09-30-2009 SOUTHLAKE TAX INCREMENT FINANCING DISTRICT
(A Component Unit of the City of Southlake, Texas)
SEPTEMBER 30, 2009
ANNUAL REPORT
(Unaudited)
Prepared by:
Sharen Jackson
Director of Finance
SOUTHLAKE TAX INCREMENT FINANCING DISTRICT
(A Component Unit of the City of South lake, Texas)
COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 2009 (unaudited)
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2008
September 30, 2009
Governmental Fund Types Account Group
General
Special Capital Long-Term September 30,
ASSETS Revenue Projects Liabilities 2008
Cash and investments $4,349,387 $ 26,873 $ 3,270,839
Accounts Receivable 15,129 1,893 4,686
Amount to be provided for retirement
of long-term liabilities 25,411,000 27,081,000
TOTAL ASSETS $4,364,516 $ 28,766 $ 25,411,000 $ 30,356,525
LIABILITIES, EQUITY AND OTHER CREDITS
Liabilities:
Accrued liabilities -
Bond payable 25,411,000 27,081,000
Total liabilities - - 25,411,000 27,081,000
Fund Balances:
Unreserved, undesignated 4,364,516 2,703,280
Reserved for capital projects 28,766 572,245
Total fund balances 4,364,516 28,766 - 3,275,525
TOTAL LIABILITIES
AND FUND BALANCES $4,364,516 $ 28,766 $ 25,411,000 $ 30,356,525
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SOUTHLAKE TAX INCREMENT FINANCING DISTRICT
(A Component Unit of the City of Southlake, Texas)
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE-
ALL GOVERNMENTAL FUND TYPES
SEPTEMBER 30, 2009 (unaudited)
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2008
September 30, 2009
Governmental Fund Types
Special Capital September 30,
Revenue Projects 2008
REVENUES:
Property taxes $ 7,784,162 $ 7,472,586
Donations
Interest 74,926 6,521 53,147
Total revenues $ 7,859,088 $ 6,521 $ 7,525,733
EXPENDITURES:
Professional, engineering and construction cost 109,843 550,000 6,454,793
Other operations 3,220,906 3,150,473
Total expenditures 3,330,749 550,000 9,605,266
Excess(deficiency)of
revenues over expenditures 4,528,339 (543,479) (2,079,533)
Other financing sources(uses)
Bond proceeds 6,690,293
Operating transfers out (2,867,103) (2,353,172)
Operating transfers in
Total other financing sources(uses) (2,867,103) - 4,337,121
Excess of revenues and other
financing sources over expenditures
and other uses 1,661,236 (543,479) 2,257,588
Fund Balances at beginning of year 2,703,280 572,245 1,017,937
Fund Balances at end of year $ 4,364,516 $ 28,766 $ 3,275,525
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NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Southlake Tax Increment Financing District (the `TIF") was created on September
23, 1997. The TIF was created to encourage quality commercial development along the
Highway 114 corridor. The area was primarily undeveloped and the City intends to
capture the anticipated incremental tax revenue increase to apply to targeted public
improvement projects that benefit all the overlapping taxing jurisdictions. The TIF is
governed by a twelve member board of directors consisting of the seven City Council
members, one member appointed by City Council and one member each appointed by
Carroll Independent School District, Tarrant County, Tarrant County Community
College, and the Tarrant County Hospital District Board of Directors. The termination of
the TIF is set as either December 31, 2018 or the date when all project cost are paid
and all debt is retired, whichever comes first. The boundaries of the TIF were expanded
in accordance with Texas Code Section 311.007 by ordinance#682-A on December 2,
1997. The expansion of the TIF boundaries will result in benefits to the City, its
residents and property owners. The TIF is a blended component unit of the City under
the provisions of Governmental Accounting Standards Board Statement No. 14.
