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Home My WebLink AboutResolution - 2022-R0061 - Central Business District TIF Annual Report 2020-2021Resolution No. 2022-R0061 Item No. 8.8 January 25, 2022 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Council of the City of Lubbock does hereby approve the Central Business District Tax Increment Financing Reinvestment Zone ("CBDTIF") Annual Report for October 1, 2020 through September 30, 2021, which will be distributed to the chief executive officer of each taxing unit levying taxes within the CBDTIF, 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, 2022 DANIEL M. POPE, MAYOR ATTEST: Reb cca Garza, City S kiery APPROVED AS TO CONTENT: B u osteli h, Chie inancial Officer APPROVED AS TO FORM: r � yy- 11 X A K lli Leisure, Assistant City Attorney ccdocs/RES. CBDTIF - 2021 Annual Report 01.18.22 Resolution No. 2022-R0061 IF t� Cityof ubbock Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2020 - September 30, 2021 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2020— September 30, 2021 Introduction The Lubbock City Council established the Central Business District (CBD) Tax Increment Financing Reinvestment Zone (Zone) by ordinance on December 3, 2001 in order to promote the development of the CBD. The Zone was created 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 regarding 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 on or before the 1501h day following the City's fiscal year (September 30), and a copy must be submitted 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, C: Amount and nurnose of exnenditures from the Fund - Ed' Amount of principal and interest due on outstanding bonded indebtedness, :: Tax increment base and current captured appraised value retained by the Zone, :: Cantured apnraised value shared by the City and other taxinu unit._ In 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, 2022 upon the recommendation of the Central Business District Tax Increment Financing Reinvestment Zone Board of Directors (Board) on January 13, 2022. Daniel M. Pope, ayor Dan Williams, Chairman City of Lubbock Central Business District TIF Board of Directors Page 2 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2020 — September 30, 2021 Table of Contents Introduction......................................................................... Financial Report.................................................................. Appraised Values................................................................ Tax Increment Fund Revenue ............. Performance Report ............................ Board of Directors ............................... Ma s ................................................ 2 ................................................ 3 ................................................ 3 ................................................ 3 ................................................ 4 .................................................................................. 7 p............................................................................................ f �I City of L TEXAS ......................................... 8 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2020— September 30, 2021 Financial Report As set by the Lubbock Central Appraisal District (LOAD), the appraised value of the Zone increased $143,836,866 in value since the 2001 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 2021 Appraised Value (before abatements and exemptions) $249,695,1 l 7 Less: 2001 Base Value 105,858,251 Current Captured Appraised Value Retained and Shared (before abatements)* $143,836,866 *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 Projected TIF 2001 2021 Net Tax Fund Revenue Taxing Jurisdiction/ 2021 Appraised 2021 Net Increment (100% Tax Rate Tax Rate Value Taxable Value Value Collections) City of Lubbock $0.523230 105,858,251 245,505,885 139,647,634 $ 730,678 Lubbock County 0.359990 105,858,251 245,536,007 139,677,756 502,826 Lubbock County Hospital District 0.103164 105,858,251 245,536,007 139,677,756 144,097 High Plains Underground Water Conservation District #1 0.005100 105,858,251 245,536,007 139,677,756 7,124 Total Fund Revenue $ 1,384,725 Page 3 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2020— September 30, 2021 Performance Report The Board and the City Council are operating with the Fifth Amended Project and Finance Plans approved by the Board on March 22, 2017 and approved by the City Council on April 27, 2017. 