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TIRZ #1, 2, 3 and 4/Power Center Board Meeting

Regular Meeting

Terrell, TX · August 16, 2023

Agenda

Agenda

AGENDA TIRZ #1, 2, 3 and 4/Power Center Board Meeting 12:00 PM - Wednesday, August 16, 2023 City Council Chambers, 201 E. Nash Street, Terrell, TX Board Members Juan Salazar, Chairman Terry Barber, Vice-Chairman Mike Hunt, Board Member Charles Whitaker, Board Member Donna Anderson, Board Member City Manager Mike Sims NOTICE IS HEREBY GIVEN that the TIRZ No.1, 2, 3 & 4 / Power Center Board will conduct a meeting at 12:00 p.m. on Wednesday, August 16, 2023, at Terrell City Hall located at 201 East Nash Street. The meeting is open to the public with limited seating in the Council Chambers. If you choose not to attend in person and you wish to submit public comments, email support@cityofterrell.org and title the email ”Public Comment”. All public comments submitted by 8:00 a.m. on Wednesday, August 16, 2023 will be provided to the TIRZ No.1, 2, 3 & 4 / Power Center Board Members and recorded into the minutes for the Wednesday, August 16, 2023 TIRZ No.1, 2, 3 & 4 / Power Center Board. Page 1. CALL TO ORDER 2. INVOCATION 3. PLEDGE TO AMERICAN FLAG AND TEXAS FLAG. Page 1 of 43 4. HEAR REMARKS FROM VISITORS This time is set aside on the agenda to invite any person to address the Board on issues not subject to a public hearing. Routine administrative matters are best discussed with the appropriate City Staff before bringing them to the Board. Prior to the meeting, please complete a "Citizen Participation Form" and present it to the Administrative Assistant. In accordance with the Texas Open Meetings Act, Section 551.042, the Board cannot discuss, consider, or take action on matters not listed on the agenda. Speakers should limit their comments to 3 minutes and are asked to speak into the microphone provided, identifying themselves for the record. The total amount of time set aside for this place on the agenda is 15 minutes. Comments of a personal nature directed at the Board or Staff are inappropriate. 5. ADOPTION OF MINUTES 5.1. Discuss approval of minutes from the Tax Increment Reinvestment Zone 4 - 5 No. 1, 2, 3 and 4 and Power Center Board Meeting on July 19, 2023. TIRZ #1, 2, 3 and 4/Power Center Board Meeting - Jul 19 2023 - Minutes - Pdf 6. DISCUSSION ITEMS 6.1. Discuss Regular Financial Reports. 6 Financials TIRZNo1 w/o FundBalance_063023 6.2. Discuss PID Overview. 7 - 18 Public Improvement Districts 6.3. Discuss 10 Year Capital Borrowing Plan. 19 - 33 10 Year Capital Borrowing Plan 6.4. Discuss Budget Schedule. 34 - 40 Budget Schedule TIRZ Presentation 6.5. Discuss FY24 Budgets for TIRZ #1, TIRZ #2, TIRZ #3, TIRZ #4 and 41 - 43 Power Center. TIRZ #1 and Power Center Budget Page 2 of 43 7. ADJOURN INTO EXECUTIVE SESSION IN ACCORDANCE WITH SECTION 551 OF THE TEXAS GOVERNMENT CODE TO DISCUSS THE FOLLOWING: 7.1. Section 551.087 Deliberations Regarding Economic Development Negotiations. 8. RECONVENE INTO REGULAR SESSION AND CONSIDER ACTION, IF ANY, ITEMS DISCUSSED IN EXECUTIVE SESSION. 