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HomeMy WebLinkAboutRivery_Park_TIRZ_Board_Agenda_8_5_2021_3906Notice of Meeting for the Riv ery P ark T I RZ B oard of the City of Georgetown August 5, 2021 at 2:30 P M 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. The Rive ry P ar k T I R Z B oard is now me eting in-per son with a quor um pre se nt and public is welcome to atte nd. If spe cial ac commodations ar e nee de d due to C O V I D -19 and attending vir tually is nec essar y, ple ase re ach out the the S taff L iaison, Sharon P arker at sharon.par ke r@ge orge town.org or 512-930-6534 for assistanc e. Regular Session (T his R egular S es s ion may, at any time, be rec es s ed to c onvene an Exec utive S es s ion for any purpose authorized by the O pen Meetings Act, Texas G overnment C ode 551.) A R eview the minutes from the July 31, 2020 R ivery P ark Tax Increment R einvestment zone (T I R Z) Board Meeting – Mayor Jos h S chroeder , C hair B P resentation of the annual financial report for the R ivery Tax Increment R einves tment Zone – Laurie Brewer, Assistant C ity Manager 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 _________________, 2021, 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 21 City of Georgetown, Texas Rivery Park T I RZ Board August 5, 2021 S UB J E C T: R eview the minutes from the July 31, 2020 R ivery P ark Tax Inc rement R einves tment zo ne (T IR Z) Board Meeting – Mayor Josh S c hroeder , C hair IT E M S UMMARY: F IN AN C IAL IMPAC T: N/A 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 21 Rivery Park TIRZ Minutes July 31, 2020 Page 1 of 3 MINUTES Rivery Park Tax Increment Investment Zone (TIRZ) Board of the City of Georgetown July 31, 2020, at 1:30 PM at Virtual The Rivery Park Tax Increment Investment Zone (TIRZ) Board met virtually on July 29, 2020 at 1:30 p.m. Consistent with Governor Greg Abbott’s suspension of various provisions of the Open Meetings Act, effective August 1, 2020 and until further notice, to reduce the chance of COVID-19 transmission, all City of Georgetown Advisory Board meetings will be held virtually. Public comment will be allowed via teleconference; no one will be allowed to appear in person. Board Members Present City Staff Present Mayor Dale Ross, Board Chair David Morgan, City Manager Laurie Brewer, Assistant City Manager Mayra Cantu, Management Analyst Leigh Wallace, Finance Director Shirley Rinn, Executive Assistant to the City Manager Ron Swain, Southwestern University Sabrina Poldrack, Contract Administrator Val Covey, Williamson County Leah Clark, Charles Schwertner, Texas Senator, District 5 Board Members Absent Guests Present Jeff Novak Bob Daigh, Williamson County Terry Wilson, Texas House Representative, District 20 City Councilmember, District 2, vacant Legislative Regular Agenda Mayor Ross called meeting to order at 1:30 p.m. When the roll call was initially done it was determined that a quorum of the members was present via videoconferencing: (Mayor Ross, Wallace, Brewer, Covey, Swain) (This Regular Session may, at any time, be recessed to convene an Executive Session for any purpose authorized by the Open Meetings Act, Texas Government Code 551.) A. Discussion on how this virtual conference will be conducted, to include options for public comments and how the public may address the Commission – Dale Ross, Chair Mayor Ross provided an overview of the virtual meeting logistics. Legislative Regular Agenda (This Regular Session may, at any time, be recessed to convene an Executive Session for any purpose authorized by the Open Meetings Act, Texas Government Code 551.) Page 3 of 21 Rivery Park TIRZ Minutes July 31, 2020 Page 1 of 3 B. Review the minutes from the July 19, 2019, Rivery Park Tax Increment Reinvestment zone (TIRZ) Board Meeting – Mayor Dale Ross, Chair Motion by Mayor Ross, second by Brewer to approve the minutes from the July 19, 2019, Rivery Park Tax Increment Reinvestment zone (TIRZ) Board Meeting (Approved 5-0) (Novak Wilson, Schwertner absent) C. Presentation of the annual financial report for the Rivery Tax Increment Reinvestment Zone – Laurie Brewer, Assistant City Manager Leigh