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RTRIZ-2009-01-2009-03-30RESOLUTION NO. RTIRZ-2009-01 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE PEARLAND TAX INCREMENT REINVESTMENT ZONE #2 (TIRZ #2) BOARD OF DIRECTORS, APPROVING THE 2008 ANNUAL REPORT FOR TAX INCREMENT REINVESTMENT ZONE #2. BE IT RESOLVED BY TIRZ #2 BOARD OF DIRECTORS: Section 1. That the Board of Directors for the Pearland Tax Increment Reinvestment Zone #2 Board of Directors hereby approves the 2008 Annual Report for Tax Increment Reinvestment Zone #2 as shown in Exhibit "A". PASSED, APPROVED, AND ADOPTED this 30t" day of March, A.D. 2009. ..-f ,. ~ -~. NIGEL HARRISON TIRZ #2 CHAIRMAN ATTEST: ,~ i~ / MIKE BUR TIRZ #2 SECRETARY Exhibit "A" Resolution No. RTIRZ-2009-01 REINVESTMENT ZONE NUMBER TWO CITY OF PEARLAND, TEXAS ANNUAL REPORT 2008 TABLE OF CONTENTS City of Pearland, Texas, City Council ....................................................................................4 TIRZ Board of Directors .........................................................................................................5 Description of the Zone ..........................................................................................................6 Purpose of the Zone .............................................................................................................. 7 State of the Zone and Plan Implementation in 2008 ..............................................................8 Tables Table A, Taxing Entity Percent Participation .........................................................................8 Table B, Base Values by Jurisdiction ....................................................................................9 Table C, Revenue Fund Balance by Year .............................................................................9 Table D, Project Plan & Reinvestment Zone Financing Plan Budget ..................................11 Table E, Outstanding Debt as of Fiscal Year End ..............................................................12 Table F, Letter Finance Agreements Approved for Reimbursement ..................................14 Appendices Exhibit 1, Zone Boundary Map ............................................................................................17 Exhibit 2, Amended Zone Boundary Map ............................................................................18 Exhibit 3 A-B, Value and Revenue Projections ...............................................................19-20 2 COMPLIANCE Texas Tax Code Section 311.016: (a)(1) ...................................................................................................................................... 8 (a)(2) ....................................................................................................................................10 (a)C3) ....................................................................................................................................12 (a)(4) ....................................................................................................................................13 (a)(5) .................................................................................................................................... 15 3 CITY OF PEARLAND, TEXAS CITY COUNCIL 2008 Council Members Mayor Mayor Pro-Tem Council Member City Manager Director of Finance Hon. Tom Reid Hon. Steve Saboe Hon. Helen Beckman Hon. Kevin Cole Hon. Felicia Kyle Hon. Woodrow Owens William Eisen Claire Manthei 4 REINVESTMENT ZONE NUMBER TWO CITY OF PEARLAND, TEXAS BOARD OF DIRECTORS 2008 Board Members Position 1 Donna Coleman State Senator Designee Position 2 Gary Davis State Representative Designee Position 3 Nigel Harrison, Chair City of Pearland Designee Position 4 Gary Cook, Vice Chair City of Pearland Designee Position 5 Ken Phillips City of Pearland Designee Position 6 Jo Knight City of Pearland/Alvin Independent School District Designee Position 7 Mike Pyburn Alvin Independent School District Designee Position 8 Ron Castillo Fort Bend County Designee Position 9 Larry Loessin Brazoria County Designee 5 DESCRIPTION OF ZONE In accordance with the Tax Increment Financing Act (Chapter 311, Tax Code), Reinvestment Zone Number Two, City of Pearland, Texas (the Zone) was established by Ordinance 891 of the City Council of the City of Pearland, Texas on December 21, 1998. The original Zone, also known as "Shadow Creek Ranch", consists of 3,467 acres located in Brazoria County and Fort Bend County, Texas. In addition, the Zone is located in Alvin I.S.D. (AISD), Fort Bend I.S.D. (FBISD) and a small portion in Pearland I.S.D. (PISD). The original Zone is generally bounded by Clear Creek on the north, State Highway 288 on the east, County Road 92 (the extension of FM 518 west of S.H. 288) on the south and FM 521 on the west. A map illustrating the original boundaries of the Zone follows on page 13 as Exhibit 1. st 1 Plan Amendment On July 10, 2006, by Ordinance 1276 of the City, the Plan was amended and the Zone was expanded to provide for the annexation of 457 acres of vacant land, adjacent to the Zone. It should be noted that 288 acres are in Brazoria County and 169 acres are in Fort Bend County. nd 2 Plan Amendment On November 13, 2006 by Ordinance 1312 of the City, the Plan was amended to provide for development of public improvements to serve Shadow Creek Ranch Town Center. The proposed development is within the boundaries of the original Zone and Brazoria County. rd 3 Plan Amendment On November 13, 2006 by Ordinance 1313 of the City, the Plan was amended and the Zone was expanded to provide for the annexation of 8± acres to facilitate the improvement and widening of Broadway/FM 518 from S.H. 288 to F.M. 521. It should be noted that the boundaries of the annexed area are within Brazoria County. The Zone is now composed of 3,932+ acres, of which 3,125± acres are within Brazoria County and 807+ acres are within Fort Bend County. A map illustrating the boundaries of the Zone as amended follows on page 14 as Exhibit 2. PURPOSE OF ZONE The objective of the Zone is to facilitate quality mixed-use development with aself-sustaining tax base for the City of Pearland (the City), and the other participating taxing entities. The City Council, in adopting the ordinances creating and expanding the Zone, found that the development described in the Project Plan and Reinvestment Zone Financing Plan (the Project Plan), and its subsequent amendments, would not likely occur, to the quality, standards and densities described in the Project Plan, but for the creation of the Zone. The City Council further found that improvements in the Zone will significantly enhance the value of all taxable real property in the Zone and will be of general benefit to the City. The Zone will pursue its objective by acting as a financing vehicle for regional public improvements, as described in the Project Plan as amended. The methods of financing and the sources of funding available to the Zone, including the participation levels of the various participating entities, including the City, Brazoria County, Fort Bend County and Alvin ISD, are described in the amended Project Plan. 7 STATE OF THE ZONE AND PLAN IMPLEMENTATION IN 2008 1. The information provided in this section is in accordance with § 311.016 (a) (1) of the Texas Tax Code, which requires inclusion of the amount and source of revenue in the tax increment fund established for the zone. In addition to the City's tax increment revenue, interlocal agreements with Brazoria County, Fort Bend County and Alvin ISD provide for each taxing unit's participation in