9. ADJOURN. I, the undersigned authority, do hereby certify that the above NOTICE OF MEETING of the TIRZ #1/Power Center Board is a true and correct copy of said NOTICE, which has been posted on the front OUTDOOR BULLETIN BOARD CABINET FOR AGENDAS of the Terrell City Hall, Terrell, Texas, a place convenient and readily accessible to the General Public and on the website at cityofterrell.org, and which has been continuously posted for a period of seventy- two (72) hours prior to the date and time said meeting was convened. Posted Friday, August 11, 2023 –5:00 p.m. _______________________________________ Dawn Steil, City Secretary This facility is wheelchair accessible and accessible parking spaces are available. Requests for accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact the City Secretary’s office at 972-551-6600 for further information. Braille is not available. TIRZ #1/Power Center Board Reserves the Right to Adjourn into Executive Session to Seek Legal Counsel on a Matter Which the Canon of Legal Ethics Demands to Preserve the Attorney- Client Privilege Pursuant to Section 551.071(2) of the Texas Government Code. Page 3 of 43 ITEM 5.1. MINUTES TIRZ #1, 2, 3 and 4/Power Center Board Meeting Meeting 12:00 PM - Wednesday, July 19, 2023 City Council Chambers, 201 E. Nash Street, Terrell, TX The City of Terrell Council met in TIRZ #1, 2, 3 and 4/Power Center Board Meeting on Wednesday, July 19, 2023 at 12:00 PM in the City Council Chambers, 201 E. Nash Street, Terrell, TX. MEMBERS Board Member Mike Hunt PRESENT: Chairman Juan Salazar Board Member Donna Anderson MEMBERS Vice-Chairman Terry Barber ABSENT: Board Member Charles Whitaker STAFF PRESENT: City Secretary Dawn Steil Administrative Assistant Dora Trejo 1 CALL TO ORDER Juan Salazar called the meeting to order. 2 INVOCATION Donna Anderson gave the invocation. 3 PLEDGE TO AMERICAN FLAG AND TEXAS FLAG. Juan Salazar led the pledge. 4 HEAR REMARKS FROM VISITORS None. 5 ADOPTION OF MINUTES a) Discuss and Consider approval of minutes from the Tax Increment Reinvestment Zone No. 1, 2, 3 and 4 and Power Center Board Meeting on July 3, 2023. Mike Hunt moved to approve the Minutes from the Tax Increment Reinvestment Zone No. 1, 2, 3 and 4 and Power Center Board Meeting on July 3, 2023, with Donna Anderson seconding the motion. Carried by the following votes: Ayes: Mike Hunt, Juan Salazar, and Donna Anderson TIRZ #1, 2, 3 and 4/Power Center Board Meeting July 19, 2023 Meeting Page Page41ofof43 2 ITEM 5.1. 6 DISCUSSION ITEMS a) Discuss TIRZ No.1 Financial Report. City Secretary, Dawn Steil presented this item to the Board for Discussion. b) Discuss Power Center Financial Report. City Secretary, Dawn Steil presented this item to the Board for Discussion. c) Discuss Downtown Update. Downtown Projects Manager, Raylan Smith presented this item to the Board for Discussion. d) Discuss 10 Year Capital Plan. Downtown Projects Manager, Raylan Smith presented this item to the Board for Discussion. e) Discuss Fire Station 3 and Apache Trail Update. Fire Chief, Shane LeCroy presented this item to the Board for Discussion. f) Discuss FY24 Budgets for TIRZ #1, TIRZ #2, TIRZ #3, TIRZ #4 and Power Center. Postponed g) Discuss Meeting Schedule. Administrative Assistant, Dora Trejo presented this item to the Board for Discussion. 7 BUSINESS ITEMS a) Discuss and Consider TIRZ #3 Agreement for Eastland Business Park. Postponed 8 ADJOURN INTO EXECUTIVE SESSION IN ACCORDANCE WITH SECTION 551 OF THE TEXAS GOVERNMENT CODE TO DISCUSS THE FOLLOWING: a) Section 551.087 Deliberations Regarding Economic Development Negotiations. 