TIF2 Annual Report - City of Allen

TIF ZONE #2

FISCAL YEAR ENDINGSEPTEMBER 30, 2020

An annual report to the City of Allen Tax Increment Financing Board

relating to reinvestment zone no. 2 (Central Business District)

With a copy to the State of Texas Comptroller’s Off ice, Collin County, Allen Independent School

District and Collin College District

CITY OF ALLEN, TEXAS305 Century Parkway

Allen, Texas 75013

CITY STAFFCity Manager Eric Ellwanger

Deputy City Manager Eric Strong

Assistant City Manager Tim Dentler

Assistant City Manager Rebecca Vice

Interim Chief Financial Officer Jennifer Fung

Assistant Chief Financial Officer Chris Landrum

Budget Officer Rebecca Brack

CITY COUNCILMayor Ken Fulk

Councilmember, Place No. 1 Kurt Kizer

Councilmember, Place No. 2 Carl Clemencich

Councilmember, Place No. 3 Lauren Doherty

Councilmember, Place No. 4 Chris Schulmeister

Councilmember, Place No. 5 Vacant

Councilmember, Place No. 6 Baine Brooks

CITY OF ALLEN, TEXAS

City Officials

Tax Increment Financing Fund

ZONE NUMBER 2

PLACE NO. 1 Eric Ellwanger City Manager

PLACE NO. 2 Vacant Chief Financial Officer

PLACE NO. 3 Marc Kurbansade Community Development Director

PLACE NO. 4 Chris Flanigan Director Engineering

PLACE NO. 5 Dan Bowman Director of Economic Development

PLACE NO. 6 Charles Nies Dal Briar Corporation

PLACE NO. 7 Bruce Heller JaRyCo Development LLC

BOARD OBJECTIVETo provide recommendations to City Council concerning administration of the TIF No. 2 Central Business District.

MEMBERSHIPTIF No. 2 is comprised of seven board members (minimum of at least five) but no more than fifteen members), each serving a staggered two-year term. Moreover, the City Council will appoint one board member to serve as chairperson for a one-year term. Ordinance 2580-12-06.

TIF NO. 2 - CITY OF ALLEN, TX

Board of Directors

7CITY OF ALLEN, TEXAS | TIF ZONE #2 ANNUAL REPORT

CITY OF ALLEN, TEXAS | TIF ZONE #2 ANNUAL REPORT

HISTORY OF THE TIFThe base property value of the Central Business District TIF was established as of January 1, 2006, and over the last fifteen years the appraised value of the district has increased by more than $300 million. This increase can be attributed to major developments in the North West section of the TIF as new homes and an apartment complex are both being developed simultaneously.

A few parcels were excluded during 2008 because residential development encroached into the North West corner of the TIF west of US 75 Highway. Ordinance No. 2713-3-08 amended the boundary of the TIF to exclude the Quail Run Phase I and Phase II residential developments as they were not intended to be part of the TIF. Additionally, in FY2012, ordinance No. 3077-4-12 excluded parcels, including Wal-Mart, which was built partially in the western portion of TIF 2.

PURPOSE OF THE TIF The purpose of the TIF No. 2 is to:

• Attract new investment and encourage revitalization of the Central Business District which is an area that will continue to decay without TIF financed infrastructure.

• Create redevelopment momentum that will create substantial financial gains to local taxing jurisdictions both during and beyond the life of the TIF.

• Recreate an economically viable, mixed-use, central city neighborhood.

• Serve as a catalyst for the revitalization of areas adjacent to the TIF.

8 CITY OF ALLEN, TEXAS | TIF ZONE #2 ANNUAL REPORT


FINANCIAL STATE OF THE TIFChapter 311.016 (a)(1) of the Texas Tax Code requires an annual status report be filled with the chief officer of each taxing unit that levies property taxes in a reinvestment zone and the Texas State Comptroller.

1. Amount and Source of Revenue

REVENUE SOURCE TAXING JURISDICTION TOTAL AMOUNT

Sales Tax City of Allen $129,523

Property Tax City of Allen $1,204,843

Investment Earnings City of Allen $176,737

Total $1,511,103

2. Amount and Purpose of Expenditures

DESCRIPTION OF EXPENDITURES TOTAL AMOUNT

Developers Reimbursement $0Legal Expenses $0

Administrative Expenses $15,000

Total $15,000

3. Amount of Principle and Interest Due on Outstanding Debt

$0. TIF No. 2 has not incurred any debt. The Fund is pay-as-you-go.

4. Tax Increment Base and Current Captured Appraised Value Retained

AD VALOREM

TAXING JURISDICTION

BASE YEAR VALUE (FY2006)*

NET TAXABLE VALUE (FY2020)

CAPTURED APPRAISED VALUE

(FY2020)*City of Allen $81,267,393 $571,092,789 $489,825,396

*Base Year and Captured Appraised Value of all real property in the TIF zone according to the Collin Central Appraisal District


SALES & USE TAX

TOTAL JURISDICTION & PARTICIPATION RATE

BASE YEAR VALUE

(FY2006)

COLLECTED SALES & USE TAX

(FY2020)

CAPTURED SALES AND USE TAX

(FY2020)

City of Allen (50%) $123,129 $382,175 $129,523

TOTAL FY2020 INCREMENT

$1,511,103 (Total includes $176,737 from investment earnings)

5. Captured appraised value (ad valorem) shared by the municipality and other taxing units, the total amount of the tax increment (sales & use tax) received, and any additional information necessary to demonstrate compliance with the tax increment financing plan adopted by the governing body of the municipality:

AD VALOREM

TAXING JURISDICTION &

PARTICIPATION RATE

CAPTURED APPRAISED

VALUE (FY2020)

TAX RATE PER $100/VALUE

(FY2020)

AMOUNT OF INCREMENT

(FY2020)*City of Allen (50%) $489,825,396 $0.489000 $1,204,843

*Total Net = delinquent taxes paid after 2018 report and outstanding delinquent taxes for 2019


TIF NO. 2 FUND BALANCE HISTORY

FY2008-2019 FY2020 TOTAL TIF FUND

Revenues $5,028,071 $1,511,103 $6,539,174

Expenditures $135,835 $15,000 $150,835

Net Income (Loss) $4,892,236 $1,496,103 $6,388,339

ENDING FUND BALANCE$4,783,693

(Balance at the end of FY2019)

$6,279,796$6,279,796

(Balance at the End of FY2020)

10 CITY OF ALLEN, TEXAS | TIF ZONE #2 ANNUAL REPORT


PROPOSED CBD TIF IMPROVEMENTS EAST OF US 75 HIGHWAY(Including the connecting street of Allen Drive over US 75 Highway)



CBD TIF AREA WEST OF US 75 HIGHWAY(Including the connecting street of Allen Drive over US 75 Highway)

305 CENTURY PARKWAY | ALLEN, TEXAS 75013PHONE: 214.509.4100 | FAX: 214.509.4118

Documents

TIF2 Annual Report - City of Allen