Board and to the State, detailing its financial activities for the year. A summary of the financial report for the year is shown below: Amount&Source of Revenue in the Tax Increment Fund FY 2022: Property Tax Increment Revenue Collected $14,250.53 Total Revenues in Fiscal Year 2022 $ 14,250.53 Amount and Purpose of Expenditures of the Fund FY 2022: TIF 3 Annual Contribution to City Point PID $ 12,817.27 TIF 3 Expenses $ 286.60 Total Fund Expenditures in Fiscal Year 2022 $ 13,103.87 Captured Appraised Value shared by the Municipality&Other Taxing Entities and total amount of tax increments received City of North Richland Hills $6,348,296 $13,000,000 $6,651,704 $0.156989 $10,442.43 Tarrant County(2) $6,348,296 $13,000,000 $6,651,704 $0.057250 $3,808.10 $14,250.53 Kelvin Deupree moved to accept the Annual Report for North Richland Hills Tax Increment Reinvestment Zone Number 3 for the period ending September 30, 2022. Rita Wright Oujesky seconded the motion, which was approved 6-0. D. ADJOURNMENT Chair Oscar Trevino adjourned the meeting at 5.04 p.m. IrLp NOKTH KICHLAN HILLS TAX INCREMENT REINVESTMENT ZONE NUMBER 3 MEMORANDUM FROM: The Office of the City Manager DATE: November 13, 2023 SUBJECT: Discuss and accept the Tax Increment Reinvestment Zone Number 3 Annual Report for 2023. 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 is required to submit an annual report detailing its financial activities for the year. A copy of the 2023 Tax Increment Reinvestment Zone No. 3 Annual Report has been attached for the Board's review. Following the presentation, staff will request that the Board vote to accept the annual report. RECOMMENDATION: Accept the Tax Increment Reinvestment Zone Number 3 Annual Report for 2023. North Richland Hills Tax Increment Reinvestment Zone No. 3 Annual Report for the Period Ending September 30, 2023 0 �r ar r 1 dro+fluHil Pity V r We 7711 ri ri •X I J � a r; F, City of North Richland Hills Telephone: 817.427.6166 4301 City Point Drive Email: mmills@nrhtx.com North Richland Hills, TX 76180 Website: www.nrhtx.com Iq Rj'h' Table of Contents ExecutiveSummary................................................................................................................3 Annual Report for the Period Ending September 30, 2023.....................................................5 Tax Increment Revenue Contribution By Year By Entity ........................................................6 PID Contributions and TIF Expenses By Year........................................................................7 Captured Appraised Value By Year........................................................................................8 TIF Expenses Detail By Year..................................................................................................9 14#41tH CITY OF NORTH RICHLAND HILLS MEMO TO: Board of Directors — Tax Increment Reinvestment Zone Number 3 FROM: Mark C. Mills, Director of Finance SUBJECT: North Richland Hills Tax Increment Reinvestment Zone Number 3 Executive Summary for Fiscal Year Ended September 30, 2023 DATE: November 13, 2023 The Annual Report of Tax Increment Reinvestment Zone No. 3 for the Year Ended September 30, 2023 is provided for your review and consideration. Description of TIF 3 North Richland Hills Tax Increment Reinvestment Zone Number 3 ("TIF 3" or the "Zone") was created by the City of North Richland Hills (the "City") in 2019 through the passage of Ordinance 3617, under the authority of Chapter 311, Texas Tax Code, Tax Increment Financing Act, as amended (the "Act"). TIF 3 includes approximately 52.85 acres of land and expires September 30, 2039. When TIF 3 was created, the property was zoned Non-Residential Planned Development (mixed use). At that time, the property was undeveloped and due to its size, location, and physical characteristics, development would require extensive public infrastructure that: (1) the City could not provide, and (2) would not be provided solely through private investment in the foreseeable future. The intent of TIF 3 is to facilitate such development or redevelopment by financing the costs of public works, public improvements, programs, and other projects benefiting the Zone, plus other costs incidental to those expenditures, all of which are authorized by the Act. The City envisions that the property will be developed to take full advantage of the opportunity to bring a quality master planned development to the City and Tarrant County and provide long-term economic benefits including, but not limited to, increased real property tax base for all taxing units. TIF 3 Proiects The proposed public improvements to be funded by the Zone include street, water, sanitary sewer, storm drainage, as well as associated soft costs. Design and construction of these improvements will be done in accordance with all applicable City standards and shall be inspected, approved, and accepted by the City. North Richland Hills Tax Increment Reinvestment Zone Number 3 Annual Report for the Period Ending September 30,2023 Page 3 of 9 Participating Entities, Planned Contributions, and Assessed Values Two entities contribute to TIF 3: the City and Tarrant County (the "County"). The City has pledged 45% of its annual maintenance and operations ("M&O") tax rate, in an amount not to exceed $4,173,032 over the life of the Zone. The County has pledged 25% of its annual total tax rate, not to exceed $1,707,150. There is no bonded indebtedness issued by the City or the Zone pursuant to the Act contemplated at this time. On an annual basis and consistent with the City Point Public Improvement District ("PID") Service and Assessment Plan ("SAP"), TIF 3 revenue generated by the Improvement Zone A Assessed Property for the previous Tax Year shall be applied pro rata, based on the outstanding assessment of each lot, to reduce the principal and interest required for the Improvement Zone A Annual Installment, due January 31. The annual credit amount is updated each year in the Annual Service and Assessment Plan Update as TIF 3 revenue is generated. Mark C. Mills Director of Finance North Richland Hills Tax Increment Reinvestment Zone Number 3 Annual Report for the Period Ending September 30,2023 Page 4 of 9 TAX INCREMENT REINVESTMENT ZONE NUMBER 3 Tax Increment Revenue Contribution By Year By Entity For the Perioding Ending September 30, 2023 Amount & Source of Revenue in the Tax Increment Fund FY 2023: Property Tax Increment Revenue Collected $28,827.78 Total Revenues in Fiscal Year 2023: $28,827.78 Amount and Purpose of Expenditures of the Fund FY 2023: TIF 3 Annual Contribution to City Point PID $14,247.98 TIF 3 Expenses $744.17 Total Fund Expenditures in Fiscal Year 2023: $14,992.15 Captured Appraised Value by Taxing Entity and Total Amount of Tax Increment Revenue Taxing Unit Tax Year Fiscal Year City of NRH I Tarrant County Taxable Value 2022 2023 $19,964,300 $19,964,300 Base Year Appraised Value 2019 2020 $6,348,296 $6,348,296 Captured Increment Value 2022 2023 $13,616,004 $13,616,004 Captured Increment Value 2022 2023 $13,616,004 $13,616,004 Tax Rate Per $100 of Valuation (1)(2) 2022 2023 $0.156485 $0.056000 Calculated Tax Increment Revenue (100%) 2022 2023 $21,307.00 $7,624.96 Tax Increment Revenue Received 2022 2023 $21,307.00 $7,520.78 Calculated Tax Increment Revenue (100%) 2022 2023 $21,307.00 $7,624.96 Difference $0.00 ($104.18) This report submitted by 11/41, Mark C. Mills Director of Finance City of North Richland Hills, Texas Notes: ('): NRH Tax Rate for TIF#3 is 45% of its M&O Tax Rate for the year (2): Tarrant County Tax Rate for TIF#3 is 25% of its Total Tax Rate for the year North Richland