9 RECONVENE INTO REGULAR SESSION AND CONSIDER ACTION, IF ANY, ITEMS DISCUSSED IN EXECUTIVE SESSION. No action taken. 10 ADJOURN. Chairman Juan Salazar Attest: City Secretary Dawn Steil TIRZ #1, 2, 3 and 4/Power Center Board Meeting July 19, 2023 Meeting Page Page52ofof43 2 ITEM 6.1. City of Terrell TIRZ No.1 Increment Financing For the Period Ending June 30, 2023 Schedule of Revenues & Expenditures - Budget Vs. Actual (Unaudited) Current Fiscal Year 2022-2023 Jun 2023 Y-T-D Budget Y-T-D Y-T-D Actual Actual 2023 Variance % Budget Revenues Tax Collections - County - - 480,721 (480,721) 0% Tax Collections - City of Terrell - 1,761,749 (1,761,749) 0% Interest income - County - 927 750 177 124% Total Revenues - 927 2,243,220 (2,242,293) 0% Expenditures Consultant Fees & Services 5,200 36,068 90,000 (53,932) 40% Senior/Library Assessment - 47,915 120,000 (72,085) 40% TIRZ Administrative Costs - 6,649 60,000 (53,351) 11% TIF Reimburse-Sinacola - - 11,371 (11,371) 0% TIF Reimburse-Baylor - - 87,129 (87,129) 0% TIF Reimburse-Terrell Mkt Ctr - - 87,129 (87,129) 0% TIF Reimbursement-Buc ee's - - 101,737 (101,737) 0% TIF Reimbursement-Crossroads - - 833,441 (833,441) 0% Downtown Project Office - 14,782 250,000 (235,218) 6% Town Square Master Plan 13,500 191,355 270,000 (78,645) 71% Downtown Sidewalk Grant - - 80,000 (80,000) 0% PINA Partnership - 74,700 75,000 (300) 100% BFTS Preconstruction 5,058 48,684 90,000 (41,316) 54% Demolition 10,950 43,112 300,000 (256,888) 14% Drainage Landscape Project - - 100,000 (100,000) 0% Land Acquisition - 24,200 130,000 (105,800) 19% Debt Service - 242,329 346,184 (103,855) 70% Total Expenditures 34,708 729,794 3,031,990 (2,302,196) 24% Excess/(Deficit) (34,708) (728,867) (788,770) 59,903 Page 6 of 43 ITEM 6.2. Public Improvement Districts CITY OF TERRELL Page 7 of 43 1 ITEM 6.2. Introduction to PIDs  Chapter 372 of Local Government Code Statute provides a legal and regulatory framework that governs the process Page 8 of 43 2 ITEM 6.2. Big Picture Considerations  PIDs are NOT separate political subdivisions. The City Council is the de facto board.  Allows Cities to extend public infrastructure without burdening existing rate payers and tax payers.  Economic development tool can be useful when negotiating with developers (annexation, oversizing, amenities, etc.).  Grows the City’s tax base without obligating City revenues (380 Agreements, etc.).  PIDs can be used to forward the City’s Comprehensive Plan, Thoroughfare Plan and Parks Plan Page 9 of 43 3 ITEM 6.2. Why utilize a PID?  Use PIDs as an economic development incentive tool to promote the goals of the City  Incentivizes amenities and/or annexation by the developer, but for the creation of the PID would not normally occur • Superior plan, design, architecture and building materials that exceed subdivision building standards • Lot and residential unit size that align with the City’s goal for economic growth • Private amenities tailored to the community o Pools o Playgrounds o Fitness Centers o Enhanced Trails  Accelerate construction of improvements described in City’s Comprehensive Plan, Thoroughfare Plan and Parks Plan  City can require cash contribution from developer (non PID funds) to fund City projects Page 10 of 43 4 ITEM 6.2. How Does a PID Work?  