the Zone. The Project Plan also allows for the participation of Brazoria Drainage District No. 4 and Fort Bend Independent School District, though neither is currently participating. Current levels of participation are detailed in the Project Plan. In 2008, Fort Bend County's participation level dropped from 100% to 75% in accordance with provisions of their Interlocal Agreement. A schedule outlining the varying levels and lengths of participation appears in Table A. TABLE A Taxin Entit Participation Taxing Entity Zone Years Percent Participation City of Pearland 1 through 3 100% 4 through 8 100% (1) 9 through 30 100% (2) Brazoria County 1 through 30 38% Fort Bend County 1 through 10 100% 11 through 20 75% 21 through 30 50% Alvin ISD 1 through 30 100% (3) (1) 36% to be repaid as an administrative cost, provided never more than $.44 / $100. (2) 64% to be repaid as an administrative cost, provided never more than $.255 / $100. (3) 75% to be used by AISD for the construction of educational facilities. The obligations of the participating taxing jurisdictions, as defined in their respective interlocal agreements, include the timely deposit of tax increment into the City's tax increment revenue fund. Table B illustrates the growth in appraised value from base year to tax year 2008 for each participating jurisdiction. Table C illustrates the amount of the City's incremental revenue, which has been transferred to the increment fund. These amounts reflect 100% of collections as of December 31, 2008. O N N O N O O O (O N O> d _ ~ O ~ m V f0 C A r In O tL] 0 7~ V n M ~ ~ V I~ t U V ~ a0 ~ N ~ OD ~ M N N O O aO N aD O O O ~ O V d ~ N OJ N V O ~ O (O ~~ 01 ~ 'Q ~ O I~ r ~ N ~ r In O lf) LL~ m r ~ O ~ m N O~ N OD O N OD N M N N N ~ ~ O O O O 0 0 0 d J 00 (O N (O O O c0 a0 ~ O O O i i i ~ i~ ry N M Ql M (D ' 1~ V N V ~ .- O O m N M M O d N m ~ V M C V R ~ ~ Oi O O O ~ N N y N y () d .~„ A h m ~ N n Q C O v a m ~l a m 0 m w a 5 o ~ C O ~~ ~ 3 a~ ~' 'C m .., ~ ~ ~ ~ +_.. L C y ~ ~ ? j ~' a 'c 'EO T ~ ~ ~ r a~ c c c~ Y C a O m y .. 2 d C C J c R J o c c ~ d C C 7 d C C J y C C J m 7 o E m J o E m J o U U ~ E y N ~ O~ O U N d U ~ O U Q~ O Q~ O d U - d U ~ C d U p c W C p ~p a N C C C C C A a' ~ a i a i . d c d U ~`oom- d !O Ip d d o`om aoom ao`om p d -c A A ~ Z' N O > . N ~' N ~O C "T' N ~O 'O `T' tN`O CO ~ m H OUmLLQ rUmLL NUmLL MUmLL m w m Q H E X d N N 7 _~. G m O a m U a ~a C N :~ `0 3 c ` ~ o O d m .n 0 ,U ~1 j m E ~ m c ~ a N c o C L .c d 3 m h N m m m d m ~ m ~ G E °' ~ a c c d d o G ~ m m -aa " a m N ~ ~ d d ~ c .G p .C t ~ 3 3 3 m m ~ d d ~~ '~ O O ~ Q 0 7 N Qf N c0 01 ~ O O N M M O ~[J 0 0 67 O Qf I~ N ~ N Q~ O pp m~~ O O W~ O O .- tD u'l I~ ~ O N V M O I~ O O O r .- u] (O O N (p ~ .- N v M r fN fA fA fR fA fA fA fA fA (O c+) M r I~ O O C O N 1!1 f~ M O V 1~ 7 m V T to 0 0 U") O M B ~ N O O I~ r~ N (O O O E M .- (D CO O O M O M O ~ Q> N ~ M ~ O~ N O V ~ N .... u7 .- b9 b9 fA (A fA b9 fA b9 b9 V N V 0) 40 O cD c0 N M ~ ~ ~A O N I~ O ~ I~ O~ M M O m O N I~ ~ O O u'i ~[i O> O~ O M (O O~ N O~ C C O O W O ~ M V N V ~ N M /A to di fR b9 b4 b9 b9 fA conrnM~ ~mr r 4') N O N M 00 IA N V (D 00 N M I~ lA ~ V ~ (D O ~ V ~ O M C O N V M O .- N O v N a0 ~ N~ fn v~ fn en f» ~» vi ~n ~ ~ C ~ M O O r LL'1 ~ OD O I~ 01 M 00 O> O N ,a M O Q) O O ~ O ~ O In N O ~ O O r ~ { N ~. N fA iil vi fA fA fA fA I~ th Of O R N W M V M 40_ O M I~ O r ~ ~ O tp (D O m O ~ ~ N ~ M N Ki b9 b9 f9 di 69 OO r O> M a0 N tD O M N W N ~ vi O V 00 `D ~ ~ rn N fA fR (A fA M I~ N ~ ~ v ~ 0 O N ~ fA 69 i m` d a " N ~, d N ~ ~ _ U O ~ V C O 'a O m a °o d A N O m M "' ~, a c lL N ~ O d ~ y 7 m vi Sri m c ~ c v „~ d O d ~ U ~ ~ fA b9 ~ c `0 d ~ £ ~ ~ c U ~ = O ~ y x U ~ - m o ~ F ~ N L ~ N ~ C 3 d'E¢ a ~ d `!' d J -o c m J C J C N Q d ~ ~ N Q d d d' 0 0~ a m ~ 7 ~N ~ ~ o c -~ ~ ~' m d~ o d m ~_ ~ m Z` ~ a~i c o to ~ 'O U `m ~U o~ dU ~Q ~ a d O U O d~ 7 N LL U a d `-° c_n ~ aci ~ ~ A o O O ~p O m~ vi 0 A _T ~ N C d~ n C~ Cn t0 > t f0 U YU~~]QOtOiW ~Q U w J m Q H h d a N O. N N t O c U L O h d m t 3 rn O m Q N y d C 1 d h O O~ a O 0 O m i, E O ~ o ~~~ .~. O C a ~= ~ o p ,c U d m m a G ~0 d a ~ ~ a ~ d ~ ~ o ~ O ~ H 3 N s c -~ e O ~ ~ c `gy=m o '~ r O N N o, o y OO p .'C.. Q C °~ .y.. j ~ h ~ O i .C O omi E c '• m '= c `o Q w w m 2 ~ 2 Q1 2. The information provided in this section is in accordance with §311.016 (a) (2) of the Texas Tax Code, which requires inclusion of the amount and purpose of expenditures from the fund. The Board of Directors of the Zone has been granted by City Council, in accordance with Section 311.010 of Texas Tax Code, the power to administer, manage, and operate the Zone and to implement the Project Plan. The Zone was created for the duration of 30 years, or until dissolved by the City. The total cost of the public improvements within the Zone, as outlined in the original Project Plan, amounts to $294,482,034. Of this amount, the City will fund $35,471,061 worth of improvements, and the Texas Department of Transportation (TxDOT) will fund another $10,277,050 worth of improvements. The Zone will fund the remaining improvements, which amounts to a cost of $248,733,923. 1st Plan Amendment The original list of project costs was amended with the approval of the 1st Plan Amendment, which included improvements, estimated to total $34,724,218. These improvements address the water, wastewater, storm sewer, lakes channels, roads and landscaping costs for the 457+ acre annexation. 2nd Plan Amendment The list of project costs was amended again with the approval of the 2nd Plan Amendment. These improvements address major road infrastructure, detention, drainage, landscaping and the relocation of pipelines and overhead utilities. 2nd Plan Amendment infrastructure costs are estimated to total $11,749,618. 3rd Plan Amendment The list of project costs was amended a third time with the approval of the 3rd Plan Amendment. This amendment addressed the need to fund and construct a section of Broadway / FM 518. The project, which required the annexation of 8+ acres, is estimated to cost $8,000,000. These costs are detailed in the amended Project Budget, a copy of which follows as Table D. The Zone as now enlarged is composed of 3,932+ acres, of which 3,125+ acres are within Brazoria County and 807+ acres are within Fort Bend County. A map illustrating the boundaries of the Zone as amended follows on page 14 as Exhibit 2. 10 TABLE D Reinvestment Zone NO. 2, City of Pearland, Texas -Shadow Creek Ranch Budaet Item TIRZ Budget as 1st Plan 2nd Plan 3rd Plan TIRZ Budget as approved Amendment (2) Amendment (2) Amendment (2) Amended (3) Infrastructure Streets Pavement 12,610,060 1,634, 000 14,244, 060 Sidewalks 1,859, 400 1,859,400 Landscaping and Irrigation 9,575,350 9,575,350 Entry Monuments 735,320 735,320 Lighting 125,900 125,900 Broadway Widening and Signalization 2,831,789 2,831,789 Business Center Drive Paving 852,722 852,722 Memorial Hermann Drive Paving 385,107 385,107 Water System 3,026,883 353,000 3,379,883 Wastewater System 6,940,964 1,029,000 7,969,964 Storm Water System 10,195,776 1,649,000 11,844,776 Lakes and Channels Improvements 29,121,915 5,625,600 34,747,515 Land Cost 4,597,889 6,675,000 11,272,889 Detention and Drainage Land Cost 2,850,000 2,850,000 8eautificaiton / Deepening I Pond Creation 200,000 200,000 Site Drainage Facilities 1,842,000 1,842,000 Parks and Recreation Improvements 5,155,524 5,573,025 10,728,549 Land Cost 2,363,545 2,363,545 Landscaping Business Center Drive 157,500 157,500 Memorial Hermann Drive 67,500 67,500 Overhead Utilities Placed Underground 1,200,000 1,200,000 Pipeline Relocation 700,000 700,000 Major Improvements Water Plants Land Cost 20,000 20,000 W WT P 340, 