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Home My WebLink AboutRivery_Park_TIRZ_Board_Agenda_8_4_2022_4369Notice of Meeting for the Riv ery P ark T I RZ B oard of the City of Georgetown August 4, 2022 at 11:30 AM at Georgetown City Hall Community Room, 808 Martin L uther K ing Jr. St. T he C ity of G eorgetown is committed to compliance with the Americans with Disabilities Act (ADA). If you require as s is tance in partic ipating at a public meeting due to a disability, as defined under the ADA, reas onable as s is tance, adaptations , or ac commodations will be provided upon request. P leas e c ontact the C ity S ec retary's O ffic e, at leas t three (3) days prior to the sc heduled meeting date, at (512) 930-3652 or C ity Hall at 808 Martin Luther King Jr. S treet, G eorgetown, T X 78626 for additional information; T T Y users route through R elay Texas at 711. L egislativ e Regular Agenda A C ons ideration and possible approval of the minutes from the Augus t 5, 2021 R ivery P ark Tax Increment R einvestment Zone (T I R Z) Board Meeting – Mayor Josh S c hroeder, C hair B P resentation of the annual financial report for the R ivery Tax Increment R einves tment Zone –Nathan P arras, As s is tant F inance Director Adjournment Ce rtificate of Posting I, R obyn Densmore, C ity S ecretary for the C ity of G eorgetown, Texas, do hereby c ertify that this Notic e of Meeting was posted at C ity Hall, 808 Martin Luther King Jr. S treet, G eorgetown, T X 78626, a plac e readily acc es s ible to the general public as required by law, on the _____ day of _________________, 2022, at __________, and remained s o posted for at leas t 72 c ontinuous hours prec eding the s cheduled time of said meeting. __________________________________ R obyn Dens more, C ity S ec retary Page 1 of 20 City of Georgetown, Texas Rivery Park T I RZ Board August 4, 2022 S UB J E C T: C onsideration and pos s ible approval of the minutes from the August 5, 2021 R ivery P ark Tax Inc rement R einves tment Zone (T I R Z) Board Meeting – Mayor Jos h S chroeder, C hair IT E M S UMMARY: F IN AN C IAL IMPAC T: . S UB MIT T E D B Y: S haron P arker AT TAC H ME N T S: Description Type Minutes Backup Material Page 2 of 20 Minutes Rivery Park Tax Increment Investment Zone (TIRZ) Board City of Georgetown, Texas August 5, 2021 at 24:30 PM The River Park TIRZ Meets annually, this is a draft of the minutes from the 2021 annual meeting. These minutes will be reviewed for approval at the next annual meeting. Page 3 of 20 Minutes Rivery Park Tax Increment Investment Zone (TIRZ) Board City of Georgetown, Texas August 5, 2021 at 24:30 PM The Rivery Park Tax Increment Investment Zone (TIRZ) Board met on August 5, 2021 at 2:30 PM at City Hall, 808 Martin Luther King Jr Street, Georgetown, Texas Board Members Present: Board Members Absent: Mayor Josh Schroeder, Chair Ronald Swain, SW University Laurie Brewer, ACM Jeff Novak, Developer Leigh Wallace, Finance Director Terry Wilson, Rep House 20 Val Covey, Commissioner Prescient 3 Leak Clark, Senator District 5 Shawn Hood, City Council District 2 City Staff Present: David Morgan, City Manager Nathan Parras, Assistant Finance Director Elaine Wilson, Assistant Finance Director Erika Young, Senior Budget Analyst Sharon Parker, Board Liaison Others present: Regular Agenda: Mayor Josh Schroeder Called the meeting to order at 2:30 p.m. A. Consideration and possible action to approve the minutes from the July 31, 2020 Rivery Park Tax Increment Reinvestment Zone (TIRZ) Meeting – Mayor Josh Schroeder, Chair. Motion to approve the minutes as presented by Val Covey, second by Shawn Hood . Approved 6-0, Ronald Swain, Jeff Novak & Terry Wilson