TIRZ 11 Closure Issues September 10 2015

TIRZ 11 Closure Issues September 10 2015

TIRZ SUMMARY, SUMMER 2015
Initiated By:
Party to Development Agreement
General description
Authorization Period
Jurisdiction participation:
City (Yrs 1 - 30)
Navigation Dist No 1 (Yrs 1-20)
County Road & Flood
County (Yrs 1-10)
County (Yrs 11-20)
County (Yrs 2-30)
County (Yrs 11-30)
Balance Sheet September 30, 2014
Bonds Payable/Years
Developer Costs Payable wh Interest
2013 total increment
2014 to date Increment by entity (Partial):
City
County
Road and Flood
Navigation Dist #1
Total Increment
Admin Fee Retained by City of Galveston
Net Increment
Account Balance as of 6/9/15
Palisade Palms
TIRZ 11
Developer
East Beach
Project Holdings
L.L.C.
North Broadway/
Gateway TIRZ
TIRZ 12
City
Island
Realty
Partners L.L.C.
Beachtown
TIRZ 13
Developer
Intercontinental
United
Investors Corp.
40 acres-E Beach
Home Depot,
40000 sq ft
(Palisade Palms) Target, Sand Dollar retail, 200 multiAutoplex
family, 250
retirement units
10/8/200112/31/200112/27/200112/31/2031
12/13/2031
12/31/2041
100%
75%
100%
75%
100%
50%
Airport
TIRZ 14
City
Evia
Public Capital
ImprovementsScholes Airport
12/29/200312/31/2033
100%
75%
100%
100%
100%
75% (05 Yr)
100% (05 Yr)
100% (05 Yr)
50%
50%
100%
$0
$0
$1,205,704
$815,052
$430,256
$0
$0
$1,245,308
($62,291)
$1,183,017
$4,508,354
4
$360,000/
2015-2017
$5,606,961
$308,283
$123,154
$130,390
$1,342
$0
$254,886
($12,744)
$242,142
$459,193
$0
$11,135,034
$668,047
$333,343
$178,717
$1,839
$0
$513,899
($25,695)
$488,204
$506,375
$4,130,000/
2015-2023
$0
$1,283,873
$553,496
$602,559
$6,176
$0
$1,162,231
($59,568)
$1,102,663
$3,204,320
FY 2016 BUDGET ITEMS IN PLAY
ROADMAP TO THEIR LOCATION IN THE DRAFT BUDGET
AUGUST 11, 2016
Department
Description
Impact
Council Goal
Items Included in FY16 Base General Fund Budget by Department
Additional expertise for City Attorney's office. (Eliminated
City Attorney One(1) Deputy City Attorney
Administrative Assistant)
City Auditor
All
All
All
Increase in Consulting Services Consulting service for Audits
Increases to minimum pay are in the base budget for
Increase pay of fifty-three (53) eighty-eight (88) employees other funds including
enterprise and internal service funds at a total cost of
General Fund Civilian
employees effective 10/1/15 to $169,705; Including General Fund, the 141 employees
scheduled for this adjustment earn an average salary of
minimum pay determined
$37,680 and the increase to minimum pay averages 4.2%
through pay study (including
benefits)
for these employees. CITYWIDE DISCRETIONARY
COST $259,192
Two percent increases for 146 PO's ( $192,400) and 112
Two percent general pay
FF's ($127,000) are required by the CBA and are funded
increase for one hundred eightyin base. A total of 336 EE's in other funds including
two (182) General Fund Civilian
enterprise and internal service funds = $272,414.
employees effective 10/1/15
CITYWIDE DISCRETIONARY COST FOR 518 CIVILIANS
(including benefits).
IN ALL FUNDS, $471,573
$2500/year residency pay for
one hundred three (103)
General Fund Civilian
employees only (including
benefits).
Total of 68 PO's ($203,405) and 56 FF's($161,630) are
part of the CBA and need to remain in budget. Total of 140
civilian EE's of other funds including enterprise and
internal service funds = $404,925 as of July 27, 2015.
CITYWIDE DISCRETIONARY COST FOR 243 CIVILIANS
IN ALL FUNDS, $708,649.
Recurring
Cost
One-Time
Cost
Total
All
$149,672
$0
$149,672
All
$30,000
$0
$30,000
All
$89,487
$0
$89,487
All
$199,159
$0
$199,159
All
$303,724
$0
$303,724
FY16 Base Budget Compensation Items in Play
$592,370
$592,370
Contingent Items Included in FY16 General Fund Budget for Mid-Year Review
Police Department defining operational requirements on a
preliminary basis. Since the capability and operations of a
Police
$0.50
$0.50
$1.00
Body cameras
body camera system may be influenced by potential
Public Safety
federal action, no estimate of cost can be shown at this
time.
