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HomeMy WebLinkAboutOrdinance - 2012-O0059 - Amending Ordinance No. 2011-O0071 Valencia Public Improvement District - 06/21/2012First Reading June 21, 2012 Item No. 5.2 Second Reading July 12, 2012 Item No. 5.23 ORDINANCE NO. 2012-00059 AN ORDINANCE AMENDING ORDINANCE NO. 2011-00071 WITH REGARD TO THE 2012 SERVICE AND ASSESSMENT PLAN AND FY 2012-13 BUDGET FOR THE VALENCIA PUBLIC IMPROVEMENT DISTRICT BY INCLUDING OPERATIONAL COSTS WHEREAS, the original expenditures approved by Ordinance 2011- 00071 in the 2012 Service and Assessment Plan for Valencia Public Improvement District did not include operational costs for FY 2012-2013; and WHEREAS, there are adequate revenues estimated for FY-2012-13 to support this amendment; and WHEREAS, the City Council desires to amend the 2012 Service and Assessment Plan and the FY 2012-13 Budget for Valencia Public Improvement District to include these operational costs; NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1: THAT Ordinance No. 2011-00071, is hereby amended by replacing Exhibit B, the Revised 2012 Service and Assessment Plan for the Valencia Public Improvement District, with the "Valencia Public Improvement District, City of Lubbock, Texas Service and Assessment Plan" dated June 21, 2012, which is attached to this Amendment as "Attachment 1" and incorporated herein as if fully set forth. SECTION 2: THAT if any section, paragraph, clause or provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Ordinance. SECTION 3: THAT the City Secretary is hereby authorized to cause publication of the descriptive caption of this Ordinance as an alternative method provided by law. PASSED by the City Council on first reading June 21 , 2012. PASSED by the City Council on second reading July 12 2012 GL O ON,MAYOR ATTEST: Reb cca Garza City Secretary APPROVED AS TO CONTENT: l�Y1Q4 Cheryl Yrock, Budget Director APPROVED AS TO FORM: Linda L. Chamales, Economic Development Attorney le: cityalt/Linda/0stinancest Amendment —Noun Paint Christmas Lighu June S, 2012 Attachment 1 fl'►city of ubbock TEXAS VALENCIA PUBLIC IMPROVEMENT DISTRICT CITY OF LUBBOCK, TEXAS SERVICE AND ASSESSMENT PLAN June 21, 2012 City of Lubbock, Texas Finance Department Valencia Public Improvement District Service and Assessment Plan June 21, 2012 TABLE OF CONTENTS Section I Plan Description and Defined Terms Section II Property included in the PID Section III Improvement Project Section IV Sources and Uses of Funds Section V Assessment Plan Section VI Terms of the Assessments List of Exhibits Exhibit A The PID Map Exhibit B Maintenance and Services Exhibit C Assessment Roll City of Lubbock, Texas Finance Department Valencia Public Improvement District Service and Assessment Plan June 21, 2012 Section I Plan Description and Defined Terms A. Introduction Chapter 372 of the Texas Local Government Code, Improvement Districts in Municipalities and Counties" (as amended, the "PID Act"), governs the creation of public improvement districts within the State of Texas. The City of Lubbock created the Valencia Public Improvement District (the "PID") to maintain the public improvements associated with the Valencia planned development and for the benefit of certain property in the PID, all of which is located within the City. (Capitalized terms used herein shall have the meanings ascribed to them in Section I.B of this Service and Assessment Plan.) This Service and Assessment Plan has been prepared pursuant to Sections 372.013, 372.014, 372.015 and 372.016 of the PID Act. According to Section 372.013 of the PID Act, a service plan "must cover a period of at least five years and must also define the annual indebtedness and the projected costs for improvements. The plan shall be reviewed and updated annually for the purpose of determining the annual budget for improvements." The service plan is included in Section IV of this Service and Assessment Plan. Section 372.014 of the PID Act states that "an assessment plan must be included in the annual service plan." The assessment plan is described in Section V of this Service and Assessment Plan. Section 372.015 of the PID Act states that "the governing body of the municipality or county shall apportion the cost of an improvement to be assessed against property in an improvement district." The method of assessing the Costs of the improvements to the property in the PID is included in Sections V and VI of this Service and Assessment Plan. Section 372.016 of the PID Act states that "after the total cost of an improvement is determined, the governing body of the municipality or county shall prepare a proposed assessment roll. The roll must state the assessment against each parcel of land in the district, as determined by the method of assessment chosen by the municipality or county under this subchapter." The Assessment Roll for the PID is included as Exhibit C of this Service and Assessment Plan. The Assessments as shown on the Assessment Roll are based on the method of