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2002-08-06 MEMORANDUM July 30, 2002 TO: Board of Directors, Tax Increment Reinvestment Zone Number One, City of Southlake, Texas FROM: John Eaglen, Assistant to the City Manager (817 481 -1433) SUBJECT: Agenda Item Comments and Other Items of Interest — August 6, 2002 Board of Directors Meeting As a reminder, the meeting will begin at 4:30 p.m. in the City Council Chambers at Southlake Town Hall. Agenda Item Number Two, Approval of the Minutes from the January 22, 2002 Tax Increment Reinvestment Zone Number One Board of Directors Meeting — A copy of the DRAFT minutes is included in your packet for review. If you have corrections to the minutes, please contact me in advance of the meeting or make the changes as part of your motion to consider approval of the minutes. Agenda Item Number Three, Tax, Increment Reinvestment Zone Number One Project Plan Budget Review — Director of Finance Sharen Elam will provide a status report on the Zone's Project Plan Budget, a brief summary of expenditures current through July 31, 2002 is included in your packet for review. Agenda Item Number Four, Fiscal Year 2002 -03 Tax Increment Reinvestment Zone Number One Budget Overview — This agenda item was discussed at the January 22, 2002 meeting, as staff has received the certified tax roll from the Tarrant Appraisal District (TAD) and has the ability to provide a snapshot of the financial outlook for the next fiscal year. The proposed budget is included in your packet for review and, staff will be prepared to discuss the proposal in detail at the meeting. Agenda Item Number Five. Approval of request to the City Council authorizing the Board of Directors to amend the Bylaws of Tax Increment Reinvestment Zone Number One, The City of Southlake, Texas. Article II, Section 1: Powers. Number, and Term of Office; Article II, Section 3: Regular Meetings: and Article II, Section 6: Conduct of Business — Staff has received a request from Cooper and Stebbins to consider the addition of one (1) at -large appointment by the City Council to the Board of Directors, with the stipulation that this appointment would be nominated by Cooper and Stebbins. This is a similar arrangement to the participation agreement with CISD, where they nominate an individual for appointment by City Council. In addition to consideration of this request, the City Attorneys have reviewed the Bylaws and recommended the following changes to the Bylaws: Board of Directors, Tax Increment Reinvestment Zone Number One, City of Southlake, Texas July 30, 2002 Page 2 of 2 • Article II, Section 3: Regular Meetings — This amendment adds language present in Article II, Section 4 regarding notification procedures for special or emergency meetings. The addition of this language into section three standardizes the notification procedures for all Board meetings, however called. • Article II, Section 6: Conduct of Business — This amendment designates the City Secretary or Deputy City Secretary as the Secretary for the Board of Directors. This is consistent with the City Charter and City Council procedures, and helps streamline the number of actions required by the Board of Directors on an annual basis (Only requiring election of a Vice - Chair, and a recommendation to the City Council regarding appointment of a Chair). Regarding the Cooper and Stebbins request, Section 311.008(a) of the Tax Code allows the Board to be comprised of between five (5) and fifteen (15) members, with the City Council having the ability to appoint no more than ten (10) members. Currently, the TIRZ Bylaws provide for the appointment of eight (8) Directors by the City Council. To process this request takes a number of steps. You must approve a request to the City Council with proceeding to amend the Bylaws. If the Board approves this request, this item will be placed on the City Council's agenda for approval later in the evening. The Board may then proceed to amend