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Home My WebLink AboutSouth_Georgetown_TIRZ_Board_Agenda_7_29_2020_3524Notice of Meeting for the South Georgetown T I RZ B oard of the City of Georgetown July 29, 2020 at 4:00 P M at Virtual 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. Consiste nt with Gover nor Gr eg A bbott’s suspension of var ious provisions of the O pen M ee tings A ct, e ffec tive A ugust 1, 2020 and until fur the r notic e, to r educ e the c hance of C O V I D-19 tr ansmission, all C ity of Ge orge town Advisor y B oar d mee tings will be held vir tually. P ublic c omment will be allowed via telec onfer ence ; no one will be allowed to appear in pe rson. To par tic ipate, please copy and paste the following we blink into your browse r: Weblink: J oin M ic rosoft Te ams M ee ting +1 512-672-8405 (Toll) Confe re nc e I D: 408 712 477# C itize n c omments ar e ac ce pte d in thre e diffe re nt formats: 1 . Submit wr itte n comme nts to shir le y.r inn@ge orge town.org by 1:00 p.m. on the date of the me e ting and the R ec ording S ec re tary will r e ad your comme nts i nto the r ec ording dur i ng the i tem that is being discussed. 2 . L og onto the me e ting at the li nk above and “r aise your hand” dur ing the ite m 3. Use your home /mobile phone to call the toll-fre e numbe r To join a Te ams me e ting, clic k on the li nk pr ovide d and joi n as an attende e. You wil l be asked to e nte r your name and e mail addr ess (this is so we c an ide ntify you whe n you are c all e d upon). To spe ak on an ite m, c li ck on the “Raise your H and” opti on at the bottom of the Te ams mee ting webpage onc e that i tem has opened. Whe n you ar e cal le d upon by the R e cor di ng Se cr etar y, your de vi ce wil l be re mote ly un-mute d by the Administr ator and you may spe ak for thre e minute s. P l e ase state your name c le arl y, and whe n your time Page 1 of 25 is over, your de vice will be muted again. Use of pr ofanity, thr eate ning language, slande rous r emarks or thr eats of harm are not allowed and wil l re sult i n you be ing imme di atel y r emove d fr om the mee ting.” L egislativ e Regular Agenda A Disc ussion on how this virtual c onference will be c onducted, to inc lude options for public c omments and how the public may addres s the C ommis s ion – Mayor Dale R oss, C hair B R eview the minutes from the July 19, 2019 S o uth G eorgetown Increment R einves tment zo ne (T I R Z) Board Meeting – Mayor Dale R oss, C hair C P resentation of the annual financial report for the S outh G eorgetown Tax Inc rement R einvestment 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 _________________, 2020, 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 2 of 25 City of Georgetown, Texas South Georgetown T I RZ Board July 29, 2020 S UB J E C T: Dis cus s ion on how this virtual conferenc e will be conduc ted, to include options for public comments and how the public may address the C ommission – Mayor Dale R os s , C hair IT E M S UMMARY: F IN AN C IAL IMPAC T: . S UB MIT T E D B Y: Danella Elliott Page 3 of 25 City of Georgetown, Texas South Georgetown T I RZ Board July 29, 2020 S UB J E C T: R eview the minutes fro m the July 19, 2019 S outh G eo rgeto wn Increment R einves tment zone (T I R Z) Board Meeting – Mayor Dale R os s , C hair IT E M S UMMARY: F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: Danella Elliott AT TAC H ME N T S: Description Type South Georgetown TIRZ Minutes 7.19.19 Backup Material Page 4 of 25 Minutes of the SOUTH GEORGETOWN TAX INCREMENT REINVESTMENT ZONE (TIRZ) BOARD City of Georgetown, Texas July 19, 2019 The SOUTH GEORGETOWN TAX INCREMENT REINVESTMENT ZONE (TIRZ) Board met on July 19, 2019 at 10:00 A.M. in the City Hall Community Room located at 808 Martin Luther King Jr Street, Georgetown, TX Board Members Present City Staff Present Mayor Dale Ross, Chair Leigh Wallace, Finance Director Anna Eby, Councilmember Amy Mertink, Finance Admin David Morgan, City Manager Laci Grobler, Sr Accountant Glenn Dishong, Utility Director Paul Diaz, Budget Manager Jay Warren Ed Pastor Board Members Absent Sofia Nelson, Planning Director Others Present Legislative Regular Agenda A Call to Order Mayor Ross called the meeting to order at 10:06 AM B Review minutes from