assessment described in Section V of this Service and Assessment Plan. The City Council shall make all determinations necessary herein. The City Council intends for the obligations, covenants and burdens on the owner of the Assessed Property, including without limitation such owner's obligations related to the payment of the Assessments, to constitute a covenant running with the land. The Assessments levied hereby shall be binding upon the owners of Assessed Property, and their respective transferees, 2 City of Lubbock, Texas Finance Department Valencia Public Improvement District Service and Assessment Plan June 21, 2012 legal representatives, heirs, devisees, successors and assigns. The Assessments shall have lien priority as specified in the PID Act. This Service and Assessment Plan provides for maintenance of improvements benefiting the entire area of the Valencia PID B. Definitions The terms used herein shall have the following meanings. "Annual Service Plan Amendment" has the meaning set forth in the first paragraph of Section IV of this Service and Assessment Plan. "Assessed Property" means, for any year, parcels within the PID. "Assessment" means, with respect to each Parcel, the assessment imposed against such Parcel pursuant to the Assessment Ordinance and the provisions therein, as shown on the Assessment Roll, subject to reallocation among Parcels and reduction according to the provisions herein and the PID Act. "Assessment Ordinance" means the Assessment Ordinance approved by the City Council approving and adopting this Service and Assessment Plan. "Assessment Roll" means the document included in this Service and Assessment Plan as Exltibit C, as updated, modified, or amended annually in accordance with the procedures set forth herein and in the PID Act. "City" means City of Lubbock, Texas. "City Council" means the duly elected governing body of the City. "Costs" mean the actual or budgeted costs, as applicable, of all or any portion of the maintenance of the public improvements, operation, and other supplemental services, as described in Exhibit B of this Service and Assessment Plan. "Developer" means Betenbough Homes, Inc. "Improvement Project" means the maintenance of the public improvements that will provide a special benefit to the property in the PID and described in Exhibit B of this Service and Assessment Plan and Section 372.003 of the PID Act. "Parcel" means a parcel identifed by either a tax map identification number assigned by the Lubbock County Appraisal District for real property tax purposes or by lot and block number in K? City of Lubbock, Texas Finance Department Valencia Public Improvement District Service and Assessment Plan June 21, 2012 a final subdivision plat recorded in the real property records of Lubbock County, Texas or identified by any other reasonable means determined by the City Council. "PID" has the meaning set forth in the second paragraph of Section I.A of this Service and Assessment Plan. "PID Act" means Texas Local Government Code Chapter 372, Improvement Districts in Municipalities and Counties, Subchapter A, Public Improvement Districts, as amended. "PID Map" means the map included as Exhibit A to the Service and Assessment Plan identifying the property included in the PID. "Service and Assessment Plan" means this Service and Assessment Plan prepared for the PID pursuant to Section 372.013, 372,014, 372.015, and 372.016 of the PID Act. Section II Property Included in the PID The PID is located in the City of Lubbock, Texas. A map of the property included in the PID is shown on Exhibit A to this Service and Assessment Plan. The 39.9 acre development is expected to consist of approximately 80 residential units, parks and associated rights of way, landscaping, and infrastructure. An explanation of the method of assessing property is included in Section V. Section III Description of the Improvement Project The general nature of the proposed public improvements is: (i) maintenance of Parks and green spaces together with any ancillary structures, features or amenities such as playgrounds, athletic facilities, pavilions, community facilities, irrigation, walkways, lighting, benches, trash receptacles and any similar items located therein along with all necessary grading, drainage, and similar infrastructure involved in the maintenance of such parks and green spaces; landscaping, hardscape and irrigation; and (ii) costs of establishing, administering and operating the District. The District is to supplement and enhance services within the District, but not replace or supplant existing City services provided within the District. The public improvements will be constructed by the Developer with no reimbursement from the PID. After analyzing the maintenance, operation, and other supplemental services related to the Public Improvements, the City has determined that the maintenance of the public improvements authorized by the PID Act, shown in Exhibit B, should be performed by the City and has further 4 City of