HomeMy WebLinkAboutResolution - 2018-R0056 - Central Business District TIF Annual Report - 01/25/2018Resolution No. 2018-RO05 6
Item No. 6.5
January 25, 2018
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute
for and on behalf of the City of Lubbock, the Central Business District Tax Increment
Financing Reinvestment Zone Annual Report for October 1, 2016 through September
30, 2017, which will be distributed to the chief executive officer of each taxing unit
levying taxes within the Central Business District Tax Increment Financing
Reinvestment Zone, and to the Comptroller of the State of Texas. Said Annual Report is
attached hereto and incorporated in this Resolution as if fully set forth herein and shall
be included in the minutes of the Council.
Passed by the City Council on January 25, 2018
ATTEST:
DANIEL M. POPE, MAYOR
Rebec4a Garza, City Secretary
APPROVED AS TO CONTENT:
OAV-,1�' f �)�o
Ch�ock, Executive Director of Budget
APPROVED AS TO FORM:
City Attorney
tral Business District Tax Increment Financing Reinvestment Zone — 2017 Annual Report
17
Resolution No. 2018-RO05 6
Central Business District
Tax Increment Financing Reinvestment Zone
Annual Report
October 1, 2016 - September 30, 2017
City of Lubbock, TX
North Overton
Tax Increment Financing Reinvestment Zone
Annual Report
October 1, 2016 — September 30, 2017
Table of Contents
Introduction.....................................................................................................................................
2
FinancialReport ..............................................................................................................................
3
AppraisedValues............................................................................................................................
3
Tax Increment Fund Revenue.........................................................................................................
3
PerformanceReport ........................................................................................................................
4
Boardof Directors...........................................................................................................................
7
Maps................................................................................................................................................
8
City of
Lubbock
TEXAS
City of Lubbock, TX
North Overton
Tax Increment Financing Reinvestment Zone
Annual Report
October 1, 2016 — September 30, 2017
Introduction
The Lubbock City Council established the North Overton Tax Increment Financing
Reinvestment Zone (Zone) by ordinance on March 14, 2002 to promote the development of the
North Overton area. The Zone was initiated by a petition of owners of more than 50.0 percent of
the appraised value of land in the Zone. The petition was received on October 31, 2001. The
Zone was enacted after written notice and formal presentations to the governing body of each
taxing unit that levies real taxes in the Zone, and after a properly advertised public hearing for
public comments on the creation of the Zone.
According to the Texas Tax Increment Finance Act Section 311.016, the City must submit an
annual report to the chief executive officer of each taxing unit that levies taxes on property
within a zone. The report must be provided within 150 days of the end of the City's fiscal year
(September 30), and a copy must be sent to the Texas Comptroller of Public Accounts.
The Texas Tax Increment Finance Act specifies that the report must include:
❑ Amount and source of revenue in the Tax Increment Fund established for the Zone,
❑ Amount and purpose of expenditures from the Fund,
❑ Amount of principal and interest due on outstanding bonded indebtedness,
❑ Tax increment base and current captured appraised value retained by the Zone,
❑ Captured appraised value shared by the City and other taxing units,
❑ Total amount of tax increments received, and
❑ Any additional information necessary to demonstrate compliance with the Tax Increment
Financing Plan adopted by the City.
Distribution of this annual report was approved by resolution of the City Council on January 25,
2018 upon the recommendation of the North Overton Tax Increment Financing Reinvestment
Zone Board of Directors (Board) on December 15, 2017.
Daniel M. Pope, Mayor
City of Lubbock
!Jack Chairman
North Overton TIF Board of Directors
Page 2
City of Lubbock, TX
North Overton
Tax Increment Financing Reinvestment Zone
Annual Report
October 1, 2016 — September 30, 2017
Financial Report
As set by the Lubbock Central Appraisal District (LCAD), the appraised value of the Zone
increased $516,921,077 in value since the 2002 base year for each taxing jurisdiction. However,
exemptions and abatements by the City and other taxing jurisdictions lower the net taxable
amount available to the Tax Increment Fund as indicated on this page.