the July 19, 2018 South Georgetown TIRZ Board Meeting - Amy Mertink, Board Liaison David Morgan motioned to approve, 2nd by Anna Eby, approved 6-0 C Presentation of the Annual Financial Report for the South Georgetown TIRZ - Paul Diaz, Budget Manager Paul Diaz reviewed the FY2019 projections and explained the FY2019 mid-year amendment. He then showed the FY2020 proposed budget, including details on revenues and expenses, and the transfer that is done to the Electric Fund to reimburse for infrastructure projects. Paul also showed the detailed revenue and TIRZ value trends. David Morgan explained the reason the TIRZ was created and the reasons for the slower than anticipated growth pattern. David also explained the reason for the transfer to the Electric Fund. Adjournment Motion to adjourn at 10:18 a.m. by David Morgan; 2nd by Anna Eby. Approved 6-0 __________________________________ ____________ Mayor Dale Ross Date Board Chair __________________________________ ____________ Amy Mertink Date Board Liaison Page 5 of 25 City of Georgetown, Texas South Georgetown T I RZ Board July 29, 2020 S UB J E C T: P res entation of the annual financ ial report for the S outh G eorgetown Tax Increment R einves tment 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 Y2021 budget in August 2020. 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: Danella Elliott AT TAC H ME N T S: Description Type South Georgetown Presentation and Financial Report Pres entation Page 6 of 25 FY2021 Annual Budget South Georgetown TIRZ Fiscal Year 19 Year End Balances Fiscal Year 20 and 21 Budget Update Page 7 of 25 FY2021 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 –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 25 FY2021 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 25 FY2021 Annual Budget Zone Map –South GT TIRZ Page 10 of 25 FY2021 Annual Budget Original assumptions •Created in 2014 •Expires in 2044 or after debt and other obligations of zone have been met •Zone –37 properties –594 acres –Base year of zone value -$21.3M •Projects paid from zone can not exceed $50M –Expected private capital investment of $500M –Value of $745M projected at the end of life of TIRZ –Estimated $35M of improvements needed Page 11 of 25 FY2021 Annual BudgetRevenue Estimates –Original Projections •Original projections Year Comm/Retail (50MM)Retail (98MM) Office/Comm (166MM)APTS(55MM) Residential (174MM) Residential (174MM) Mixed use (30MM)TOTAL VALUE Taxable Above Increment CITY PROPERTY TAX REVENUE 2014 $0 $0 $0 $0 $0 $0 $0 $12,474,613 $0 $0 2015 $0 $20,000,000 $33,200,000 $0 $34,800,000 $34,800,000 $0 $135,274,613 $122,800,000 $539,706 2016 $0 $46,000,000 $66,400,000 $0 $69,600,000 $69,600,000 $0 $264,074,613 $251,600,000 $1,105,782 2017 $0 $72,000,000 $99,600,000 $0 $104,400,000 $104,400,000 $0 $392,874,613 $380,400,000 $1,671,858 2018 $0 $98,000,000 $132,800,000 $55,000,000 $139,200,000 $139,200,000 $5,000,000 $581,674,613 $569,200,000 $2,501,634 2019 $12,500,000 $98,980,000 $166,000,000 $41,250,000 $174,000,000 $174,000,000 $10,000,000 $689,204,613 $676,730,000 $2,974,228 2020 $25,000,000 $99,969,800 $167,660,000 $41,662,500 $175,740,000 $175,740,000 $15,000,000 $713,246,913 $700,772,300 $3,079,894 2021 $37,500,000 $100,969,498 $169,336,600 $42,079,125 $177,497,400 $177,497,400 $20,000,000 $737,354,636 $724,880,023 $3,185,848 2022 $50,000,000 $101,979,193 $171,029,966 $42,499,916 $179,272,374 $179,272,374 $25,000,000 $761,528,436 $749,053,823 $3,292,092 2023 $50,500,000 $102,998,985 $172,740,266 $42,924,915 $181,065,098 $181,065,098 $30,000,000 $773,768,974 $761,294,361 $3,345,889 2024 $51,005,000 $104,028,975 $174,467,668 $43,354,165 $182,875,749 $182,875,749 $30,300,000 $781,381,918 $768,907,305 $3,379,348 Page 12 of 25 FY2021 Annual Budget Project Plan Project Costs/Projected Estimated % of Improvement Debt Issuance Source Date Est. Debt Svc Total Lift Station 1,500,000$ City (WW)2014 123,975$ 4% Force Main 900,000$ City (WW)2014 74,385$ 3% Gravity Sewer 5,300,000$ City (WW)2016 438,045$ 15% Elevated Storage Tank 1,800,000$ City (Water)2016 148,770$ 5% Electric Utility Extensions 5,600,000$ City (Electric)2014 462,840$ 16% Subtotal - Utility Improvements 15,100,000$ 1,248,015$ 43% Oakmont/Mays 6,200,000$ GTEC 2015 512,430$ 18% Blue Springs