000 340,000 Lift Station 300,000 300,000 Traffic Signals 600,000 550,000 1,150,000 McHard Road Reimbursables M iscelaneous 150,000 150,000 Signal 100,000 100,000 SH 288 Access Road 1,000,000 1,000,000 FM 5181mprovements 6,485,500 6,485,500 Broadway / FM 518 Improvements 7100000 7,100,000 Contengencies and Engineering Contingencies (10%) 6,920,111 1,733,620 8,653,731 Engineering (15 %) 10,534,557 2,880,473 490,000 900,000 14,805,030 Master Drainage Plan Costs 70,000 70,000 Environmental Study Costs 100,000 100,000 Subtotal 108,267,923 34,474,218 11,574,813 8,000,000 162,316,954 Zone Administration I Creation TIRZ Administration (1-3 Years) 486,000 486,000 Reimbursable TIRZ Creation Costs 900,000 900,000 Annexation Costs 250,000 250,000 Plan Amendment Costs 175,000 175,000 Subtotal 1,366,000 1,366,000 Total 109,633,923 34,724,218 11,749,818 8,000,000 164,107,959 City Facilities Library Improvements 2, 395,000 2,395,000 Land Cost 105,000 105,000 Fire /Police Station Improvements 2,255,000 2, 255, 000 Land Cost 245,000 245,000 Subtotal 5,000,000 5,000,000 Educational Facilities AISD Elementary School 41,600,000 41,600,000 AISD Jr. High School 21,450,000 21,450,000 AISD Fresh/Soph Campus 34,050,000 34,050,000 FBISD Elementary School 11.000,000 11,000,000 FBISD Middle School 26.000,000 26,000,000 Subtotal 134,100,000 134,100,000 Grand Total 248,733,823 34,724.218 11,749,818 8,000,000 301,207,101 (1) The original TIRZ Budget as approved in 1999 dollars not adjusted for inflation. (2) The amended Budgets as approved in 2006 are shown in 2006 dollars and have not been adjusted for inflation. (3) The Budget as amended shows budget line items as approved in their respective years without adjustment for inflation. 11 TIRZ-Funded Projects: Since the creation of the Zone a series of infrastructure improvements have been funded and constructed, including the following projects initiated in 2008: Broadway Improvements from Kirby Drive to Kingsley Drive (LFA No. 08-01-001), a $8,000,000 project initiated in January 2008 to provide design and construction of water, sewer, drainage, paving, and landscape improvements. • Broadway Improvements from Kingsley Drive to FM 521 (LFA No. 08-05-001), a $8,978,949 project initiated in May 2008 to provide design and construction of water, sewer, drainage, paving, and landscape improvements. • Broadway Landscape (North Side) (LFA No. 08-05-002), a $859,000 project initiated in May 2008 to provide design and construction of the landscaping north of Broadway Street between Kingsley Drive and F.M. 521. During calendar year 2008 Shadow Creek Ranch Development Company reported approximately 405 home sales and 448 closings. This brings the total number of homes in the Zone to 3,985 as of December 31, 2008. City Funded Improvements: • There were no City funded projects in 2008. TxDOT Funded Improvements: • SH 288 Frontage Road construction between Shadow Creek Parkway and Broadway St. was begun in 2008 and is scheduled to be complete in March of 2010. 3. The information provided in this section is in accordance with §311.016 (a) (3) of the Texas Tax Code, which requires inclusion of the amount of principal and interest due on outstanding bonded indebtedness. Bond issues In accordance with a Tri-Party Agreement dated October 11, 2004 between the TIRZ, the City of Pearland, and the Development Authority of Pearland (DAP), the TIRZ has pledged increment to provide for the repayment of debt issued on its behalf. In this regard, the DAP sold bonds in 2004, 2005, 2006, and 2007. Those bond sales are outlined in Table E. TABLE E Development Authority of Pearland Outstanding Debt as of Fiscal Year End Tax increment Contract Revenue Bonds (1) Principal Amount Issued Principal Amount Outstanding Total Debt Service Outstanding Series 2004 $13,995,000 $11,980,000 $19,516,819 Series 2005 9,775,000 8,065,000 12,446,120 Series 2006 9,970,000 9,615,000 14,362,990 Series 2007 15,950,000 15,835,000 25,578,762 Total $49,690,000 $45,495,000 $71,904,69 (1) Series summary provided by RBC Capital Markets Corporation, DAP Financial Advisor 12 Additional CFA's Approved for Reimbursement The Zone Board has approved a series of Letter Finance Agreements (CFA's) for reimbursement. Prior to Board action all project costs related to each LFA were reviewed by the Zone's Auditor, Null-Lairson, PC, and summarized in a reimbursement report, which included eligible project costs plus interest. Table F outlines Letter Finance Agreement approved through the end of 2008. 4. The information provided in this section is in accordance with §311.016 (a) (4) of the Texas Tax Code, which requires inclusion of the tax increment base and current captured appraised value retained by the zone. In each year subsequent to the base year, the Zone will receive tax increment revenue based on ad valorem property taxes levied and collected by each participating taxing unit on the captured appraised value of the Zone. The captured appraised value of the Zone is the total appraised value of all real property located within the Zone as of January 1, less the total appraised base year (January 1, 1998) value. Because the pace of development is unpredictable, and because the Project Plan provides a best estimate of captured appraised values, the actual captured appraised value in any future year may not equal the projected estimates of such value. As of January 1, 1998, the base year for the Zone, the area encompassed by the Zone was undeveloped land, with a total appraised value of $7,172,980. On January 1, 2008, the area encompassed by the Zone had a total appraised value of $1,311,194,101. As a result, the total captured appraised value on the tax roll as of January 1, 2008 was $1,304,021,121 for the City, as illustrated in Table B. The City of Pearland base year (2006) value for the 457+ acres annexed in the 1st Plan Amendment was $4,381,680. As of January 1, 2008 the total appraised value was $12,579,640. As a result the total captured appraised value on the roll as of January I, 2008 was $8,197,160. All lands associated with the 2nd Plan Amendment are within the boundaries of the original Zone. All lands associated with the 3rd Plan Amendment are either owned by a municipality or are dedicated right-of-way with no taxable value. It should also be noted that the Zone received an Estimate of Appraised Value indicating that as of January 1, 2009 the Zone had an estimated appraised value of $1,323,019,900 for properties in Brazoria County and $104,517,360 for properties in Fort Bend County, totaling $1,427,537,260. This is an estimate, however, and the actual certified value may be higher or lower. 