This truck would enable us to better protect the far west
Public Safety/
end and improve our ISO rating (Recommendation: Fund
Fire
New 100 ft. Ladder Truck
Insurance
$0.00
$1.00
$1.00
with General Fund Balance or potentially TIRZ 11 balance
Rates
as one-time purchase)
Subtotal FY16 General Fund Items for Mid Year Review
$0.50
$1.50
$2.00
Contingent Items Included in FY16 Proposed Budget for Advance Funding from Fund Balance in anticipation of Funding with TIRZ Property Tax Increment After
TIRZ 11 is Closed
One (1) Civilian Records
Replaces 1 sworn officer to Operations who is currently
Police
$55,465
$1,200
Public Safety
$56,665
Manager
performing these duties.
Two (2) Civilian Brady Records Completes work otherwise performed by Detectives, the
Police
$100,397
$2,400
Public Safety
$102,797
Specialist
equivalent of 2.12 FTE's.
One (1) Communications
City Manager
Will perform work currently being performed by a Police
$70,680
$0
Specialist for the Police
Public Safety
$70,680
(Police)
Sergeant, 20-30 hours per week.
Department
Finance/Budge
One (1) Civilian Budget Analyst Will perform work currently being performed by a Police
$72,620
$0
t
Public Safety
$72,620
for Police Department
Captain, 20-30 hours per week.
(Police)
Police
Two (2) Patrol Officers for
Commercial vehicles in
Operations Bureau
Increase traffic safety and compliance with commercial
motor vehicles. Creates a self sufficient unit that will be
able to offset personnel, fleet, & equipment costs due to
the unit being allowed to keep 110% of fines and fees.
One (1) Motor Officer in
Increased traffic safety and enforcement.
Operations Bureau
Police subtotal (Continegnt on FY16 TIRZ Increment Advance Funded from Fund Balance)
One (1) Assistant Fire Chief
This position will manage all training, compliance and
Fire
(Training & Support Services
equipment management
Fire subtotal (Continegnt on FY16 TIRZ Increment Advance Funded from Fund Balance)
One (1) Ventrac dual tire Model
Parks
4500 72 in. deck with edger
Mowing Gateway (entrance into Galveston)
attachment
To enhance the appearance of public spaces for residents
Parks
Beautification Crew (3 man)
and visitors.
Parks subtotal (Continegnt on FY16 TIRZ Increment Advance Funded from Fund Balance)
Subtotal FY16 Items Contingent on TIRZ Increment Funding
Police
5
Public Safety
Public Safety
$176,618
$42,400
$219,018
$82,889
$21,200
$104,089
$558,669
Public Safety
$89,800
$89,800
Beautification
$0
Beautification
$102,903
$102,903
$751,372
$67,200
$0
$0
$625,869
$89,800
$89,800
$30,000
$30,000
$0
$102,903
$30,000
$97,200
$132,903
$848,572
FY 2016 BUDGET ITEMS IN PLAY
ROADMAP TO THEIR LOCATION IN THE DRAFT BUDGET
AUGUST 11, 2016
Recurring
One-Time
Total
Cost
Cost
Items Included in FY16 Proposed General Fund and Neighborhood Improvements Fund Budget with Advance Funding from Fund Balance in anticipation of
Funding with TIRZ Cash Balance After TIRZ 11 is Closed
Neighborhood Improvement
City Council
$0
$2,000,000
Neighborhood improvements citywide.
All
$2,000,000
Funding
Items Included in FY16 Draft Budget for Infrastructure and Debt Service Fund
Department
Description
Streets
One (1) Construction Broome
Streets
Streets
One(1) Backhoe
One (1) Skid Steer
Impact
Council Goal
Clear roadway prior to laying asphalt
Infrastructure
Street maintenance
Infrastructure
Street Maintenance
Infrastructure
Streets subtotal (FY16 Infrastructure and Debt Service Fund)
Items in Play Not Included in FY16 Base or Advance Funded Option Using TIRZ 11 Funds
1% Pay Increase for General
All civilian employees' compensation would be similarly
City Council Fund (In addition to increases
All
affected.
listed above)
Planning
One (1) Floodplain Manager
Create staff position and programs to manage and
Public Safety
improve City's CRS classification. Strengthen and support
Safety/
the insurance aspect of the NFIP. Coordinate, manage
Insurance
and implement 18 CRS mandated activities. Lower flood
Rates
insurance rate for citizens.