Road 1,900,000$ GTEC 2019 157,035$ 5% Rabbit Hill Road 4,300,000$ GTEC 2017 355,395$ 12% westinghouse Road Repair & Main 7,500,000$ GTEC 2017 619,875$ 21% Subtotal - Road Improvements 19,900,000$ 1,644,735$ 57% Total - TIRZ Estimated Project Costs 35,000,000$ 2,892,750$ 100% Page 13 of 25 FY2021 Annual Budget Updates •Professional market study conducted in 2018 to update assumptions –Previous calculations completed in-house based upon development assumptions •Development activity did not prove to be as soon or in the values that were expected Page 14 of 25 FY2021 Annual Budget Tax Revenue –Plan versus Market Original Plan Market Study Page 15 of 25 FY2021 Annual Budget Adjustments being implemented •GTEC will fund road/transportation projects that positively impact economic development city-wide –Does not always have to be “repaid” for infrastructure improvements •Utilities –we will evaluate improvements that were previously in the impact fee calculation and revenue impacts –Electric Fund will be completely paid •Potentially close TIRZ or reduce the % (50% or less) earlier than anticipated so that future tax revenues pay for services delivered Page 16 of 25 FY2021 Annual Budget FY2020 Projections •After the audit and CAFR process, the FY2019 ending balance totaled $0 •FY2020 property tax revenues are projected to finish the year 6% higher than budget •FY2020 expenses are projected to finish at budget. –$500,000 transfer to the Electric Fund to reimburse for infrastructure constructed in the zone Page 17 of 25 FY2021 Annual Budget FY2021 Budget •FY2021 revenues total $809,470, which represents an increase of 49% over FY2019 projections –Continue to see growth in assessed value in the TIRZ. Page 18 of 25 FY2021 Annual Budget TIRZ Value and Revenue -History Year Total AV Tax Rate TIRZ Value TIRZ Revenue Base TIRZ Value2 FY2015 21,374,069 0 - - 21,374,069 - FY2016 37,892,054 0.434 16,517,985 71,688 21,374,069 16,517,985 FY2017 52,187,438 0.424 30,813,369 130,649 21,374,069 30,813,369 FY2018 54,745,320 0.42 33,371,251 140,159 21,374,069 33,371,251 FY2019 95,044,923 0.42 73,670,854 309,418 21,374,069 73,670,854 FY2020 148,520,578 0.42 127,146,509 534,015 21,374,069 127,146,509 FY2021 223,190,149 0.42 201,816,080 847,628 21,374,069 201,816,080 Page 19 of 25 FY2021 Annual Budget TIRZ Value Page 20 of 25 FY2021 Annual Budget FY2021 Budget •FY2021 expenses total $389,308 –Transfer out to Electric for CIP reimbursement. –Completes the payment for infrastructure for the Electric Fund for investment over the past five years –Administrative Expense -$10,000 •Includes fees for appraisal district, tax collection, accounting/finance, legal and city management Page 21 of 25 FY2021 Annual Budget Fund Schedule Row Labels FY2019 Actuals FY2020 Budget FY2020 Projected FY2021 Base Budget FY2021 Changes FY2021 Budget Beginning Fund Balance 237,186 - 0 42,148 - 42,148 Revenues FY2019 Actual FY2020 Budget FY2020 Projected FY2021 Base Budget FY2021 Changes FY2021 Budget Interest Income 6,610 1,500 500 500 500 Property Taxes 389,713 509,463 541,648 809,470 809,470 Grand Total 396,323 510,963 542,148 809,970 809,970 Expenses FY2019 Actual FY2020 Budget FY2020 Projected FY2021 Base Budget FY2021 Changes FY2021 Budget Transfers Out 633,509 500,000 500,000 379,308 - 379,308 Administrative Expense - - 10,000 - 10,000 Grand Total 633,509 500,000 500,000 389,308 - 389,308 Row Labels FY2019 Actuals FY2020 Budget FY2020 Projected FY2021 Base Budget FY2021 Changes FY2021 Budget Ending Fund Balance (1) 10,963 42,148 462,810 - 462,810 CAFR Adjustment 1 - - - - - Contingency - - - - - - Reserved for Capital - - - - - - Available Fund Balance 0 10,963 42,148 462,810 - 462,810 Page 22 of 25 FY2021 Annual Budget Next Steps •Council reviews and adopts budget –August/September •Continue to analyze long term plan for this TIRZ –Possible dissolving of this TIRZ –Electric Fund is reimbursed –GTEC funded roads as investment to expand economic opportunities –Many water projects are in the impact fee calculation •New fiscal year begins October 1 Page 23 of 25 FY2021 Annual Budget Questions Page 24 of 25 City of Georgetown, Texas South Georgetown T I RZ Board July 29, 2020 S UB J E C T: IT E M S UMMARY: F IN AN C IAL IMPAC T: . S UB MIT T E D B Y: Danella Elliott Page 25 of 25