2023-02-07 TIRZ packetTIRZ Meeting Minutes, August 2, 2022 Page 1
TAX INCREMENT REINVESTMENT ZONE NUMBER ONE
BOARD OF DIRECTORS MEETING MINUTES
AUGUST 2, 2022
LOCATION: Southlake Town Hall, City Council Chambers
1400 Main Street, Southlake, Texas 76092
MEMBERS PRESENT: Chairman Randy Williamson, Vice Chair Amy Torres-Lepp, and
members Ronell Smith, Shawn McCaskill, and David Johnson
MEMBERS ABSENT: John Huffman, Kathy Talley, Randy Robbins and Cameron Bryan
STAFF PRESENT: Chief Financial Officer Sharen Jackson and City Secretary Amy Shelley
1.CALL TO ORDER
The meeting was called to order by Chairman Randy Williamson at 5:07pm.
2.CONSIDERATION: APPPROVAL OF THE MINUTES FROM THE JANUARY 4, 2022, TAX
INCREMENT REINVESTMENT ZONE NUMBER ONE BOARD OF DIRECTORS
MEETING.
A motion was made to approve the minutes from the January 4, 2022, Tax Increment
Reinvestment Zone Number One Board of Directors meeting.
Motion: Torres-Lepp
Second: Smith
Ayes: McCaskill, Smith, Torres-Lepp, Williamson
Absent: Bryan, Huffman, Robbins, Talley
Abstain: Johnson
Approved: 4-0-1
3.CONSIDERATION: APPPROVAL OF THE MINUTES FROM THE APRIL 19, 2022, TA X
INCREMENT REINVESTMENT ZONE NUMBER ONE BOARD OF DIRECTORS
MEETING.
A motion was made to approve the minutes from the April 19, 2022, Tax Increment Reinvestment
Zone Number One Board of Directors meeting.
Motion: Torres-Lepp
Second: Smith
Ayes: McCaskill, Smith, Torres-Lepp, Williamson
Absent: Bryan, Huffman, Robbins, Talley
Abstain: Johnson
Approved: 4-0-1
4.DISCUSSION: PROPOSED FISCAL YEAR 2023 TAX INCREMENT REINVESTMENT
ZONE NUMBER ONE BUDGET OVERVIEW AND REVISED BUDGET FIGURES FOR
FISCAL YEAR 2022.
Chief Financial Officer Sharen Jackson provided an overview of the proposed Fiscal Year 2023
Tax Increment Reinvestment Zone Number One budget and revised budget figures for Fiscal
Year 2022. No action was taken on this item.
TIRZ Meeting Minutes, August 2, 2022 Page 2
5. DISCUSSION: TAX INCREMENT REINVESTMENT ZONE NUMBER ONE PROJECT
STATUS UPDATE.
Frank Bliss with Cooper and Company and David Ayer with Kite Reality provided an update on
Town Square.
6. ADJOURNMENT
The meeting was adjourned at 5:21pm.
MINUTES APPROVED ON THIS, THE _____DAY OF __________ 2022.
______________________________
Randy Williamson, Chairman
ATTEST:
______________________________
Amy Shelley, TRMC
City Secretary
FY 2022 TAX INCREMENT REINVESTMENT ZONE ANNUAL REPORT
WHAT IS TAX INCREMENT FINANCING?
Tax Increment Financing (TIF) is a
tool to finance public improvements within
a defined area. The improvements should
enhance the environment and attract new
investment. The statutes governing tax
increment financing are in Chapter 311 of
the Texas Tax Code.
A municipality makes an area
eligible for tax increment financing by
designating a “reinvestment zone,” also
called a “tax increment reinvestment zone
(TIRZ)” or a “tax increment financing
(TIF)” zone. The City of Southlake has one
active zone.
Costs of selected public
improvements outlined in the zone’s
project and financing plan may be paid by
current or future tax revenue flowing from
redeveloped or appreciated real property
valued in the zone. The additional tax
dollars generated by growth of real
property value in the zone are called the
tax increment. These dollars flow to a fund
for a specified number of years. Money
flowing into the fund each year is spent
according to an approved plan and in
accordance with agreements in place with
participating governmental units.
A Board of Directors appointed by
the participating governmental units
oversees the budget of the district.
ANNUAL REPORT
Texas law requires the governing
body of the municipality that created the
reinvestment zone to submit a report to the
chief executive officer of each taxing entity
that levies property taxes on real property
in the reinvestment zone on or before the
150th day following the end of the fiscal
FY 2022
City of Southlake TIRZ #1
Board of Directors
John Huffman
City of Southlake
Kathy Talley
City of Southlake
Randy Robbins
City of Southlake
Shawn McCaskill
City of Southlake
Ronell Smith
City of Southlake
Amy Torres-Lepp
City of Southlake
Randy Williamson, Chair
City of Southlake
Cameron Bryan
Carroll ISD
FY 2022 TAX INCREMENT REINVESTMENT ZONE ANNUAL REPORT
2
year of the municipality. This report must
include information about:
• Fund revenues
• Amount and purposes of expenses
• Amount of debt
• Tax increment base/captured
appraised value
• Captured appraised value shared by
the municipality and other taxing units
• Other information necessary to
demonstrate compliance with the tax
increment financing plan.