Wallace, 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. Wallace also presented a map that outline the Rivery Park TIRZ Boundary. Wallace also provided an overview of the Rivery Park TIRZ, which was created in 2007 and amended several times (2008,2009,2013, and 2014). It expires in 2041 or after debt and other obligations of the zone have been met. The zone includes 66 acres, of which 32 were undeveloped and the remainder was city park land. The base year value of the zone was $4.9 million. She also provided an overview of the tax increment contributions from the City and Williamson County. She also indicted that it is anticipated that the TIRZ will contribute $25 million to eligible projects in the zone with a private capital investment of over $135 million. Wallace indicated that the zone was created to facilitate mixed use development which also included a hotel and conference center. There are multiple development agreements pertaining to the Rivery Park TIRZ, include a Master Development Agreement, Joint Use Agreement, County TIF Agreement, as well as agreements with the Georgetown Economic Development Corporation (GEDCO) and the Georgetown Transportation Enhancement Corporation (GTEC). Wallace indicated that the FY2019 ending balance was $318,096 and that it is anticipated that the FY 2020 property tax revenues will finish the year 11% higher than budget and the FY2020 expenses projected to finish at budget. She indicated that the primary expense was the debt payment for the TIRZ’s portion for the parking garage, which was $605,268. She told the Advisory Board that a one-year reserve should also be in place that is dedicated to the debt service in case of an emergency. Wallace also provided a historical overview of the Rivery Park TIRZ’s value and revenues. She also outlined the base value of the TIRZ compared to the incremental increase in value over time in order to demonstrate visually how the TIRZ value has grown over time. The revenues coming in for FY 2021 are just shy of $800,00, which represents an increase of 10.3% over the FY2020 projects. She said that the assessed value in the TIRZ continues to grow. The anticipated expenses for FY2021 include the debt service payment of $613,368, a $10,000 Administrative Fee to reimburse the City for overhead expenses, which includes fees Page 4 of 21 Rivery Park TIRZ Minutes July 31, 2020 Page 1 of 3 for appraisal district, tax collection, accounting/finance, legal and city management, as well as funding to build the debt service reserve, which is consistent with the city’s fiscal and budgetary policy. She also indicated that the reserve should be fully funded by FY2022. An overview of the Fund Schedule for the Rivery Park TIRZ was provided, and it was clarified that the miscellaneous revenue included Williamson County’s portion of the TIRZ revenue. She then let the Advisory Board know that the City Council will review and adopt the budget in August/September and that the city would continue to analyze the long-term plan for the TIRZ. This would include reimbursement to GTEC and GEDCO, additional park development and additional developer reimbursements. The new fiscal year will begin on October 1. Wallace opened the floor to questions. Covey indicated that she was glad to see that there is a reserve in place given the uncertainty of property values and low interest rates. Swain indicated that the plan seems to be realistic in terms of the current conditions based on comments from the city staff and county representatives. Daigh indicated that the presentation was very well put together. It was verified that Leah Clark, representing Senator Schwertner, was also in attendance at the meeting. (Joined at 1:32 p.m.) Adjournment Motion by Mayor Ross, second by Covey to adjourn. Meeting was adjourned at 1:44 p.m. Date: Mayor Josh Schroeder Board Chair Attest: Date Sharon Parker Board Liaison Page 5 of 21 City of Georgetown, Texas Rivery Park T I RZ Board August 5, 2021 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 – Laurie Brewer, As s is tant C ity Manager IT E M S UMMARY: An annual meeting of the T I R Z b o ard is req uired b y the by-laws. T