2002-01-22 City of Southlake, Texas
MEMORANDUM
January 16, 2002
TO: Board of Directors, Tax Increment Reinvestment Zone Number One (TIRZ)
FROM: John Eaglen, Assistant to the City Manager (817 481 -1433)
SUBJECT: Agenda Item Comments — Board of Directors Meeting, January 22, 2002
The Board of Directors Meeting is scheduled for 4:30 p.m. in the City Council Chambers at the Town Hall
Building. Please note that Early Voting for the Crime Control District Continuation Election will be ongoing
in the Executive Conference Room until 5:30 p.m., so please enter the Council Chambers through the main
entrance. The meeting is intended to inform you of the financial status of the reinvestment zone and present
the annual report to the Board of Directors, and to take care of annual administrative items relating to the
Board.
Agenda Item No. 2, Temporary Appointment of Chair — Gary Fawks was appointed by the City Council to
serve as chair for 2001, however the position became vacant in May 2001 due to changes on the City Council.
After researching the Vice -Chair appointment, the position became vacant in January 2001. The purpose of
this agenda item is to temporarily elect a Chair to facilitate this meeting.
Agenda Item No. 3, Approval of the Minutes from the December 5, 2000 Tax Increment Reinvestment Zone
Number One Board of Directors Meeting — A copy of the minutes is included in your packet for review. If
you have corrections to the minutes, please forward them to me in advance of the meeting, or you may make
changes as part of your motion during consideration of this item at the meeting.
Agenda Item No. 4, Approval of the 2001 Annual Report for the Tax Increment Reinvestment Zone Number
One — Included in your packet is the TIRZ annual report prepared by Director of Finance Sharen Elam.
Section 311.016 of the Tax Increment Financing Act establishes an annual report requirement for the TIRZ,
and a copy of this report must be sent to the State Attorney General. Please contact Sharen with questions
regarding the report at (817) 481 -1713.
Agenda Item No. 5, City Council Appointment of Chair for the Tax Increment Reinvestment Zone Number
One Board of Directors for 2002 — Included in your packet is a staff report outlining the legal requirements for
the City Council appointment of a Chair for a one (1) year term. A copy of Resolution 02 -002 appointing the
TIRZ Board Chair is also included for review, this resolution is scheduled for City Council consideration at
their January 22, 2002 meeting.
Agenda Item No. 6, Appointment of Vice -Chair for the Tax Increment Reinvestment Zone Number One Board
of Directors for 2002 — The Board is asked to consider the appointment of a Vice -Chair at this meeting, the
By -Laws designate that the term for this office is for one (1) year. This is consistent with the appointment of
other city board officers.
Agenda Item No. 7, 2002 Board of Directors Meeting Schedule for the Tax Increment Reinvestment Zone
Number One — The By -Laws stipulate that the Board shall meet in the fourth quarter of each year, otherwise
meetings may be scheduled as desired by the Board. In order to make meetings more convenient for everyone
to attend, staff is asking the Board to consider a desired meeting schedule for 2002 at this time.
If you have questions or comments in advance of the meeting, please feel free to contact me at (817) 481-
1433.
SOUTHLAKE TAX INCREMENT FINANCING DISTRICT
(A Component Unit of the City of Southlake, Texas)
SEPTEMBER 30, 2001
ANNUAL REPORT
(Unaudited)
Prepared by:
Sharen Elam.
Director of Finance
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, 2001
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000
September 30, 2001
Governmental Fund Types Account Group
General
Special Capital Long -Term September 30,
ASSETS Revenue Projects Liabilities 2000
Cash and investments $ 467,679 $ 2,519,255 $ - $ 5,648,266
Accounts Receivable 1,794
Amount to be provided for retirement
of long -term liabilities 19,165,036 15,535,036
TOTAL ASSETS $467,679 $ 2,521,049 $ 19,165,036 $ 21,183,302
LIABILITIES, EQUITY AND OTHER CREDITS
Liabilities:
Accrued liabilities $ - $ 284,349 $ - $ 2,580,996
Bond payable 19,165,036 15,535,036
Total liabilities - 284,349 19,165,036 18,116,032
Fund Balances:
Unreserved, undesignated 467,679 223,833
Reserved for capital projects 2,236,700 2,843,437
Total fund balances 467,679 2,236,700 - 3,067,270
TOTAL LIABILITIES
AND FUND BALANCES $ 467,679 $ 2,521,049 $ 19,165,036 $ 21,183,302
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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, 2001
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000
September 30, 2001
Governmental Fund Types
Special Capital September 30,
Revenue Projects 2000
REVENUES:
Property taxes $ 1,262,466 $ - $ 731,789
Donations
Interest 6,217 185,301 231,099
Total revenues $ 1,268,683 $ 185,301 $ 962,888
EXPENDITURES:
Professional, engineering and construction cost 4,313,832 11,184,978
Other operations 709,110 421,582
Total expenditures 709,110 4,313,832 11,606,560
Excess (deficiency) of
revenues over expenditures 559,573 (4,128,531) (10,643,672)
Other financing sources (uses)
Bond proceeds 3,521,794 11,612,642
Operating transfers out (315,727) (230,930)
Operating transfers in -
Total other financing sources (uses) (315,727) 3,521,794 11,381,712
Excess of revenues and other
financing sources over expenditures
and other uses 243,846 (606,737) 738,040
Fund Balances at beginning of year 223,833 2,843,437 2,329,230
Fund Balances at end of year $ 467,679 $ 2,236,700 $ 3,067,270
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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 is 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 (Le.,
revenues and other financing sources) and decreases (Le., 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 -
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interest on Tong -term debt, which are recognized when payable from current
available financial resources.
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, 2001 the carrying amount of the TIF's deposits at banks was
$286,417. 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, 2001, the TIF's investments consisted of the following:
Market Value
State Treasurer's investment pool ( "Texpool ") $2,700,517
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 1999, due in annual
Installments through August 15, 2019, 4.75% to 5.6% $ 3,610,000
Tax and Tax Increment Revenue Certificates
Of Obligation, Series 2000 -B, due in annual
Installments through February 15, 2018, 5.0% to 6.8% $11,925,036
Tax and Tax Increment Revenue Certificates
Of Obligation, Series 2000 -E, due in annual
Installments through August 15, 2018, 4.75% to 5.3% $ 3,630,000
$19,165,036
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The annual requirements to amortize the Tong -term debt as of September 30, 2001, are
as follows:
Fiscal Year
2002 818,866
2003 880,185
2004 1,221,741
2005 1,408,548
2006 1,602,623
2007 and thereafter 29,215,546
Total payments required 35,147,509
Less interest (15,982,473)
Total principal $19,165,036
NOTE4: APPRAISED VALUES
A summary of appraised values for the TIF are as follows:
1997
Tax Year Base Year Captured
2000 Taxable Taxable Taxable
Value Value Value
Entity
City of Southlake $74,190,796 $23,217,804 $50,972,992
Tarrant County Hospital 74,215,796 23,217,804 50,997,992
Tarrant County Community College 74,215,796 23,217,804 50,997,992
Tarrant County 74,215,796 23,217,804 50,997,992
Carroll Independent School District 74,205,796 23,207,804 50,997,992
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