The City of Southlake has entered into
participation agreements with Tarrant
County, Tarrant County College, Tarrant
County Hospital District, and Carroll
Independent School District (CISD).
SOUTHLAKE TAX INCREMENT REINVESTMENT
ZONE #1
The Southlake Tax Increment
Reinvestment Zone #1 was established to
provide a financing mechanism to
facilitate high quality development in the
southeast area of the city. Created by
Ordinance No. 682 in September 1997,
TIRZ #1 was set to expire on December 31,
2018, or the date when all project costs
were paid and all debt was retired,
whichever came first.
However, in August 2018, the TIRZ
#1 Board and the City Council amended
the Project and Financing Plan a second
time to extend the life of the zone for 20
years and adjust the planned projects and
associated costs. The participation of the
overlapping taxing jurisdictions was also
adjusted to reduce Tarrant County, Tarrant
County Jr. College, and the Tarrant County
Hospital District participation to zero
percent. The City of Southlake’s and
Carroll ISD’s participation amounts
remained unchanged in the extension with
participation at 100%.
The TIRZ’s base year taxable value
(1997) was $23,475,366. Taxable property
value appreciation in the zone since that
time is captured for investment in the zone.
The Project & Financing Plan approved in
August 1999 and amended in August 2018
outlines the strategies used to encourage
development in the zone. The Plan also
includes value projections for the zone as
a benchmark to track performance.
Since its implementation in 1998, the
TIF has generated $142,222,432 in
revenue for investment, and to further the
economic development goals of the zone.
TIRZ #1 REVENUES
In FY 2022, $9,228,696 in ad valorem
taxes was collected in the zone. Coupled
with interest income, the fund realized
over $9.33 million in revenue for the fiscal
year, a 5.0% decrease below FY 2021. (See
Attachment A for historical collections by entity)
The captured incremental taxable
value for TIRZ #1 for the 2021 tax year was
$508,142,995 which was a decrease of
$7,431,651 below the incremental value
for 2020. (See Attachment A for incremental
taxable value by entity)
FY 2022 TAX INCREMENT REINVESTMENT ZONE ANNUAL REPORT
3
TIRZ #1 EXPENDITURES
In January 1998, the City Council
entered into the first commercial
developer agreement with Southlake
Venture West LP and Southlake Venture
East LP for Southlake Town Square, Phase
I. Since that time, the Council has entered
into developer agreements for additional
phases of Southlake Town Square.
The developer completed both
public and private improvements on the
site and the agreements provide for 40%
reimbursement of the cost for public
infrastructure (roads, water, sewer,
parking, etc.), and 100% reimbursement
for the cost of public parks in Town Square.
Through September 30, 2022, the
developer has been reimbursed a total of
$11,025,136 for eligible project costs.
In addition to reimbursements made
from the incremental property value in the
zone, the City Council executed a 380
Agreement with the developer, providing
for reimbursement of 80% of the sales
taxes collected in the Grand Avenue
portion of the project until December 31,
2018.
Public buildings and facilities were
also included in the project and financing
plan. A joint City/County facility was built
and opened in early 2000, parking
facilities were purchased by the City in
2008, and the plan includes a number of
school facilities and operating expenses
as well, to be funded with CISD and City of
Southlake contributions only.
For FY 2022, $8,308,591 was spent
on zone operations and infrastructure.
These funds were used for debt service
obligations of Carroll Independent School
District facilities, infrastructure
improvements and operational cost
identified in the project and financing
plan.
TIRZ #1 FUND BALANCE
At the conclusion of FY 2022, the
fund balance was $6.7 million. At the
conclusion of FY 2023, it is projected that
the fund balance will be $8.9 million.
These funds will be necessary for future
projects and may also be used to
reimburse the City of Southlake for the city
funds used to supplement debt service
payments in prior years.
FY 2022 TAX INCREMENT REINVESTMENT ZONE ANNUAL REPORT
ATTACHMENT A
Chart 1: Comparison of revenues received by taxing entity per fiscal year
Chart 2: 2022 Taxable Value Increment by participating taxing entity
Chart 3: Comparison of revenue received to debt service obligations
*- $1,995,000 (FY 17) and $1,445,000 (FY 18) infrastructure reimbursement reduced net revenues.
Note – All debt obligations were paid as of February 2018
(2,000,000)
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
FY
1999
FY
2001
FY
2003
FY
2005
FY
2007
FY
2009
FY
2011
FY
2013
FY
2015
FY
2017
FY
2019
FY
2021
City of Southlake Tarrant County Hospital District Tarrant County College Tarrant County Carroll ISD
508,142,995 519,847,535
-
100,000,000
200,000,000
300,000,000
400,000,000
500,000,000
600,000,000
City of Southlake Carroll ISD
Base Year Taxable Value Increment Taxable Value
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
FY 1999FY 2000FY 2001FY 2002FY 2003FY 2004FY 2005FY 2006FY 2007FY 2008FY 2009FY 2010FY 2011FY 2012FY 2013FY 2014FY 2015FY 2016FY 2017*FY 2018*FY 2019FY 2020FY 2021FY 2022Net TIRZ Revenue TIRZ Annual Debt Service
FY 2022 TAX INCREMENT REINVESTMENT ZONE ANNUAL REPORT
5
TAX INCREMENT FIXED BASE: $23,475,366 Incremental Taxable Value FY 2020 $554,555,120