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. The Project Plan describes the types of projects anticipated to occur in the district. Revenues In FY 2020-21, the Zone received $1,238,743 in property tax revenues and $7,424 in interest earnings. Any variance in the actual amount from the amount reported in the FY 2019-20 Annual Report can be attributed to uncollected taxes and/or exemptions. In FY 2020-21, Market Lubbock Inc. transferred $35,073 to the CBD TIF Capital Project Fund for the Downtown Police Program. Expenditures and Projects The City Council has issued six series of Certificates of Obligation to fund public improvement projects for the Zone. The principal amount of Certificates of Obligation is as follows: February 4, 2010 $ 247,564 March 15, 2011 1,404,380 May 1, 2014 2,165,000 April 28, 2015 2,690,000 April 15, 2016 2,005,000 April 15, 2017 4,110,000 All expenditures are 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 Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2020- September 30, 2021 Central Business District TIF Expenditures Capital Projects Public Utility Engineering and Coordination Underground Utilities EDA Grant Glenna Goodacre Boulevard Extension CBD TIF Special Projects Gateways Civic Center Hotel Project Parking Master Plan Historic District Designation Utility Infrastructure Upgrades/Relocations Civic Center Convention Center Hotel Total Capital Project Expenditures Administrative/Bond Issuance Expenditures Administrative Administrative Costs Office Supplies Professional Services LCAD Collections Charges Capital Outlay Subtotal Adminstrative Expenses Special Projects Downtown Redevelopment Plan Schrader & Cline - Project and Finance Plan Civic Lubbock Guitar Project Fiber Optic Line Relocation SGS Engineering Overland Partners Primitive Social Agreement McDougal Master Development Agreement ROW Acquisition - GGB & Avenue Q Civic Center Hotel Feasibility Study Misc. Projects Transfer to Capital Project Fund Subtotal Special Projects Bond Sale Charges Total Expenditures Transfer to Debt Service *Unaudited Page 5 Expenditures FY 2020-21 To -Date $ - 222,148 - 7,111,115 - 2,245,614 - 292,573 51,540 472,991 29,649 1,788,644 - 23,045 37,894 42,536 121,216 $ 119,083 12,319,882 $ 58,000 516,268 747 10,854 6,629 107,610 4,907 38,887 - 58,101 70,282 731,720 - 100,000 - 75,547 - 8,500 - 25,254 - 8,396 - 232,224 39,000 147,300 167,770 3,168,475 - 342,619 - 49,686 - 37,631 506,500 1,620,548 713,270 5,816,178 - 119,912 783,553 6,667,810 $ 961,675 5,726,102 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2020— September 30, 2021 CITY OF LUBBOCK, TEXAS DEBT SERVICE SCHEDULE ALL CERTIFICATES & BOND ISSUES BUDGET CENTRAL BUSINESS DISTRICT TIF FISCAL TOTAL YEAR PRINCIPAL INTEREST REQUIREMENTS 2021-22 565,000.00 376,827.85 941,827.85 2022-23 590,000.00 352,234.72 942,234.72 2023-24 620,000.00 326,260.94 946,260.94 2024-25 640,000.00 300,954.19 940,954.19 2025-26 670,000.00 277,051.21 947,051.21 2026-27 685,000.00 251,896.53 936,896.53 2027-28 710,000.00 225,269.40 935,269.40 2028-29 740,000.00 197,733.05 937,733.05 2029-30 775,000.00 169,555.25 944,555.25 2030-31 790,000.00 142,190.20 932,190.20 2031-32 710,000.00 116,428.50 826,428.50 2032-33 720,000.00 91,050.00 811,050.00 2033-34 715,000.00 64,959.80 779,959.80 2034-35 620,000.00 40,050.00 660,050.00 2035-36 440,000.00 20,275.00 460,275.00 2036-37 305,000.00 6,100.00 311,100.00 2037-38 - - - 2038-39 - - - 2039-40 - - - 2040-41 - - - $ 10,295,000.00 $ 2,958,836.63 $ 13,253,836.63 Page 6 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2020— September 30, 2021 Board of Directors The Zone consists of one representative from each of the jurisdictions that levy taxes within the zone and representatives appointed by the municipality. In establishing the Board, the City Council specified nine members with six members appointed by the City Council. City Council appointed Board representatives must be at least 18 years of age and be a resident of the county in which the zone is located or a county adjacent to that county or own real property in the zone. 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. Council Appointee: Dan Williams, Chair Williams & Company Real Estate Term: 03/01/2021 — 03/01/23 Council Appointee: Robert Taylor United Supermarkets — Corporate Office Term: 03/01/20 — 03/01/22 Council Appointee: David Alderson Term: 03/01 /21 — 03/01 /23 Council Appointee: Kade Wilcox Primitive Social Term: 03/01/20 — 03/01/22 Council Appointee: Brett McDowell MGB Interests, LLC Term: 03/01/20 — 03/01/22 Council Appointee: Suzanne Blake Blake Cooper Financial Term: 03/01/21—03/01/23 High Plains Underground Water Conservation District Appointee: Jason Coleman, P.E., General Manager Lubbock County Hospital District Appointee and Designee: Mark Funderburk, Chief Executive Officer; Designee: Jeff Dane, C.F.O. Lubbock County Commissioners Court Appointee: Honorable Curtis Parrish, County Judge Page 7 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2020— September 30, 2021 CBD TIF Preferred Plan DOWNTOWN REVITALIZATION ACTION PLAN EDAW / DEVELOPMENT STRATEGIES / PARKHILL. SMITH a COOPER Reinvestment Zone Boundary Map Page 8 PnNrttl Pnmsry oumm.a O,glYlb Prgeam O y- I.