Agenda Item Comments - 12-02-208 City of Southlake,Texas
MEMORANDUM
November 24,2008
TO: Board of Directors, Tax Increment Reinvestment Zone Number One, City of
Southlake, Texas
FROM: Alison Ortowski,Assistant to the City Manager
SUBJECT: Agenda Item Comments—TIRZ Board of Directors Meeting, 12/02/2008
ext I 6( viNtetitn -fa cry
The Board of Directors�Meeting is scheduled for 4:30 p.m. in the City Council Chambers at the
Town Hall Building. The meeting is intended to inform you of the financial status of the
reinvestment zone,present the annual report to the Board of Directors, and to take care of annual
administrative items relating to the Board. Also, this is an opportunity for Town Square to
update the Board of Directors regarding the status of the development.
Agenda Item No. 2, Approval of the minutes from the August 5, 2008 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
1 me in advance of the meeting, or you may make changes as part of the motion during
{( 4 Qer )consideration of this item at the meeting.
Agenda Item No. 3,Approval of Recommendation to the City Council for the appointment of the
Chair for Tax Increment Reinvestment Zone Number One, City of Southlake, Texas, for 2009-
pc. v Section 311.009(f) of the Tax Increment Financing Act (the "Act") states the following: "Each
year the governing body of the municipality shall appoint one member of the board to serve as
chairman for a term of one year that begins on January 1 of the following year." The City
Council is to select the Chair, based on a recommendation from the TIRZ Board of Directors.
A 1kQ Resolution No. 08-062 provides for the City Council to meet this requirement, and is currently
V t oti ''" `scheduled as an item for consideration on the December 16, 2008 City Council meeting agenda.
A copy of this resolution is included in your packet.
Agenda Item No. 4, Election of Vice-Chair for Tax Increment Reinvestment Zone Number One,
City of Southlake, Texas, for 2009—The Board is asked to consider the election of a Vice-Chair
n at this meeting. The Bylaws stipulate that this term is for one (1)year. This appointment is made
by the TIRZ Board and not by the City Council. The duties of this office include those assigned
byGth Bard, and to serve as Chair due to absence of inability to act.
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Agerfda Item No. 5, Approval of the 2008 Annual Report for Tax Increment Reinvestment Zone
Number One, City of Southlake, Texas — Included in your packet is the TIRZ 2008 Annual
Report prepared by Finance Director Sharen Jackson. Section 311.006 of the Tax Increment
Financing Act establishes an annual report requirement for the TIRZ, and a copy of this report
must be forwarded to the Office of the State Attorney General and to the chief executive officer
Board of Directors, Tax Increment Reinvestment Zone Number One, City of Southlake, Texas
November 24, 2008
Page 2 of 2
of each taxing unit that levies taxes within the zone. Please contact Sharen Jackson with
questions regarding this report at(817)748-8042.
Agenda Item No. 6, Briefing on Southlake Town Square Projects — This is a standing agenda
item that provides Town Square 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)748-8261 or Finance Director Sharen Jackson at
(817) 748-8042.
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TAX INCREMENT REINVESTMENT ZONE NUMBER ONE
CITY OF SOUTHLAKE
BOARD OF DIRECTORS MEETING
LOCATION: Town Hall—City Council Chambers
1400 Main Street, Southlake,Texas 76092
DATE AND TIME: Tuesday, December 2,2008—4:30 p.m.
AGENDA:
1. Call to Order.
2. Consideration: Approval of the minutes from the August 5, 2008 Tax Increment
Reinvestment Zone Number One Board of Directors meeting.
3. Consideration: Approval of recommendation to the Southlake City Council for the
appointment of the Chair of the Board of Directors for Tax Increment
Reinvestment Zone Number One, City of Southlake,Texas, for 2009.
4. Consideration: Election of Vice-Chair for Tax Increment Reinvestment Zone Number
One, City of Southlake, Texas, for 2009.
5. Consideration: Approval of the 2008 Annual Report for Tax Increment Reinvestment
Zone Number One, City of Southlake,Texas.
6. Discussion: Briefing on Southlake Town Square projects.
7. Adjournment.
CERTIFICATE
I hereby certify that the above agenda was posted on the official bulletin boards at Town Hall,
1400 Main Street, Southlake, Texas on Wednesday, November 26, 2008 by 6:00 p.m.,pursuant
to the exas G vernment Code�g haptriL 551.
