1. Tax Increment Financing (TIF) Update
City of Fort Worth
Housing and Economic Development Department
May 2010

2. TIF Summary
Tax increment financing (TIF) is an economic development tool authorized by Chapter 311 of the Texas Tax Code by which governments can publicly finance needed structural improvements and enhanced infrastructure within a reinvestment zone.
City of Fort Worth has eleven (11) active TIF districts: Speedway, Downtown, Southside, Riverfront, North Tarrant Parkway, Lancaster, Trinity River Vision, Lone Star, Southwest Parkway, East Berry Renaissance, and Woodhaven.

3. City of Fort Worth TIF Policy
Each TIF application must demonstrate:
“But for” the creation of a TIF, quality development is not likely to occur in the proposed area without financial assistance from a TIF; and/or
An area is ripe for development or redevelopment provided that public infrastructure is constructed to support the revitalization of the area; and/or
Use of a TIF is the appropriate incentive tool to recruit or relocate a catalyst project worth of public investment; and
The area proposed for TIF designation will have an increase in real property taxable value within the first two (2) years following designation.

4. City of Fort Worth TIF Policy
TIF Policy was amended in December 2009:
“The term of any newly created TIF may not exceed 21 years (20 years of tax increment collection), unless otherwise approved by City Council.
Only TIFs created to help finance a ‘Major Infrastructure Project’, as designated by City Council, may have a term greater than 21 years
The longer term shall only be permitted as necessary to fully finance the ‘Major Infrastructure Project’.”

5. Taxable Value Increment
Revenues based on taxable value increment
Taxable Value – Base Value = Increment
Base value and taxable value may vary by taxing entity depending on exemptions and jurisdictions
Taxable value growth is usually estimated at 1.5% growth per year, while also taking into account potential development projects

6. TIF 2 (Speedway) Created: 1996 - Expiration: 2035
Value
Fiscal Year 2010 Value
Increment Collected
$1,334,082
CFW Portion
$360,002
Increment Expended to Date
$11,118,337
Projected Increment (term)
$57,049,759
CFW Portion (term)
$15,093,686
Estimated Unobligated Balance (term) $0
Base value: $5,084,127
Includes TIF 2B; Northwest ISD is the only contributor to TIF 2B

7. TIF 3 (Downtown) Created: 1996 - Expiration: 2025
Value
Fiscal Year 2010 Value
Increment Collected
$5,000,000
CFW Portion
$1,948,102
Increment Expended to Date
$30,010,925
Projected Increment (term)
$72,000,000
CFW Portion (term)
$30,477,000
Estimated Unobligated Balance (term)
$13,117,757
Base value: $322,440,637
Includes TIF 3A; Fort Worth ISD does not participate in TIF 3A; Fort Worth ISD drops out in 2013
TIF 3 will hit its lifetime revenue cap of $72 million in 2017
TIF spends $3 million per year on garage leases to provide free public parking that supports more than $60 million in retail sales

8. TIF 4 (Southside) Created: 1998 - Expiration: 2022
Value
Fiscal Year 2010 Value
Increment Collected
$6,225,965
CFW Portion
$1,883,590
Increment Expended to Date
$11,118,337
Projected Increment (term)
$62,118,052
CFW Portion (term)
$20,814,159
Estimated Unobligated Balance (term)
$14,647,803
Base value: $229,759,626
TIF 4 is to remain active for 25 years or until a cash increment of $60 million has been collected, estimated to be 2014
TCHD contribution is capped at $3.5m; County’s contribution is capped at $4m; $15m of FWISD’s contribution will be returned to the school district

9. TIF 6 (Riverfront) Created: 2002 - Expiration: 2036
Value
Fiscal Year 2010 Value
Increment Collected
*$505,210
CFW Portion
Does not participate
Increment Expended to Date
$2,817,682
Projected Increment (term)
$22,420,168
CFW Portion (term)
Estimated Unobligated Balance (term) $0
Base value: $2,822,348
City of Fort Worth and Fort Worth ISD do not participate
Estimates based on billing amount; Not billed in FY’10 due to outstanding property protest