PID is formed over a defined area in the corporate limits of the City or the City’s ETJ  Assessments (not a tax) are levied on property within the PID based on the benefit received from PID improvements  Assessments can be paid in full or paid in annual installments  The assessments are a lien that run with the land  The Assessments are used to pay • Debt service on tax-exempt bonds issued to fund PID improvements, or • Reimbursement agreement with developer, including interest  Administrative expenses are included in the annual installment Page 11 of 43 PID Boundary (area must be contiguous) 5 ITEM 6.2. How Does a PID Work?  PID assessment is levied against property within the PID boundary without regard to growth in actual assessed valuations Home Value Property Taxes PID Assessment Page 12 of 43 6 ITEM 6.2. How Is a PID Created?  PID Petition submitted by developer  Professional Services Agreement executed and developer funds deposited with City  Development Agreement entered into with the City and Developer • Public hearing on advisability of creating PID • PID creation resolution approved by City Council  Preparation of Service and Assessment Plan, Construction Funding Agreement, Landowner Agreement, and bond documents (if bonds are contemplated)  Public hearing on levy of assessment  Assessment Ordinance, Service and Assessment Plan, PID Finance Agreement, Landowner Agreement, and bond documents approved by City Council  Typically a 6 month process Page 13 of 43 7 ITEM 6.2. Weighing PID Benefits/Challenges BENEFITS POTENTIAL CHALLENGES  Annexation  Public perception  Increased/accelerated tax base  Headline risk  Enhanced projects and amenities  Market (Bonds)  Advancing City master plans  Administrative burden  Covenant to foreclose Page 14 of 43 8 ITEM 6.2. PID Financial Metrics – Tax Stack  PID assessment is converted to a tax rate equivalent (“TRE”)  TRE is based on the assumed future home value and added to all overlapping taxes  Important to remember that the tax stack is a metric at a point in time as tax rates and home values change  TIRZ may overlay a PID; in this case, TIRZ revenues may be used to offset annual PID assessments Estimated Year Home Value TRE Taxes/ 1 $ 250,000 $0.800 Assessment 2 255,000 $0.784 To be Paid 3 260,100 $0.769 City $ 0.6198 $ 1,549.50 4 265,302 $0.754 School 1.2186 3,046.50 5 270,608 $0.739 County 0.2250 562.50 10 298,773 $0.669 PID Assessment TRE 0.8000 2,000.00 15 329,870 $0.606 Total Tax Stack $ 2.8634 $ 7,158.50 20 364,203 $0.549 Page 15 of 43 LESS: TIRZ Credit (25%) (0.1550) (387.38) 25 402,109 $0.497 Net Tax Stack $ 2.7085 $ 6,771.13 30 443,961 $0.450 9 ITEM 6.2. PID Financial Metrics – Value to Lien  One financial measure of the amount of debt placed on a property ` Scenario 1 Scenario 2 Scenario 3 Value of Land $ 30,000,000 $ 30,000,000 $ 30,000,000 Debt/Lien Placed on Land $ 10,000,000 $ 12,000,000 $ 15,000,000 Value to Lien (VtL) 3:1 2.5:1 2:1  Value of land is typically based on an appraisal that takes into account horizontal improvements, i.e. infrastructure and related work necessary to produce a “finished lot”  The lower the value to lien, the more leverage (debt) the property has on it  Additionally, the lower the value to lien the larger a potential bond issue can become; results in the developer receiving more money for infrastructure