the Bylaws at a future meeting to be determined. In addition to the Bylaw amendments, the City Council must also amend City Ordinance Number 761 relating to appointments by City Council. Staff would ask the TIRZ Board of Directors to consider a recommendation to the City Council to amend this Ordinance at a future meeting. After approval of the amendments to the Ordinance at two (2) separate readings, the City Council could proceed with the appointment. A staff report and a copy of the proposed bylaw amendments is included for your review. Agenda Item Number Six, Establish Meeting Schedule for the remainder of 2002 — In January the Board established the meeting calendar to.consist of this meeting date, and a second meeting date on Tuesday, December 3 at 4:30 p.m. to consider approval of the annual report. This agenda item provides the Board an opportunity to discuss the timetable that you wish to take in consideration of the request from Cooper and Stebbins for the additional appointment to the Board. Staff will work under any timeline that you establish for the remainder of the year, and would add any agenda items that you wish to include on particular meeting dates. As always, we appreciate your commitment and service to the community. If you have any questions regarding the agenda or the packet materials, please feel free to contact Sharen at (817) 481 -1713 or myself at (817) 481 -1433. City of Southlake, Texas MEMORANDUM August 2, 2002 TO: Billy Campbell, City Manager FROM: Sharen Elam, Director of Finance (817 481 -1713) SUBJECT: Tax Increment Reinvestment Zone Number One Project Plan Budget Review Action Requested: Tax Increment Reinvestment Zone (TIRZ) Number One Board of Directors discussion of current financial status of TIRZ Number One Project Plan. Background Information: Included in your packet is a financial summary of the Project Plan (Project Cost for Town Hall and Library) through July 31, 2002. This summary breaks down the project into three (3) categories: Public Buildings and Facilities, Operational and Maintenance, and Other Incremental Costs. Financial Considerations: The Bond Proceeds from issues on June 15, 1999, March 7, 2000, and December 5, 2000 total $17,686,529. The total project cost as of July 31, 2002 totals $17,536,786, leaving an unencumbered balance of $149,743. Citizen Input/ Board Review: Not Applicable. Legal Review: Not Applicable. Alternatives: Input towards the discussion as desired. S upporting Documents: Supporting documents include the following items: • Financial summary of TIRZ Number One Project Cost (Town Hall) as of July 31, 2002. Staff Recommendation: Place as an item on the August 6, 2002 TIRZ Number One Board of Directors meeting agenda to discuss the current financial status of the TIRZ Number One Project Plan. Tax Increment Reinvestment Zone #1 Project Cost (Town Hall) as of July 31, 2002 Total Cost Bond Proceeds (1) as of 7/31/02 Balance Public Buildings and Facilities Joint City /County Facility 12,500,000 13,088,100 (588,100) Educational Facilities 1,139,000 1,104,154 (2) 34,846 Operational and Maintenance FF &E costs for Town Hall 1,607,529 1,420,305 187,224 Site work for Town Hall 500,000 232,204 267,796 Other Incremental Costs Professional Services 1,940,000 1,692,023 247,977 17,686,529 17,536,786 149,743 (1) Combination of three bond issues dated June 15, 1999; March 7, 2000 and December 5, 2000. (2) Includes $334,000 of encumbered funds City of Southlake, Texas MEMORANDUM August 2, 2002 TO: Billy Campbell, City Manager FROM: Sharen Elam. Director of Finance (817 481 -1713) SUBJECT: Fiscal Year 2002 -03 Tax Increment Reinvestment Zone Number One Budget Overview Action Requested: Tax Increment Reinvestment Zone (TIRZ) Number One Board of Directors discussion of the proposed Fiscal Year 2002 -03 TIRZ Budget. Background Information: The 'City received the Certified Tax Roll from the Tarrant Appraisal District (TAD) on July 25. After comparing revenue estimates