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HomeMy WebLinkAbout18-1536 08-28-2018 RESOLUTION NO. 18-1536 A RESOLUTION APPROVING THE FISCAL YEAR 2018-2019 SERVICE AND ASSESSMENT PLAN FOR EULESS MIDTOWN PUBLIC IMPROVEMENT DISTRICT (PID). WHEREAS, pursuant to Chapter 372 of the Texas Local Government Code (the "Act"), on August 25, 2015 the City Council of the City of Euless adopted Resolution No. 15-1471 creating Euless Midtown Public Improvement District ("PID"); and WHEREAS, in accordance with Section 372.013 of the Act, the City Council approved a service and assessment plan for PID; and WHEREAS, as required by Section 372.013(b) of the Act, the service and assessment plan shall be reviewed and updated annually. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EULESS, TEXAS: SECTION 1. The City Council of the City of Euless, in accordance with Chapter 372, Texas Local Government Code, hereby approves the FY 2018-2019 Service and Assessment Plan for Euless Midtown Public Improvement District, attached hereto as Exhibit A. SECTION 2. The City Council hereby finds that the statements set forth in the recitals of this Resolution are true and correct, and such recitals are incorporated as part of this Resolution. SECTION 3. This Resolution shall take effect immediately from and after its passage in accordance with the Charter of the City of Euless, and it is accordingly so resolved. APPROVED at a Regular Meeting of the Euless City Council on the 28th day of August 2018 by a vote of 7 ayes, 0 nays, and 0 abstentions. APPROVED: ATTEST: 5K 4,1 Linda Martin, Mayor Kim Sutter, TRMC, City Secretary Exhibit A EULESS MIDTOWN PUBLIC IMPROVEMENT DISTRICT CITY OF EULESS, TEXAS ANNUAL SERVICE PLAN UPDATE 2018-19 AUGUST 16, 2018 PREPARED BY: MUNICAP, INC. --- PUBLIC FINANCE ---- Resolution No. 18-1536,Page 2 of 20 EULESS MIDTOWN PUBLIC IMPROVEMENT DISTRICT ANNUAL SERVICE PLAN UPDATE -2018-19 TABLE OF CONTENTS A.INTRODUCTION..........................................................................................................1 B. UPDATE OF THE SERVICE PLAN................................................................................2 I.ANNUAL BUDGET FOR THE AuTFIORIZED IMPROVEMENTS.................................................................................2 II.DEBT SERVICE AND COLLECTION COSTS...............................................................................................................3 C.UPDATE OF THE ASSESSMENT PLAN..........................................................................6 D.UPDATE OF THE ASSESSMENT ROLL..........................................................................8 I.PARCEL UPDATES..........................................................................................................................................................8 II.PREPAYMENTOF ASSESSMENTS................................................................................................................................8 APPENDIX A-MAP OF EULESS MIDTOWN PID APPENDIX B-ASSESSMENT ROLL SUMMARY-2018-19 APPENDIX C-ESTIMATED AUTHORIZED IMPROVEMENT COSTS APPENDIX D-TIRZ CREDIT CALCULATION Resolution No.18-1536,Page 3 of 20 A INTRODUCTION The Euless Midtown Public Improvement District (the "PID")was created pursuant to the PID Act and a resolution of the City Council on August 25, 2015 to finance certain public improvement projects for the benefit of the property in the PID.The City issued Certificates of Obligations ("CO") in the aggregate principal amount of$16,450,000 to finance,refinance,provide or otherwise assist in the acquisition, construction and maintenance of the public improvements provided for the benefit of the property in the PID. A service and assessment plan (the "Service and Assessment Plan") was prepared at the direction of the City identifying the public improvements(the"Authorized Improvements") to be provided by the PID,the costs of the Authorized Improvements,the indebtedness to be incurred for the Authorized Improvements,and the manner of assessing the property in the PID for the costs of the Authorized Improvements.Pursuant to Chapter 372,Texas Local Government Code,the Service and Assessment Plan must be reviewed and updated annually. This document is the annual update of the Service and Assessment Plan for 2018-19 (the"Annual Service