absent. B. Presentation of the annual financial report for the Rivery Tax Increment Reinvestment Zone – Laurie Brewer, ACM Nathan Parras, Assistant Finance Director, provided an overview of the Board membership, as well as an overview of Tax Increment Financing/Tax Increment Reinvestment Zones, their purpose, how they are utilized, as well as the role of the Advisory Board. Parras also presented a map that outlined the Rivery Park TIRZ Boundary. Nathan presented the annual financial report. Discussion: Are the expenses listed only TIRZ expenses? The City paid for the Garage, we issued debt as a part of that as well as part of the other infrastructure around the garage and some administrative Page 4 of 20 Minutes Rivery Park Tax Increment Investment Zone (TIRZ) Board City of Georgetown, Texas August 5, 2021 at 24:30 PM cost to pay the appraisal district. This is not reimbursing the developer? Not at this point. The developer paid for the garage then we issued bonds to pay the developer. The city owns the garage. If there were local participation on a project and we sold debt, we could pull that debt service out of the TIRZ? Yes, but this is property taxed backed so if this TIRZ is not performing we would still have the debt service obligation. Can the county do this as well? Yes but they usually don’t. The city usually does not either. It is usually a reimbursement to the developer. This is a unique TIRZ, the county got involved because of the event center. The city got involved because of the parking garage. Update on the new building, is the parking going to be just for the residents or will there be public parking too? It will have both. Is there anything else in that TIRZ that can be built? Yes, not much. All the brownstones have been built. Is it what we thought it would be as far as value? Yes, it is now but it took longer to get there. No Action Needed Motion from Laurie to Adjourn Meeting, Meeting adjourned at 2:50 pm. __________________________________ ____________ Mayor Josh Schroeder Date Board Chair ___ _______________________________ ____________ Sharon Parker Date Board Liaison Page 5 of 20 City of Georgetown, Texas Rivery Park T I RZ Board August 4, 2022 S UB J E C T: P res entation of the annual financ ial report for the R ivery Tax Inc rement R einvestment Zone –Nathan P arras , Assistant F inanc e Direc tor IT E M S UMMARY: An annual meeting of the T I R Z board is required by the by-laws . T his is traditionally completed in late S ummer, s o that the board c an review the previous year’s financial activity, as well as have a preview of the upc oming budget proposal for the T I R Z. S P EC I AL C O NS I DER AT I O NS : C ouncil is sc heduled to ac t on all c omponents of the F Y2023 budget in August 2022. F IN AN C IAL IMPAC T: . S UB MIT T E D B Y: S haron P arker AT TAC H ME N T S: Description Type Pres entation Pres entation Page 6 of 20 Rivery Tax Increment Reinvestment Zone Fiscal Year 21 Year End Balances Fiscal Year 22 and 23 Budget Update Page 7 of 20 22 Tax Increment Reinvestment Zones •Also called TIF –Tax Increment Financing •Geographical area where property tax revenues are dedicated from incremental increase in assessed values towards improvements in the zone •Property would not develop otherwise •Sets aside additional revenue accrued due to valuation increases after establishment of TIRZ •Improvement plan is approved •Revenues to be utilized towards improvements in the district •Authorized by Texas Constitution and Chapter 311 of Tax Code Page 8 of 20 33 Role of Board •Advisory to the Council •Council is final decision point for TIRZ activity •Board approves/recommends the project and funding plans •Annual meetings