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COUNCIL CHAMBER
1503 66February 25, 2015
WHEREAS, the City recognizes the importance of its role in local economicdevelopment initiatives and programs; and
WHEREAS, the City has established Tax Increment Financing Reinvestment ZoneNumber Nineteen, (“Cypress Waters TIF District” or “District”) and established a Boardof Directors for the District to promote development or redevelopment in the CypressWaters area pursuant to Ordinance No. 28074, authorized by the City Council onDecember 8, 2010, as authorized by the Tax Increment Financing Act, Chapter 311 ofthe Texas Tax Code, as amended; and
WHEREAS, on April 11, 2011, City Council authorized the Project Plan andReinvestment Zone Financing Plan for the Cypress Waters TIF District by OrdinanceNo. 28224, as amended; and
WHEREAS, the Tax Increment Financing Act specifies that the governing body of a cityshall submit an annual report on the financial status of the district to the Chief ExecutiveOfficer of each taxing unit that levies taxes on real property in a reinvestment zone, anda copy of the report shall be forwarded to the State Comptroller; and
WHEREAS, on December 15, 2014, the Cypress Waters TIF District Board of Directorspassed a motion accepting the FY 2014 Annual Report for Tax Increment FinancingReinvestment Zone Number Nineteen and recommending approval of same by the CityCouncil.
NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DALLAS;
Section 1. That the FY 2014 Annual Report for Tax Increment Financing ReinvestmentZone Number Nineteen, (Cypress Waters TIF District), City of Dallas, Texas, as ofSeptember 30, 2014, a copy of which is attached hereto (Exhibit A), is herebyaccepted.
Section 2. That the City Manager is hereby authorized to submit the FY 2014 AnnualReport for Tax Increment Financing Reinvestment Zone Number Nineteen to the ChiefExecutive Officer of each taxing jurisdiction that levies taxes on real property in thedistrict and to the state comptroller, as required by state law.
Section 3. That this resolution shall take effect immediately from and after its passagein accordance with the provisions of the Charter of the City of Dallas, and it isaccordingly so resolved.
APPROVED BYcrr COUNCIL
FEB 25 2015
City Secretary
150366ExhibitA
Cypress Waters TIF DistrictFY2014
Annual Report
City of Dallas
Office of Economic Development1500 ManIla Street, 2CN
Dallas, Texas 75201(214) 670-4551
www.dallas-ecodev.org/redevelopment
October 1, 2013 to September 30, 2014
Reinvestment Zone Number NineteenCypress Waters
Tax Increment Financing District
150366Exhibit A
150366
Exhibit A - Cypress Waters TIF District FY 2014 Annual Report
Table of Contents
Table of Contents 3Mission Statement 4District Accomplishments 4Value and Increment Revenue Summary 8Objectives, Programs, and Success Indicators 8Year-End Summary of Meetings and Council Items 11Pending TIF Items 12Budget and Spending Status 12FY 2014 Work Program 13Appendix: Financials 14
3
150366
Exhibit A - Cypress Waters TIF District FY 2014 Annual Report
Mission Statement
The Cypress Waters Tax Increment Financing (TIE) District represents the outgrowth ofthe City of Dallas’ effort to provide a model for supporting the development of land nearDEW Airport and to take full advantage of the planned expansion of the DART light railsystem along the Cotton Belt Line.
The Cypress Waters TIE District was established on December 8, 2010 to encourage theinitial development of a large tract of undeveloped land within the City of Dallas(approximately 1,661 acres in total) surrounding North Lake. This district will promote thecreation of pedestrian-oriented traditional neighborhood development (TND) containingmultifamily and residential development, a potential senior housing component,pedestrian-oriented retail development, offices, and additional commercial development.
The Dallas City Council established the Cypress Waters TIE District by OrdinanceNumber 28074 on December 8, 2010. The Cypress Waters District began collectingfunds on January 1, 2012, and it is scheduled to terminate on December 31, 2040(including collection of the 2040 increment in calendar year 2041 and any relatedmatters to be concluded in 2041) or when the budget of $65 million (2010 dollars) hasbeen collected. The City of Dallas and Dallas County are the two participatingjurisdictions. The City started to participate at 85% in 2012. The County’s participationwill be 55% from 2014 to 2033 or until the County’s participation reaches the budgetlimit of $10,500,000.
