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Home My WebLink AboutResolution - 2019-R0012 - North Overton TIF Annual Report - 01/22/2019Resolution No. 2019-R0012 Item No. 8.5 January 22, 2019 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 North Overton Tax Increment Financing Reinvestment Zone Annual Report for October 1, 2017 through September 30, 2018, which will be distributed to the chief executive officer of each taxing unit levying taxes within the North Overton 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 22, 2019 DANIEL M. POPE, MAYOR ATTEST: Rebe ca Garza, City Secre Ury APPROVED AS TO CONTENT: Blu Kosteli , Chief Financial Officer APPROVED AS TO FORM: ZES. North Overton Tax Increment Financing Reinvestment Zone — 2018 Annual Report 4, 2019 Resolution No. 2019-R0012 W/ City of ubbock TEXAS North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2017 - September 30, 2018 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2017 — September 30, 2018 Table of Contents Introduction..................................................................................................................................... 2 FinancialReport.............................................................................................................................. 3 AppraisedValues............................................................................................................................ 3 Tax Increment Fund Revenue......................................................................................................... 3 PerformanceReport........................................................................................................................ 4 Boardof Directors........................................................................................................................... 7 Maps................................................................................................................................................ 8 City of bb o ck ryas City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2017 — September 30, 2018 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 on or before the 150t' day following 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 22, 2019 upon the recommendation of the North Overton Tax Increment Financing Reinvestment Zone Board of Directors (Board) on December 12, 2018. Daniel M. Pope, Mayor City of Lubbock Jdff Kne, Chairman North Overton TIF Board of Directors Page 2 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2017 — September 30, 2018 Financial Report As set by the Lubbock Central Appraisal District (LCAD), the appraised value of the Zone increased $480,657,656 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 2018 Appraised Value (before abatements and exemptions) $ 507,598,260 Less: 2002 Base Value 26,940,604 Current Captured Appraised Value Retained and Shared (before abatements)* $ 480,657,656 *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 2018 Projected TIF 2002 Incremental Fund Revenue Taxing Jurisdiction 2018 Appraised 2018 Net Net Taxable (100% Tax Rate Value Taxable Value Value Collection) City of Lubbock Lubbock County Lubbock County Hospital District High Plains Underground Water Conservation District #1 Total Fund Revenue $0.548020 26,940,604 507,547,160 480,606,556 $ 2,63.3,820 0.348086 26,940,604 507,548,760 480,608,156 0.107143 0.006700 26,940,604 507,548,760 480,608,156 1,672,930 514,938 26,940,604 507,548,760 480,608,156 32,201 Page 3 $ 4,853,889 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2017 — September 30, 2018 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, 2018, the Zone received $4.02 million in property tax revenues for the 2017 tax year. Any variance in the actual amount from the amount reported in the FY 2016-17 annual report can be attributed to the reimbursements of FY 2016-17 over collections of $629.6 thousand due to the settlement of lawsuits on the 2016 taxable value for certain properties, uncollected taxes and/or exemptions. The Zone received $543,421 in hotel motel tax revenue for debt service on the conference center, $91,701 in revenue from the one percent of net revenue from the Overton Hotel and $67,906 in incentive rent from the Overton Hotel. The Zone also earned $68,002 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, 2017 - September 30, 2018 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 I1 & III Single Family Pioneer Park Improvements North Overton TIF Public Facilities** Tract IA 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 Ekpenditures To FY2017-18 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 - 1,125,050 $ - 51,962,854 $ 15,335 322,921 565 7,645 5,995 87,994 1,654 19,634 - 14,194 - 45,312 - 8,154 23,549 505,854 2,831 343,017 - 272,726 - 31,539 1,750,000 1,900,000 $ 1.776,380 3,053,136 Transfer to Debt Service $ 3,149,667 36,724,588 * * This project is funded with $11.4 million in bonds and $11 million in grants from the CH Foundation and the Moody Foundation Page 5 *Unaudited City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2017 — September 30, 2018 CITY OF LUBBOCK, TEXAS DEBT S ERVICE S CHEDULE ALL CERTIFICATES & BOND ISSUES BUDGET NORTH OVERTON TIF ALLOCATIONS FISCAL YEAR PRINCIPAL INTEREST TOTAL REQUIREMENTS 2018-19 2,325,000.00 862,466.36 3,187,466.36 2019-20 2,400,000.00 773,632.15 3,173,632.15 2020-21 2,455,000.00 679,440.45 3,134,440.45 2021-22 2,560,000.00 578,782.01 3,138,782.01 2022-23 2,675,000.00 470,061.51 3,145,061.51 2023-24 2,790,000.00 353,404.01 3,143,404.01 2024-25 2,685,000.00 235,532.01 2,920,532.01 2025-26 2,085,000.00 134,236.26 2,219,236.26 2026-27 1,540,000.00 61,159.38 1,601,159.38 2027-28 325,000.00 23,625.00 348,625.00 2028-29 195,000.00 11,125.00 206,125.00 2029-30 130,000.00 3,250.00 133,250.00 2030-31 - - - $ 22,165,000.00 $ 4,186,714.14 $ 26,351,714.14 Page 6 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2017 — September 30, 2018 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 four 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. Lubbock County Hospital District Representative: Mark Funderburk, Chief Executive Officer; Designee: Jeff Dane, Chair City Council Representative: Timothy Pridmore McWhorter Cobb & Johnson LLP Term: 03/01/18 — 03/01/20 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 High Plains Underground Water District Representative: Jason Coleman, High Plains Underground Water District Appointee Page 7 M L_1 C.. City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2017 — September 30, 2018 Overton Park Master Plan 01 ci -RokAl iv/ff 11vt �Ll l lty City Bank W'd -- Or. n Q e lrc.F. h ry 1i ci I`` �•� � a I {. Il*t t C k {I l N�Ot1T i �. Loft_ saga. 04 Lnst[rtX _ ., RcrnJ y, St.ftiutbeths ( &� . E — _ „ its :c v } s Church aJ .'. Chri.ar Reinvestment Zone Boundary Map ■■��■ 111111M111111111■ 11ON11��rill■n ■� ui,m Page 8