required to review financial activity Page 9 of 20 44 Background •Created in 2007 •Amended in 2008, 2012, 2013 and in 2014 •Expires in 2041 or after debt and other obligations of zone have been met •Zone – •66 acres –32 were undeveloped, remainder was city park •Base year of zone value -$4.9M •100% of City’s Tax Increment contributed to the Zone •80% of the County’s Tax increment contributed to the Zone •City shares sales tax with County (50% of General 1%) within zone •Projects expected to be paid from zone $25M •Expected private capital investment of over $135M in plan Page 10 of 20 55 Background •Created to facilitate mixed use development including a hotel and conference center •Site improvements, parking garage, park improvements •Multiple development agreements – •Master Development Agreement •Joint Use Access and Lease •County TIF agreement •Georgetown Economic Development Corp •Georgetown Transportation Enhancement Corp Page 11 of 20 6 Project Plan Page 12 of 20 7 Page 13 of 20 88 FY2022 Projections •After the CAFR process, the FY2021 ending balance totaled $608,820. •FY2022 revenues are projected to finish the year in line with budget. •FY2022 expenses are projected to finish the year in line with budget. •$610,820 transferred for debt service •$10,500 administrative expense includes fees for appraisal district, tax collection, accounting/finance, legal and city management Page 14 of 20 99 FY2023 Budget •FY2023 revenues total $1.12 million which represents an increase of 31% over FY2022 projections. •Continue to see growth in assessed value in the TIRZ Page 15 of 20 10 Page 16 of 20 1111 TIRZ Value Year Total AV Base Value TIRZ Value Increment Tax Rate TIRZ Revenue FY2010 4,974,292 4,974,292 - 0.356 - FY2011 8,235,124 4,974,292 3,260,832 0.356 11,616 FY2012 6,982,076 4,974,292 2,007,784 0.388 7,780 FY2013 6,981,032 4,974,292 2,006,740 0.410 8,228 FY2014 6,591,719 4,974,292 1,617,427 0.440 7,109 FY2015 14,105,097 4,974,292 9,130,805 0.434 39,628 FY2016 29,809,712 4,974,292 24,835,420 0.434 107,786 FY2017 63,822,668 4,974,292 58,848,376 0.424 249,517 FY2018 73,743,730 4,974,292 68,769,438 0.420 288,832 FY2019 94,493,464 4,974,292 89,519,172 0.420 375,981 FY2020 101,946,996 4,974,292 96,972,704 0.420 407,285 FY2021 110,182,006 4,974,292 105,207,714 0.418 439,768 FY2022 118,339,310 4,974,292 113,365,018 0.401 454,594 FY2023 165,477,054 4,974,292 160,502,762 0.374 600,280 Rivery TIRZ Page 17 of 20 1212 FY2023 Budget/Projects •FY2023 expenses total $612,788 •Debt Service -$611,920 •Administration -$868 •Includes fees for appraisal district, tax collection, accounting/finance, legal and city management –based on updated allocation study in FY22 •Debt Service Reserve -$614,120 •Fully funded and in compliance with Fiscal and Budgetary Policy Page 18 of 20 FY2021 Actuals Amended Budget Projected Base Budget Changes Proposed Budget Beginning Fund Balance 466,144 665,131 608,339 840,353 - 840,353 Revenue 40001:Property Taxes 386,115 455,727 455,727 600,280 - 600,280 42001:Interest Income 1,576 400 1,200 1,000 - 1,000 45001:Misc Revenue 383,687 396,407 396,407 519,110 - 519,110 Revenue Total 771,378 852,534 853,334 1,120,390 - 1,120,390 Expense Operations Total 15,000 10,500 10,500 868 - 868 Transfers 614,183 610,820 610,820 611,920 - 611,920 Expense Total 629,183 621,320 621,320 612,788 - 612,788 Ending Fund Balance 608,339 896,345 840,353 1,347,955 - 1,347,955 Reserves Debt Service Reserve 610,820 611,920 611,920 614,120 - 614,120 Capital Reserve - - - - - - Reserves Total 610,820 611,920 611,920 614,120 - 614,120 Available Fund Balance (2,481) 284,425 228,433 733,835 - 733,835 Rivery TIRZ FY2022 FY2023 Page 19 of 20 1414 Questions Page 20 of 20