District Accomplishments
The district is located in the area north and east of the intersection of LBJ Freeway (I-635) and Belt Line Road, with the entire site being located within the City of Dallas. Thedistrict contains approximately 939 acres of contiguous undeveloped land which will beadjacent to a 362 acre lake (once the ongoing reduction of North Lake is complete). Theremaining property in the 1,661 acre area, including proposed school sites, a drillingsite, and the site of a former power plant, is not part of the TIE district. However, during2014, all of the drill sites were sold to Billingsley Company and will be developed inconjunction with the district. Due to the remoteness of the property in the CypressWaters TIE District from the remainder of the City of Dallas, fully developing theproperty will require significant public expenditures for infrastructure and utilityimprovements (including extensive water and wastewater transmission, storage anddistribution improvements); construction of primary roadway improvements; facilities forpolice, fire and emergency services; environmental remediation; and lake reclamation.The use of TIE funds has allowed this large, master-planned development, which iscurrently located outside of accessible City of Dallas services, to commencedevelopment much sooner, and to proceed to completion much more quickly, than suchwould occur absent the use and availability of TIE funds.
Two projects have been approved by the TIE board and by Council. Cypress WatersPhase iwas approved by Council on June 6, 2011. This phase includes approximately
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150366
Exhibit A - Cypress Waters TIF District FY 2014 Annual Report
673 multifamily units, master planned using the design principles of TraditionalNeighborhood Development. The unit mix includes both flat and townhome rental units.
Cypress Waters Phase 2 was approved by the Council on November 14, 2012 andconsists of infrastructure improvements in support of future office development. Thisphase includes construction of the extension of Cypress Waters Boulevard fromHackberry Drive to the Phase 1 development; 2) the extension of Saintsbury Street fromthe termination of the Phase 1 improvements to the proposed Cypress WatersBoulevard extension; 3) entryway features for both streets; 4) sidewalks along bothstreets and a cycle track on Cypress Waters Boulevard; and 5) publicly accessiblegreen space in the center of this phase of development. It is anticipated that thisinfrastructure will support over one million square feet of office development.
As of the end of FY 2014, Cypress Waters Phase I (the Scotch Creek, Sycamore Park,and Parson’s Green apartments) were nearly finished, with temporary certificates ofoccupancy received for all 673 units. In addition, the first three office buildings, at 8951,8950, and 8840 Cypress Waters Boulevard, were approaching completion. Thetemporary police and fire service building is scheduled to be complete in the fall of2014, with a lease agreement allowing City occupancy scheduled to be reviewed byCouncil in December2014.
Cypress Waters Phase I multi-family:Scotch Creek, Sycamore Park, andParson’s Green
Cypress Waters Phase 1 multi-family:Scotch Creek, Sycamore Park, andParson’s Green
Photo: Billingsley Company
Photo: Billingsley Company
5
150366
Exhibit A - Cypress Waters TIF District FY 2014 Annual Report
Cypress Waters Phase 2: 8951 CypressWaters Boulevard (speculative officebuilding)
Cypress Waters Phase 2: 8950 CypressWaters Boulevard (Nationstar)
Cypress Waters Phase 2: Salazar Park
Photo: City of Dallas
J44Photo: Billingsley Company
6
150366
Exhibit A - Cypress Waters TIF District FY 2014 Annual Report
Parson’s Green 2
Cypress Waters Phase 2: 8840 CypressWaters Blvd (speculative office building)
CalendarProject Location Year Status Unitsl SF2
Approx. TIF lnvestmentValue3Complete
Cypress WatersCypress Waters Phase I Blvd. & Chapelmulti-family: Scotch Oaks Dr., northeast 2014 Under 673 units $45,000,000 $9,757,267*Creek, Sycamore Park, of Belt Line Rd and Constructionand Parson’s Green I Hackberry Rd
Cypress Waters2014 and UnderCypress Waters Phase 2: Blvd and Saintsbury 2021 Construction n/a n/a $6,522,398*
Public Infrastructure St.
Cypress Waters Phase 2: 8950 Cypress 2014 Under 175,036 sf office $31,400,000Nationstar Waters Blvd. construction
Cypress Waters Phase 2: 8951 Cypress 2015Under
181,160 sf office $28,000,000vest side spec office Waters Blvd. construction
,ioto: City of Dallas
Image: Hensley, Lamkin, Rachel, Inc.