The accounting and reporting policies of the TIF conform to generally accepted
accounting principles as applicable to governmental units. The following is a summary
of the more significant accounting and reporting policies:
(a) Fund Accounting
The accounts of the TIF are organized on the basis of funds and account
groups. The operations of the TIF are accounted for in the following funds
and account groups:
The Special Revenue Fund-used to account for the operational cost of
the TIF
The Capital Project Fund-used to account for financial resources to be
used for the acquisition or construction of major capital facilities
The General Long-Term Debt Account Group-used to account for the
TIF's long-term liabilities
(b) Basis of Accounting
The accounting and financial reporting treatment applied to a fund is
determined by its measurement focus. The Special Revenue, Debt Service
and Capital Project Funds, governmental fund types, are accounted for using
a current financial resources measurement focus. With this measurement
focus, only current assets and current liabilities generally are included on the
balance sheet. Operating statements of this fund present increase (i.e.,
revenues and other financing sources) and decreases (i.e., expenditures and
other financing uses) in net current assets.
The Special Revenue and Capital Project Fund are accounted for using the
modified accrual basis of accounting. Revenues are recognized when they
become measurable and available as net current assets. Expenditures are
recognized under the modified accrual basis of accounting when the related
fund liability is incurred, with the exception of principal and interest on long-
term debt, which are recognized when payable from current available
financial resources.
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Investment earnings are recorded as earned, since they are measurable and
available.
(c) Budgets and Budgetary Accounting
An overall project budget was included in the Project and Finance Plan to
create the TIF and approved by all parties involved.
NOTE 2: CASH AND INVESTMENTS
The cash and investments policies of the TIF mirror the City of Southlake's policies. City
policies governing bank deposits require depositories to be FDIC-insured institutions,
and depositories must fully collateralize all time deposits in excess of FDIC insurance
limits.
Deposit-At September 30, 2009 the carrying amount of the TIF's deposits at banks was
$1,097,088. These balances were completely covered by federal depository insurance
or fully collateralized.
Investments-Statutes and the City's Investment Policy authorize the City and the TIF to
invest in obligations of the U.S. Treasury, U.S. agencies and instrumentalities,
repurchase agreements and the State Treasurer's investment pool. As of September
30, 2009, the TIF's investments consisted of the following:
Market Value
State Treasurer's investment pool ("Texpool") $3,279,172
NOTE 3. LONG-TERM LIABILITIES
A summary of the TIF's long-term liabilities is as follows:
Tax and Tax Increment Revenue Certificates
Of Obligation, Series 2000-E, due in annual
Installments through August 15, 2018, 4.75% to 5.3% $ 1,680,000
General Obligation Refunding Bonds,
Series 2002, due in annual Installments
through February 15, 2018, 3.00% to 4.350% $ 2,930,000
General Obligation Refunding Bonds,
Series 2003A, due in annual Installments
through February 15, 2018, 3.50%to 5.0% $ 8,785,000
Tax and Tax Increment Revenue Certificates
Of Obligation, Series 2003A, due in annual
Installments through February 15, 2018, 3.50%to 4.30% $ 4,045,000
General Obligation Refunding Bonds,
Series 2004, due in annual Installments
through February 15, 2018, 3.50% to 5.0% $ 2,441,000
Tax and Tax Increment Revenue Certificates
Of Obligation, Series 2007, due in annual
Installments through February 15, 2018, 3.75%to 4.375% $ 5,530,000
$25,411,000
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The annual requirements to amortize the long-term debt as of September 30, 2009, are
as follows:
Fiscal Year
2010 2,823,110
2011 3,232,303
2012 3,641,247
2013 3,720,380
2014 and thereafter 18,787,759
Total payments required 32,204,799
Less interest (6,793,799)
Total principal $25,411 000
NOTE4: APPRAISED VALUES
A summary of appraised values for the TIF are as follows:
1997
Tax Year Base Year Captured
2008 Taxable Taxable Taxable
Value Value Value
Entity
City of South lake $326,952,842 $23,475,366 $303,477,476
Tarrant County Hospital 327,462,842 23,475,366 303,987,476
Tarrant County Community College 327,469,842 23,475,366 303,994,476
Tarrant County 327,462,842 23,475,366 303,987,476
Carroll Independent School District 327,137,842 23,450,435 303,687,407
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