HomeMy WebLinkAboutResolution - 2019-R0013 - Central Business District TIF Annual Report - 01/22/2019Resolution No. 2019-R0013
Item No. 8.6
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 Central
Business District 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 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 22, 2019
DANIEL M. POPE, MAYOR
ATTEST:
Q0 " '��
Reb t
Garza, City Stet
APPROVED AS TO CONTENT:
Blu Costelich Chief Financial Officer
APPROVED AS TO FORM:
Amy L.
ccdopOKES. Central Business District Tax Increment Financing Reinvestment "Lone — 2018 Annual Report
January 4, 2019
Resolution No. 2019-R0013
cn of
bbock
TEXAS
Central Business District
Tax Increment Financing Reinvestment Zone
Annual Report
October 1, 2017 - September 30, 2018
City of Lubbock, TX
Central Business District
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
4 IN A !to"* City of
Lubbock
TEXAS
City of Lubbock, TX
Central Business District
Tax Increment Financing Reinvestment Zone
Annual Report
October 1, 2017— September 30, 2018
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 150th 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,
:: Amount and purpose of expenditures from the Fund,
3 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 Central Business District Tax Increment Financing
Reinvestment Zone Board of Directors (Board) on December 17, 2018.
Daniel M. Pope, Mayor
City of Lubbock
Ro ert aylor, Chairman
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, 2017— September 30, 2018
Financial Report
As set by the Lubbock Central Appraisal District (LCAD), the appraised value of the Zone increased
$108,118,912 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 2018 Appraised Value (before abatements and
exemptions) $213,977,163
Less: 2001 Base Value 105,858,251
Current Captured Appraised Value Retained and Shared
(before abatements)* $108,1 18,912
*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 2018 Net Tax Fund Revenue
Taxing Jurisdiction/ 2018 Appraised 2018 Net Increment (100%
Tax Rate Tax Rate Value Taxable Value Value Collections)
City of Lubbock
$0.548020
105,858,251
211,770,127
105,911,876
$ 580,418
Lubbock County
0.348086
105,858,251
211,834,127
105,975,876
368,887
Lubbock County Hospital
District
0.107143
105,858,251
211,834,127
105,975,876
113,546
High Plains Underground
Water Conservation District #1
0.006700
105,858,251
211,834,127
105,975,876
7,100
Total Fund Revenue
S 1,069,951
Page 3
City of Lubbock, TX
Central Business District
Tax Increment Financing Reinvestment Zone
Annual Report
October 1, 2017— September 30, 2018
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 2017-18, the Zone received $963,288 in property tax revenues and $113,493 in interest
earnings. Any variance in the actual amount from the amount reported in the FY 2016-17 Annual
Report can be attributed to uncollected taxes and/or exemptions. In FY 2017-18, $91,498 was
transferred from General Fund to the CBD TIF for downtown redevelopment, and Market Lubbock
Inc. transferred $42,215 to the CBD TIF Capital Project Fund for CBD TIF Special Projects.
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(l):
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, 2017- September 30, 2018
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
Utility Infrastructure Upgrades/Relocations
Total Capital Project Expenditures
Administrative/Bond Issuance Expenditures
Administrative
Administrative Costs
Office Supplies
Professional Services
LCAD Collections Charges
Subtotal Adminstrative Expenses
Special Projects
Downtown Redevelopment Plan
Schrader & Cline - Project and Finance Plan
Civic Lubbock Guitar Project
Fiber Optic Line Relocation
SGS Engineering
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
Page 5
Expenditures
FY2017-18 To -Date
$ - 222,148
- 7,111,115
- 2,245,614
- 499,070
122,958 122,958
140,800 312,400
- 121,216
263,758 10,634,521
33,377
344,660
419
8,952
6,508
82,285
2,099
27,497
42,402
463,394
-
100,000
-
75,547
-
8,500
-
25,254
-
8,396
35,300
35,300
152,760
2,724,690
-
342,619
-
49,686
-
37,631
114,048
1,114,048
302,108
4,521,670
- 119,912
344,510 5,104,975
$ 963,455 2,824,944
City of Lubbock, TX
Central Business District
Tax Increment Financing Reinvestment Zone
Annual Report
October 1, 2017— September 30, 2018
CITY OF LUBBOCK, TEXAS
DEBT SERVICE SCHEDULE
ALL CERTIFICATES & BOND ISSUES
BUDGET'
CENTRAL BUSINESS DISTRICT TIF
FISCAL
TOTAL
YEAR
PRINCIPAL
INTEREST REQUIREMENTS
2018-19
450,785.57
513,374.65
964,160.22
2019-20
483,279.34
492,043.35
975,322.69
2020-21
496,240.68
470,471.75
966,712.43
2021-22
519,591.68
446,950.94
966,542.62
2022-23
543,176.47
420,381.73
963,558.20
2023-24
576,917.12
392,379.39
969,296.51
2024-25
605,891.56
362,809.18
968,700.74
2025-26
640,021.87
332,336.34
972,358.21
2026-27
664,385.96
300,448.01
964,833.97
2027-28
698,983.84
266,960.64
965,944.48
2028-29
723,737.58
232,492.60
956,230.18
2029-30
768,803.05
197,129.09
965,932.14
2030-31
789,180.23
162,254.51
951,434.74
2031-32
710,000.00
130,225.00
840,225.00
2032-33
735,000.00
99,750.00
834,750.00
2033-34
770,000.00
68,000.00
838,000.00
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
-
-
-
S 11,540,994.95
S 4,954,432.18 S
16,495,427.13
Pa-e 6
City of Lubbock, TX
Central Business District
Tax Increment Financing Reinvestment Zone
Annual Report
October 1, 2017— September 30, 2018
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 five 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: Robert Taylor, Chair
United Supermarkets — Corporate Office
Tenn: 01/01/18 — 01/01/20
Council Appointee: David Alderson
Alderson Enterprises
Term: 01/01/17 — 01/01/19
Council Appointee: Linda L. Chamales, P.C.
Term: 01/01/17 — 01 /01 /l 9
Council Appointee: Kade Wilcox
Primitive Social
Term: 01/01/18 — 01/01/20
Council Appointee: Brett McDowell
Centennial Bank
Term: 01/01/18 — 01/01/20
Lubbock Independent School District Appointee:
Berhl Robertson, Superintendent
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 Tom Head, County Judge
Page 7
City of Lubbock, TX
Central Business District
Tax Increment Financing Reinvestment Zone
Annual Report
October 1, 2017— September 30, 2018
CBD TIF Preferred Plan
DOWNTOWN REVITALIZATION ACTION PLAN Preferred
Primary —iota &
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C.wyfio Prcl.cfs
C�
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City of bock, Tares
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EDAW / DEVELOPMENT STRATEGIES / PARKHILL. SMITH & COOPER
Reinvestment Zone Boundary Map
Page 8