HomeMy WebLinkAboutTOWN CENTER TIF BACKGROUND AND STATUS Council Presentation 01232024TOWN CENTER
TIF and SSD
Town Center
Central Business District –
South Tax Increment
Financing (TIF) Fund
Town Center Special Service
District (SSD)
2
Central Business District-South Tax Increment
Financing (TIF) Fund
Created by Council on November 23, 1999, pursuant to power established by the
General Assembly through Section 58.1-3245.2 of the Code of Virginia.
The primary purpose is to pay for the debt service for parking facilities to support the
development of high-rise offices, hotels, and retail in Town Center core.
Funded through real estate taxes generated from assessed values that are in excess of
base real estate values on properties within the district as established in 1999.
Base year assessments = $151.9M
FY 24 assessments = $1.18B
3
TIF Boundaries
4
Town Center TIF Calculation
FY 24 assessments = $1,177,822,000
Base Year assessment =$ 151,894,230
Difference/Increment =$1,025,927,770
Tax 99¢ per $100 assessed =$ 10,156,684*
5
* Historical collection rate on Real Estate is 98.5% citywide and is used when estimating revenue for budget
resulting in slightly lower estimate when compared to straight-line calculation.
TIF Forecast
6
* ACFR reflects development agreement payment as a net against the revenue. For the purposes of this projection, the amounts are grossed up
to reflect the estimated annual obligation.
Revenue FY 23 Actual FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY38
Real Estate Tax $ 9,582,852*10,004,335$ 10,704,638$ 11,025,778$ 11,356,551$ 11,697,247$ 12,048,165$ 12,409,610$ 15,720,122$
Hotel Tax 500,000$ 500,000$ 500,000$ 500,000$ -$ -$ -$ -$ -$
From the Use of Money and Property 49,581$ 2,000$ 2,000$ 2,000$ 2,000$ 2,000$ 2,000$ 2,000$ 2,000$
TOTAL 10,132,433$ 10,506,335$ 11,206,638$ 11,527,778$ 11,358,551$ 11,699,247$ 12,050,165$ 12,411,610$ 15,722,122$
Expenses FY 23 Actual FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY38
Transfers 150,000$ 150,000$ 150,000$ 150,000$ 150,000$ 150,000$ 150,000$ 150,000$ 150,000$
Development Agreement $ 956,000*654,000$ 673,620$ 693,829$ 714,643$ 736,083$ 758,165$ 780,910$ -$
Existing Debt Service 8,156,287$ 4,932,676$ 4,120,789$ 3,408,033$ 3,351,214$ 3,155,633$ 1,369,356$ 1,310,664$ 149,713$
TOTAL 9,262,287$ 5,736,676$ 4,944,409$ 4,251,862$ 4,215,857$ 4,041,716$ 2,277,521$ 2,241,574$ 299,713$
Difference 870,146$ 4,769,659$ 6,262,229$ 7,275,916$ 7,142,693$ 7,657,532$ 9,772,644$ 10,170,036$ 15,422,410$
Fund Balance- Cumulative 7,458,253$ 12,227,912$ 18,490,141$ 25,766,057$ 32,908,751$ 40,566,283$ 50,338,926$ 60,508,962$ 163,223,589$
Information for Discussion
Capacity, above existing obligations, is projected within the Town Center TIF
to explore.
Projected capacity fluctuates annually ranging between $4 million and $10
million through FY 30
That capacity provides City Council with an opportunity to:
Make additional investments in public infrastructure within the boundary
If desire to utilize outside of boundary, past precedent has been to declare annual
surplus as a part of the annual Capital Improvement Program (CIP) budget process.
(Example, Sandbridge TIF)
7
Town Center SSD
The Town Center SSD was created by Council action on
May 14, 2002 to fund operating expenditures related to
Town Center maintenance and operations.
Funded through a real estate surcharge tax rate:
FY 2002-03 of 57¢
FY 2007-08 of 50¢
FY 2008-09 of 45¢
Base year assessments = $18.5M
FY 24 assessments = $535.9M
$87.9M (Residential)
$448M (Commercial)
8
SSD Map
•31 acres
•11 blocks
•5 Parking
Garages
•SSD
boundaries
were last
modified
in 2019
9
Town Center SSD Fund Utilization
Five Garages (4,381 spaces)
•Salaries for personnel who perform daily
housekeeping, cleaning, trash removal, painting,
minor repairs, etc.
•Supplies for cleaning, light bulbs, tools, shop
supplies, uniforms, trash bags, mops, brooms, etc.
•Third party vendor service for elevators, HVAC, fire
systems, generators, security cameras, electrical
repairs, lighting fixture, plumbing and drain
maintenance
•Sweeper machine, fuel, and maintenance
•Contract management fees
•Pay-go funding for capital repairs for crack’s spalls,
weather proofing, seals, traffic barriers, etc.
•Expenses related to common areas that are co-
owned with private sector
•General liability insurance
•Utilities for electric, water and sewer,
communication services for office and elevator
phones
10
Parking Enforcement
•Salaries for parking enforcement on-street & garages
•Various supplies, uniforms, and equipment
•Gas for vehicles
•Booting equipment and release service
•Contract management fees
Grounds
•Salaries for block by block ambassadors to clean up trash,
debris, waste removal from sidewalks and tree pits
•Replace pavers and sidewalk maintenance
•Relace trash cans, benches, street fixtures
•Purchase and install banners
•Contract management fees
•Landscape services for flower beds, tree trimming,
weeding, mowing, irrigation, agronomic supplies
Town Center SSD Fund
Utilization
Fountain/Plaza
Utilities for water and electrical
Maintain and repair ped pole lighting
Plaza furniture
On-going fountain maintenance on pumps, filters, jets
Water treatment chemicals
Cleaning and removing debris from fountain basin
Winterizing and de-winterizing
Entertainment
Weekly events
Special events
Holiday fixtures & events
Storage and rentals
Town Center Wi-Fi
11
SSD Forecast
12
Revenue FY23 Actual FY24 FY25 FY26 FY27 FY28 FY29
Real Estate 2,337,343$ 2,370,626$ 2,415,668$ 2,461,566$ 2,508,335$ 2,555,994$ 2,604,558$
Charges for Service 179,102$ 194,300$ 194,300$ 194,300$ 194,300$ 194,300$ 194,300$
From the Use of Money and Property 351,674$ 365,500$ 365,500$ 365,500$ 365,500$ 365,500$ 365,500$
Transfer In 150,000$ 150,000$ 150,000$ 150,000$ 150,000$ 150,000$ 150,000$
TOTAL 3,018,119$ 3,080,426$ 3,125,468$ 3,171,366$ 3,218,135$ 3,265,794$ 3,314,358$
Expenditure FY23 Actual FY24 FY25 FY26 FY27 FY28 FY29
Operating 2,620,187$ 3,215,720$ 3,312,192$ 3,411,557$ 3,513,904$ 3,619,321$ 3,727,901$
Transfers 1,634,226$ 645,976$ 645,976$ 645,976$ 645,976$ 645,976$ 645,976$
TOTAL 4,254,413$ 3,861,696$ 3,958,168$ 4,057,533$ 4,159,880$ 4,265,297$ 4,373,877$
Difference (1,236,294)$ (781,270)$ (832,700)$ (886,168)$ (941,745)$ (999,503)$ (1,059,519)$
Fund Balance- Cumulative 1,962,852$ 1,181,582$ 348,882$ (537,285)$ (1,479,030)$ (2,478,534)$ (3,538,053)$
Questions and Discussion
13