Appraised Values
Zone 2017 Appraised Value (before abatements and
exemptions) $ 543,861,681
Less: 2002 Base Value 26,940,604
Current Captured Appraised Value Retained and
Shared (before abatements)* $ 516,921,077
*The captured appraised value of taxable real property is the total appraised value of all real property taxable by the
taxing unit and located in a reinvestment zone for that year, less the tax increment base of the taxing unit. Texas
Tax Increment Finance Act Section 311.012(b).
Tax Increment Fund Revenue
2017
Projected TIF
2002 Incremental
Fund Revenue
Taxing Jurisdiction 2017 Appraised 2017 Net Net Taxable
(100%
Tax Rate Value Taxable Value Value
Collection)
City of Lubbock $0.538020
26,940,604
543,801,581
516,860,977
$ 2,780,815
Lubbock County 0.358158
26,940,604
543,812,181
516,871,577
1,851,217
Lubbock County Hospital
District 0.112055
26,940,604
543,812,181
516,871,577
579,180
High Plains Underground
Water Conservation District #1 0.007500
26,940,604
543,812,181
516,871,577
38,765
Total Fund Revenue $ 5,249,977
Page 3
City of Lubbock, TX
North Overton
Tax Increment Financing Reinvestment Zone
Annual Report
October 1, 2016 — September 30, 2017
Performance Report
The Board and City Council are operating with the Fifth Amended Project and Finance Plans
approved by the Board on December 10, 2009 and approved by the City Council on February 25,
2010. The Plans outline the financial strategy to accomplish the goal of the Zone. The Financing
Plan provides projections of the amount of revenue that may be received in the future and the
potential project financing that revenue may support. The Project Plan describes the types of
projects anticipated to occur in the Zone.
Revenues
For the year ended September 30, 2017, the Zone received $4,600,592 in property tax revenues
for the 2016 tax year. Any variance in the actual amount from the amount reported in the FY
2015-16 annual report can be attributed to uncollected taxes and/or exemptions. The Zone
received $564,916 in hotel motel tax revenue for debt service on the conference center, $90,992
in revenue from the one percent of net revenue from the Overton Hotel and $66,509 in incentive
rent from the Overton Hotel. The Zone also earned $23,821 in interest.
Expenditures and Projects
The City Council has issued nine series of Certificates of Obligation to fund public improvement
projects for the Zone. They were issued as follows:
July 15, 2003
$ 3,795,000
August 15, 2005
9,290,000
April, 15, 2006
6,307,749
August 15, 2007
4,111,341
January 17, 2008
11,805,000
May 23, 2008
1,943,758
April 8, 2009
961,386
January 20, 2010
1,982,958
April 15, 2016
1,280,000
All expenditures are made as defined in the Texas Tax Increment Finance Act Section
311.002(1): "Project costs means the expenditures made or estimated to be made and monetary
obligations incurred or estimated to be incurred by the municipality or county establishing a
reinvestment zone that are listed in the project plan as costs of public works or public
improvements in the zone, plus other costs incidental to those expenditures and obligations."
Page 4
City of Lubbock, TX
North Overton
Tax Increment Financing Reinvestment Zone
Annual Report
October 1, 2016 - September 30, 2017
North Overton TIF Expenditures
Capital Projects
North Overton Phase I
The Centre, Phase I Project
Dinerstein II, Phase I Project
Tract #3
Tract #5
Tract #6
Tract #7
Dinerstein III
Walmart
Tract 11 - Condo I
Tract 12 and Tract 13 - Condo 11 & III
Single Family
Pioneer Park Improvements
North Overton TIF Public Facilities**
Tract 1 A
ROW Acquire Glenna Goodacre Blvd.