13 TABLE F Letter Finance Aareements Aooroved for Reimbursement Letter Finance Agreement (LFA) LFA Date LFA Amount (1) Reimbursements Through 2008 Creation Costs 6/19/2000 $ 900,000 $ 1,235,408 LFA 99-11-001 (Entry) 11/8/1999 919,150 1,220,281 LFA 00-01-001 (V1P1A) 2/21/2000 6,665,996 5,243,529 LFA 00-10-002 (V1P1 B) 10/9/2000 10,541,854 10,593,290 LFA 01-04-001 (V1P16) 8/23/2001 2,059,185 805,884 LFA 03.10-004 (Kingsley 10/7/2003 3,529,173 2,791,877 Drive, Phase 3) LFA 0407-006 (Traffic Signal 7/13/2004 287,788 293,578 Shadow Creek PKWYIKingsley) LFA 0407-007 (Parks and Trails 7/13/2004 1,007,256 877,201 Grading and Infrastructure) LFA 03-10-001 (Remaining Village 10/7/2003 7,554,651 8,493,040 2, Phase 2 Improvements) LFA 0407-002 (Fire/Police Station 7/13J2004 408,668 555,954 Land Cost) LFA 02-08-001 (Village 1 and Village 8/6/2002 4,727,516 6,029,532 2 Phase 2 Improvements) LFA 01-11-002 (Additional Village 1 and 11/12/2001 24,509,430 10,200,126 Vitlage 2lmprovements) LFA 03-10-002 (Village 3, Phase 1 and 10/7/2003 7,809,950 - 2lmprovements) LFA 06-03-001 (Ek:mentary School #2 3/27/2006 1,687,801 - Site) LFA 06.08-002 (Library Site) 8/28/2006 481,569 - LFA 0407-003 (Regional Nature Park) 7/13/2004 760,988 - LFA 03-10-005 (Kingsley Drive Phase 10/07/03 4,486,342 - 4lmprovements) LFA 03-10-006 (Village 5 Improvements) 10/07/03 7,055,177 - LFA 0407-005 (Village 4, Phase 1 and 04/07tD5 3,354,452 - Refelction Bay North Improvements) LFA 03-10-003 (Village 3, Phase 3 10/07~D3 7,711,582 - Improvements) LFA 0407-004 (Village 3, Phase 4 07/13/04 8,204,999 - Improvements) LFA 06.01-003 (Remaining Village4 01/30/06 7,120,532 - Improvements) LFA 06-08-001 (Additional Sidewalks) 08/28/06 2,356,305 - LFA 06-01-001 (Kingsley Drive North) 01/31/06 6,417,644 - LFA 06-01-002 (Additional Village 4 Improvements) 01/31/06 9,392,437 - LFA 06.08-0003 (S.H. 228 Frontage Road_ 08/31/06 1,276,667 - LFA 06-10-001 (Road Infrastructure, Pipeline 10/31/06 9,949,618 - Relocation and Site Drainage; Part of 2nd Plan Amendment) LFA 07-03-002 (Shadow Creek Ranch Town 03/31/07 1,851,598 - Center Improvements; Part of 2nd Plan Amendment) $ 143,028,328 $ 48,339,700 (1) LFA amounts have been adjusted for inflation per the Project and Financing Plan and related budget. (2) Amounts reimbursed include actual interest per the Developer Reimbursement Agreement. "Actual costs exceeded the amount of the LFA. Per the governing agreements, reimbursement is limited to the amount of the LFA 14 5. The information provided in this section is in accordance with §311.016 (a) (5) of the Texas Tax Code, which requires inclusion of the captured appraised value shared by the municipality and other taxing units, the total amount of tax increments received, and any additional information necessary to demonstrate compliance with the tax increment financing plan adopted by the governing body of the municipality. Amended Captured Appraised Value Projections and Gross Incremental Revenue Projections for the annexations were prepared for the Project Plan amendments and the revised projections appear as Exhibits 11A & 11 B. As previously stated, the City, Brazoria County, Fort Bend County and Alvin ISD are the only taxing units currently participating in the Zone. As of December 31, 2008, development schedules for the original Zone remained unchanged from projections in the Project Plan and the total captured appraised value in the TIRZ as of January 1, 2008 was $1,208,429,744. The total amount of tax increment revenue received is detailed in Table C. (This report was written in accordance with the provisions of Chapter 311.016 of the Texas Tax Code) 15 REINVESTMENT ZONE NUMBER TWO CITY OF PEARLAND, TEXAS 2008 ANNUAL REPORT EXHIBITS 16 ..~ ~_ t X W N ~_ L x W O Y w o °0 . C r a ma o- o. ~ o. im V S S S m m O O NQ ~ np O O n n1 N O< °O N^ Of 1n M O M N D Q Q t(] Q O Q m cD 1 O W N aD O D N ~ O N ~~ (p 1 p o ~ Cm0 w m N t~ N Q O m m^~ S m Q N n n Of ~(ml Q O~~~ P S ~Op ~'J c Q ov QeANemn ov ~~ilroannulwQm~nrvmn~n Nl r'om nmrvanol^N`~iv v ai iomrmmmo^ ? 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The report details the status of the Zone in the implementation of the Project Plan and Reinvestment Zone Financing Plan. As such it details the status of projects, the amount of debt issues, the amount of captured appraised value and revenues received. This agenda items presents the 2008 Annual Report. RECOMMENDED ACTION Approve report and recommend transmittal to City Council for action. AR for Annual Report.doc Exhibit "A" Resolution No. RTIRZ-2009-01 REINVESTMENT ZONE NUMBER TWO CITY OF PEARLAND, TEXAS ANNUALREPORT 2008 TABLE OF CONTENTS City of Pearland, Texas, City Council .................................................. TIRZ Board of Directors....................................................................... Description of the Zone........................................................................ Purpose of the Zone............................................................................ State of the Zone and Plan Implementation in 2008 ............................ Tables Table A, Taxing Entity Percent Participation ......................................... Table B, Base Values by Jurisdiction.................................................... Table C, Revenue Fund Balance by Year ............................................. Table D, Project Plan & Reinvestment Zone Financing Plan Budget.... Table E, Outstanding Debt as of Fiscal Year End ................................ Table F, Letter Finance Agreements Approved for Reimbursement .... ............................... 8 ............................... 9 ............................... 9 .............................11 .............................12 .............................14 Appendices Exhibit 1, Zone Boundary Map............................................................................................17 Exhibit 2, Amended Zone Boundary Map............................................................................18 Exhibit 3 A-B, Value and Revenue Projections...............................................................19-20 2 COMPLIANCE Texas Tax Code Section 311.016: .8 10 12 (a)(4)....................................................................................................................................13 (a)(5)....................................................................................................................................15 CITY OF PEARLAND, TEXAS CITY COUNCIL 2008 Council Members Mayor Mayor Pro-Tem Council Member City Manager Director of Finance Hon. Tom Reid Hon. Steve Saboe Hon. Helen Beckman Hon. Kevin Cole Hon. Felicia Kyle Hon. Woodrow Owens William Eisen Claire Manthei 4 REINVESTMENT ZONE NUMBER TWO CITY OF PEARLAND, TEXAS BOARD OF DIRECTORS 2008 Board Members Position 1 Donna Coleman State Senator Designee Position 2 Gary Davis State Representative Designee Position 3 Nigel Harrison, Chair City of Pearland Designee Position 4 Gary Cook, Vice Chair City of Pearland Designee Position 5 Ken Phillips City of Pearland Designee Position 6 Jo Knight City of Pearland/Alvin Independent School District Designee Position 7 Mike Pyburn Alvin Independent School District Designee Position 8 Ron Castillo Fort Bend County Designee Position 9 Larry Loessin Brazoria County Designee S DESCRIPTION OF ZONE In accordance with the Tax Increment Financing Act (Chapter 311, Tax Code), Reinvestment Zone Number Two, City of Pearland, Texas (the Zone) was established by Ordinance 891 of the City Council of the City of Pearland, Texas on December 21, 1998. The original Zone, also known as "Shadow Creek Ranch", consists of 3,467 acres located in Brazoria County and Fort Bend County, Texas. In addition, the Zone is located in Alvin I.S.D. (AISD), Fort Bend I.S.D. (FBISD) and a small portion in Pearland I.S.D. (PISD). The original Zone is generally bounded by Clear Creek on the north, State Highway 288 on the east, County Road 92 (the extension of FM 518 west of S.H. 288) on the south and FM 521 on the west. A map illustrating the original boundaries of the Zone follows on page 13 as Exhibit 1. St 1 Plan Amendment On July 10, 2006, by Ordinance 1276 of the City, the Plan was amended and the Zone was expanded to provide for the annexation of 457 acres of vacant land, adjacent to the Zone. It should be noted that 288 acres are in Brazoria County and 169 acres are in Fort Bend County. nd 2 Plan Amendment On November 13, 2006 by Ordinance 1312 of the City, the Plan was amended to provide for development of public improvements to serve Shadow Creek Ranch Town Center. The proposed development is within the boundaries