Projects Within the Cypress Waters TIF District Utilizing TIF Funding’
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150366
Exhibit A - Cypress Waters TIF District FY 2014 Annual Report
Cypress Waters Phase 2: 8840 Cypress2015
Under164,389 sf office $31,400,000
ast side spec office Waters Blvd. construction
Water Mill Rd.,Scotch Creek Rd., 141 residential
$24,271,9762015 Plannedunits
Parson’s Green 2and Chapel OaksDrive
ypress Waters Phase 3: 9001 Cypress2016 planned 218,395 sf office $31,440,027additional development Waters Blvd.
Dypress Waters Phase 3:Not set TBD Planned TBD TBD
uture development
7All in formation updated as of September 30, 2014.2 upon either the TIF application or required minimum stated in the development agreement. May be updated forompIeted projects based on actual unit mix and square footage.
upon 1) market value of comparable projects for anticipated projects, 2) private investment stated in thedevelopment agreement for projects that are approved or under construction, or 3) DCAD market value for completedrojects (unless project has not yet been assessed).Principal amount not to be exceeded per the development agreement. TBD indicates that development agreement has
?ot yet been adopted. Asterisk indicates investment also includes interest not shown.
Value and Increment Revenue Summary
The Cypress Waters TIF District’s base tax value for 2010 was $73,382. This basevalue reflects adjustments to the base to reflect the final 2010 values of the parcels inthe district. The district’s 2014 assessed tax value, as determined by the Dallas CentralAppraisal District, was $59,427,196. This represents an increase of approximately$59,353,817 (80,883%) over the assessed value of the base year (2010) value. Withthe participation of the City and county in 2014, this increase will result in the collectionof approximately $481,451 plus $175,389 in rollback taxes for a total of $656,500 inincremental revenue for the district. (Dallas County began participation in 2014.)
Objectives, Programs, and Success Indicators
The final Cypress Waters Project Plan and Reinvestment Zone Financing Plan wasadopted on June 8, 2011. The Final Project Plan addresses the following developmentgoals and objectives:
Subtotal 814 units$191,512,003 $16,279,665*
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150366
Exhibit A - Cypress Waters TIF District FY 2014 Annual Report
• Create additional taxable value attributable to new private investment in projects in theCypress Waters TIF District totaling approximately $2.2 billion over the thirty-year lifeof the TIE district.
The district has seen an increase in value of approximately $59 million, (or2.68% of goal) from a combination of agricultural exemption beingremoved from some parcels and the initial increase in value from bothPhase I and Phase 2 construction. An estimated additional $135 millionwas anticipated in 2014 from the completion of Phase I and additionaloffice and tech space now under construction as part of Phase 2, butconstruction delays hampered completion and only $47 million was addedto the rolls for 2014 for these phases. Construction on the first 3 officebuildings has continued. 8950 Cypress Waters Boulevard is expected tobe complete in November 2014. 8840 and 8951 Cypress WatersBoulevard are expected to be complete in 2015.
• Attract new private development, including approximately 10,000 new residentialunits, 4,000,000 square feet of commercial space (including approximately700,000 square feet of data center use and 2,000,000 square feet of lightwarehouse/industrial use), and an estimated 150,000 square feet of pedestrian-oriented retail space, all of which are anticipated to create an estimated 9,000on-site jobs.
Construction on Phase 1 began in January 2012. When complete, thisproject adds 673 multi-family homes, representing 6.6% of the housinggoal. As of September 30, 2014, all 673 units had received temporarycertificates of occupancy, and 30 units had received final certificates ofoccupancy.
Phase 2 began during fiscal year 2013 and will provide infrastructure insupport of over 1 million square feet of office space. Nearly 500,000square feet of office and tech space is currently under construction. Whencomplete, Phase 2 will represent 25% of the commercial space goal.
• To improve ridership on DART via the planned expansion along the Cotton BeltLine.
The master plan for the district includes development adjacent to theplanned Cotton Belt Station on the north side of the district.
• Improve recreational opportunities for the community and the future residentswithin the TIE district via extensive, publicly accessible green space on the sitealong the lake edge and along power line easements, in addition to multipleparks, hike and bike trails, and pedestrian connections throughout the district.Additional open space may be available through the utilization of Coppell ISDland and as part of an MMD and/or TIE-funded public amenity center.
9
150366
Exhibit A - Cypress Waters TIF District FY 2014 Annual Report
The Phase 1 development includes wide sidewalks leading to theadjacent power line easement and to a future connection to the lake trail.
The Phase 2 development includes a combination cycle track andpedestrian path along Cypress Waters Boulevard and three large greenspaces in the district.
