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Home My WebLink About02-04-04 La Porte Redevelopment Authority Meeting minutes La Porte Redevelopment Authority City of La Porte, Texas l\'linutes of the Board Meeting Held February 4, 2004 1. Call to Order and Determination of a quorum The Board of Directors of the La Porte Redevelopment Authority, City of La Porte, Texas, held a meeting, open to the public, on the 4th day of February 2004,6:30 p.m. in Council Chambers at the City Hall, 604 West Fairmont Parkway, La Porte, Texas 77572-1115 and the roll was called of the duly appointed members of the Board, to wit: Peggy Antone Paul Larson Alton Porter Horace Leopard Norman S. Cook Lindsey Pfeiffer Molly Helmlinger Chester Pool 11 Meza Position 1 Position 2 Position 3 - Chairman Position 4 Position 5 Position 6 Position 7 Position 8 Position 9 and all of the above were present except Director Larson and Director Antone, thus constituting a quorum. Also present at the meeting were John Joerns, David Hawes, and Debra Feazelle. 2. Consider approval of the l\'linutes of the meeting held January 14, 2004 Upon a motion duly made by Director Helmlinger and being seconded by Director Cook, the board unanimously approved the Minutes of January 14, 2004. 3. Consider approval or other action retaining Andrews Kurth, LLP to perform additional services relating to bond counsel services. Mr. Joerns discussed the need for additional services related to development agreements by and between the Authority, the TIRZ and developer. The additional services were necessary for documenting costs for future bond sales. Upon a motion duly made by Director Pfeiffer and being seconded by Director Meza, the board unanimously approved the Additional Services Agreement with Andrews Kurth, LLP. 4. Discuss status of proposed development within the Tax Increment Reinvestment Zone. Mr. Joerns discussed potential development activity within the Zone. He described a warehouse project on the west side of Highway that is currently under contract with a possible closing in the next 45 days. The first warehouse would comprise 225,000 square foot of space with a possible construction start date of June. There is an option for an additional 2 warehouses of equal size. Mr. J oems noted that staff is still working on the residential development proposed for the east side of Highway 146. Staff is trying to develop alternative infrastructure options with regard to the proposed development. 5. Administrative Reports · La Porte References in Bay Area Houston Economic Partnership Newsletter . Review correspondence Mr. Joerns reviewed with the board the newsletter and its content with relation to La Porte. Also, Mr. Joerns shared with the board recent correspondence with regard to affordable housing projects and their possible impact on the TIRZ. 6. Board member Comments Director Pfeiffer indicated that he might be leaving La Porte within the next two months. 7. Adjournment The board chair adjourned the meeting at 7:07 PM. SIGNED ~y~ TITLE: C.h ti \ {'ViA O"'j DATE: (J;..DS .aLf ATTEST: TITLE: DATE: See.Y2.Cm~ O<;.OS.oL/ AGENDA ITEM 3: ANNUAL AUDIT FOR TIRZ FUND FY ENDING SEPTEMBER 30, 2003 The Redevelopment Authority [Bylaws and Tri-Party Agreement] provides for an annual audit of the TIRZ fund. The audit ofthe TIRZ fund for FY ending September 30, 2003 is contained within the City's Comprehensive Annual Financial Report (CAFR). The attached pages are excerpts from the CAFR, which review the TIRZ fund. ,0"--'-' CITY OF LA PORTE COMPREHENSIVE ANNUAL FINANCIAL REPORT For the fiscal year ended September 30,2003 )^,_. Prepared by: Department of Finance COMBINING FINANCIAL STATEMENTS NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. Community Investment Fund - This fund is used to account for funds received and expended on community beautification and revitalization programs. Hotel/Motel Occupancy Tax Fund - This fund is used to account for the accumulation of resources from the Hotel/Motel Tax assessment levied by the City. These monies are to be spent to promote the development or progress of the City within the guidelines set forth on disposition of revenues collected under the authority of the Texas Hotel Occupancy Act (Article 1269; Vernon's Texas Civil Statutes). Section 4B Sales Tax Fund - This fund is used to account for the % cent sales tax collected that is specifically dedicated to promote new or expanded business enterprises and various other community projects as described in Section 4B of Article 5190.6. Tax Increment Reinvestment Zone One Fund (TIRZ) - This fund is used to account for the disposition of property taxes collected on specific parcels within the boundaries of the TIRZ for the exclusive benefit of the City's capital improvement programs. Capital Projects Funds Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds. Transportation and Other Infrastructure Fund - This fund is used to account for the construction and expansion of roads, bridges, sidewalks and other major infrastructure capital improvements. 