10. TIF 7 (North Tarrant Parkway) Created: 2003 - Expiration: 2019
Value
Fiscal Year 2010 Value
Increment Collected
$1,229,216
CFW Portion
$920,475
Increment Expended to Date
$1,206,006
Projected Increment (term)
$32,567,665
CFW Portion (term)
$20,572,379
Estimated Unobligated Balance (term)
$22,127,575
Base value: $1,559,670
TCCD, Keller ISD, and Northwest ISD do not participate
TCHD participation agreement is yet to be signed

11. TIF 8 (Lancaster) Created: 2003 - Expiration: 2024
Value
Fiscal Year 2010 Value
Increment Collected
$3,016,212
CFW Portion
$1,966,068
Increment Expended to Date
$5,669,837
Projected Increment (term)
$79,891,888
CFW Portion (term)
$46,427,723
Estimated Unobligated Balance (term)
$59,936,542
Base value: $178,938,722
Fort Worth ISD does not participate
TCHD participation agreement has yet to be signed

12. TIF 9 (Trinity River Vision) Created: 2003 - Expiration: 2044
Value
Fiscal Year 2010 Value
Increment Collected
$1,886,635
CFW Portion
$838,029
Increment Expended to Date
$1,576,015
Projected Increment (term)
$448,037,396
CFW Portion (term)
$254,556,975
Estimated Unobligated Balance (term) $0
Base value: $133,860,211
Includes TIF 9A & 9B, TIF 9B revenue not calculated until 2010
Estimates provided by Gideon Toal

13. TIF 10 (Lone Star) Created: 2004 - Expiration: 2025
Value
Fiscal Year 2010 Value
Increment Collected
$436,967
CFW Portion
$281,154
Increment Expended to Date
$1,570,749
Projected Increment (term)
$8,660,598
CFW Portion (term)
$6,017,308
Estimated Unobligated Balance (term)
$0*
Base value: $12,519,651
TIF 10A values not included; No increment will be collected from TIF 10A this year as it reflected a negative taxable value
*TIF is only liable to the extent of the TIF revenues received

14. TIF 11 (Southwest Parkway) Created: 2004 - Expiration: 2025
Value
Fiscal Year 2010 Value
Increment Collected
$109,575
CFW Portion
$93,036
Increment Expended to Date $0
Projected Increment (term)
$2,452,059
CFW Portion (term)
$1,891,307
Estimated Unobligated Balance (term)
Base value: $60,241
TCHD has not yet signed a participation agreement

15. TIF 12 (East Berry Renaissance) Created: 2006 - Expiration: 2027
Value
Fiscal Year 2010 Value
Increment Collected
$97,047
CFW Portion
$60,438
Increment Expended to Date
$15,099
Projected Increment (term)
$12,448,760
CFW Portion (term)
$7,298,152
Estimated Unobligated Balance (term)
$3,305,717
Base value: $29,176,323
TCCD has not yet signed a participation agreement
TCHD has not yet signed a participation agreement

16. TIF 13 (Woodhaven) Created: 2007 - Expiration: 2028
Value
Fiscal Year 2010 Value
Increment Collected
$36,583
CFW Portion
$27,894
Increment Expended to Date
$13,789
Projected Increment (term)
$8,864,966
CFW Portion (term)
$5,597,762
Estimated Unobligated Balance (term)
$8,428,473
Base value: $181,846,751
TCCD has not yet signed a participation agreement
TCHD has not yet signed a participation agreement

17. Overall TIF District Financial Impact All TIF Districts
FY 2010 Projected Revenue
$19,372,284
Taxable Value Increment
$1,613,800,318
FY 2010 CFW Contributions
$8,378,788
FY 2010 TIF Commitments
$12,336,998
Lifetime CFW Contributions
$416,531,460
Lifetime Unobligated Balance
$121,563,867

18. Tax Increment Financing (TIF) Update
Questions / Comments / Conclusion