Agenda - City of Dallas

Sports Arena TIF District
Exhibit A - FY 2011 Annual Report
Appendix: Financials
City of Dallas, Texas
Sports Arena Tax Increment Financing District
Notes to Financial Statements for the Year Ended September 30, 2011
(Unaudited)
1. 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.
2. 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).
3. 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 shortterm
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.
4. The Zone's Financial Plan permits expenditures not to exceed $515,000 (in Current $)
over the life of the TIF to reimburse the City for administrative costs. The City began
reimbursing the general fund for administrative costs in FY’1998-99. Any future
remittance for administrative expenses would come from excess cash as tax increment
revenue increases as a result of increased assessed values.
5. The Zone had the following advances, including principal and interest, outstanding at
September 30, 2011:
$3,542,390, including principal of $2,224,964 and accrued interest of
$1,317,426, for the Orange Roadways project bearing interest at 6.00%
compounded semi-annually; and
$1,825,761, including principal of $1,170,000 and accrued interest of
$655,761, for the Woodall Rodgers Public Art project bearing interest at
5.48% compounded semi-annually.
6. The Zone has reimbursed the developer $32,761,884 to date, including principal of
$19,846,053 and accrued interest of $12,915,831, for the project advances, mentioned in
Note 5.
7. All expenditures resulting in capital improvements that are owned by the City are
capitalized on the City’s books.
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