Plan Update'. The City also adopted an assessment roll(the"Assessment Roll")identifying the assessments on each parcel within the PID,based on the method of assessment identified in the Service and Assessment Plan. This Annual Service Plan Update also updates the Assessment Roll for 2018-19. Capitalized terms shall have the meanings set forth in the Service and Assessment Plan unless otherwise defined herein. Resolution No.18-1536,Page 4 of 20 B. UPDATE OF THE SER VICE PLAN I.ANNUAL BUDGET FOR THE AUTHORIZED IMPROVEMENTS The current total estimated costs of the Authorized Improvements are equal to $16,417,980, which remain the same as the budget estimates included in the original Service and Assessment Plan. According to the certification for payment submitted by the Developer in July 2018, there have been budget line item amount revisions for the Authorized Improvements from the amounts originally included in the Service and Assessment Plan as shown in Appendix C to this Annual Service Plan Update. As shown in Table B-1 below, the PID has incurred indebtedness in the total amount of$16,450,000 in the form of the COs,which are to be repaid from Assessments. Table B-1 Sources and Uses of Funds Authorized Improvements Sources of Funds Total Amounts CO proceeds $16,450,000 Total Sources $16,450,000 Uses of Funds Construction costs: Estimated construction costs paid with CO $16,417,980 Subtotal-Construction costs ,$16,417,980 Costs of issuing the CO: Net CO issuance costs $32,020 Subtotal ,$32,020 Total Uses $16,450,000 A service plan must cover a period of five years.All of the Authorized Improvements are expected to be built within a period of five years. The anticipated budget for the Authorized Improvements over a period of five years and the indebtedness expected to be incurred for these costs is shown in Table B-2 on the following page. Resolution No.18-1536,Page 5 of 20 Table B-2 Authorized Improvements PID Sources and Uses Fund 2016-2022 Annual Projected Annual Projected Annual Year Projected Costs Indebtedness Installments' 2016-17 $16,450,000 $16,450,000 $350,920 2017 $0 $0 $607,588 2018 $0 $0 $988,302 2019 $0 $0 $1,114,530 2020 $0 $0 $1,112,248 2021 $0 $0 $1,109,755 2022 $0 $0 $1,107,028 Total $16,450,000 $16,450,000 $6,390,370 -The projected Annual Installments shown do not include any TIRZ credit. II.DEBT SERVICE AND COLLECTION COSTS Annual Installments The Assessment imposed on any parcel may be paid in full at any time. If not paid in full, the Assessment shall be payable in twenty-six annual installments of principal and interest beginning with the tax year following the issuance of the COs. Pursuant to the Service and Assessment Plan, each Assessment shall bear interest at the rate on the COs commencing with the issuance of the COs. The effective interest rate of the CO interest payments due in 2019 is 3.00 percent per annum. Pursuant to Section 372.018 of the PID Act, the interest rate for that Assessment may not exceed a rate that is one-half of one percent higher than the actual interest rate paid on the debt. Accordingly, an additional interest of one-half of one percent (0.5%) is added to the estimated Annual Collection Costs for 2018-19 and such additional interest amount will be used to fund prepayment and delinquency reserves as described in the Service and Assessment Plan.These payments,the Annual Installments of the Assessments,shall be billed by the City in 2018 and will be delinquent on February 1,2019. Pursuant to the Service and Assessment Plan,the Annual Service Plan Update will show the remaining balance of the Assessments,the Annual Installment due for 2018-19 and the Annual Collection Costs to be collected from each Parcel. Annual Collection Costs shall be allocated to each Parcel pro rata based on the Annual Installment on a Parcel to the total Annual Installments in the PID as a whole that are payable at the time of such allocation.Each Annual Installment shall be reduced by any credits applied under applicable documents including the Service and Assessment Plan, such as the Resolution No. 18-1536,Page 6 of 20 incremental taxes available to the PID (the "TIRZ Credit"), capitalized interest, and interest earnings on any account balances and by any other funds available to the PID. Annual Budget for the Repayment of Indebtedness Debt service