2020-08-04 TIRZ packetM E M O R A N D U M
July 31, 2020
TO: Board of Directors, Tax Increment Reinvestment Zone Number One, City of
Southlake, Texas
FROM: Sharen Jackson, Chief Financial Officer
SUBJECT: Agenda Item Comments – Board of Directors Meeting, August 4, 2020,
5:00 p.m.
The Board of Directors Meeting is scheduled for Tuesday, August 4, 2020 at 5:30 p.m.
in the City Council Chambers at the Town Hall Building.
Agenda Item No. 2, Approval of the minutes from the January 21, 2020 Tax Increment
Reinvestment Zone Number One Board of Directors meeting – A copy of the meeting
minutes is included in your packet for review. If you have corrections to the meeting
minutes, please advise me in advance of the meeting, or you may make changes as part
of the motion during consideration of this item at the meeting.
Agenda Item No. 3, Proposed Fiscal Year 2021 Tax Increment Reinvestment Zone
Number One Budget Overview and Revised Budget Figures for Fiscal Year 2020 –Staff
will present the proposed budget at the meeting. Staff has received the certified tax roll
from the Tarrant Appraisal District (TAD) and has the ability to provide a snapshot of the
financial outlook for the next fiscal year. The proposed 2021 budget along with a revised
2020 budget is included in your packet for review. Staff will present the proposed budget
at the meeting.
Agenda Item No.4, Briefing on Southlake Town Square Projects – This is a standing
agenda item that provides Cooper & Stebbins the opportunity to brief the Board of
Directors on the Town Square projects and other items of interest.
As always, we appreciate your commitment and service to the community. If you have
questions or comments on the meeting agenda or any of the packet materials in advance
of the meeting, please do not hesitate to contact me at (817) 748-8042.
City of Southlake, Texas
TIRZ Meeting Minutes, January 21, 2020 Page 1
TAX INCREMENT REINVESTMENT ZONE NUMBER ONE
BOARD OF DIRECTORS MEETING MINUTES
JANUARY 21, 2020
LOCATION: Southlake Town Hall, City Council Chambers
1400 Main Street, Southlake, Texas 76092
MEMBERS PRESENT: Chair John Huffman, Vice Chairman Shawn McCaskill, Shahid
Shafi, Chad Patton, Christopher Archer, Todd Carlton, and Scott Wrehe
MEMBERS ABSENT: Laura Hill and Ronell Smith
STAFF PRESENT: Assistant City Manager and Director of Economic Development &
Tourism Alison Ortowski, Deputy Director of Marketing and Communications Pilar
Schank, Chief Financial Officer Sharen Jackson, and City Secretary Amy Shelley.
1. CALL TO ORDER
The meeting was called to order by Chair John Huffman at 5:00pm.
2. CONSIDERATION: APPROVAL OF THE MINUTES FROM THE AUGUST 6,
2019 TAX INCREMENT REINVESTMENT ZONE NUMBER ONE BOARD OF
DIRECTORS MEETING.
A motion was made to approve the minutes from the August 6, 2019 Tax Increment
Reinvestment Zone Number One Board of Directors meeting.
Motion: McCaskill
Second: Patton
Ayes: Archer, Huffman, Wrehe, Tarlton, Patton, McCaskill and Shafi
Approved: 7-0
Absent: Hill and Smith
3. CONSIDERATION: APPROVAL OF RECOMMENDATION TO THE
SOUTHLAKE CITY COUNCIL FOR THE APPOINTMENT OF THE CHAIR OF THE
BOARD OF DIRECTORS FOR TAX INCRMENT REINVESTMENT ZONE NUMBER
ONE, CITY OF SOUTHLAKE, TEXAS, FOR 2020.
A motion was made to appoint Chad Patton to Chair of the Tax Increment Reinvestment
Zone Number One Board of Directors for 2020.
Motion: McCaskill
Second: Archer
Ayes: Archer, Huffman, Wrehe, Tarlton, Patton, McCaskill and Shafi
Approved: 7-0
Absent: Hill and Smith
TIRZ Meeting Minutes, January 21, 2020 Page 2
4. CONSIDERATION: ELECTION OF VICE-CHAIR FOR TAX INCREMENT
REINVESTMENT ZONE NUMBER ONE, CITY OF SOUTHLAKE, TEXAS, FOR
2020
A motion was made to appoint Shawn McCaskill to Vice-Chair of the Tax Increment
Reinvestment Zone Number One Board of Directors for 2020.
Motion: Shafi
Second: Archer
Ayes: Archer, Huffman, Wrehe, Tarlton, Patton, McCaskill and Shafi
Approved: 7-0
Absent: Hill and Smith
5. CONSIDERATION: APPROVAL OF THE 2019 ANNUAL REPORT FOR TAX
INCREMENT REINVESTMENT ZONE NUMBER ONE, CITY OF SOUTHLAKE,
TEXAS.
A motion was made to approve the 2019 Annual Report for Tax Increment Reinvestment
Zone Number One, City of Southlake, Texas.
Motion: McCaskill
Second: Archer
Ayes: Archer, Huffman, Wrehe, Tarlton, Patton, McCaskill and Shafi
Approved: 7-0
Absent: Hill and Smith
6. DISCUSSION: TAX INCREMENT REINVESTMENT ZONE NUMBER ONE
PROJECT STATUS UPDATE.
Chief Financial Officer Sharen Jackson presented Item 6 and answered questions from
the Board. Frank Bliss with Cooper & Company and David Ayer with RPAI also provided
updates.
No action was necessary on this item.
5. ADJOURNMENT
The meeting was adjourned by Chair John Huffman at 5:14 p.m.
