Agenda - City of Dallas

Cityplace Area TIF District
FY 2011 Annual Report
Appendix A – Financials
(1) Significant Accounting Policies
City of Dallas, Texas,
Cityplace Tax Increment Financing District
Notes to Basic Financial Statements
September 30, 2011
(Unaudited)
(a)
Basis of Accounting
The measurement focus used for the TIF Zone fund is a flow of financial
resources. The financial statements are prepared using the modified accrual
basis of accounting. Under the modified accrual basis of accounting, tax
increment revenues and interest are recognized as revenue when they become
both "measurable" and "available" to finance expenditures of the current period.
Expenditures are recognized when the liability is incurred.
(b)
Ad Valorem Tax
State statute requires that each taxing jurisdiction remit its ad valorem taxes to
the Zone by May 1 of each year (remittance to occur no more than 90 days after
taxes for the jurisdiction become delinquent). The Zone stopped collecting tax
increment starting in fiscal year 2009-10 (tax year 2009) as it met its funding
obligations with the final increment collection in fiscal year 2008-09 for tax
year 2008 in accordance with the TIF Project Financing Plan.
(c)
Pooled Cash
The Zone's cash balances are invested in the City’s investment pool and include
amounts in demand deposits as well as short-term investments. Pooled
investments and short-term non-pooled investments are treated as cash
equivalents. Investment income on the pooled investments is prorated monthly
based upon the average daily cash balance in each fund.
(d)
Administrative Costs
(2) Long-Term Debt
The Zone's Project Plan and Reinvestment Zone Financing Plan (“Plan”)
provides for staffing and other administrative expenses by the City of Dallas over
the life of the TIF, from fiscal years 1993 to 2012, for a total amount not to
exceed of $911,262 (in Current $). The Zone began reimbursing the General
Fund for
administrative costs in FY 1997-1998. Administrative expenses of the Zone are
based on hourly staff time related to the implementation of the Cityplace Area TIF
District Plan.
The City of Dallas, Texas Tax Increment Financing Reinvestment Zone Number Two Tax
Increment Bond Series 1998, 2000 and 2004 were redeemed in fiscal year 2009-10. The
Zone had no bonded indebtedness at September 30, 2011.
(3) Developers’ Advances
The Zone had no developer advances outstanding as of September 30, 2011.
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