Hills Tax Increment Reinvestment Zone Number 3 Page 5 of 9 Annual Report for the Period Ending September 30,2023 TAX INCREMENT REINVESTMENT ZONE NUMBER 3 Tax Increment Revenue Contribution By Year By Entity For the Perioding Ending September 30, 2023 2019 2020 $0.00 $0.00 $0.00 2020 2021 $9,507.04 $3,596.84 $13,103.88 2021 2022 $10,442.43 $3,808.10 $14,250.53 2022 2023 $21,307.00 $7,520.78 $28,827.78 Contributions to Date: $41,256.47 $14,925.72 $56,182.19 Maximum Contribution: $4,173,032.00 $1,707,150.00 $5,880,182.00 Contribution Remaining ($): $4,131,775.53 $1,692,224.28 $5,823,999.81 Contribution Remaining (%): 99.0% 99.1% 99.0% North Richland Hills Tax Increment Reinvestment Zone Number 3 Annual Report for the Period Ending September 30,2023 Page 6 of 9 TAX INCREMENT REINVESTMENT ZONE NUMBER 3 PID Contribution & TIF Expenses By Year For the Perioding Ending September 30, 2023 IIIIII� ,111 r u r fill 11111111 u 2019 2020 $0.00 $0.00 $0.00 2020 2021 $0.00 $0.00 $0.00 2021 2022 $12,817.27 $286.60 $131103.87 2022 1 2023 $14,247.981 $744.171 $14,992.15 To Date: $27,065.25 $1,030.77 $28,096.02 North Richland Hills Tax Increment Reinvestment Zone Number 3 Annual Report for the Period Ending September 30,2023 Page 7 of 9 TAX INCREMENT REINVESTMENT ZONE NUMBER 3 Captured Value By Year For the Perioding Ending September 30, 2023 2019 Base Value: $6,348,296 2020 2021 $12,496,744 $6,148,448 2021 2022 $13,000,000 $6,651,704 2022 2023 $19,964,300 $13,616,004 * Annual TIF Account Summary Listing(February) North Richland Hills Tax Increment Reinvestment Zone Number 3 Annual Report for the Period Ending September 30,2023 Page 8 of 9 TAX INCREMENT REINVESTMENT ZONE NUMBER 3 TIF Expenses Detail By Year For the Perioding Ending September 30, 2023 2022 P3 Works 1679 $231.25 2022 P3 Works 1999 $55.35 FY2022 Sub-Total. $286.60 2023 P3 Works 4839 $46.25 2023 P3 Works 5050 $138.75 2023 P3 Works 5263 $13.33 2023 P3 Works 5743 $172.50 2023 P3 Works 6211 $92.50 2023 P3 Works 8350 $61.68 2023 P3 Works 8719 $219.16 FY2023 Sub Total. $744.17 TIF Expenses To Date: $1,030.77 North Richland Hills Tax Increment Reinvestment Zone Number 3 Annual Report for the Period Ending September 30,2023 Page 9 of 9 IrLp NOKTH KICHLAN HILLS TAX INCREMENT REINVESTMENT ZONE NUMBER 3 MEMORANDUM FROM: The Office of the City Manager DATE: November 13, 2023 SUBJECT: Consider the appointment of a Vice-Chair and Secretary for Tax Increment Reinvestment Zone Number 3, each to serve two-year terms beginning January 1, 2024 and ending December 31, 2025. 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 3 ("TIF 3") 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, 2023 at the City Council's December 12, 2022 Council meeting. The appointment of the Chair for a one-year term beginning January 1, 2024 is scheduled for the November 13, 2023 City Council meeting. In accordance with the Bylaws for Tax Increment Reinvestment Zone Number 3, the Board of Directors is to appoint the Vice-Chair and Secretary. Each will serve a two-year term. Scott Turnage was appointed Vice-Chair and Mason Orr was appointed Secretary at the January 24, 2022 TIF 3 Board Meeting. The term for both individuals is set to expire in December 2023. 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. IrLp NOKTH KICHLAN HILLS 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 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 these functions on their behalf. City staff is responsible for providing notice of meetings and preparing meeting agendas. The term of these appointments would be for a period of two years, beginning on January 1, 2024 and concluding December 31, 2025. RECOMMENDATION: Appoint a Vice-Chair and Secretary for Tax Increment Reinvestment Zone Number 3, each to serve two-year terms beginning January 1, 2024 and ending December 31, 2025.