MINUTES APPROVED ON THIS, THE ____ DAY OF __________________, 20____.
______________________________
John Huffman, Chairman
ATTEST:
______________________________
Amy Shelley, TRMC
City Secretary
M E M O R A N D U M
July 31, 2020
TO: Southlake TIRZ #1 Board of Directors
FROM: Sharen Jackson, Chief Financial Officer
SUBJECT: Discussion of the Proposed Fiscal Year 2021 Tax Increment Reinvestment
Zone Number One Budget Overview and revised budget figures for Fiscal
Year 2020
________________________________________________________________________
Action Requested: No formal board action is requested. Staff will present the Fiscal Year 2021
Tax Increment Reinvestment Zone Number One (“Zone”) budget for
discussion.
Background
Information: If you recall, the financing plan was amended to include project costs
related to public buildings and facilities (including Carroll ISD facilities
located within the zone), public parks, general infrastructure, technology
infrastructure, operations and maintenance. The proposed FY 2021
budget includes the following:
• School Safety Initiative $ 300,783
(The funds will be used for the SRO officers
currently working at the schools located within the
zone boundaries. The cost includes personnel
cost, training, supplies, etc.)
• Town Hall HVAC $1,786,530
(The request is to replace Town Hall HVAC
system. The current system is original to the Town
Hall building. Commercial HVAC equipment has
an industry standard life of approximately 20
years. FY 2020 budget included the engineering
services for a new HVAC replacement. The cost
to replace the system will be split between Facility
Maintenance Fund (25%) and TIRZ (75%).)
• Town Square Camera Replacement $ 700,000
(The funds will be used for Phase II of the camera
replacement project. Phase I of the camera
replacement included both east and west garages
and on target to be completed by the end of this
fiscal year. Town Square cameras were installed
in 2007 and 2008, with only maintenance and
repairs on an as-needed basis. Due to the age
and deterioration of the equipment, as well as the
expansive advancement in technology, a
complete overhaul of the system is required to
meet industry and police service standards.)
•Town Square enhancements $ 350,000
(The request is to complete the annual
enhancements throughout Town Square. Some of
the enhancements would include street repairs
and landscaping enhancements in the public
areas.)
•West Parking Garage – Exterior Restoration $ 199,654
(The restoration is part of the corrective
maintenance program intended to maintain assets
to expend the useful life.)
•Town Square guest Wi-Fi $ 200,000
(The request is to explore the opportunity to
provide guest Wi-Fi in Town Square)
Total funding requested for FY 2021 TIRZ #1 for operations is $10,447,383
which includes the items noted above and an estimated payment to Carroll
ISD of $6,736,056.
The FY 2020 Amended budget includes a few adjustments:
•Revenue $1,365,927
(Ad Valorem revenue increased due to CISD’s
contribution. Each year we have a true up
adjustment for CISD’s actual contribution.)
•Expenditures $1,577,696
o The actual CISD TIRZ expenses for 2020
increased by $1,054,311. This is also an
annual true up adjustment for CISD’s actual
contribution.
o The reduction in SRO actual estimated cost of
$91,684
o Increase in capital cost of $600,000 for Phase
I of Town Square camera project. The camera
project was originally budgeted in the
Technology Infrastructure and Security Fund.
Financial
Considerations:
Strategic Link:
Citizen Input/
Board Review:
The proposed operating budget includes projected ad valorem and interest
income of $9,964,195. Total operating expenditures of $10,447,383 with a
projected ending fund balance of $4,136,213.
C1: Achieve the highest standards of safety and security.
B2: Collaborate with select partners to implement service solutions.
F2: Invest to provide and maintain high quality public assets.
A Public Hearing is scheduled for September 15, 2020 during Southlake
City Council regular scheduled meeting along with the adoption process
of the FY 2021 budget
Legal Review: None required.
Supporting
Documents: TIRZ Fund Summary
06:15 PM
07/31/20
$ Increase/$ Increase/
2019 2020 2020 (Decrease)% Increase/2021 (Decrease)% Increase/
Actual Adopted Amended Adopted -Decrease Proposed Adopted -Decrease
REVENUES
Ad Valorem $9,326,453 $9,387,095 $10,753,022 $1,365,927 14.6%$9,955,195 $568,100 6.1%
Interest Income $25,831 $9,000 $9,000 $0 0.0%$9,000 $0 0.0%
Total Revenues $9,352,284 $9,396,095 $10,762,022 $1,365,927 14.5%$9,964,195 $568,100 6.0%
EXPENDITURES
Personnel $252,891 $274,320 $197,705 ($76,615)-27.9%$265,953 ($8,367)-3.1%
Operations $7,096,507 $7,161,584 $8,215,895 1,054,311 14.7%$8,394,900 1,233,316 17.2%
Capital $0 $55,000 $655,000 600,000 1090.9%$1,786,530 1,731,530 3148.2%
Total Expenditures $7,349,398 $7,490,904 $9,068,600 $1,577,696 21.1%$10,447,383 $2,956,479 39.5%
Net Revenues $2,002,886 $1,905,191 $1,693,422 ($211,769)($483,188)($2,388,379)
Transfers Out-General Fund 0 0 0 0
Transfers Out -Debt Service 0 0 0 0
Total Other Sources (Uses)$0 $0 $0 $0
Beginning Fund Balance $923,093 $2,925,979 $2,925,979 $4,619,401
Prior period adjustment
Ending Fund Balance $2,925,979 $4,831,170 $4,619,401 $4,136,213
TIF OPERATING FUND
2021 Proposed and 2020 Revised Budget