09-30-2007 SOUTHLAKE TAX INCREMENT FINANCING DISTRICT
(A Component Unit of the City of Southlake, Texas)
SEPTEMBER 30, 2007
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, 2007 (unaudited)
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2006
September 30, 2007
Governmental Fund Types Account Group
General
Special Capital Long-Term September 30,
ASSETS Revenue Projects Liabilities 2006
Cash and investments $ 684,326 $ 299,930 $ 657,633
Accounts Receivable 2,622 327 3,408
Amount to be provided for retirement
of long-term liabilities 21,717,500 22,884,347
TOTAL ASSETS $ 686,948 $ 300,257 $ 21,717,500 $ 23,545,388
LIABILITIES, EQUITY AND OTHER CREDITS
Liabilities:
Accrued liabilities -
Bond payable 21,717,500 22,884,347
Total liabilities - - 21,717,500 22,884,347
Fund Balances:
Unreserved, undesignated 686,948 367,739
Reserved for capital projects 300,257 293,302
Total fund balances 686,948 300,257 - 661,041
TOTAL LIABILITIES
AND FUND BALANCES $ 686,948 $ 300,257 S 21,717,500 $ 23,545,388
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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, 2007 (unaudited)
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2006
September 30, 2007
Governmental Fund Types
Special Capital September 30,
Revenue Projects 2006
REVENUES:
Property taxes $ 4,965,595 $ 3,620,353
Donations
Interest 30,462 6,956 28,047
Total revenues $ 4,996,057 $ 6,956 $ 3,648,400
EXPENDITURES:
Professional,engineering and construction cost
Other operations 2,643,192 2,024,305
Total expenditures 2,643,192 - 2,024,305
Excess(deficiency)of
revenues over expenditures 2,352,865 6,956 1,624,095
Other financing sources(uses)
Bond proceeds -
Operating transfers out (2,033,656) (1,432,053)
Operating transfers in
Total other financing sources(uses) (2,033,656) - (1,432,053)
Excess of revenues and other
financing sources over expenditures
and other uses 319,209 6,956 192,042
Fund Balances at beginning of year 367,739 293,301 468,999
Fund Balances at end of year $ 686,948 $ 300,257 $ 661,041
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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 TIE 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 recognizes; 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, 2007 the carrying amount of the TIF's deposits at banks was
$344,865. 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, 2007, the TIF's investments consisted of the following:
Market Value
State Treasurer's investment pool ("Texpool") $639,390
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% $ 2,545,000
General Obligation Refunding Bonds,
Series 2002, due in annual Installments
through February 15, 2018, 3.00%to 4.350% $ 3,315,000
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% $ 3,027,500
$21,717,500
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The annual requirements to amortize the long-term debt as of September 30, 2007, are
as follows:
Fiscal Year
2008 1,613,381
2009 2,122,353
2010 2,078,760
2011 2,489,153
2012 and thereafter 20,954,460
Total payments required 29,258,105
Less interest f 7.540.605}
Total principal $21,717,500
NOTE4: APPRAISED VALUES
A summary of appraised values for the TIF are as follows:
1997
Tax Year Base Year Captured
2006 Taxable Taxable Taxable
Value Value Value
Entity
City of Southlake $206,583,217 $23,475,366 $183,107,851
Tarrant County Hospital 206,608,217 23,475,366 183,132,851
Tarrant County Community College 206,608,217 23,475,366 183,132,851
Tarrant County 206,608,217 23,475,366 183,132,851
Carroll Independent School District 206,598,217 23,450,435 183,147,782
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