TIF #1 Board of Directors Minutes - 02/28/2007 4
J
Tax Increment Financing Boar #7CEIVED It
CITY CLERK'S OFFICE
MINUTES 5 5 &Cate '
FEBRUARY 28, 2007 1 By rime8:3b
Members:
Susan Plies, Chairman •
Ann Bishop •
James Welburn •
Charles Elmore, Council Liaison •
David A. Clark, Director of Community Development •
Jim Dockery, Director of Finance •
Karen Gagne, Planner III •
Others Present:
Dorothy Roberts-Burns, Council member
Tim Turner, Wichita Falls Independent School District (WFISD)
Cynthia Laney, Downtown Wichita Falls Development, Inc. (DWFD,Inc.)
Absent:
Al Flack, Jr. •
Bruce Harris •
Ms. Plies, chairperson, called the meeting to order at 3:33pm and requested Board members
introduce themselves along with staff and visitors.
APPROVAL OF MINUTES
Mr. Welburn introduced a motion to approve the minutes of the December 21, 2006 meeting,
seconded by Ms. Bishop. The minutes were approved unanimously.
TIF FUND STATUS UPDATE
Mr. Clark explained the December recommendation for Casa Manana had not been submitted
to City Council for consideration due to the funding situation that developed after the last TIF
#1 meeting. The Wichita County Appraisal District informed the planning office of questions
from the State Comptroller's office regarding school district involvement upon submittal of the
annual TIF #1 report. Based on Comptroller interpretation and policy changes, the need for
removing the school district from TIF #1 was discussed with staff and the tax entities. Mr.
Clark referred members to the funding table in their meeting packets, specifically FY 2006 and
Fiscal '08 Budget/Projection. Staff re-assessed the budget factoring in only receiving an
increment from the City and County along with estimating potential expenditures to determine
what funds may be available for projects within the Zone through December 2008. Based on
the County and City contributions and the anticipated expenditures (Coliseum debt service,
DWFD, Inc.NISIONS, Casa Manana project, Downtown Plan), it would still leave
approximately $123,000 to $154,000 available for allocation.
TAX INCREMENT FINANCING BOARD#1 FEBRUARY 28, 2007 PAGE 1 of 4
ACTION TO EXEMPT WICHITA FALLS INDEPENDENT SCHOOL DISTRICT FROM
PARTICIPATION FOR REMAINING TWO YEARS OF TIF ZONE #1
Chairperson Plies requested Mr. Clark explain the request for amending the TIF funding
agreement with the Wichita Falls Independent School District (WFISD). Mr. Clark outlined the
Wichita County Appraisal District (WCAD) were informed of issues regarding the Wichita Falls
Independent School District's continued participation in the TIF #1 Zone in late December
2006. City officials subsequently met with the Chief Appraiser and WFISD officials to discuss
future course of action. Mr. Clark indicated all three taxing entities participating in TIF #1 Zone
were informed of the potential change and its impact to the remaining timeframe of the Zone.
As a result of these changes, the WFISD has requested exemption from TIF #1 Zone for the
remaining 23 months of its timeframe. Mr. Turner, WFISD Financial officer, provided a brief
explanation of Texas school financing. He stated funding was 2/3 property taxes and 1/3 state
aid. However, there is an inverse relationship for funding - as property taxes within a particular
district increase the State's involvement decreases. Mr. Turner noted as taxes are collected
for TIF #1 they are still calculated into the WFISD's balance then paid to the Fund. Mr.
Dockery simply stated the School District will loose a portion of State aid with continued
participation in the Zone. Mr. Turner clearly explained to Board members this issue is no fault
of the County, City or School District but came from the State Comptroller's office with their
changes in rules/policies. Mr. Clark was quick to point out that regular reports covering
activities, funding levels, and base appraised value have been submitted to the State since the
creation of the Zone.
Ms. Bishop inquired when a home is purchased and the valuation increases does the WFISD
receive additional tax dollars? Mr. Turner indicated the State is the beneficiary of the
increased taxes not the area school districts. WFISD doesn't receive the increase in taxes due
to increased appraised property values. Mr. Dockery asked how many districts were at the
maximum tax level. Mr. Turner estimated about 80% of districts were at the new $1.37
maximum level. Previously, $1.50 was the maximum for maintenance/operating taxes but with
school finance reform the rates were dropped. Mr. Turner added the City and County don't
receive state aid so there isn't an issue for their continued participation in the Zone.
Mr. Clark reiterated staff was seeking a request to amend WFISD's participation in TIF #1
Zone. Ms. Bishop introduced a motion to amend the original Agreement executed with the
Wichita Falls Independent School District on Feb. 3rd, 1987, authorizing exemption from further
increment contribution for the TIF Reinvestment Zone #1, extending to the termination date of
the Zone - December 31, 2008. Mr. Welburn seconded the motion. The motion was called for
a vote and it passed unanimously. Mr. Clark indicated this item will be presented to City
Council for consideration at their March 20th, 2007 Council meeting.