and reviewing proposed expenditures, staff has developed the proposed Fiscal Year 2002 -03 Budget (included in your packet for review). The Ad Valorem revenue base for FY 2002 -03 has an increment taxable base of $77,229,336. Contributing taxing jurisdictions include the City of Southlake, Tarrant County, Tarrant County College, and Tarrant County Hospital District. Carroll ISD also participates in the TIRZ, but historically the proposed budget reflected a zero -level of participation per the participation agreement between the City and CISD. The City will know the exact dollar contribution from CISD in FY 2002 -03 in March, 2003. Financial Considerations: The only expenditures proposed in the FY 200203 Budget are for debt service ($880,185), leaving a proposed Ending Fund Balance of $241,160. Citizen Input/ Board Review: The TIRZ Number One Board of Directors requested this discussion on this meeting agenda at their January 22, 2002 meeting. Legal Review: Not Applicable. Alternatives: Input towards the discussion as desired. Supporting Documents: Supporting documents include the following items: • Fiscal Year 2002 -03 Proposed TIRZ Budget and 2001 -02 Revised Budget; • Fiscal Year 2002 -03 Operating Account Budget Request Worksheet. Billy Campbell, City Manager August 2, 2002 Page 2 of 2 Staff Recommendation: Place as an item on the TIRZ Number One Board of Directors meeting agenda to discuss the proposed Fiscal Year 2002 -03 TIRZ Number One Budget. TIF OPERATING FUND 2002 -03 Proposed Budget and 2001 -02 Revised Budget 10:28 PM 08/01/02 $ Increase/ $ Increase/ 2000 -01 2001 -02 2001 -02 (Decrease) % Increase/ 2002 -03 (Decrease) % Increase/ Actual Adopted Amended Adopted - Decrease Proposed Adopted - Decrease REVENUES Ad Valorem $1,262,466 $639,088 $1,513,623 $874,535 136.8% $800,862 $161,774 25.3% Interest Income $10,972 $0 §0 /0 0.0% 12 5.9. 0.0% Total Revenues $1,273,438 $639,088 $1,513,623 $874,535 136.8% $800,862 $161,774 25.3% EXPENDITURES Operations $709,110 I0 $846,708 846.708 0 . 0 % §. 0 0.0% Total Expenditures $709,110 $0 $846,708 $846,708 0.0% $0 $0 0.0% Net Revenues $564.328 1838.08$ 5666.91,E $27.82Z ,$800.86Z $161.774 Transfers Out -Debt Service (315,727) (818,866) (818,866) 0 (880,1851 ($61,319) Total Other Sources (Uses) ($315.7271 (,$818.8661 J108.868j ,$,Q (5880,1851 Beginning Fund Balance $223,833 $472,434 $472,434 $320,483 Prior period adjustment 0 0 0 0 Ending Fund Balance S472.434 5292.656 $320.481 $241.160 \ / ) / ) \ ° \ / E / C E E - al / - 4 - � CD Cr) / 2 \ 0 O / \ „ ± R- e & ∎ Q / . 0 - co \ \ 4 - % k \ \ / -) E f / S / \ \ / ° ° \ E 0 \ \ O Q ~ b / > _ 0 W 7 \ / / / � 1 0 b ° 0 $ ° % / ƒ I d G b§ CO c ,_ N- # ° § a i k / k R \ 7 D 7 G ¥ 2 2 co = c c n 04 o °) \ CO ƒ U) 5 _ u_ co >- co o co C 0 ) Lu w C CD k k r-- CO CO I-/ . G 2§ r n c $ 2 /\ U\/ i I 0 \ _ 0 # CO < 7 c CO o CO o 0 0 'Cr n Es ) / ) o f $ % CO $ a) / \ $ $ - - N- a) u_ / co = (0 7 7 . �.N 0 $ / / \ ° N- / 7 G < # a) # ¥ Q o CO t o \ b \ / © 0 7 \ u_ < m q CO N- 0 3 t m \ ƒ c E 5 o R f ) 0 ° Z L £ _% ' \ = 5 c O / = o I g @ 5 I / R 0 > \ \ 2 § \ co 3 0 3 < § ( ƒ % \ 3 w cn § ) 2 > \ k / 0 o ± = E / m = 0 c = ° > ° 2 \ > J \ / ƒ \ ƒ / c0 \ CV R 6 % 0 0 / d d / 0 Z C _ 7 a 0 ± 0 0 $ City of Southlake, Texas MEMORANDUM July 30, 2002 TO: Billy Campbell, City Manager FROM: John Eaglen, Assistant to the City Manager (481 -1433) SUBJECT: Approval of authorization to the Tax Increment Reinvestment Zone Number One Board of Directors to amend the Bylaws of Tax Increment Reinvestment Zone Number One, City of Southlake, Texas, Article II, Section 1: Power, Number, and Term of Office; Article II, Section 3: Regular Meetings; Article II, Section 6: Conduct of Business Action Requested: Approval of authorization to the Tax Increment Reinvestment Zone Number One Board of Directors to amend the Bylaws of Tax Increment Reinvestment Zone Number One, City of Southlake, Texas, Article II, Section 1: Power, Number, and Term of Office; Article