Dallas County’s current five-year plan includes $2,500,000 in 2017 and$2,500,000 in 2018 in support of five miles of trails from living’s CampionTrail into Cypress Waters. Upon completion, this would provide acontinuous 12-mile trail from Cypress Waters to the Las Colinas UrbanCenter.
• Create a model for exceptional development standards in terms of its complexity,scope, design, environmental sensitivity, and connectivity.
The Phase I development is a model for dense, pedestrian-orienteddevelopment on under-utilized, infill property.
On August 13, 2012, the board approved the Urban Design Guidelinesfor Projects Located in City of Dallas Tax Increment Financing Districts.
The City Design Studio reviewed design for the Phase 2 public andprivate development, which will provide pedestrian and bicycleconnectivity between the housing, commercia4 and recreational space.
Coppell Independent School District opened Richard J. Lee ElementarySchool in the fall of 2014. Lee Elementaiy is the first net-zero elementaryschool in the state of Texas. The campus includes daylight harvesting,rainwater collection, and geothermal heating and cooling.
• Develop the property in a manner where fiscal impacts for the remainder of theCity are limited and a development pattern is secured that is a net benefit to theCity from a fiscal, land use and community standpoint.
Cypress Waters is in a location outside of currently accessible Cityservices. As part of Phase I, the developer has nearly finishedconstruction on temporary facilities for police and fire service. A lease forthe building is expected to be approved by Council in December 2014.
Private development as part of Phase 2 includes new office spaceproviding potential jobs to Cypress Waters residents.
10
150366
Exhibit A - Cypress Waters TIF District FY 2014 Annual Report
A proposed Phase 3 agreement which incorporates potential cooperationwith the City of Irving on a new water tower; will save the City and thedistrict nearly $14 million.
• Generate an NPV of $65 million or approximately $160 million in total dollars inTIF revenues over the 30-year life of the district.
City participation in TIF increment collections began in tax year 2012.$155,557 in incremental revenue was received for the district during the2014 fiscal year; and $656,500 is expected during the 2015 fiscal year;1.10% of the total.
Year-End Summary of Meetings and Council Items
The board consists of seven directors: six appointed by the City Council and oneappointed by Dallas County.
During the fiscal year from October 1, 2013 to September 30, 2014, the Cypress WatersTIE District board of directors held 3 meetings. The board members were: Mary Poss,city appointee and chairperson (attended 3 of 3 meetings); Veletta Lill, city appointeeand vice chairperson (attended 3 of 3 meetings); Elizabeth Solender, city appointee(attended 2 of 3 meetings); Dr. Jose Gomez, city appointee (attended 3 of 3 meetings);Michael Buckley, city appointee and former vice-chairperson (attended 1 of 1 meeting);and Rick Loessberg, Dallas County appointee (attended I of 4 meetings). MichaelBuckley moved out of the area and resigned his position effective January 1, 2014.David Pittman was appointed to the board on January 8, 2014 and attended 2 of 2remaining meetings.
During the fiscal year from October 1, 2013 to September 30, 2014, the City Councilapproved 2 items associated with the Cypress Waters TIE District:
• On February 26, 2014, Council authorized resolution number 14-0389 acceptingthe FY 2013 Annual Report on the status of Tax Increment EinancingReinvestment Zone Number Nineteen, (Cypress Waters TIF District), submittedby the Cypress Waters TIE District’s Board of Directors, and authorizing the CityManager to submit the annual report to the Chief Executive Officer of each taxingjurisdiction that levies taxes on real property in the District and the StateComptroller, as required by state law.
• On May 14, 2014, Council held a public hearing to receive comments andsubsequently authorized Ordinance No. 29333, an ordinance granting an R-5(A)Single Family District on property zoned an A(A) Agricultural District south ofEast Belt Line Road and west of South Northlake Road. Project: single familyhomes north of the lake.
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150366
Exhibit A - Cypress Waters TIE District EY 2014 Annual Report
Pending TIF Items
The Cypress Waters TIF District is expected to review the following items during FY2014-2015:
• FY 2014 Annual Report for the Cypress Waters TIE District• A Phase 3 development agreement to provide funding for Cypress Waters
Boulevard, Olympus Boulevard, entryway features, and a non-potable waterpump station to allow water from the lake to be used for landscape irrigation.
Budget and Spending Status
Each TIF district, in the Project Plan and Reinvestment Zone Financing Plan,establishes a budget for the public improvement expenditures necessary to supportprivate investment in the district. The Cypress Waters TIE District was established inDecember 2010 and collected $155,557 in TIE funding in FY 2014. It is anticipated tocollect approximately $656,841 in FY 2015.