REQUEST FOR AUTHORIZATION OF FUNDING FOR DEVELOPMENT OF A DOWNTOWN
PLAN
Mr. Clark provided an overview for Board members regarding the initial beginnings of a local
plan concept from the City Council retreat in 2006. At that time, initial goals were identified
including the potential for development of a strategic plan for economic development, a master
development plan, and to develop/market a favorable image of the community. As the
process moved forward the City was informed of the potential eligibility for funding assistance
via BRAC 2005 community planning funds for communities impacted by realignment or
closure. These funds are administered through the Office of Economic Adjustment (OEA) and
TAX INCREMENT FINANCING BOARD#1 FEBRUARY 28,2007 PAGE 2 of 4
offer the potential of up to 90% funding assistance for the development of a General Plan that
researches and identifies opportunities to become less reliant on the Base. Mr. Clark
commented that the plan development will result in three major components:
1) Defense Diversification Plan — developed in conjunction with the Board of Commerce &
Industry's Sheppard Military Affairs Committee (SMAC)
2) Downtown Plan —work closely with Downtown Wichita Falls Development Inc.; and
3) General/Local Plan - addresses general issues of concern within the Wichita Falls
community.
Planning staff outlined the majority of the work to accomplish these three plans will be
conducted by a qualified, professional consulting firm that will work closely with City Planning
staff. The consultant will be obtained through the `Request for Proposal' (RFP) process and a
project selection task force which includes: Mayor Lanham Lyne; Cynthia Laney, DWFD, Inc.;
Scott Taylor, Director of Public Works; Tom Whaylen, Director, BCI-SMAC; David Clark,
Director of Community Development and Karen Gagne, planning staff will recommend a
consultant to City Council for final consideration. Staff is waiting for final technical review by
OEA in order to move forward with advertising the RFP for the three-part plan/contract.
Mr. Clark recalled, during his tenure, only two small group endeavors undertaken to plan and
develop a focus for the downtown area. He added that the proposed Downtown Plan is
important to look broadly at where the community is going & its goals for the future. Staff
referred Board members to their agenda packets which contained a proposed scope of
services for the Downtown Plan project. Mr. Clark requested consideration of $100,000 in
funding assistance from the TIF #1 Fund for procurement of a consultant to develop a
Downtown Plan
The Chairperson and Councilor Elmore requested the cost for all three plan components. Staff
indicated the total will be approximately $360,000. Ms. Bishop inquired if the Board could
award $100,000 contingent on the other two plans being funded? Mr. Clark responded that
was an option, although, the Downtown Plan has a value of its own. Mr. Dockery and Mr.
Clark noted that there would need to be at least two contracts due to OEA involvement. Ms.
Bishop requested a timetable for the project. Staff anticipates sending RFPs in late March with
City Council awarding contract in April. The majority of the project will be completed in 2007.
Ms. Plies commented that she assumed Council would support the proposed Plan. Two City
Councilors in attendance (Hon. Elmore and Hon. Roberts-Burns) at the meeting expressed
their interest in the Downtown Plan project.
Board members discussed the Downtown Plan funding request and Chairperson Plies
introduced a motion to fund $100,000 from the TIF #1 Fund for the development of a
Downtown Plan. Mr. Welburn seconded the motion with an amendment to recommend
funding the Downtown Plan not to exceed $100,000 from TIF #1 Fund. The amended motion
was seconded and the motion passed unanimously.
UPDATE REGARDING TIF PROJECT STATUS
Chairperson Plies welcomed Ms. Cynthia Laney and requested an update regarding
Downtown Wichita Falls Development Inc.'s activities. Ms. Laney provided copies of a vendor
tab scheduled for distribution with the March 4'h edition of the Times Record Newspaper
outlining the organization's purpose, activities planned for downtown and promotion for
TAX INCREMENT FINANCING BOARD#1 FEBRUARY 28,2007 PAGE 3 of 4
upcoming St. Patrick's Day event set for March 17th. Over the weekend (Feb. 24/25) DWFD,
Inc. had a booth at the Home & Garden Show and received great response.
DWFD anticipates working on a strategic plan for their Board. Ms. Laney also stated that they
recently received $15,000 in funding assistance from the Bridwell Foundation. She provided a
mural update, noting that she has a meeting scheduled with the Hotter'n Hell 100 to discuss
placement of the mural on their building at 100 Scott Street
OTHER BUSINESS & ADJOURN
Ms. Plies called for discussion of other business, there being none called for a motion to
adjourn. Ms. Bishop motioned to adjourn, seconded by Mr. Welburn. The TIF Board
unanimo sly approved the motion to adjourn at 4:30 p.m.
PLIES, CHAIR ATE
TAX INCREMENT FINANCING BOARD#1 FEBRUARY 28,2007 PAGE 4 of 4