Lori Payne, TRM =o f l,
City Secretary : r; i` s • -
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If you plan to attend this public meeting and have a disability that requires special needs,
please advise the City Secretary 48 hours in advance at (817) 748-8016, and reasonable
accommodations will be made to assist you.
TAX INCREMENT REINVESTMENT ZONE NUMBER ONE
CITY OF SOUTHLAKE, TEXAS
BOARD OF DIRECTORS MEETING MINUTES
August 5, 2008
Location: Council Chambers, 1400 Main Street, Southlake, Texas.
Members present: Chairman Virginia M. Muzyka, and members: Carolyn Sims, John
Terrell, Robb Welch, Sherrie Williams and Drenda Witt.
Members absent: Vice-Chairman Larry Darlage, and Members Laura K. Hill, Gregory
Jones, Vernon Stansell, and Andy Wambsganss.
Staff present: City Manager Shana Yelverton, Assistant City Manager Jim Blagg,
Assistant City Manager Ben Thatcher, Assistant to the City Manager Alison Ortowski,
Community Information Officer Pilar Schank, Finance Director Sharen Jackson, and
City Secretary Lori Payne.
Agenda Item No. 1. Call to order. Chairman Muzyka called the meeting to order at
4:34 p.m.
Agenda Item No. 2. Approval of the minutes from the December 4, 2007, Tax
Increment Reinvestment Zone Number One Board of Directors meeting. A formal
presentation was not made on this item.
Drenda Witt asked for a correction to be made to the minutes which lists one of the
absent members as being Scott Herndon who is not a member. She asked for the
minutes to be changed to remove his name.
Motion was made to approve the minutes from December 4, 2007, eliminating the name
of Scott Herndon from the list of absent members on those minutes.
Motion: Witt
Second: Terrell
Ayes: Muzyka, Sims, Terrell, Welch, Williams, Witt
Nays: None
Approved: 6-0
Agenda Item No. 3. Discussion: Proposed Fiscal Year 2009 Tax Increment
Reinvestment Zone Number One Budget Overview. Director Jackson presented this
item to the Board. No action was taken.
Agenda Item No. 4. Discussion: Briefing on Southlake Town Square projects.
Brian Stebbins with Southlake Town Square updated the Board on projects and plans
for Southlake Town Square. No action was taken.
Agenda Item No. 5. Adjournment. There being no further business to discuss,
Chairman Muzyka adjourned the meeting at 4:40 p.m.
Unofficial TIRZ Board meeting minutes, August 5, 2008
Virginia M. Muzyka
Chairman
ATTEST:
Lori Payne
City Secretary
Unofficial TIRZ Board meeting minutes, August 5, 2008
RESOLUTION NO. 08-062
A RESOLUTION OF THE CITY OF SOUTHLAKE, TEXAS,
APPOINTING A CHAIRPERSON OF THE BOARD OF DIRECTORS OF
TAX INCREMENT REINVESTMENT ZONE NUMBER ONE, AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Southlake, Texas (the "City"), after public
hearing, passed Ordinance No. 682 creating a Reinvestment Zone as authorized by the Tax
Increment Financing Act, V.T.C.A., Tax Code, Chapter 311 (the "Act") on September 23, 1997;
and
WHEREAS, Ordinance No. 682 established a Board of Directors to administer the zone;
and
WHEREAS, the City passed Ordinance No. 761, amending Ordinance No. 682 relating
to the manner of appointment and terms of office for the members of the Board of Directors of
the Tax Increment Reinvestment Zone Number One on December 7, 1999; and
WHEREAS, in accordance with Section 311.009(f)of the Act,the governing body of the
municipality that created the reinvestment zone must appoint one member of the board to serve
as chair for a term of one (1)year that begins on January 1 of the following year;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE,TEXAS:
Section 1. That all matters stated in the preamble of this resolution are true and correct and are
hereby incorporated into the body of this resolution as if copied in their entirety.
Section 2. That the City Council hereby appoints
to serve as chair of the Reinvestment Zone Board of Directors for one (1) year to begin on
January 1,2009.
Section 3. That the City of Southlake authorizes and directs that this action be made part of the
City's permanent records.