Page 16 of 43 10 ITEM 6.2. Summary Tax Increment Reinvestment Zones Public Improvement Districts Creation City Council City Council, after receiving petition from landowner Separate Governmental No No Entity Revenue Stream Property Taxes and/or Sales Taxes Assessments Additional Cost to Owner No Yes Ability to Debt Finance Yes - Typically Direct Obligation of the City Yes - Typically Special Obligation of the City 1. Levy of assessments, 2. Issuance of debt (collection of 1. Development/update of Project and Finance Plan, 2. Collection Administrative assessments, SEC reporting, IRS - tax exemption), 3. Foreclosure on and allocation of revenues, 3. Issuance of debt, if any, 4. Annual Responsibilities property for non-payment, if necessary, 4. Annual administrative reporting, 5. Annual administrative costs (paid out of the TIRZ) costs (paid out of PID) Page 17 of 43 Termination Earlier of Specified Date or Collection of Full TIRZ Revenue Amount Earlier of Specified Date or Collection of All Assessments 11 12 ITEM 6.2. Questions? Page 18 of 43 ITEM 6.3. City of Terrell Draft 10 Year Capital Plan FY23-FY32 Update August 3, 2023 Draft Page 19 of 43 1 ITEM 6.3. Source Project • Temple, Metro Drive, Jamison Extension Construction in Progress • South Alley Underground electrical design I&S in progress Recent • • Temple / Stallings Drainage in progress New Animal Adoption facility – acquisition Success in progress; rehab budgeted With Capital TIRZ #1 • Land Acquisition – Town Square and Downtown Parking complete Projects (City related debt issuances only) • Park Lighting Complete PADIC • Park Bathrooms On Order • Kings Creek Waste Water Treatment Plan Upgrade near completion • North Alley Water & Sewer Utilities Relocation complete TXWDB • 80/205 Intersection Water & Sewer Utilities Page 20 of 43 Relocation complete • Market Center Lift Station in progress • South alley Water & Sewer Utilities – design in progress 2 ITEM 6.3. Debt Series Major Projects CO, Taxable Series 2011A 20" WATER MAIN (CENTRAL TOWN) CO, Series 2014 POLICE HEADQUARTERS BUILDING CO, Series 2019A NORTH ALLEY, HWY 80/205 (WATER) CO, Taxable Series 2019B WWTP PH 1, NORTH ALLEY SEWER Tax Notes, Series 2019 SOUTH ALLEY, NORTH ALLEY (WATER) Debt CO, Series 2020A CO, Series 2021 (10 Year) WWTP PH 1, 2; MARKET CENTER LS AMI METERS, Asphalt Streets, PD/FD Radios Review CO, Series 2021A TEMPLE, METRO, JAMISON PADIC PARK IMPROVEMENTS (BATHROOMS/LIGHTS) CO, Taxable Series 2021A TOWN SQUARE LAND ACQUISITIONS (Obligations in FY25 and CO, Series 2021B LAND ACQUISITION - TOWN SQUARE, NEW PET ADOPTION CENTER, beyond) FIRE STATION #3, DOWNTOWN PARKING, SOUTH ALLEY CO, Taxable Series 2021C KINGS CREEK WWTP GO Refunding, Series 2021 REFUNDING OF GRIFFITH DEBT CO, Series 2022A SOUTH ALLEY (SEWER), MARKET CENTER LS, MISC WW MAINS CO, Taxable Series 2022B POETRY ELEVATED TANK PUMP STATION/GS TANK; HWY 205 UTIL RELO; E. MOORE WATER; CO, Series 2023A JUNE-HARRISSE WATER Page 21 of 43 SEWER PROJECT - HIGHWAY 205 UTILITY RELOCATIONS; NEXT CO, Taxable Series 2023B PHASE OF KINGS CREEK WWTP 3 Draft CATEGORY FY 2023 NOTES ITEM 6.3. 