will be paid on the COs from the collection of the Annual Installments. In addition, Annual Collection Costs are to be collected with the Annual Installments to pay expenses related to the collection of the Annual Installments. Annual Installments to be Collected for 2018-19 The budget for the PID will be paid from the collection of Annual Installments collected for 2018-19 as shown in Table B-3 below. Table B-3 Budget for the Annual Installments to be Collected for 2018-19 Description Total Interest payment on February 15,2019 $241,019 Interest payment on August 15,2019 $241,019 Principal payment on August 15,2019 $515,000 Subtotal debt service on bonds $997,038 Annual collection costs $117,492 Subtotal expenses $1,114,530 Available TIRZ credit $23 Other available funds $0 Subtotalfunds available $23 Annual installments to be collected $1,114,507 As shown in Table B-3 above, the total Annual Installment for 2018-19 is equal to $1,114,507. The total debt service payments on the COs and the Annual Collection Costs for 2018-19 are shown as $997,038 and$117,492,respectively. According to the Service and Assessment Plan, the Annual Installments shall be collected in an amount sufficient to pay principal and interest on the COs and to cover Annual Collection Costs of the PID. The Annual Installment for each Parcel shall be calculated by taking into consideration any TIRZ Credit applicable to the Parcel. According to the Tarrant County Tax Assessor-Collector website, total incremental City, Tarrant County,Tarrant County Community College,and JPS Health Network,taxes collected during tax year 2017 were$16.50,$6.59,$4.04,and$7.89,respectfully.As a result,the TIRZ Credit available to offset 2018-19 Annual Installments are $23.28 as shown in Appendix D. Resolution No.18-1536,Page 7 of 20 According to the Service and Assessment Plan, residential and non-residential development with a total of 348.596 Equivalent Units are estimated to be built within the PID.Accordingly, the principal and interest portion of Annual Installment to be collected from each Equivalent Unit will be$2,860.15 (i.e. $997,038 - 348.596 = $2,860.15) and the Annual Collection Costs to be collected from each Equivalent Unit will be $337.04 (i.e. $117,492 _ 348.596 = $337.04). As a result, the total Annual Installment to be collected from each Equivalent Unit in the PID will be $3,197.19 (i.e. $2,860.15 + $337.04=$3,197.19).The Annual Installment to be collected from each Parcel in the PID is calculated by multiplying the Annual Installment for each Equivalent Unit of$3,197.19 by the total estimated Equivalent Units for each Parcel in the PID less any TIRZ Credit. The list of parcels in the PID, the estimated total Equivalent Units, the total Assessment, the annual principal and interest, the Annual Collection Costs and the Annual Installment to be collected for 2018-19 are shown in the assessment roll summary attached hereto as Appendix B. Resolution No.18-1536,Page 8 of 20 C. UPDATE OF THE ASSESSMENT PLAN The Service and Assessment Plan adopted by the City Council describes that the Authorized Improvement Costs shall be allocated to the Assessed Property equally based on the equivalent number of residential dwelling units anticipated to be built on each Parcel once such property is fully developed, and that such method of allocation will result in the imposition of equal shares of the Authorized Improvement Costs to Parcels similarly benefited. According to the original Service and Assessment Plan, the Annual Installment for each Parcel shall be calculated by taking into consideration any TIRZ Credit applicable to the Parcel.The TIRZ Credit for each Parcel shall be calculated using the following formula: A = Bx (C =D) Where the terms have the following meanings: A = the TIRZ Credit amount for a Parcel B = the total TIRZ Revenues collected for the preceding year C = the total Equivalent Unit of the Parcel D = the total Equivalent Units of all Parcels The TIRZ Revenues collected in any given year shall be used to calculate the TIRZ Credit in the following year (i.e., TIRZ Revenues collected in 2017 shall be used to calculate the TIRZ Credit applicable to Annual Installments to be collected in 2018). TIRZ Credits shall be calculated for those Parcels that are subject to Assessments by the PID. The total TIRZ Revenues collected from all Parcels shall be used to calculate the TIRZ Credit applicable to each Parcel based on the above formula. The total TIRZ increment amount generated by all Assessed Property will be divided by the total Equivalent Units to determine the TIRZ Credit applicable to each Assessed Property. The total TIRZ increment amount generated by all Assessed Property will be divided by the total Equivalent Units to determine the TIRZ credit applicable to each Assessed Property.The Equivalent Units to be used for the calculation of the TIRZ Credit shall be determined by the Administrator based on the information available to the Administrator at the time of such calculations. This method of allocating the TIRZ Revenues to all Parcels in a Phase would result in equal amount of TIRZ Credits applied to similar Parcels, however,it may result in lower amounts applied as TIRZ Credit for Parcels that generate higher than average TIRZ Revenues. The TIRZ Revenues can be applied proportionally to calculate the TRIZ Credits for each Parcel generating the TIRZ Revenues if the TIRZ Credit is calculated separately for each Parcel and such TIRZ Credit is directly applied on a Parcel-by-Parcel basis. Accordingly,the TRIZ Credit calculation methodology described in the Service and Assessment Plan is updated herein as follows: Resolution No.18-1536,Page 9 of 20 The TIRZ Revenues attributable to each Parcel of Assessed Property collected in any given year shall be used to calculate the Parcel's TIRZ Credit for such Parcel (and/or new Parcels subdivided from such Parcel) in the following year(i.e.,TIRZ Revenues collected in 2017 shall be used to calculate the TIRZ Credit applicable to Annual Installments to be collected in 2018). The TIRZ Credit shall be calculated for those Parcels that are subject to Assessments in the PID and have generated TIRZ Revenues.Any Equivalent Units to be used for the calculation of the TIRZ Credit,if applicable,shall be determined by the Administrator based on the information available to the Administrator at the time of such calculations. This method of assessing property has not been changed except otherwise as described herein and Assessed Property will continue to be assessed as provided for in the Service and Assessment Plan. (the remainder of this page is intentionally left bank) Resolution No.18-1536,Page 10 of 20 D. UPDATE OF THE ASSESSMENT)?OLL Pursuant to the Service and Assessment Plan, the Assessment Roll shall be updated each year to reflect: (i) the identification of each Parcel (ii) the Assessment for each Parcel of Assessed Property, including any adjustments authorized by this Service and Assessment Plan or in the PID Act; (iii) the Annual Installment for the Assessed Property for the year(if the Assessment is payable in installments); and (iv) payments of the Assessment,if any, as provided by Section VI.0 of the Service and Assessment Plan. The summary Assessment Roll is shown in Appendix B. Each parcel in the PID is identified, along with the Assessment on each Parcel and the Annual Installment to be collected from each parcel. Assessments are to be reallocated for the subdivision of any parcels. I.PARCEL UPDATES According to the Service and Assessment Plan,upon the subdivision of any Parcel,the Administrator shall reallocate the Assessment for the Parcel prior to the subdivision among the new subdivided Parcels according to the following formula: A = Bx (C =D) Where the terms have the following meanings: A = the Assessment for each new subdivided Parcel B = the Assessment for the Parcel prior to subdivision C = the estimated number of units to be built on each newly subdivided Parcel D = the sum of the estimated number of units to be built on all of the new subdivided Parcels The calculation of the estimated number of units to be built on a Parcel shall be performed by the Administrator and confirmed by the City Council based on the information available regarding the use of the Parcel. The estimate as confirmed shall be conclusive. The number of units to be built on a Parcel may be estimated by net land area and reasonable density ratios. According to the Developer, there have been no Parcel subdivisions in the PID applicable for the Annual Installments to be collected in 2018-19. II.PREPAYMENT OF ASSESSMENTS There have been no