The Cypress Waters budget and spending to date is shown below.
Category TIF buc Allocated balance
Public infrastructure improvements $157,498,930 $16,279,665 $141,219,265
Public safety improvements $16,037,015 $0 $16,037,015
Administration and implementation** $2,065,585 $134,709 $1,930,876
Total project costs $175,601,531 $16,414,374 $159,187,157*Budget shown above in current dollars, updated yearly; TIF Project Plan shows the budget in net present value.Values above do not include interest payments.**Administration and implementation for FY 2014 are included in the above allocation.
Cypress Waters TIF District
-
Projected !n9! yuoRere TiFFundObhgatIons*
cypressWatersTlF Distnct - —
- -
- Project Plan Budget (NPV, 2008 dollars) - - -
jrrCategory TIFPublic infrastructure improvements: paving, streetscape, water/wastewater,
$58 198 583storm_sewer,_utility_burial/relocation,_and_land_acquisition
Public safety $6,000,000
Administration and implementation $1,500,000
Total project costs $65,698,583
As approved in the Final Project Plan and Reinvestment Zone Financing Plan.
12
1503 66
Exhibit A - Cypress Waters TIF District FY 2014 Annual Report
FY 2015 Work Program
Pending items for the Cypress Waters TIF District include:
• Encourage development projects within the district in accordance with the finalProject Plan and Reinvestment Zone Financing Plan.
13
150366Exhibit A - Cypress Waters TIE District EY 2014 Annual Report
Appendix: FinancialsCity of Dallas, Texas
Cypress Waters Tax Increment Financing District Fund
Reinvestment Zone Number Nineteen
As of September 30, 2014
Chapter 311.016 of V.C.T.A. requires the following information
as part of the annual report on the status of the TIE District.
Information is contained in detail on the attached
financial statements.
Amount and source of revenue in the tax increment fund established for the zone:
$142 Interest Income
$0 Affordable housing payment
$155,557 Ad Valorem Taxes (Collected in EY’2013-14 based on 2013 Einal Tax Roll)
$155,699 Total Reenue
Amount and purpose of expenditures from the fund:
$22,297 Administrative Expense
$0 Interest and fiscal charges
$22,297 Total Expenditures
3. a. Amount of Principal and Interest due-on outstanding bonded indebtedness is as follows:
Cypress Waters TIE District has incurred no bonded indebtedness as of September 30, 2014.
b. The Zone has entered into a deelopment agreement with Billingsley LD, Ltd for the Cypress Waters Phase I
development in an amount not to exceed $9,757,267 plus interest with anticipated completion by December 31, 2014
and reimbursement to begin thereafter upon availability of TIE funds.
c. The Zone has entered into a devalopment agreement with Billingsley LD, Ltd for the Cypress Waters Phase II
devalopment in an amount not to exceed $6522398, plus a TIE grant to be determined later, with anticipated completion
of Phases 2a, 2b and 2c ranging from January 31, 2014 to December 31 2021 and reimbursement to begin thereafter
upon availability of TIE funds.
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150366
Exhibit A - Cypress Waters TIF District FY 2014 Annual Report
City of Dallas
Dallas County
Value 2014*
$59,427,196
$59,427,196
Est. Captured
2010 Value Value 2014**
$73,383 $59,353,813
$73,383r
$59,353,813
*Taxable value shown for participating taxing jurisdictions. County will begin participating in tax year 2014 and the
values will vary slightly from the City value due to different exemption levals.
**Based on Certified Taxable Value. The final values will be determined on February 01, 2015.
. Captured appraised value by the municipality and other taxing units, the total amount of the taxincrement received, and any additional information necessary to demonstrate compliance with the
tax increment financing plan adopted by the governing body of the municipality:
A. Estimated tax increment shared by the municipality and other participating taxing jurisdictions:
Amount of
Total for all Jurisdictions
Assessment Estimated 2014
Per $100*** lncrement***
0. 67745 $402,092
0.00000 $146,480
0.13371 $79,359
0.00000 $28,909
$081116 $656,841
***participation rates for City of Dallas and Dallas County are 85% for tax years 2012 to 2034 and 55% for tax years
2014 to 2033 respectivaly.
B. The total amount of estimated tax increment to be billed for the 2014 tax year is $656,841. For 2013 tax year,
the Zone receivad increment of $155,557.