10 Year WATER $ 11,450,000 Council Approved Fall 2022 TXWDB/City Capital Plan SEWER $ 7,090,000 Council Approved Fall 2022 TXWDB/City FY23 STREETS (Proposed) $ 7,000,000 Facility Related Streets: Apache and Newton Additional “Red" Local Streets TBD Example Candidates: Borrowing Short segments of East Brin, Blanche, Daniels, Corner of Colquitt and 9th Build Fire Station #3 No recommended change to FACILITIES $ 20,000,000 After final costs for Station #3 are determined, tax rate. (Proposed) consideration for Station #2 Remodel, Fire Training Land, Facility Improvements, Park Land Acquisition Savings on projects may be flexed only to projects listed in the debt issue at Council TOTALS $ 45,540,000 discretion. Page 22 of 43 4 CATEGORY FY 2024 NOTES STREETS ITEM 6.3. Draft FACILITIES 10 Year Capital Plan PARKS FY24 DOWNTOWN Borrowing WATER May consider a small scale short-term borrow for Public Safety equipment SEWER DRAINAGE Page 23 of 43 AIRPORT No Planned City 5 TOTALS $ 0 Borrowing in FY24 CATEGORY FY 2025 NOTES ITEM 6.3. Draft STREETS $ 4,000,000 Local Street Group 10 Year FACILITIES Capital Plan PARKS FY25 TIRZ #1 Street Borrowing DOWNTOWN $ 4,000,000 Capital Improvements Pump Station, SH205, IH20, Water WATER $ 8,600,000 Utility Capital Projects SH205, Market Center LS, WW Will also include Fire Engine short SEWER $ 4,350,000 Utiity Capital term issue. Projects Downtown Storm DRAINAGE $ 12,000,000 water and Priority Locations Page 24 of 43 AIRPORT TOTALS $ 32,950,000 6 CATEGORY FY 2026 NOTES ITEM 6.3. Additional Local STREETS $ 4,000,000 Street Projects FACILITIES Draft 10 Year PARKS Capital Plan DOWNTOWN $ 4,000,000 PADIC Complete Streets and Quiet Zones (Local Match) FY26 Town Square, Borrowing WATER $ 6,200,000 Service Line Federal Requirements, Poetry Tank Market Center LS, SEWER $ 8,300,000 Town Square, Rose Hill LS DRAINAGE Page 25 of 43 TOTALS $ 22,500,000 7 CATEGORY FY 2027 NOTES ITEM 6.3. STREETS Relocate Public Draft FACILITIES $ 40,000,000 Library to Town Square 10 Year PARKS Capital Plan TIRZ #1 DOWNTOWN $ 7,000,000 Downtown Capital FY27 Improvements Town Square, Borrowing WATER $ 5,000,000 Additional Capital Projects SEWER DRAINAGE Page 26 of 43 Capital Projects - AIRPORT $ 5,000,000 Airport Master Plan Phase 1 TOTALS $ 57,000,000 8 CATEGORY FY 2028 NOTES ITEM 6.3. "Red" Local STREETS $ 8,000,000 Streets and Sidewalks $10M Fire Drill Draft FACILITIES $ 5,000,000 Field and Administration 10 Year PARKS Capital Plan PADIC Complete Streets and Quiet FY28 DOWNTOWN $ 5,000,000 Zones (Local Match) Borrowing WATER Westside WWTP SEWER $ 20,000,000 (partial TIRZ #2 funding) Drainage Projects DRAINAGE $ 2,000,000 (TBD) Page 27 of 43 AIRPORT 9 TOTALS $ 40,000,000 CATEGORY FY 2029 NOTES ITEM 6.3. STREETS Draft FACILITIES Park Capital 10 Year PARKS $ Improvements and 2,000,000 Grant Matching Funds Capital Plan FY29 DOWNTOWN Borrowing WATER $ 7,000,000 NTMWD 2nd take point Infill Capital SEWER $ 4,000,000 Projects (TBD) DRAINAGE Page 28 of 43 AIRPORT TOTALS $ 13,000,000 10 CATEGORY FY 2030 NOTES ITEM 6.3. STREETS Draft FACILITIES $ 20,000,000 Fire Station #1 Relocation 10 Year PARKS Capital Plan DOWNTOWN FY30 Borrowing WATER Infill Capital SEWER $ 4,000,000 Projects (TBD) DRAINAGE Page 29 of 43 AIRPORT TOTALS $ 24,000,000 11 CATEGORY FY 2031 NOTES "Red" Local Streets ITEM 6.3. STREETS $ 8,000,000 and Sidewalks Draft FACILITIES 10 Year PARKS Capital Plan DOWNTOWN FY31 Borrowing WATER $ 10,000,000 NTMWD 2nd take point SEWER Drainage Projects DRAINAGE $ 10,000,000 (TBD) Page 30 of 43 Capital