Assessment prepayments as of July 31,2018. The complete Assessment Roll is available for review at the City hall,located at 201 N Ector,Euless, Texas 76039. Resolution No.18-1536,Page 11 of 20 APPENDIX A MAP OF THE EULESS MIDTOWN PID Resolution No. 18-1536,Page 12 of 20 Exhibit A HWY 183 The PID Map VILLA DRIVE LO 3 _ mn mw wa UL > y J 1tMMM H D Z 5� V` Resolu ion No. 18-1536, age 13 of 20 APPENDIX B ASSESSMENT ROLL SUMMARY-2018-19 Resolution No. 18-1536,Page 14 of 20 Appendix B Assessment Roll Summary-2018-19 Estimated Annual Account No. of Total Principal& Collection TIRZ Total Annual No. Units Assessment Interest Costs Credit Installment 669814 47.383 $2,235,960 $135,522 $15,970 $0 $151,492 936863 0 $0 $0 $0 $0 $0 3274594 8.690 $410,075 $24,855 $2,929 $0 $27,784 3274608 30.553 $1,441,785 $87,387 $10,298 $0 $97,685 3926907 30.150 $1,422,757 $86,234 $10,162 $0 $96,395 3926931 3.950 $186,398 $11,298 $1,331 $23 $12,606 3926966 22.000 $1,038,165 $62,923 $7,415 $0 $70,338 3926974 12.320 $581,372 $35,237 $4,152 $0 $39,389 3926982 7.900 $372,795 $22,595 $2,663 $0 $25,258 3927059 39.500 $1,863,977 $112,976 $13,313 $0 $126,289 3927210 8.450 $398,750 $24,168 $2,848 $0 $27,016 3927229 22.580 $1,065,534 $64,582 $7,610 $0 $72,193 3927237 12.320 $581,372 $35,237 $4,152 $0 $39,389 3927296 49.000 $2,312,276 $140,147 $16,515 $0 $156,663 3927342 49.250 $2,324,073 $140,862 $16,599 $0 $157,462 4670248 4.550 $214,711 $13,014 $1,534 $0 $14,547 42240415 0 $0 $0 $0 $0 $0 Total 348.596 $16,450,000 $997,038 $117,492 $23 $1,114,507 1-The total estimated Equivalent Units are rounded to three decimal places for presentation purposes.The Annual Installment amounts are calculated using the unrounded equivalent units to match the aggregate amounts to be collected from all Parcels. Resolution No. 18-1536,Page 15 of 20 B-1 APPENDIX C ESTIMATED AUTHORIZED IMPROVEMENT COSTS Resolution No.18-1536,Page 16 of 20 Appendix C Estimated Authorized Improvement Costs Estimated Budget Revised Description of Improvements Costs Changes Budget Paving $2,500,255 $469,405 $2,969,660 Demolition and remediation $2,700,000 ($617,550) $2,082,450 Subtotal.-Roadway improvements $5,200,255 ($148,145) $5,052,110 Water distribution system improvements $1,787,071 ($418,801) $1,368,270 Sanitary sewer collection system improvements $1,540,751 $88,363 $1,629,114 Storm sewer collection system improvements $1,522,678 $86,279 $1,608,957 Right-of-Way and drainage pond acquisition: $2,100,000 $0 $2,100,000 Subtotal.•Storm sewer collection system improvements $6,950,500 ($244,159) $6,706,341 Hardscapmg and amenities $2,111,201 $474,059 $2,585,260 Bonding&Mobilization $431,900 ($3,435) $428,465 Civil Eng.Design,Surveying,Staking&CA services $1,145,559 ($55,259) $1,090,300 Construction Contingency $578,565 ($407,631) $170,934 Construction management $0 $234,569 $234,569 Administrative costs $0 $150,000 $150,000 Subtotal-Other soft costs $4,267,225 $392,304 $4,659,529 Subtotal: Estimated Authorized Improvement Costs $16,417,980 $0 $16,417,980 Add:Estimated costs for issuing Certificates $32,020 $0 $32,020 Total $16,450,000 $0 $16,450,000 Resolution No. 18-1536,Page 17 of 20 C-1 APPENDIX D TIRZ CREDIT CALCULATION Resolution No.18-1536,Page 18 of 20 41 Q, O N V' "o 0 00 O pr"- C, N N M O N 064 M r d V 0 N d N 064 M 1-0 F U o U 6q. 64 64 E/3 6ek 64 64 64 � 6H 64 64 U N W M � 6-1 O N N N N � 'en �V' 00 _ \ M 66ek N p' m64 64 ER 64 6q# 64 b4 ow Ne## Eek 64 64 �z H Q cc 000 0 r V r N .-+ V' 00 N M 0 "t r r0 w O eF O6�k Le) M en M N M 000 � `� '� M r- M 64 D .--i U V 64 H4 6� 64 64 6R 64 64 M64 Nb'k 69- 6ek 64 64 oo C',o ppLnp N 64 64 6* Hw 64 bw 64 Eek N 64 •� N O .r-i 0O 00 � 0 00 M 00 CD "o r- O M O O O 6M4 t�# � 6�4 64 64 409- � � ICU oU 6� A � U K � w N R O e0 \0 ON 000 Cl r00 en 00 7 l� G\ cq O Q e ON O MN l 00 G^ 00 G, 00 7 .-+ d .-. �--� .-� 0 6 00 m xy 64 N O1 00 N r "I" 64 \06� y 64 64 � 6W 6q, � 6F# EPs 6W � bw 64 64 Eft C E' w F~j� w N 00 00 0 � M 00 amp Ln O M er NN un Ln O � N-i M N 00 .-•en MV' r OQ U f^ 6i4 towvN► N61W " w 00 b� ' E 64 6� t4 �' O 'k 0 � r 0 0 00 N � 0 d M U �"' Eti# •" M 60�k C' N .-� 0 N M yk " 00 64 6R 64 E/k 61# 64 f^ " 6 64 64- 6R 64 00 00 cq y y 000 r-- r-000 W ON C\ � pN � \0 Ln CC, \0M Ln p N M O � r O O 00 ,-. 00 r" 00 O � N �.,.� O � q4 0 0 .� l- N '-. r . . 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