Section 4. That this resolution shall become effective from and after the date of its passage.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE,TEXAS ON THIS THE 16th DAY OF December 2008.
APPROVED:
Andy Wambsganss, Mayor
ATTEST:
Lori A.Payne, City Secretary
SOUTHLAKE TAX INCREMENT FINANCING DISTRICT
(A Component Unit of the City of Southlake, Texas)
SEPTEMBER 30, 2008
ANNUAL REPORT
(Unaudited)
Prepared by:
Sharen Jackson
Director of Finance
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SOUTHLAKE TAX INCREMENT FINANCING DISTRICT
(A Component Unit of the City of Southlake, Texas)
COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 2008 (unaudited)
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2007
September 30,2008
Governmental Fund Types Account Group
General
Special Capital Long-Term September 30,
ASSETS Revenue Projects Liabilities 2007
Cash and investments $3,442,842 $ 569,755 $ 645,149
Accounts Receivable 2,674 1,851 400,576
Amount to be provided for retirement
of long-term liabilities 27,162,502 21,717,500
TOTAL ASSETS $3,445,516 $ 571,606 $ 27,162,502 $ 22,763,225
LIABILITIES, EQUITY AND OTHER CREDITS
Liabilities:
Accrued liabilities $ - $ - $ - $ 27,788
Bond payable 27,162,502 21,717,500
Total liabilities - - 27,162,502 21,745,288
Fund Balances:
Unreserved, undesignated 3,445,516 709,411
Reserved for capital projects 571,606 308,526
Total fund balances 3,445,516 571,606 - 1,017,937
TOTAL LIABILITIES
AND FUND BALANCES S 3,445,516 $ 571,606 $ 27,162,502 $ 22,763,225
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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, 2008 (unaudited)
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2007
September 30, 2008
Governmental Fund Types
Special Capital September 30,
Revenue Projects 2007
REVENUES:
Property taxes $ 7,472,586 $ 4,965,595
Donations
Interest 41,872 13,080 68,149
Total revenues $ 7,514,458 $ 13,080 $ 5,033,744
EXPENDITURES:
Professional,engineering and construction cost 14,500 6,270,000
Other operations 3,150,473 2,643,192
Total expenditures 3,164,973 6,270,000 2,643,192
Excess(deficiency) of
revenues over expenditures 4,349,485 (6,256,920) 2,390,552
Other financing sources(uses)
Bond proceeds 6,520,000 -
Operating transfers out (1,613,380) (2,033,656)
Operating transfers in
Total other financing sources(uses) (1,613,380) 6,520,000 (2,033,656)
Excess of revenues and other
financing sources over expenditures
and other uses 2,736,105 263,080 356,896
Fund Balances at beginning of year 709,411 308,526 661,041
Fund Balances at end of year $ 3,445,516 $ 571,606 $ 1,017,937
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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 T1F 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, 2008 the carrying amount of the TIF's deposits at banks was
$1,061,595. 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, 2008, the TIF's investments consisted of the following:
Market Value
State Treasurer's investment pool ("Texpool") $2,951.002
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% $ 2,150,000
General Obligation Refunding Bonds,
Series 2002, due in annual Installments
through February 15, 2018, 3.00% to 4.350% $ 3,125,000
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% $ 2,946,000
Tax and Tax Increment Revenue Certificates
Of Obligation, Series 2003A, due in annual
Installments through February 15, 2018, 3.50%to 4.30% $ 6,030,000
$27.081.000
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The annual requirements to amortize the long-term debt as of September 30, 2008, are
as follows:
Fiscal Year
2009 2,867,103
2010 2,823,110
2011 3,232,303
2012 3,641,247
2013 and thereafter 22,508,137
Total payments required 35,071,900
Less interest ! 7,909,398)
Total principal $27.081.000
NOTE4: APPRAISED VALUES
A summary of appraised values for the TIF are as follows:
1997
Tax Year Base Year Captured
2007 Taxable Taxable Taxable
Value Value Value
Entity
City of Southlake $297,039,904 $23,475,366 $273,564,538
Tarrant County Hospital 297,179,904 23,475,366 273,704,538
Tarrant County Community College 297,186,904 23,475,366 273,711,538
Tarrant County 297,179,904 23,475,366 273,704,538
Carroll Independent School District 296,939,904 23,450,435 273,489,469
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