Tax increment base and current captured appraised value retained by the zone:
Taxable Base Year
Taxing Jurisdiction
Taxing Jurisdiction
City of Dallas
City of Dallas-2014 PH I Rollback Taxes
Dallas County
Dallas County-2014 PH I Rollback Taxes
15
150366Exhibit A - Cypress Waters TIE District FY 2014 Annual Report
City of Dallas, TexasCypress Waters Tax Increment Financing District FundBalance Sheet as of September 30, 2014 (Unaudited)With Comparative Totals for September 30, 2013, 2012, 2011, and 2010 (Audited>
Liabilities and Fund Balance (Deficit):Liabilities:
Accounts and contracts payableDue to general fund
Fund Balance (Deficit):Fund Balance (Deficit)
Cypress Waters Tax Increment Financing District FundStatement of Revenues, Expenditures and Changes in Fund Balance (Deficit)Forthe Period September 30, 2014 (Unaudited)With Comparative Totals for September 30, 2013, 2012, 2011, and 2010 (Audited)
Reenues:Tax increment-GoernmentalTax increment-IntergoemmentalInterest incomeAffordable housing paymentNet increase (decrease) in fair elue of ine
Total reenues
Expenditures:Administrative expensesNon-Capital OutlayCapital outlayInterest and fiscal charges
Total expenditures
Excess (Deficiency) of Revenues over Expel
Fund balance (Deficit) at beginning of yearas preousIy reported
Fund balance (Deficit) at beginning of year,as restated
Fund balance (deficit) at end of year
$0 $0 $0$0 $0 $0$0 $0 $0$0 $0 $0$0 $0 $0
Note: Fiscal year 2013-14 unaudited financial statements are based on preliminary close numbers and are subject toreview by the City Controller’s Office prior to approval by the City Council. In case of any material changes, TIF boardwill be provided with the updated financial statements.
Assets:
Total assets
2014 2013
Pooled cash and cash equielents $133,492 $0 $0 $0 $0Interest receieble ($90) $0 $0 $0 $0
2012 2011 2010
Total liabilities
Total Liabilities and Fund Equity
$133,402 $0 $0 $0 $0
$0 $0 $0 $0 $0$112,097 $112,097 $74,874 $54,138 $8,025
$112,097 $112,097 $74,874 $54,138 $8,025
$21,306 ($112,096) ($74,874) ($54,138) ($8,025)
$133,402 $0 $0 $0 $0$0 ($0) $0 $0 $0
lTD 2014 2013 2012 2011 2010
$155,871 $155,557 $314$0 $0 $0
$275 $274 $1$0 $0 $0
($132) ($132) $0
$156,014 $155,699 $316 $0 $0 $0
$134,709 $22,297 $37,537 $20,737 $46,113 $8,025$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$134,709 $22,297 $37,537 $20,737 $46,113 $8,025
$21,306 $133,402 ($37,222) ($20,737) ($46,113) ($8,025)
$0 ($112,096) ($74,874) ($54,138) ($8,025) $0
$0 ($112,096) ($74,874) ($54,138) ($8,025) $0
$21,306 $21,306 ($112,096) ($74,874) ($54,138) ($8,025)
16
1.50366
Exhibit A - Cypress Waters TIF District FY 2014 Annual Report
City of Dallas, TexasCypress Waters Tax Increment Financing District
Notes to Financial Statements for the Year Ended September 30, 2014
The measurement focus used for the TIE Zone fund is a flow of financial resources. Thefinancial statements are prepared using the modified accrual basis of accounting. Under themodified accrual basis of accounting, tax increment revenues and interest are recognized asrevenue when they become both “measurable” and “available” to finance expenditures of thecurrent period. Expenditures are recognized when the liability is incurred.
2. The TIF’s cash balances are invested in the City’s investment pool and include amounts indemand deposits as well as short-term investments. Pooled investments and short-term non-pooled investments are treated as cash equivalents. Investment income on the pooledinvestments is prorated monthly based upon the average daily cash balance in each fund.
3. State statute requires that each taxing jurisdiction remit its ad valorem taxes to the Zone byMay 1 of each year (remittance to occur no more than 90 days after taxes for the jurisdictionbecome delinquent).
4. The Zone’s Financial Plan permits expenditures not to exceed $2,065,585 over the life of theTIE to reimburse the City for administrative costs. Any future remittance for administrativeexpenses would come from excess cash as tax increment revenue increases as a result ofincreased assessed values.
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