Projects - AIRPORT $ 5,000,000 Airport Master Plan Phase 2 TOTALS $ 33,000,000 12 CATEGORY FY 2032 NOTES "Red" Local Streets ITEM 6.3. STREETS $ 10,000,000 and Sidewalks Draft FACILITIES Park Capital 10 Year PARKS $ Improvements and 2,000,000 Grant Matching Capital Plan Funds FY32 DOWNTOWN $ 8,000,000 PADIC Next Phase Borrowing WATER $ 5,000,000 Capital Projects (TBD) Capital Projects SEWER $ 5,000,000 (TBD) DRAINAGE Page 31 of 43 AIRPORT TOTALS $ 30,000,000 13 CATEGORY TOTAL ITEM 6.3. STREETS $ 36,000,000 Draft FACILITIES $ 88,000,000 10 Year PARKS $ 5,000,000 Capital Plan DOWNTOWN $ 28,000,000 Total Borrowing WATER $ 53,250,000 SEWER $ 52,740,000 DRAINAGE $ 25,000,000 Page 32 of 43 AIRPORT $ 10,000,000 TOTALS $ 297,990,000 14 Additional Future Projects not ITEM 6.3. included in the 10 year plan (not in priority order) Draft Police Department Expansion 10 Year Municipal Court Building Additional Improvements to Capital Plan Downtown and Existing Parks FY33 and Local Match necessary for grants and partnerships Beyond Senior Center Replacement Borrowing City Hall Replacement Major new City only roadways Additional Drainage Projects Water and Sewer rehabilitation Lake rehabilitation Page 33 of 43 Additional fire stations, parks, and other projects driven by additional development 15 ITEM 6.4. Budget Schedule Page 34 of 43 ITEM 6.4. As of today: August 16, 2023 1. City Council Preliminary Budget Discussions (June / July Tuesday evenings) 2. Receive Certified Values from KCAD (July 24, 2023) 3. (July 28, 2023) a. Draft Budget Sent to Council and Posted on Website b. Post Tax Rate on Website (on comptroller’s form) 4. Council Retreat – FY 2022-2023 Budget (August 3-4, 2023) 5. (August 8, 2023) a. Council Discussion of Draft Budget b. Public Hearing for Solid Waste Rates c. First Reading Solid Waste Ordinances Page 35 of 43 ITEM 6.4. August 22, 2023 6. a. Council Budget Review b. Council vote on debt issuance (CO 2023-C) c. Resolution for publication of public hearing for tax rate and budget, water, stormwater and wastewater rates d. Send Public Hearing for tax rate and Public Hearing for Budget, water, stormwater and wastewater rates to Tribune for 8/26 edition and post on website Page 36 of 43 ITEM 6.4. August 29, 2023 7. Council Discussion of Final Budget Page 37 of 43 ITEM 6.4. September 12, 2023 8. a. Public Hearing for Tax Rate b. Public Hearing for Budget c. First Reading Tax Rate Ordinance (vote by roll call). d. First Reading Budget Ordinance. e. Adoption of Tax Rate Ordinance. Must approve M&O and I&S rates separately – make separate items on agenda Page 38 of 43 ITEM 6.4. September 19, 2023 9. a. Adoption of Budget Ordinance on Second Reading. Post on website with cover page. b. Public Hearing for Water & Wastewater Rates c. First Reading Water, Wastewater, and Stormwater Rates Ordinance 10. Adoption of Water, Wastewater, and Stormwater Rates Ordinance on Second Reading Page 39 of 43 ITEM 6.4. October 1, 2023 NEW FISCAL YEAR BEGINS Page 40 of 43 ITEM 6.5. TIRZ #1 Draft FY24 Budget Base Calculations Draft Tax Year 2023 Calculations for the FY24 Budget Based on Collection Rate of 1.025 Certified Freeze Adjusted Taxable $ 2,213,760,122 Certified TIRZ Amount (TIRZ 1, 2, 3 & 4) $ 426,345,673 Certified Freeze Adjusted Taxable After Tax Increment Loss $ 1,787,414,449 Proposed Tax Rate