of the original Zone and Brazoria County. rd 3 Plan Amendment On November 13, 2006 by Ordinance 1313 of the City, the Plan was amended and the Zone was expanded to provide for the annexation of 8+ acres to facilitate the improvement and widening of Broadway/FM 518 from S.H. 288 to F.M. 521. It should be noted that the boundaries of the annexed area are within Brazoria County. The Zone is now composed of 3,932+ acres, of which 3,125+ acres are within Brazoria County and 807± acres are within Fort Bend County. A map illustrating the boundaries of the Zone as amended follows on page 14 as Exhibit 2. PURPOSE OF ZONE The objective of the Zone is to facilitate quality mixed -use development with a self-sustaining tax base for the City of Pearland (the City), and the other participating taxing entities. The City Council, in adopting the ordinances creating and expanding the Zone, found that the development described in the Project Plan and Reinvestment Zone Financing Plan (the Project Plan), and its subsequent amendments, would not likely occur, to the quality, standards and densities described in the Project Plan, but for the creation of the Zone. The City Council further found that improvements in the Zone will significantly enhance the value of all taxable real property in the Zone and will be of general benefit to the City. The Zone will pursue its objective by acting as a financing vehicle for regional public improvements, as described in the Project Plan as amended. The methods of financing and the sources of funding available to the Zone, including the participation levels of the various participating entities, including the City, Brazoria County, Fort Bend County and Alvin ISD, are described in the amended Project Plan. STATE OF THE ZONE AND PLAN IMPLEMENTATION IN 2008 1. The information provided in this section is in accordance with § 311.016 (a) (1) of the Texas Tax Code, which requires inclusion of the amount and source of revenue in the tax increment fund established for the zone. In addition to the City's tax increment revenue, interlocal agreements with Brazoria County, Fort Bend County and Alvin ISD provide for each taxing unit's participation in the Zone. The Project Plan also allows for the participation of Brazoria Drainage District No. 4 and Fort Bend Independent School District, though neither is currently participating. Current levels of participation are detailed in the Project Plan. In 2008, Fort Bend County's participation level dropped from 100% to 75% in accordance with provisions of their Interlocal Agreement. A schedule outlining the varying levels and lengths of participation appears in Table A. TABLE A Taxinq Entity Participation Taxing Entity Zone Years Percent Participation City of Pearland 1 through 3 100% 4 through 8 100% (1) 9 through 30 100% (2) Brazoria County 1 through 30 38% Fort Bend County 1 through 10 100% 11 through 20 75% 21 through 30 50% Alvin ISD 1 through 30 100% (3) (1) 36% to be repaid as an administrative cost, provided never more than $.44 / $100. (2) 64% to be repaid as an administrative cost, provided never more than $.255 / $100. (3) 75% to be used by A/SD for the construction of educational facilities. The obligations of the participating taxing jurisdictions, as defined in their respective interlocal agreements, include the timely deposit of tax increment into the City's tax increment revenue fund. Table B illustrates the growth in appraised value from base year to tax year 2008 for each participating jurisdiction. Table C illustrates the amount of the City's incremental revenue, which has been transferred to the increment fund. These amounts reflect 100% of collections as of December 31, 2008. TABLE B Base Market Value by Jurisdiction 1 Taxinq Entitv Base Year Base Value 2008 Value 2 Change Original Zone 1998 City of Pearland 7,172, 980 1,311,194,101 1, 304, 021,121 Brazoria County 4,143,160 1,229,578,281 1,225,435,121 Fort Bend County 3,029,820 81,615,820 78,586,000 Alvin ISD 4,143,160 1,229,578,281 1,225,435,121 1st Plan Amendment 2006 City of Pearland 4,381,680 12,579,640 8,197,960 Brazoria County 4,381,680 9,825,100 5,443,420 Fort Bend County 1,026,850 2,754,540 1,727,690 2nd Plan Amendment (3) 2006 City of Pearland - Brazoria County Fort Bend County 3rd Plan Amendment (4) 2006 City of Pearland Brazoria County Fort Bend County (1) The information in this table was provided by the Brazoria and Fort Bend County Appraisal Districts (2) Market value as of January 1, 2008. (3) All of the land within the 2nd Plan Amendment area is within the boundaries of the original Zone. (4) All of the land within the 3rd Plan Amendment area is either owned by a municipality or within dedicated ROW and thus tax exempt. TABLE C uny or r-eanano i ncc mo. c i ax mcremem Revenue rune oalance oy Year k i Year 1999 2 2000(2) 2001 2 2002 2003 2004 2005 2006 2007 2008 City of Pearland Revenue $ 45,111 $ 46,413 $ 47,443 $ 67,388 $ 167,897 $ 753,905 $ 935,516 $ 4,632,534 $ 6,312,426 $ 6,719,800 Rebate to City for Administrative Costs (3) $ (23,221) $ (60,353) $ (299,311) $ (344,257) $ (1,667,712) $ (4,039,953) $ (4,067,024) Brazoria County Revenue $ 159,854 $ 205,459 $ 815,614 $ 1,110,573 $ 1,055,912 Alvin ISD Revenue (4) $ 10,969 $ 207,479 $ 229,941 $ 826,613 $ 2,616,519 $ 2,917,931 $ 2,879,739 Other Revenue $ 4,130 $ 80,981 $ 40,827 $ 90,358 $ 267,907 $ 150,232 Fort Bend County Revenue $ 125,300 $ 185,540 $ 189,508 Expenditures for Zone Administration $ (11,824) $ (154,203) $ (134,237) $ (305,626) $ (302,978) $ (127,259) Transfers toDevelopment Authorit $ 1,204,318 $ 3,129,978 $ 5,106,344 $ 3,548,991 Annual Fund Balance $ 45,111 $ 91,524 $ 138,967 $ 194,103 $ 395,012 $ 1,166,179 $ 1,511.781 $ 1,449,062 $ 1,930,590 $ 1,638,990 (1) Source: City of Pearland, Texas. Fund balances as of 12/31 of each year (2) Note that in years 1999 through 2001 revenue was reported net of expenditures. From year 2002 forward gross revenue is reported along with rebates to the city and other expenditures. (3) Rebate for admin costs prior to 2007 is 36%. In 2007 the rebate increased to 64%. (4) Note that Alvin ISD revenue is reported net of the 75% rebate back to Alvin ISD. E 2. The information provided in this section is in accordance with §311.016 (a) (2) of the Texas Tax Code, which requires inclusion of the amount and purpose of expenditures from the fund. The Board of Directors of the Zone has been granted by City Council, in accordance with Section 311.010 of Texas Tax Code, the power to administer, manage, and operate the Zone and to implement the Project Plan. The Zone was created for the duration of 30 years, or until dissolved by the City. The total cost of the public improvements within the Zone, as outlined in the original Project Plan, amounts to $294,482,034. Of this amount, the City will fund $35,471,061 worth of improvements, and the Texas Department of Transportation (TxDOT) will fund another $10,277,050 worth of improvements. The Zone will fund the remaining improvements, which amounts to a cost of $248,733,923. 1st Plan Amendment The original list of project costs was amended with the approval of the 1 st Plan Amendment, which included improvements, estimated to total $34,724,218. These improvements address the water, wastewater, storm sewer, lakes channels, roads and landscaping costs for the 457+ acre annexation. 2nd Plan Amendment The list of project costs was amended again with the approval of the 2nd Plan Amendment. These improvements address major road infrastructure, detention, drainage, landscaping and the relocation of pipelines and overhead utilities. 2nd Plan Amendment infrastructure costs are estimated to total $11,749,618. 