1998 General Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures related to drainage and street improvements throughout the City. 2000 Certificate of Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures for construction of the community library. 2000 General Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures for construction to renovate the city hall building, public swimming pool and two fire stations. 71 CITY OF LA PORTE, TEXAS Combining Balance Sheets Nonmajor Governmental Funds September 30, 2003 Special Revenue Funds Hotel/Motel Tax Increment Community Occupancy Section 4B Reinvestment Investment Tax Sales Tax Zone One (TIRZ) Totals ASSETS Cash and cash equivalents $ 332,595 $ 589,608 $ 1,913,156 $ 121,383 $ 2,956,742 Investments 74,449 131,978 428,243 27,170 661,840 Taxes receivable 154,972 154,972 Accrued interest receivable 522 928 3,011 197 4,658 Total assets 407,566 722,514 2,499,382 148,750 3,778,212 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 3,431 3,371 164 310 7,276 Fund Balances: Reserved for: Capital projects Unreserved 404,135 719,142 2,499,218 148,440 3,770,935 Total fund balances 404,135 719,142 2,499,218 148,440 3,770,935 - Total liabilities and fund balances $ 407,566 $ 722,513 $ 2,499,382 $ 148,750 $ 3,778,211 72 Capital Projects Funds Transportation 1998 General 2000 Certificate 2000 General Total Nonmajor & Other Obligation of Obligation Obligation Governmental Infrastructure Bonds Bonds Bonds Totals Funds $ 1.251.527 $ 1,294,031 $ 336,908 $ 322.813 $ 3,205,279 $ 6.162,021 280,143 289,658 1.159 55,402 626.362 1,288,202 154,972 1,969 2.036 8 390 4,403 9,061 1,533,639 1,585,725 338,075 378,605 3,836,044 7,614,256 1.648 25,720 25,758 53.126 60,402 ,...-- 1,584,077 $ 1,585.725 $ 352,847 378.605 2,249,279 1,533,639 3,782,918 $ 3,836,044 2.249,279 5,304,574 7,553,853 $ 7,614,255 1,584,077 312,355 352,847 1,533,639 1.533,639 $ 1,533,639 $ 312.355 338,075 ,.- 73 CITY OF LA PORTE, TEXAS Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended September 30, 2003 Special Revenue Funds Hotel/Motel Tax Increment Community Occupancy Section 48 Reinvestment Investment Tax Sales Tax Zone One (TIRZ) Totals REVENUES Property taxes $ $ $ $ 20,218 $ 20,218 Sales taxes 921,625 921,625 Other taxes 234,630 234,630 Interest 8,064 10,333 34,209 2,159 54,765 Total revenues 8,064 244,963 955,834 22,377 1,231,238 EXPENDITURES Current: Administration 27,403 91,023 11,682 130,108 Capital Outlay 17,077 62,645 2,761 82,483 Total expenditures 27,403 108,100 62,645 14,443 212,591 Excess (deficiency) of revenues over expenditures (19,339) 136,863 893,189 7,934 1,018,647 OTHER FINANCING SOURCES (USES) Transfers in Transfers out (300,000) (55,000) (743,500) (1,098,500) Total other financing sources (uses) (300,000) (55,000) (743,500) (1,098,500) Net change in fund balances (319,339) 81,863 149,689 7,934 (79,853) Fund balances-beginning 723,474 637,279 2,349,529 140,506 3,850,788 Fund balances-ending $ 404,135 $ 719,142 $ 2,499,218 $ 148,440 $ 3,770,935 CITY OF LA PORTE, TEXAS Tax Increment Reinvestment Zone One Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Year Ended September 30, 2003 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Property taxes $ 20,000 $ 20,000 $ 20,218 $ 218 Interest 3,490 3,490 2,159 (1,331) Total revenues 23,490 23,490 22,377 (1,113) EXPENDITURES Current: Administration 25,500 25,500 11,682 13,818 Capital Outlay 5,000 5,000 2,761 2,239 Total expenditures 30,500 30,500 14,443 16,057 Excess (deficiency) of revenues over expenditures (7,010) (7,010) 7,934 14,944 - Net change in fund balances (7,010) (7,010) 7,934 14,944 Fund Balances-beginning 140,506 140,506 140,506 Fund Balances-€nding $ 133,496 $ 133,496 $ 148,440 $ 14,944 R? DRAFT ~ May 6, 2004 David Turkel Harris County Economic Development Administrator 