TIF Districts

[Teo9969]

I'm looking forward to the 2024 Annual reports whenever those come out - those should be the first reports that have more of the inflation baked into certain valuations which will give a better idea of the pace we are at within each TIF vis-a-vis the budget.

With the 2022 Annual reports from last fall, this is what I could make out with the state of TIF in OKC at the end of FY 2022:

1. Life-to-Date (LTD) We had spent $89.2M more than we've brought in. That current deficit is like 85% owing to the OMNI.

2. There is a TON of back and forth movement LTD in terms of Debt proceeds/servicing. Ultimately, we have $260.6M debt outstanding, but $78.8M funds available, so really, we have about ~$180M of debt associated with TIF and there's something with the OMNI debt that is coming from outside of TIF (~$43M)

3. If we take the $89M deficit plus the $79M available plus $3M outstanding encumbrances plus $12M active debt reserves plus $43M from OMNI ($226M), it would appear, based on our $260M outstanding debt that we have incurred ~$34M of interest cost with TIF so far.

4. The Devon TIF put out $90M in bonds in FY22 which should mean the city has an advantaged interest rate for some time as back then rates were half of what they are today.

5. We are bringing in ~$35M annually as of FY22 for tax receipts. The lion's share of that comes from the Devon and general downtown TIFs.

6. The Convention/C2S district desperately needs park-front development to improve the shape of that TIF (#13) - given the state of Strawberry Fields and Mazaheri's penchant for sitting on property, the city is probably going to take a bath on the OMNI deal - by the time significant increases in property values start occurring in TIF #13, the interest accrued on such a substantial sum will kill the budget on this one. $83.5M in the red with <$3M coming in annually.

7. The Wheeler TIF is refreshing to see. You can tell that this area is going to do very well and that the TIF funds here are ultimately a great use of community resources. With no debt, if they stopped today, they'd reach 50% of the TIF goal and obviously this whole area is in its infancy. I wouldn't be surprised if the TIF ends up bringing in twice what it was supposed to.

I'm going to try to track this from year to year, so while I don't think 2023 report will be as interesting as 2024, it's probably be worth updating this post.

Update for FY 2023 (which ended June 2023)

1. Life-to-Date (LTD) we have spent $85.8M more than we've brought in. In the hole are TIF 8 @ $18M, TIF 10 @ $16M & TIF 13 @ $80M. TIF 10 (FNB) & TIF 13 (OMNI) have a deficit of >35% of their respective TIF's overall budget.

2. We have $224.4M debt outstanding and $70.4M in available + $19.7M in committed funds (we had $15.1M in 2022 which I did not previously report, but should have).

3. It appears we have paid approximately $48.5M in Interest LTD. I think we're currently paying around $9.8M/year in interest on debt. I believe $2.99M of net interest expense in 2023 came from TIF 13 (OMNI) alone. It looks like we collect $2.34M in Interest/Income from assets held.

4. We are now bringing in $38.75M for tax receipts. $34M in Ad Valorem & $4.75 in Sales/Hotel Tax.

5. TIF #4/#5 (SW OKC - Dell Campus) looks to have grown its budget from $28.203M in 2022 to $34.203M in 2023 with no explanation as to what is going on. The TIF #4/#5 statement honestly makes no sense when you compare it to the prior year.

6. Obviously this is not MAPS, but it's worth noting we've spent about $85.8M more than we have collected over the life of TIF, which is 20% more expenses than revenues.

7. Some of my math and thought processes for last year's post can't have been correct. I looked at the time and I guess I posted that at 1:30 AM - not my best work lol.