Subtotal Unfunded Items in Play
GRAND TOTAL FUNDED ITEMS
Base General Fund Budget
Base General Fund Budget for Mid-Year Review
TIRZ 11 Tax Increment Advance Funded Contingent Items
TIRZ 11 Cash Balance Advance Funded Contingent Items
Base Infrastructure and Debt Service Fund
GRAND TOTAL FUNDED ITEMS
6
$0
$75,000
$75,000
$0
$0
$0
$100,000
$60,000
$235,000
$100,000
$60,000
$235,000
$99,580
$0
$99,580
$94,088
$0
$94,088
$193,668
$1,343,743
Recurring
Cost
$592,370
$0.50
$751,372
$0
$0
$1,343,743
$0
$2,332,202
One-Time
Cost
$0
$1.50
$97,200
$2,000,000
$235,000
$2,332,202
$193,668
$3,675,944
Total
$592,370
$2.00
$848,572
$2,000,000
$235,000
$3,675,944
TIRZ 11 CASHFLOW:
ASSUME ADDED DEVELOPMENT OCCURS AND TIRZ STAYS OPEN
PREPARED SEPTEMBER 2015
TIRZ 11 Income ($thousands)
City
County (See Note 1)
Navigation District (See Note 1)
Total Income ($thousands)
FY 2015
$844
$445
$50
$1,339
Property Value Assumptions ($millions)
FY 2016
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
$937
$956
$975 $1,200 $1,429 $1,972 $2,012 $2,052 $2,093 $2,134 $2,177 $2,221 $2,265 $2,310 $2,357 $2,404
$481
$490
$500
$615
$733 $1,012 $1,032
$0
$0
$0
$0
$0
$0
$0
$0
$0
$54
$55
$56
$69
$83
$114
$116
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,472
$1,501
$1,531 $1,884 $2,245 $3,098 $3,160 $2,052 $2,093 $2,134 $2,177 $2,221 $2,265 $2,310 $2,357 $2,404
Base Value Growth Assumption
New Construction ($millions) (2)
Taxable Value ($millions)
$182.3
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
$40.0
$40.0 $100.0
$182.3
$185.9
$189.6 $233.4 $278.1 $383.7 $391.4 $399.2 $407.2 $415.3 $423.6 $432.1 $440.7 $449.5 $458.5 $467.7
Incremental Taxable Value ($millions)
$181.5
$181.5
TIRZ 11 Related Infrastructure Projects ($Thousands)
Twenty Inch Waterline, 30th St to East Beach
Percent Allocated to TIRZ 11
East Beach Drive Elevated Storage Tank
Percent Allocated to TIRZ 11
Holiday Drive to East Beach Twenty Inch Waterline (3)
Percent Allocated to TIRZ 11
East Beach Lift Station and Force Main (3)
Percent Allocated to TIRZ 11
TIRZ 11 Estimated Cost
City Remaining Cost
Total Cost
TIRZ 11 Cash Flow ($thousands)
Beginning Balance
Income
Tax Increments (from top)
Developer Participation (4)
Expense
Cash for Project Costs
Debt Service (5)
Total Expense
Ending Balance
$185.1
$188.8
Design
FY17
$2,070
30%
$1,350
100%
$440
100%
$1,640
100%
$4,051
$1,449
$5,500
Const
FY18
$14,076
30%
$9,180
100%
$2,900
100%
$11,150
100%
$27,453
$9,853
$37,306
$232.6
$277.3
$382.9
$390.6
$398.4
$406.4
$414.5
$422.8
$431.3
$439.9
$448.7
$457.7
$466.9
Total
$16,146
30%
$10,530
100%
$3,340
100%
$12,790
100%
$31,504
$11,302
$42,806
FY 2016
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
$4,565
$6,037
$3,486 $2,648 $2,162 $2,038 $2,766 $3,557 $3,239 $2,963 $2,728 $2,536 $2,387 $2,283 $2,224 $2,211
$1,472
$0
$1,472
$1,501
$0
$1,501
$0
$0
$0
$6,037
($4,051)
$0
($4,051)
$3,486
$1,531
$4,000
$5,531
$1,884
$0
$1,884
$2,245
$0
$2,245
$3,098
$0
$3,098
$3,160
$0
$3,160
$2,052
$0
$2,052
$2,093
$0
$2,093
$2,134
$0
$2,134
$2,177
$0
$2,177
$2,221
$0
$2,221
$2,265
$0
$2,265
$2,310
$0
$2,310
$2,357
$0
$2,357
$2,404
$0
$2,404
($4,000)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
($2,369) ($2,369) ($2,369) ($2,369) ($2,369) ($2,369) ($2,369) ($2,369) ($2,369) ($2,369) ($2,369) ($2,369) ($2,369) ($2,369)
($6,369) ($2,369) ($2,369) ($2,369) ($2,369) ($2,369) ($2,369) ($2,369) ($2,369) ($2,369) ($2,369) ($2,369) ($2,369) ($2,369)
$2,648 $2,162 $2,038 $2,766 $3,557 $3,239 $2,963 $2,728 $2,536 $2,387 $2,283 $2,224 $2,211 $2,245
Notes
(1) County and Navigation District participation ends December 2021 after the Tax Year 2021 tax roll is set and taxes are collected for FY 2022
(2) Assumes construction of new development begins Summer of 2017 and ends Summer of 2019.
(3) These projects are needed to support occupancy of the new private properties in Summer 2019.
(4) Developer contributes enough cash ($4 million) to reduce the amount of the bond sale and ensure TIRZ cash flow is positive through FY 2031.
(5) TIRZ backed bonds are authorized by the voters, sold in FY 2017 at 5% with a level payment structure over fourteen years.
7
Total
$29,492
$4,863
$547
$34,902