3rd Plan Amendment The list of project costs was amended a third time with the approval of the 3rd Plan Amendment. This amendment addressed the need to fund and construct a section of Broadway / FM 518. The project, which required the annexation of 8+ acres, is estimated to cost $8,000,000. These costs are detailed in the amended Project Budget, a copy of which follows as Table D. The Zone as now enlarged is composed of 3,932+ acres, of which 3,125+ acres are within Brazoria County and 807+ acres are within Fort Bend County. A map illustrating the boundaries of the Zone as amended follows on page 14 as Exhibit 2. 10 TABLE D Reinvestment Zone NO. 2, City of Pearland, Texas - Shadow Creek Ranch R„H-t Item TIRZ Budget as 1st Plan 2nd Plan 3rd Plan TIRZ Budget as approved Amendment (2) Amendment (2) Amendment (2) Amended (3) Infrastructure Streets Pavement 12,610,060 1,634,000 14,244,060 Sidewalks 1,859,400 1,859,400 Landscaping and Irrigation 9,575,350 9,575,350 Entry Monuments 735,320 735,320 Lighting 125,900 125,900 Broadway Widening and Signalization 2,831,789 2,831,789 Business Center Drive Paving 852,722 852,722 Memorial Hermann Drive Paving 385,107 385,107 Water System 3,026,883 353,000 3,379,883 Wastewater System 6,940,964 1,029,000 7,969,964 Storm Water System 10,195,776 1,649,000 11,844,776 Lakes and Channels Improvements 29,121,915 5,625,600 34,747,515 Land Cost 4,597,889 6,675,000 11,272,889 Detention and Drainage Land Cost 2,850,000 2,850,000 Beautificaiton / Deepening / Pond Creation 200,000 200,000 Site Drainage Facilities 1,842,000 1,842,000 Parks and Recreation Improvements 5,155,524 5,573,025 10,728,549 Land Cost 2,363,545 2,363,545 Landscaping Business Center Drive 157,500 157,500 Memorial Hermann Drive 67,500 67,500 Overhead Utilities Placed Underground 1,200,000 1,200,000 Pipeline Relocation 700,000 700,000 Major Improvements Water Plants Land Cost 20,000 20,000 W W TP 340,000 340,000 Lift Station 300,000 300,000 Traffic Signals 600,000 550,000 1,150,000 MCHard Road Reimbursables M iscelaneous 150,000 150,000 Signal 100,000 100,000 SH 288 Access Road 1,000,000 1,000,000 FM 518Improvements 6,485,500 6,485,500 Broadway / FM 518 Improvements 7100000 7,100,000 Contengencies and Engineering Contingencies (10%) 6,920,111 1,733,620 8,653,731 Engineering (15%) 10,534,557 2,880,473 490,000 900,000 14,805,030 Master Drainage Plan Costs 70,000 70,000 Environmental Study Costs 100,000 100,000 Subtotal 108,267,923 34,474,218 11,574,813 8,000,000 162,316,954 Zone Administration / Creation TIRZ Administration (1-3 Years) 486,000 486,000 Reimbursable TIRZ Creation Costs 900,000 900,000 Annexation Costs 250,000 250,000 Plan Amendment Costs 175,000 175,000 Subtotal 1,366,000 1,366,000 Total 109,633,923 34,724,218 11,749,818 8,000,000 164,107,959 City Facilities Library Improvements 2,395,000 2,395,000 Land Cost 105.000 105,000 Fire / Police Station Improvements 2,255,000 2,255,000 Land Cost 245,000 245,000 Subtotal 5,000,000 5,000,000 Educational Facilities AISD Elementary School 41,600,000 41,600,000 AISD Jr. High School 21,450,000 21,450,000 AISD Fresh/Soph Campus 34,050,000 34,050,000 FBISD Elementary School 11,000,000 11,000,000 FBISD Middle School 26.000,000 26,000,000 Subtotal 134,100,000 134,100, 000 Grand Total 248,733,823 34,724,218 11,749,818 8,000,000 301,207,101 (1) The original TIRZ Budget as approved in 1999 dollars not adjusted for inflation. (2) The amended Budgets as approved in 2006 are shown in 2006 dollars and have not been adjusted for inflation. (3) The Budget as amended shows budget line items as approved in their respective years without adjustment for inflation. 11 TIRZ-Funded Projects: Since the creation of the Zone a series of infrastructure improvements have been funded and constructed, including the following projects initiated in 2008: Broadway Improvements from Kirby Drive to Kingsley Drive (LFA No. 08-01-001), a $8,000,000 project initiated in January 2008 to provide design and construction of water, sewer, drainage, paving, and landscape improvements. • Broadway Improvements from Kingsley Drive to FM 521 (LFA No. 08-05-001), a $8,978,949 project initiated in May 2008 to provide design and construction of water, sewer, drainage, paving, and landscape improvements. • Broadway Landscape (North Side) (LFA No. 08-05-002), a $859,000 project initiated in May 2008 to provide design and construction of the landscaping north of Broadway Street between Kingsley Drive and F.M. 521. During calendar year 2008 Shadow Creek Ranch Development Company reported approximately 405 home sales and 448 closings. This brings the total number of homes in the Zone to 3,985 as of December 31, 2008. City Funded Improvements: • There were no City funded projects in 2008. TxDOT Funded Improvements: • SH 288 Frontage Road construction between Shadow Creek Parkway and Broadway St. was begun in 2008 and is scheduled to be complete in March of 2010. 3. The information provided in this section is in accordance with §311.016 (a) (3) of the Texas Tax Code, which requires inclusion of the amount of principal and interest due on outstanding bonded indebtedness. Bond issues In accordance with a Tri-Party Agreement dated October 11, 2004 between the TIRZ, the City of Pearland, and the Development Authority of Pearland (DAP), the TIRZ has pledged increment to provide for the repayment of debt issued on its behalf. In this regard, the DAP sold bonds in 2004, 2005, 2006, and 2007. Those bond sales are outlined in Table E. TABLE E Development Authority of Pearland Outstanding Debt as of Fiscal Year End Tax increment Contract Revenue Bonds (1) Principal Amount Issued Principal Amount Outstanding Total Debt Service Outstanding Series 2004 $13,995,000 $11,980,000 $19,516,819 Series 2005 9,775,000 8,065,000 12,446,120 Series 2006 9,970,000 9,615,000 14,362,990 Series 2007 15,950,000 15,835,000 25,578,762 Total $49,690,000 $45,495,000 $71,904,691 (1) Series summary provided by RBC Capital Markets Corporation, DAP Financial Advisor 12 Additional LFA's Anaroved for Reimbursement The Zone Board has approved a series of Letter Finance Agreements (LFA's) for reimbursement. Prior to Board action all project costs related to each LFA were reviewed by the Zone's Auditor, Null-Lairson, PC, and summarized in a reimbursement report, which included eligible project costs plus interest. Table F outlines Letter Finance Agreement approved through the end of 2008. 4. The information provided in this section is in accordance with §311.016 (a) (4) of the Texas Tax Code, which requires inclusion of the tax increment base and current captured appraised value retained by the zone. In each year subsequent to the base year, the Zone will receive tax increment revenue based on ad valorem property taxes levied and collected by each participating taxing unit on the captured appraised value of the Zone. The captured appraised value of the Zone is the total appraised value of all real property located within the Zone as of January 1, less the total appraised base year (January 1, 1998) value. Because the pace of development is unpredictable, and because the Project Plan provides a best estimate of captured appraised values, the actual captured appraised value in any future year may not equal the projected estimates of such value. As of January 1, 1998, the base year for the Zone, the area encompassed by the Zone was undeveloped land, with a total appraised value of $7,172,980. On January 1, 2008, the area encompassed by the Zone had a total appraised value of $1,311,194,101. As a result, the total captured appraised value on the tax roll as of January 1, 2008 was $1,304,021,121 for the City, as illustrated in Table B. The City of Pearland base year (2006) value for the 457+ acres annexed in the 1 st Plan Amendment was $4,381,680. As of January 1, 2008 the total appraised value was $12,579,640. As a result the total captured appraised value on the roll as of January I, 2008 was $8,197,160. All lands associated with the 2nd Plan Amendment are within the boundaries of the original Zone. All lands associated with the 3rd Plan Amendment are either owned by a municipality or are dedicated right-of-way with no taxable value. It should also be noted that the Zone received an Estimate of Appraised Value indicating that as of January 1, 2009 the Zone had an estimated appraised value of $1,323,019,900 for properties in Brazoria County and $104,517,360 for properties in Fort Bend County, totaling $1,427,537,260. This is an estimate, however, and the actual certified value may be higher or lower. 