Lubbock, Texas Finance Department Valencia Public Improvement District Service and Assessment Plan June 21, 2012 determined that these maintenance activities will be of special benefit to all the Assessed Property within the PID. A. Maintenance of Public Improvements The cost of the maintenance, operation and other supplemental services to be funded through assessments on Assessed Property is estimated at $4,500 in the second year and increases to $18,774 in the 41h year, with 2 percent annual growth thereafter. The budget for the maintenance, operation, and other supplemental services will be determined annually by the City and will be included in a Service Plan Amendment along with amendments to the Assessment Roll reflecting assessments (the "Maintenance Assessment") based on such budget for maintenance, operation and necessary supplemental services. Section IV Sources and Uses of Funds Section 372.013 of the PID Act requires this Service and Assessment Plan to "cover a period of at least five years and must also define the annual indebtedness and the projected costs for improvements. The plan shall be reviewed and updated annually for the purpose of determining the annual budget for maintenance." Such annual update to this Service and Assessment Plan is herein referred to as the "Annual Service Plan Amendment." The Valencia PID will have no indebtedness and the PID assessments will fund the maintenance of the public improvements, operation, and other supplemental services. The table below shows estimated sources and uses of funds including the projected cost of maintaining the public improvements. Calendar War- 2012 21113 24114 lots 2016 2017 Property %%Mess 3,56z957 3,114.216 13,676,300 19,734,030 23,349,111 23,8lk093 Discounted Pmpeity Whtes r? 90 . 3,2K661 7-M4793 12.488,850 17.771,627 21,014,200 21,434.414 rascal Year 2012-13 20I3.14 3014.15 2015-16 2016.17 2017.18 Toads Reteattes Interest Esinin8s 36 29 37 77 l80 Assessment 7$$01t 3.527 8.033 I3.733 19.336 23.116 23.571 91.548 Total 3527 8,033 13.773 19586 23.153 23.653 91.728 tlawase 87th Strect link"Tract A" 1.13 Acres Maintenance Wark - 4.490 8.660 0.831 9.010 30.992 87th Caret Medlin "Ttset R" 07 Acre, Maintenance of Median - Z123 2.165 2.208 =3 8,749 lhct' Cents Z040 2.081 z122 zl6s 9.408 Ad-i.t.ss- Q,t, Soo 1.673 1.707 1.741 1.776 7,397 Annual Onetatim, Cost 3.500 4,000 4.O30 4.162 4.243 4.3" 24.316 (LCAD Collection Cost and Cost of seuta8 assessmenu each year) Total 3500 4.400 14.406 18,774 19.149 19532 79.362 Cast Rsserms 27 3561) 2.928 3,740 7.743 11.866 11.866 The sources and uses of funds table is subject to revision each year 5 City of Lubbock, Texas Finance Department Valencia Public Improvement District Service and Assessment Plan June 21, 2012 Section V Assessment Plan The PID was created and the assessment is being levied pursuant to Section 372.015 of the PID Act, "Determination of Assessment." A. Allocation of assessment • Properties will be assessed based on the City's 2012 "net taxable value" as established by the Lubbock Central Appraisal District and submitted to the City under Tax Code Section 26.04. • Assessment will be $0.11 per $100 valuation • All property will be assessed based on the final 2012 "net taxable value". Section VI Terms of the Assessments The annual assessment for each parcel within the PID shall be shown on the assessment roll. The amount of the assessment could change each year when the Service and Assessment Plan are adopted due to increased value on a parcel or the estimated cost of maintaining the public improvements, repair or replacement costs, and operational or administrative costs. G Ordinance No. 2012-00059 Calendar Year^ Property Values' Discounted Property Values Qa 90% Fiscal Year Revenues Interest Earnings Assessment ® $0.11 Total Expense 87th Street Park "Tract A" 1.13 Acres Maintenance of Park 87th Street Median "Tract B" .07 Acres Maintenance of Median Electric Costs Administrative Costs Annual Operation Cost (LOAD Collection Cost and Cost of setting assessments each year) Total Cash Reserves • Property Value growth rate - 2% annually ^ Year that the construction value goes on the tax roll Assessment Information 2010-2017 Assessment per S100,000 S 110.00 City of Lubbock, TX Finance Department Valencia PID Amended 2012 Service Plan Exhibit B 2012 2013 2014 2015 2016 2017 3,562,957 3,206,661 8,114.216 7,302,795 13,876,500 12,488,850 19,754,030 17,778,627 23,349.111 21,014.200 23,816,093 21,434,484 2012-13 2013-14 2014-15 2015.16 2016-17 2017.18 Totals - 3,527 - 8,033 36 13,738 29 19,556 37 23,116 77 23,578 190 91,548 3,527 8,033 13,773 19,586 23,153 23,655 91,728 - - - 3,500 - - - 500 4,000 4,490 2,123 2,040 1,673 4,080 8,660 2,165 2,081 1,707 4,162 8,833 2,208 2,122 1,741 4,245 9,010 2,253 2,165 1,776 4,330 30,992 8,749 9,408 7,397 24,316 3,500 4,500 14,406 189774 19,149 19,532 79,862 27 3,560 2,928 3,740 7,743 11,866 11,866 61612012,VatenciaPID2012 Service Plan Revised • jf - 82NU ST ____... 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