Description Per $100 M&O Taxes I&S Taxes Total Draft M&O Taxes 0.61420 $ 11,253,855 Draft I&S Taxes 0.15000 $ 2,748,418 Draft Total 0.76420 $ 14,002,273 % of M&O % of I&S M&O Taxes I&S Taxes Total Valuation TIRZ #1 Base 75% 75% $ 1,983,343 $ 484,372 $ 420,010,949 TIRZ #2 Base 80% 0% $ 6,125 $ ‐ $ 1,215,972 TIRZ #3 Base 80% 0% $ 9,736 $ ‐ $ 1,932,962 TIRZ #4 Base 80% 0% $ 16,047 $ ‐ $ 3,185,790 Valuation Total in all TIRZ $ 426,345,673 Page 41 of 43 ITEM 6.5. TIRZ #1 Draft FY24 Budget FY24 Draft TIRZ #1 Revenues and Expenditures Estimated start of FY24 TIRZ Fund Balance $ 1,700,000 Account FY23 Budget FY24 Draft Budget TIRZ #1 City Source Revenue $ 1,761,748 $ 2,467,716 TIRZ #1 County Source Revenue $ 480,721 $ 639,688 Interest $ 1,000 $ 30,000 Total TIRZ #1 Revenue $ 2,243,469 $ 3,137,404 Description 2023 Budget 2024 Budget FY 2024 ‐ NOTES Placeri, BFTS Partnership, CBD CONSULTANT FEES & SERVICES $ 90,000 $ 235,000 Marketing, P3Works SENIOR / LIBRARY ASSESSMENT $ 120,000 $ 60,000 Continuation TIRZ ADMINISTRATIVE COSTS $ 60,000 $ 60,000 General Fund Transfer TIF REIMB SINA COLA $ 11,371 $ 13,076 Contract TIF REIMB BAYLOR $ 87,129 $ 100,198 Contract TIF REIMB TMC $ 87,129 $ 100,198 Contract TIF REIMB BUC EE'S $ 101,737 $ 116,998 Contract TIF REIMB CROSSROADS $ 833,441 $ 958,457 Contract DOWNTOWN PROJECT OFFICE $ 250,000 $ 250,000 General Fund Transfer DOWNTOWN MASTER PLAN $ 270,000 $ 75,000 Wrap up of Original Contract DOWNTOWN SIDEWALK GRANT $ 80,000 $ 20,000 Close out only PINA PARTNERSHIP $ 75,000 $ ‐ Paid out FY 2023 BFTS PRECONSTRUCTION $ 90,000 $ 35,000 DEMOLITION $ 300,000 $ 150,000 Murco ‐ Demolition DOWNTOWN M&O $ 200,000 General Fund Transfer DRAINAGE & LANDSCAPING $ 100,000 $ 100,000 Previous FY amount DOWNTOWN PARKING LOT $ 300,000 FY 2024 only LAND ACQUISITION $ 130,000 $ 130,000 TRANSFER TO IT $ 130,000 Drainage and Stormwater (Rochester contribution) $ 450,000 Transfer to Stormwater Fund Downtown Contingency $ 50,000 TRANSFER TO I&S NO. 1 $ 346,184 $ 346,187 Previous FY amount, 2021 Debt Payment Apache Trail $ 400,000 NEW, supporting the Fire Station #3 EXPENSES EXPENSES $ 3,031,990 $ 4,280,114 Summary Categories Contracts $ 1,288,927 Recurring $ 1,491,187 One‐time $ 1,000,000 Downtown Contingency $ 50,000 Total of Summary Categories $ 3,830,114 Estimated end of FY24 Fund Balance $ 557,289 Page 42 of 43 ITEM 6.5. DRAFT FY24 Power Center Budget Estimated start of FY24 Power Center Fund Balance $ 492,173 FY23 Adopted Projected FY23 Draft FY24 Revenues Budget Revenues Revenues Revenues Account Name COUNTY PWR CTR TAXES $ 346,292 $ 346,292 $ 398,236 CITY POWER CENTER TAXES $ 516,528 $ 516,528 $ 594,007 INTEREST INCOME $ 750 $ 750 $ 863 Revenue Totals $ 863,571 $ 863,571 $ 993,106 FY23 Adopted Projected FY23 Draft FY24 Expenses Budget Expenses Expenses Expenses Account Name Power Center Administration $ 20,000 $ 20,000 $ 20,000 TERRELL MARKET CENTER Based Reimbursements $ 106,825 $ 106,825 $ 122,849 BUC EE'S Based Reimbursements $ 79,278 $ 79,278 $ 91,169 CROSSROADS Reimbursements $ 587,531 $ 587,531 $ 675,661 ENGINEERING $ 100,000 DRAINAGE LANDSCAPE PROJECT $ 100,000 Development Partnership $ 500,000 Expense Totals $ 993,634 $ 793,634 $ 1,409,679 Estimated End of FY24 Power Center Fund Balance $ 75,600 Page 43 of 43

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