13 TABLE F Letter Finance Agreements Annroved for Reimbursement Letter Finance Agreement (LFA) LFA Date LFA Amount (1) Reimbursements Through ZOOS Creation Costs 6/19/2000 $ 900,000 $ 1,235,408 LFA 99-11-001 (Entry) 11/8/1999 919,150 1,220,281 LFA 00-01-001 (V1P1A) 2/21/2000 6,665,996 5,243,529 LFA 00-10-002 (V1P1 B) 10/9/2000 10,541,854 10,593,290 LFA 01-04.001 (V1P1 B) 8/2312001 2,059,185 805,884 LFA 03-10.004(Kingsley 10/7/2003 3,529,173 2,791,877 Drive, Phase 3) LFA 04-07-006 (Traffic Signal 7/1312004 287,788 293,578 Shadow Creek PKWYIKingsley) LFA 04-07-007 (Parks and Trails 7/13/2004 1,007,256 877,201 Grading and Infrastructure) LFA 03-10-001 (Remaining Village 10/7/2003 7,554,651 8,493,040 2, Phase 2 Improvements) LFA 04-07-002 (Fire/Police Station 7/13/2004 408,668 555,954 Land Cost) LFA 02-08-001 (Village 1 and Village 8/6/2002 4,727,516 6,029,532 2 Phase 2 Improvements) LFA 01-11-002 (Additional Village 1 and 11/1212001 24,509,430 10,200,126 Village 2Improvements) LFA 03-10-002 (Village 3, Phase 1 and 10/7/2003 7,809,950 - 2 Imp rove ments) LFA 06-03-001 (Elementary School #2 3/27/2006 1,687,801 Site) LFA 06-08-002 (Library Site) 8/28✓2006 481,569 LFA 04-07-003 (Regional Nature Park) 7/13/2004 760,988 LFA 03-10-005 (Kingsley Drive Phase 1 OtO7/03 4,486,342 4 Imp rovements) LFA 03-10-006 (Village 5 Improvements) 10/07/03 7,055,177 LFA 04-07-005 (Village 4, Phase 1 and 04/07)05 3,354,452 Refelction Bay North Improvements) LFA 03-10-003 (Village 3, Phase 3 1 Qt07/03 7,711,582 Improvements) LFA 0407-004 (Village 3, Phase 4 07/13/04 8,204,999 Improvements) LFA 06-01-003 (Remaining Village 4 01/30)06 7,120,532 Improvements) LFA 06.08-001 (Additional Sidewalks) 08128/06 2,356,305 LFA 06.01-001 (Kingsley Drive North) 01/31/06 6,417,644 LFA 0&01-002 (Additional Village 4 Improvements) 01/31/06 9,392,437 LFA 06.08-0003 (S.H. 228 Frontage Road_ 08/31/06 1,276,667 LFA 06-10-001 (Road Infrastructure, Pipeline 10131)06 9,949,618 Relocation and Site Drainage; Part of 2nd Plan Amendment) LFA 07-03-002 (Shadow Creek Ranch Town 03/31/07 1,851,598 - Center Improvements; Part of 2nd Plan Amendment) $ 143,028,328 $ 48,339,700 (1) LFA amounts have been adjusted for inflation per the Project and Financing Plan and related budget. (2) Amounts reimbursed include actual interest per the Developer Reimbursement Agreement. Actual costs exceeded the amount of the LFA. Per the governing agreements, reimbursement is limited to the amount ofthe LFA 14 5. The information provided in this section is in accordance with §311.016 (a) (5) of the Texas Tax Code, which requires inclusion of the captured appraised value shared by the municipality and other taxing units, the total amount of tax increments received, and any additional information necessary to demonstrate compliance with the tax increment financing plan adopted by the governing body of the municipality. Amended Captured Appraised Value Projections and Gross Incremental Revenue Projections for the annexations were prepared for the Project Plan amendments and the revised projections appear as Exhibits 11A & 11 B. As previously stated, the City, Brazoria County, Fort Bend County and Alvin ISD are the only taxing units currently participating in the Zone. As of December 31, 2008, development schedules for the original Zone remained unchanged from projections in the Project Plan and the total captured appraised value in the TIRZ as of January 1, 2008 was $1,208,429,744. The total amount of tax increment revenue received is detailed in Table C. (This report was written in accordance with the provisions of Chapter 311.016 of the Texas Tax Code) 15 REINVESTMENT ZONE NUMBER TWO CITY OF PEARLAND, TEXAS 2008 ANNUAL REPORT EXHIBITS 16 Harris County - •� Harris County ''. •+. •�, •.. •o ` Clear Creek ■ •� '� Brazoria County , 3 f rY Ian &' elf a , r,,. •+' !north ,4 � j 3 7IRZ ftunday s. w 4ounty Line. ... Coun 12 � �� Exhibit 2 Value Projections By Participating Entity by Year Calendar Original Zone 11I 1st Plan Amendmont 121 2nd Plan Amendment 3) Total Value Projection with Amendments I41 Year City of Bramna Ft Bend County Alvin ISD 14) City of Brazona FortBend City of Brazoda Alvin ISD City of Brazorla Ft Bend County Alvin ISO (4) Pearland III County (2) 0), Pearland County County Peartand County Peadand (1) County (2) (3) 1998 7.172,980 4,143,160 3.029.820 4,143,160 0 0 0 0 0 0 7,172,960 4.143.160 3.029,620 4.143,160 1999 7172.980 4.143,160 3.029,820 4.143.160 0 0 0 0 0 0 7,172,980 4,143,160 3,029,820 4.143,160 2000 7,172.96C 4,143,160 3,029.820 4.143,160 0 0 D 0 0 0 7.172.980 4, 143.160 3.029.820 4.143.160 2001 7,172.980 4,143,160 3.029,820 4.143,160 0 0 0 0 0 0 7,172,980 4,143.160 3,029,820 4.143,160 2002 7,898.600 4.866.780 3,029,820 4,868780 0 0 0 0 0 0 7,098,600 4668,780 3,029,820 4.858,780 2003 75,904,290 71.957.400 3.946,890 71957,400 0 0 0 0 0 0 75,9D4,290 71,957,400 3,W(1,890 71,957400 2004 258.290,690 252,185,610 6,105,080 252,185,610 0 0 0 0 0 0 258,200.690 252.185,610 5,105,D80 252,185.610 2005 482.829.675 475,245.642 7.564,033 475,245,642 0 0 0 0 0 0 482,829675 475,245.642 7,584.033 475,245,642 2006 741,780.867 716,756,867 25,024,000 716,756,867 0 0 0 0 0 0 741.780,867 716,756.867 25.024,000 716.756,867 2007 1.305.294,951 1,031,380.103 133,085,355 917,358,206 0 0 0 15.900999 15.900,999 15,900,999 1,321,195.949 1,047,281.102 133.085.355 933,269.205 200a 1,788,923.180 1,391,918462 227,857,845 1,154.870,413 13,551.735 13,551,735 0 85,560,992 85,560,992 85,560.992 1,886,035,916 1,491,031.189 227,857A45 1,240,431.405 2009 2,363,543-777 1,765.826,577 357,865.760 1,399,921,508 108.837,587 96,271,657 10.365.920 B8.127,822 88,127.822 88,127.822 2.560,309,185 1.952,226,065 365,031.6B0 IAW049,330 2010 2,825,795.243 1,986,142.212 499,757,249 1,665,044,372 253.534,488 179,916.905 73,618,582 90,771,656 90,771,656 90,771,656 3,173.101,387 2,256A29,774 573.375,831 1,755,816.029 20111 3,079,755.247 2,100,595.362 534,228,760 1,834,133,169 314,790.875 186,890,898 128.599.977 93.494,806 93,494,806 93,494,806 3,488.040,928 2,379,981.067 663,128,737 1.927,627,975 2012 3,237,412.007 2,264,555.119 553,883,478 2.004.857,554 336,390.395 201.983,500 134.405.595 96.299,650 96,299,650 96,299,650 3,670.102,052 2,562,838.269 688,290,373 2,101,157.205 2013 3.320.439.689 2,321,728,010 601,65L514 2.146.010.203 361.178,747 223,374.a18 137,803,929 99,188.640 99,180.640 99.188,640 3,780,807.076 2.644.291,466 739.458,443 Z245,198,842 2014 3,405,958.201 2,380,616.088 616,422,214 2,261,443.864 370,379,235 229.076.381 141,302,374 102,164.299 102.164,299 102.164.299 3.676.501,734 2,711.866,748 757,725.088 2.363,608,163 2015 3,494,042.268 2,441,270.8DB 631,632,944 2,318,409.276 379,855.737 234.948,950 144,908,787 105,229,228 105,229,228 105.229.228 