II, Section 3: Regular Meetings; Article II, Section 6: Conduct of Business. Background Information: Currently there are twelve (12) seats on the TIRZ Number One Board of Directors, with City Council appointing eight (8) seats and each taxing jurisdiction contributing to the Zone appointing one (1) seat each (TCC, Tarrant County, Tarrant County Hospital District, and Carroll ISD). Staff has received a request from Cooper and Stebbins to consider the addition of one (1) at -large seat appointed by City Council, nominated by Cooper and Stebbins. This request is similar to the participation agreement between the City and CISD, where one (1) City Council appointment to the Board of Directors is nominated by the CISD. Section 311.008(a) of the Tax Increment Financing Act allows the Board to be comprised of between five (5) and fifteen (15) members, with the City Council having the ability to appoint no more than ten (10) members. Currently, the TIRZ Bylaws provide for the appointment of eight (8) Directors by the City Council. Processing the Cooper and Stebbins request has to take several steps. First of all, the City Council must grant the Board of Directors authorization to amend the Bylaws, and the Board must approve the amendments. At the same time, the Board needs to approve a recommendation to the City Council to amend City Ordinance No. 761 to correlate with the Bylaw amendments. After two (2) separate readings and approval by City Council, the Council then may proceed with appointment to the Board. Billy Campbell, City Manager July 30, 2002 Page 2 of 3 Upon review of the Bylaws by the City Attorneys, the following amendments are also recommended: • Article II, Section 3: Regular Meetings — This amendment adds language present in Article II, Section 4 regarding notification procedures for special or emergency meetings. The addition of this language into section three standardizes the notification procedures for all Board meetings, however called. • Article II, Section 6: Conduct of Business — This amendment designates the City Secretary or Deputy City Secretary as the Secretary for the Board of Directors. This is consistent with the City Charter and City Council procedures, and helps streamline the number of actions required by the Board of Directors on an annual basis (Only requiring election of a Vice - Chair, and a recommendation to the City Council regarding appointment of a Chair). Financial Considerations: Not Applicable, these Bylaw amendments have no fiscal impact. Citizen Input/ Board Review: The Board of Directors will consider a request for authorization by the City Council to amend the Bylaws at their August 6, 2002 Board meeting prior to the City Council Meeting on August 6, 2002. Legal Review: The City Attorneys have discussed processing this request with city staff and have reviewed and approved the DRAFT Bylaws amendments. Alternatives: Depending upon the action by the Tax Increment Reinvestment Zone Number One Board of Directors, alternatives include the following: • Approval of authorization for the Board of Directors to amend the Bylaws at a desired scope; • Tabling approval of authorization for the Board of Directors to amend the Bylaws; • Denial of authorization for the Board of Directors to amend the Bylaws. Supporting Documents: Supporting documents include the following items: • Copy of Strikethrough version of Bylaws of Tax Increment Reinvestment Zone Number One, City of Southlake, Texas, highlighting the proposed amendments. Billy Campbell, City Manager July 30, 2002 Page 3 of 3 Staff Recommendation: Place as an item on the August 6, 2002 City Council meeting agenda to approve authorization for the Tax Increment Reinvestment Zone Number One Board of Directors to amend the Bylaws of Tax Increment Reinvestment Zone Number One, City of Southlake, Texas, Article II, Section 1: Power, Number, and Term of Office; Article II, Section 3: Regular Meetings; Article II, Section 6: Conduct of Business.