Tract I
Tract 18 Commercial
ULOFT
Tract 1-B-3
Glenna Goodacre Blvd. East
Water Utilities North Overton TIF
North Overton TIF Electric Utility
Capstone
Wastewater Utilities North Overton TIF
North Overton TIF Street Reconstruction
Landscaping in the Parkway
North Overton TIF Public Improvements
Total Capital Project Expenditures
Administrative/Bond Issuance Expenditures
Administrative
Administrative Costs
Office Supplies
Professional Services
LCAD Collections Charges
North Overton Zoning
North Overton TIF Creation
North Overton TIF Board Administration
Total Administrative Expenditures
Interest Expense
Bond Sale Charges
Capital Outlay
Transfer to Capital Projects Fund
Total Expenditures
Expenditures To
FY2016-17 Date
$ 909,192
1,959,363
1,581,407
1,158,251
1,004,141
526,414
904,271
1,022,627
2,521,914
163,364
215,690
4,986,859
8,268
22,652,438
84,411
3,253,991
124,633
762,433
86,049
68,867
2,973,448
148,910
322,374
2,312,571
125,574
871,062
- 89,281
748,780 1,125,050
$ 748,780 51,962,854
$ 12,440
307,586
320
7,080
5,989
81,999
1,662
17,980
-
14,194
45,312
-
8,154
20,411
482,306
1,838 340,186
- 272,726
- 31,539
150,000 150,000
$ 172,249 1,276,757
Transfer to Debt Service $ 3,201,261 33,574,921
** This project is funded with $11.4 million in bonds and $11 million in grants from
the CH Foundation and the Moody Foundation
*Unaudited
Page 5
City of Lubbock, TX
North Overton
Tax Increment Financing Reinvestment Zone
Annual Report
October 1, 2016 — September 30, 2017
CITY OF LUBBOCK, TEXAS
DEBT SERVICE SCHEDULE
ALL CERTIFICATES & BOND ISSUES
B UDGEr
NORTH OVERTON TIF ALLOCATIONS
FISCAL
YEAR
PRINCIPAL
INTEREST
TOTAL
REQUIREMENTS
2017-18
2,217,084.92
957,773.37
3,174,858.29
2018-19
2,337,812.48
876,948.04
3,214,760.52
2019-20
2,415,679.86
787,737.49
3,203,417.35
2020-21
2,468,698.15
692,988.06
3,161,686.21
2021-22
2,571,942.81
591,745.97
3,163,688.78
2022-23
2,685,413.85
482,343.08
3,167,756.93
2023-24
2,799,111.26
364,883.32
3,163,994.58
2024-25
2,693,185.95
245,808.27
2,938,994.22
2025-26
2,092,713.39
142,923.61
2,235,637.00
2026-27
1,547,391.74
67,714.54
1,615,106.28
2027-28
332,296.47
28,008.93
360,305.40
2028-29
202,427.56
13,800.66
216,228.22
2029-30
137,709.57
4,153.32
141,862.89
2030-31
-
-
-
$ 24,501,468.01 $
5,256,828.66
$ 29,758,296.67
This debt service schedule does not reflect the Build America Bonds subsidy from the IRS on the interest
for the 2010 bonds issued.
Page 6
City of Lubbock, TX
North Overton
Tax Increment Financing Reinvestment Zone
Annual Report
October 1, 2016 — September 30, 2017
Board of Directors
Because the Zone was initiated by a petition of the property owners, by statute the board must consist of
nine members. The City Council appoints six board members, who must be at least 18 years of age and
owners, or a representative of owners, of real property in the Zone or employees or agents of someone
who owns property in the Zone. The State Senator and State Representative for the Zone, or their
designees, are also board members, as is the representative of Lubbock County. The Board is responsible
for administering the Zone throughout its life span and for recommending projects to be financed with the
approval of the City Council.
City Council Representative: Jack Driskill, Chair
McWhorter Cobb & Johnson LLP
Term: 03/01/16 — 03/01/18
City Council Representative: Kurt Metcalf
Overton Hotel
Term: 03/01/17 — 03/01/19
City Council Representative: Patrick Murfee
Murfee and Sons, Inc.
Term: 03/01/17 — 03/01/19
City Council Representative: Howard Thrash
H. G. Thrash
Term: 03/01/17 — 03/01/19
State Senator:
Honorable Charles Perry, State Senator
State Representative:
Honorable John Frullo, State Representative
Lubbock County Representative:
Gilbert A. Flores, Lubbock County Commissioner
Lubbock County Hospital District Representative:
David Allison, Chief Executive Officer; Designee: Jeff Dane
High Plains Underground Water District Representative:
Jason Coleman, High Plains Underground Water District Appointee
Page 7
City of Lubbock, TX
North Overton
Tax Increment Financing Reinvestment Zone
Annual Report
October 1, 2016 — September 30, 2017
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