3.979.127,233 2,781,448.986 776,539,731 2.423,638,503 2016 3.584,768,857 2.503,745,170 647,299996 2.377,083,649 309,616,534 240,997.716 148.618.818 108,386,105 108.386,105 108,386,105 4,082.771,497 2,853,128.992 795,918.814 2,465,469.754 2017 3.678.217,244 2.568,D93.763 663,437,060 2437,518,254 399.670.156 247.227,946 152,M2.210 111,637AS8 1114637,688 111.637,688 4.189.525,088 2.926.959,397 015.879.270 2.549,155,942 2018 3.774.469,083 2,634,372.814 690,058.236 2,499,765.897 410.025,386 253,645,082 158,380,303 114,986,819 114.986,819 114.986,819 4.299.481,287 3,003,004.715 836,438.539 2,614.752,716 2019 3.873.808,477 2,702,640,236 697,178.047 2,563.880,969 420.691.272 260.254733 160,436,540 118.436.423 118,436.423 118.436.423 4412,730,173 3,081,331.392 857,614.586 2,682,317.393 2020 3,975.722,053 2,772,955.681 714,811452 2,829,919,494 431,677,136 267,062.673 164,614,463 121,989,516 121.989,518 121.989,518 4,529,388.704 3,162,007.869 879.425,915 2,751,909.010 2021 4,080,899.036 2,845,380.589 732,973,859 2,697,939.174 442,992.575 274,074.851 168,917.724 125,649,201 125,649,201 125,649,201 4.649.540,812 3,245,104.641 901,891.684 2.823,588,376 2022 4,189,231,328 2,919,978.244 751,681.139 2,767,999.445 454,647,478 281,297,395 173,350.063 129,418,677 129,416,677 129,418,677 4,773,297,483 3.3304694.316 925,031,222 2,897,418,122 2023 4,300,813.589 2,996,813.929 770.949.637 2.640.161.524 465,552,027 288,736.614 17-7,915413 133,301.238 133,301.238 133.301.238 4.900.76@854 3,418,051.681 948,865.050 2.973.462.761 2024 4,415,743,318 3.075,954,462 790,796.190 2,914,488.465 479.016,713 296,399,011 182.617,703 137.300,275 137,300,275 137.300,275 5,032,060.305 3,509,653.768 973413,693 3.051.788.740 2025 4,534.120,939 3.157,469,354 811.238.140 2.991.045,214 491.752.340 304,291.279 167.461.061 141,419.283 141,419,283 141.419,283 5,167,292.562 3,603,179.916 998.699,200 3,132,464.497 2026 4,655,049.889 3,241,429,673 832,293,348 3,069A98666 504,870,035 312,420,316 192.449.720 145,661.862 145,66tb(52 145,881,862 5.306.581.786 3,699,511.850 1,024,743.068 3.215.560,528 2027 4,781,636.707 3,327,908.800 853,980,212 3,151.117,721 518.381,262 320,793,223 197,5118.039 150,031,717 150,031,717 150.031,717 5,450,049,886 3,798,733,741 1,051,568.251 3.301.149.439 2028 4,910991.129 3,416,982.302 878317,662 3234.773,348 532.297,825 329417.318 202,680.507 154.532,669 154.532,669 154.532,669 5.597.821,623 3.90Q932289 1,078198,189 3.389.306,017 Total 4,910,991.129 3,416,982.302 876,317,682 3.234.773,348 532.297,825 329,417.318 202,880.507 154,532,1369 154.532,669 154.532669 5.597,821,623 3,900,932,289 1,079,198.189 3,389,306.017 Value shown IetiBClS actual (:edlrnad values rhfeugn LUM, ara OBYelbpal pJDjBLlgna rrWrr LW/ mmugn me lone or !ra Gone varlari vary oy pena:rpam rxn:auaa w va.ynyr Values reflect developer prgectwns as prcVrded for Ist Plan Amendment Values vary by participant because of varying boundaries Values reflect developer prulectwns as provided for 2nd Plan Amendment. Values are constant because of shared boundaries Total values lahect Cerfrhad Values through 2006 and developer projections horn 2007 through the end of tla 2wa. All property in 3rd Plan Amendment Is tax exempt Exhibit 3A Incremental Revenue Projec110r1s by Participating Entity by Year Caiarldaf Original Zone let Plan Amendment 2nd Plan Amendment Amended Total Year City of Brazoria Ft Bend A1vin ISD (4) Original Zone City of Srazona Fort Send 1al Plan City of Brazoria AMfn 1$D 2nd Plan Revenue Pearland (1) County (2) County (3) I Total Pearland County County Amendment Total Pearland County F Amendment Total Projection f 998 U 0 U 0 0 0 0 0 0 0 0 0 0 0 199Y 45 111 0 0 0 45,111 O 0 0 0 0 0 0 0 45,111 2000 46,413 0 0 0 48.413 0 0 0 0 0 0 0 0 46,413 2001 47,341 0 0 0 47,341 0 0 0 0 0 0 0 0 47,341 2002 42,115 0 0 0 42,115 0 0 0 0 0 0 0 0 42,115 2003 3,193 986 0 11,140 15,319 0 0 0 0 0 0 0 0 15,319 2004 242,009 74,748 0 844,402 1,161,159 0 0 0 0 0 0 0 0 1,161,1t,9 2005 793,101 205,517 44.052 2,231,376 3,274.047 0 0 0 0 0 0 0 0 3,274.047 2006 2,431,400 579,081 264.114 6.297,335 9,571.931 0 0 0 0 0 0 0 0 9.571.931 2007 2.257,922 9r36,373 474,717 104640.587 14,369,598 0 0 0 0 36,675 194975 51419 121,070 14.490,668 2008 3.161,632 1,396,016 672.049 14,019.660 19,239,656 30.506 16,776 0 47,281 197,342 107,466 346,631 651,458 19.938,296 2009 4.353,850 1,897,037 1.077,737 17,666,195 24,994,819 244,544 121,049 36,646 402,839 203,262 110709 357,030 671,001 26.068,559 2010 5.984.646 2.482.711 1.863,364 21 A28.268 31,758.989 570,709 222.716 260.260 1,053.683 209.360 114.030 367,741 691.131 33.5D3,804 2011 7,465,989 2,900,269 2,799,750 25,498,488 38.684,494 708,596 230,112 456,693 1,394,401 215,641 117.451 378.773 711,885 40,770.761 2012 8.224,000 3.105.759 3.075.792 28,094,373 42.499,924 757.217 250.033 475.161 1.482,411 222,110 120,975 39D, 136 733,221 44,716,556 2013 8.659,206 3.346,193 3,208.232 30.715,368 45,928,998 813,016 276,513 487.171 1,576,699 228,773 124,604 401,840 755,218 48,28Q914 2014 (IRX966 3.444,103 3478,248 32,882.371 48,725,887 833,726 283,570 499,540 1.616.837 235,637 128.342 413,896 777.874 $1.120.398 2016 9.150,928 3,531,034 3,564,597 34,654,532 50,901,692 855.058 290,840 512.281 1,658,179 242,706 132.192 426,313 801,211 53,361.081 2016 9.387790 3,621,791 3.563.538 35.529,076 62.192,195 877,029 298,328 526.404 1,700,761 249,987 136.168 439,102 825,247 54.718,203 2017 9.631,757 3,714,852 3,745,147 36,429,857 63,521413 899,660 308,040 638,921 1,744,621 257,487 140,243 452.275 8W,004 56,118,038 2018 9,883.043 3,810,300 3,839,504 37,351,661 54,890,508 922,970 313,984 552,843 1,769,196 265,211 144,450 465,1143 675,505 57,555,8U9 2019 10,141,958 3,908,617 2,624,461 38,313.299 54,988,445 946,979 322,166 370,122 1,647.266 273,167 1411 479,819 901.770 57,537,481 2020 10.400,468 4,010,289 2,691,198 39,297,ti07 56,407,550 971.708 330,693 387,96a 1,690,269 281,362 153,241 494,213 928,823 59,026,842 2021 10,683.046 4.114,806 2,769,934 40,311,443 67,069.228 997,179 339,273 398.110 1,734683 289,803 167.845 509,039 95@687 60.660.479 2022 10,985,870 4,222,458 2,830.734 41,355,695 59,374,157 1,023,414 348,214 408,557 1,780,185 298,497 162,5B0 524,311 985,388 62,140,330 2023 11,267.180 4,333,339 2.003.657 42.431.274 60,926,451 1,050,437 367,423 419,316 1.827,176 307,452 167,457 540,040 1,014,950 63.767.577 20Z4 11.657,229 4,447,548 2,978,789 43,539,121 82,522,666 1,078,270 386,9fi8 430,399 1,875,577 318,816 172,481 556,241 1,045,398 65,443,641 2025 11,866,279 4,566,182 3.056.134 44,68Q203 64,167,798 1.106.938 376,678 44t,814 1,926,429 326.176 177,666 572,928 1.076.760 67,169,988 2026 12184,601 4,686,345 3,135.819 45,855,518 65;862,284 1,136,468 386,741 453,571 1,916,778 335,962 182,985 59D,118 1,109,083 68,948.124 2027 12512473 4,811,143 3,217,896 47,066,092 67,607,604 1,166,879 397,108 465,681 2,029,866 346,040 188,475 607,820 1.142.335 70,779.606 2028 12 6t,0,181 4 09,WB 3302,434 48 312,963 B9,405 283 1 198 20B 407,781 478 155 2 0114 142 356 422 194,129 828 054 1 176 BDS 72.8&3 0'30 Total 205,159,SW 79,136,781 61,261.874 766,464,124 1.111,022,375 16,189,502 (3,243,442 8,805,813 33,038.,557 5895749.266 3,1(2.254 10,004,581 18,802,585 1,102,863,517 city or POariano receives Aa irestratioti tees over the lire Of the ZOne Daseo on tees or U1b years 1-s: ;7B76 years 4-ri: and %K% years U-30. Bratons County Zone participation M% ISO 13561) of total tax rate for ide of Zone Ft Send County Zone 100% participation ($0.53874) Years 1-10: 75% participation ($0.404055) years 11-20: and 50% panw.pation ($D 269370) years 21-2028, Assumes Alvin ISO Zone participation of 100%; 25% in the Zone, 75% to ISO for School Projects. Exhibit 3B