his is traditio nally c o mp leted in late S ummer, so that the b o ard c an review the previo us year ’s financial ac tivity, as well as have a p review o f the upc oming budget proposal for the T I R Z. S P E C IAL C O N S ID E R AT ION S : C ouncil is sc heduled to ac t on all c omponents of the F Y2022 budget in August 2021. AT TAC HME N T S : P res entation, inc luding fund sc hedule, history, zone map, history F IN AN C IAL IMPAC T: N/A 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 21 FY2022 Annual Budget Rivery TIRZ Fiscal Year 20 Year End Balances Fiscal Year 21 and 22 Budget Update Page 7 of 21 FY2022 Annual Budget 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 •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 21 FY2022 Annual Budget 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 21 FY2022 Annual Budget Zone Map –South GT TIRZ City of GeorgetownPage 10 of 21 FY2022 Annual Budget Rivery Tax Increment Reinvestment Zone -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 11 of 21 FY2022 Annual Budget Rivery Tax Increment Reinvestment Zone -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 12 of 21 FY2022 Annual Budget Original Project Plan Page 13 of 21 FY2022 Annual Budget FY2021 Projections •After the audit and CAFR process, the FY2020 ending balance totaled $466,144 •FY2021 property tax revenues are projected to finish the year in line with budget •FY2021 expenses are projected to finish at budget –$613,368 transferred for debt service •Building fund balance for debt service reserve Page 14 of 21 FY2022 Annual Budget TIRZ Value and Revenue -History Year Total AV Tax Rate TIRZ Value TIRZ Revenue Base FY2010 4,974,292 0.35622 - - 4,974,292 FY2011 8,235,124 0.35622 3,260,832 11,616 4,974,292 FY2012 6,982,076 0.3875 2,007,784 7,780 4,974,292 FY2013 6,981,032 0.41 2,006,740 8,228 4,974,292 FY2014 6,591,719 0.4395 1,617,427 7,109 4,974,292 FY2015 14,105,097 0.434 9,130,805 39,628 4,974,292 FY2016 29,809,712 0.434 24,835,420 107,786 4,974,292 FY2017 63,822,668 0.424 58,848,376 249,517 4,974,292 FY2018 73,743,730 0.42 68,769,438 288,832 4,974,292 FY2019 94,493,464 0.42 89,519,172 375,981 4,974,292 FY2020 101,946,996 0.42 96,972,704 407,285 4,974,292 FY2021 110,182,006 0.418 105,207,714 439,768 4,974,292 FY2022 118,339,310 0.402 113,365,018 455,727 4,974,292 Page 15 of 21 FY2022 Annual Budget TIRZ Value Page 16 of 21 FY2022 Annual Budget FY2022 Budget •FY2022 revenues total $852,534 which represents an increase of 3% over FY2021 projections –Continue to see growth in assessed value in the TIRZ. Page 17 of 21 FY2022 Annual Budget FY2022 Budget •FY2022 expenses total $621,320 –$610,820 for Debt Service –$10,500 for administrative costs •Fees for appraisal district, tax collection, accounting/finance, legal and city management •Debt Service Reserve –First year the fund is able to meet debt service reserve requirement in compliance with fiscal and budgetary policy Page 18 of 21 FY2022 Annual Budget Fund Schedule FY2020 Actuals Amended Budget Projected Base Budget Changes Proposed Budget Beginning Fund Balance 318,096 433,375 466,144 665,131 - 665,131 Revenue 40001:Property Taxes 398,804 441,315 439,768 455,727 - 455,727 42001:Interest Income 4,295 375 1,500 400 - 400 45001:Misc Revenue 351,032 353,052 386,086 396,407 - 396,407 Revenue Total 754,131 794,742 827,354 852,534 - 852,534 Expense Operations Total - 15,000 15,000 10,500 - 10,500 Transfers 606,083 613,368 613,368 610,820 - 610,820 Expense Total 606,083 628,368 628,368 621,320 - 621,320 Ending Fund Balance 466,144 599,749 665,131 896,345 - 896,345 Reserves Debt Service Reserve 613,368 599,749 599,749 611,920 - 611,920 Capital Reserve - - - - - Reserves Total 613,368 599,749 599,749 611,920 - 611,920 Available Fund Balance (147,224) - 65,382 284,425 - 284,425 Rivery TIRZ FY2021 FY2022 Page 19 of 21 FY2022 Annual Budget Next Steps •Council reviews and adopts budget –August/September •Continue to analyze long term plan for this TIRZ –GTEC and GEDCO to be repaid –Additional park development –Additional developer reimbursements •New fiscal year begins October 1 Page 20 of 21 FY2022 Annual Budget Questions Page 21 of 21