1310 Prairie, Suite 550 Houston, Texas 77002-2042 RE: Interlocal Agreement City of La Porte / Tax Increment Reinvestment Zone Number One (TIRZ) Dear Mr. Turkel: Per terms of the Interlocal Agreement, attached is the La Porte Tax Increment Reinvestment Zone Number One Comprehensive Annual Financial Report (CAFR) for fiscal year ended September 30,2003. The Board reviewed and accepted the audit at the May 5, 2004 TIRZ Board Meeting. Also, enclosed for your information are the calculations of tax increments due the zone by the City of La Porte and La Porte Independent School District for the 2003 Tax Year. Should you have any questions or comments regarding the report or any other issues, please feel free to give me a call. Sincerely, John J oems Assistant City Manager Enclosures c: Dick Raycraft, Director ofHa. Co. Mgmt. Services David Hawes, Consultant Alton Porter, Chairman DRAFT May 6, 2004 Mr. Dick Raycraft, Director Harris County Department of Management Services 100 I Preston, Ninth Floor Houston, Texas 77002 RE: Interlocal Agreement City of La Porte / Tax Increment Reinvestment Zone Number One (TIRZ) Dear Mr. Raycraft: Per terms of the Interlocal Agreement, attached is the La Porte Tax Increment c- Reinvestment Zone Number One Comprehensive Annual Financial Report (CAFR) for fiscal year ended September 30,2003. The Board reviewed and accepted the audit at the May 5, 2004 TIRZ Board Meeting. Also, enclosed for your information are the calculations of tax increments due the zone by the City of La Porte and La Porte Independent School District for the 2003 Tax Year. Should you have any questions or comments regarding the report or any other issues, please feel free to give me a call. Sincerely, John Joems Assistant City Manager Enclosures c: David Turkel, Ha. Co. Ec. Dev. Administrator David Hawes, Consultant Alton Porter, Chairman AGENDA ITEM 4: ACTIVITY REPORT FOR 2003 TAX YEAR Calculation of the amount of taxes due the Tax Increment Reinvestment Zone #1 by the La Porte Independent School District. Calculation ofthe amount of taxes due the Tax Increment Reinvestment Zone #1 by the City of La Porte. Note regarding the Harris County contribution: Background - Tax Year 2002 The City's (TIRZ) audit, when examining the Harris County contribution, discovered differences between the City's and County's coding of accounts that are within the boundaries of the TIRZ. The City looked at a printout and map obtained from HCAD and noted that Harris County included lands not in the TIRZ and a few parcels not included which should be. The City provided Harris County our account codings and HCAD maps delineating the correct boundaries. After their review Harris County responded that they had overpaid by $8,566 last year (2001). This year's payment is only $2,725 - which leaves the Harris County contributions to the La Porte TIRZ with a negative balance of$5,841. This balance will just carry over into future years. The City (Tax Increment Reinvestment Zone Number One) has not yet received Harris County's Activity Report for Tax Year 2003. 4/21/2004 Calculation of the Amount of Taxes Due the Tax Increment Reinvestment Zone # 1, La Porte, TX By the La Porte ISO For the 2003 Tax Year Data Entry Area: Enter the Amount of Taxes Billed on Property located in the Zone Enter the Amount of Billed Taxes which have not been collected Enter the ISO's Tax Rate (1.63 = 1.63 Cents per $100) $119,648.33 $18,790.22 $0.0168 1 Calculation of the Collection Rate for Property in the TIRZ a Total Taxes Billed on Property Located in the TIRZ b Less Total Delinquent Taxes on Property Located in the TIRZ c Equals Total Taxes Collected on Property in the TIRZ d Divided by the Total Taxes Billed on Property Located in the TIRZ e Equals the Collection Rate for Taxes in the TIRZ $119,648.33 $18,790.22 $100,858.11 $119,648.33 84.30% 2 Calculation of the Captured Appraised Value a Total Taxes Billed on Property Located in the TIRZ b Divided by the ISO's Tax Rate c Equals the Total Appraised Value for the Current Year d Less the Tax Increment Base (1999) Value e Equals the Captured Appraised Value $119,648.33 $0.0168 7,121,924 6,346,840 775,084 3 Calculation of the Amount Due the TIRZ by the ISO a Captured Appraised Value b Times ISO's Tax Rate c Equals Total Taxes applicable to the Captured Appraised Value d Times the ISO's Collection Rate e Equals the Total Taxes due the TIRZ by the La Porte ISO 775,084 $0.0168 $13,021.42 84.30% $10,976.46 4 Breakdown of How ISO Taxes are Applied a Equals the Total Taxes Due the TIRZ by the La Porte ISO b Divided the Total Tax Rate for ISO c Equals Taxes due the Tirz per penny of Tax Rate d Times rate for General TIRZ Projects (.0086 per contract) e Difference is rate for Education Facilities Projects $10,976.46 $0.0168 $67.34 $5,791.26 $5,185.20 4/21/2004 Calculation of the Amount of Taxes Due the Tax Increment Reinvestment Zone # 1, La Porte, TX By the City of La Porte For the 2003 Tax Year Data Entry Area: Enter the Amount of Taxes Billed on Property located in the Zone Enter the Amount of Billed Taxes which have not been collected Enter the City's Tax Rate (.71 = .71 Cents per $100) $50,845.84 $7,899.84 $0.0071 Calculation of the Collection Rate for Property in the TIRZ a Total Taxes Billed on Property Located in the TIRZ b Less Total Delinquent Taxes on Property Located in the TIRZ c Equals Total Taxes Collected on Property in the TIRZ d Divided by the Total Taxes Billed on Property Located in the TIRZ e Equals the Collection Rate for Taxes in the TIRZ $50,845.84 $7,899.84 $42,946.00 $50,845.84 84.46% 2 Calculation of the Captured Appraised Value a Total Taxes Billed on Property Located in the TIRZ b Divided by the City's Tax Rate c Equals the Total Appraised Value for the Current Year d Less the Tax Increment Base (1999) Value e Equals the Captured Appraised Value $50,845.84 $0.0071 7,161,386 6,362,980 798,406 3 Calculation of the Amount Due the TIRZ by the City a Captured Appraised Value b Times City's Tax Rate c Equals Total Taxes applicable to the Captured Appraised Value d Times the City's Collection Rate e Equals the Total Taxes due the TIRZ by the City of La Porte 798,406 $0.0071 $5,668.68 84.46% $4,787.95 AGENDA ITEM 5: ADMINISTRATIVE REPORTS Re-zoning request within the TIRZ oRe-zoning Request from Planned Unit Development (PUD) to General Commercial (GC) for 3.0 Ac at the southeast comer of Wharton Weems Blvd. at SH146 was denied by City Council on March 22, 2004. o SCUP Request for 28.43 Ac south of McCabe Road at SH146 was denied by City Council on April 26, 2004. Letter to Harris County Housing Authority o During a City Council Workshop Meeting of April 12, 2004, Mr. David Turkel stated the Harris County Housing Authority would enter into an agreement to make payments in- lieu oftaxes for the two projects Harris County Housing Authority was involved in. (Note: HB3546 sets forth the method of appraisal as the income approach) Update on development with the TIRZ o To be provided at the meeting. City of IJii P.orte Established 1892 b~: fYL+Cc., {-2J-Z {1(2e ~{J NF March 31, 2004 David Turkel, Administrator Harris County Housing & Economic Development 1310 Prairie, Suite 550 Houston, TX 77002 Via Facsimile Regular Mail RE: Bayforest Ranch, Ltd. Fair Mist Apartments, Ltd. Dear Mr. Turkel, As these projects progressed through staff and Planning and Zoning Commission review, the City learned more about Harris County Housing Authority's proposed participation and ownership of these two projects. Per our conversation yesterday, one area of concern expressed is the lost tax revenue if these projects are approved and Harris County becomes the owner. This concern is amplified for the proposed Bayforest Ranch, which is located within the City's Tax Increment Reinvestment Zone Number One. You indicated that Harris County has, on occasion, agreed to make payments in-lieu of taxes to compensate for lost tax revenues. If you would like to provide more information and assurances regarding the County's willingness to make in-lieu payments, I will gladly forward the material to City Council, Planning and Zoning Commission and the TIRZ Board. If you provide more information, please confirm the potential for in-lieu payments for each project and each taxing authority (City, LPISD and Harris County). Based on our conversation, it is my understanding the County would only compensate the City's lost tax revenue. Presently, the Fair Mist Apartments rezoning request is scheduled to be in front of City Council on April 26, 2004. The Bayforest Ranch project has recently withdrawn their request for consideration by the Planning and Zoning Commission. At this time we do not know if or when they will re-apply. --- JJ/ml c: Debra B. Feazelle, City Manager Dr. Molly Helmlinger, LPISD Superintendent 604 W. Fairmont Pkwy. · La Porte, Texas 77571 · (281) 471-5020