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Home My WebLink AboutResolution - 2018-R0055 - Lubbock Business Park TIF Annual Report - 01/25/2018Resolution No. 2018-RO05 5 Item No. 6.4 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 Lubbock Business Park 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 Lubbock Business Park 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: Z -,09 6 C Z—bdffbarza, City Secret t) APPROVED AS TO CONTENT: Cheryl Bro , Executive Director of Budget APPROVED AS TO FORM: DANIEL M. POPE, MAYOR -investment Zone — 2017 Annual Report Resolution No. 2018-RO05 5 bbock TEXAS Lubbock Business Park Tax Increment Financing Reinvestment Zone Annual Report October 1, 2016 - September 30, 2017 Introduction ............................... Financial Report ........................ Appraised Values ...................... Tax Increment Fund Revenue... Performance Report .................. Board of Directors ..................... Maps.......................................... Table of Contents P;kl City of Lubbock T I.,! 2 3 3 3 4 7 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 within 150 days of the end of 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, 101 Amount and purpose of expenditures from the Fund, 103 Amount of principal and interest due on outstanding bonded indebtedness, Tax increment base and current captured appraised value retained by the Zone, 1: Captured appraised value shared by the City and other taxing units, ;; Total amount of tax increments received, and r; 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 Central Business District Tax Increment Financing Reinvestment Zone Board of Directors (Board) on December 13, 2017. Daniel M. Pope, Mayor Robert Taylor, Chairman City of Lubbock Central Business District TIF Board of Directors Page 2 Financial Report As set by the Lubbock Central Appraisal District (LCAD), the appraised value of the Zone increased $100,238,454 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 2017 Appraised Value (before abatements and exemptions) $206,096,705 Less: 2001 Base Value 105,858,251 Current Captured Appraised Value Retained and Shared (before abatements)* $100,238,454 *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 2017 Net Tax Fund Revenue Taxing Jurisdiction/ 2017 Appraised 2017 Net Increment (100% Tax Rate Tax Rate Value Taxable Value Value Collections) City of Lubbock $0.538020 105,858,251 205,642,967 99,784,716 $ 536,862 Lubbock County 0.358158 105,858,251 205,717,167 99,858,916 357,653 Lubbock County Hospital District 0.109778 105,858,251 205,717,167 99,858,916 109,623 High Plains Underground Water Conservation District #1 0.006900 105,858,251 205,717,167 99,858,916 6,890 Total Fund Revenue S 1,011,028 Page 3 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 2016-17, the Zone received $1,029,236 in revenues for value earned in 2017, and $45,753 in interest earned. 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 City Council approved the transfer of the 25 percent of Oil and Gas Revenue that is deposited into the North and East Lubbock Neighborhood and Infrastructure Fund for Downtown Redevelopment and it will continue to be transferred to the CBD TIF each year. In 2016, the City Council approved the transfer of $41,225 from the North and East Lubbock Neighborhood and Infrastructure Fund to the CBD TIF for downtown redevelopment. 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 2,600,000 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 Central Business District OF Expenditures Capital Projects Public Utility Engineering and Coordination Underground Utilities EDA Grant Glenna Goodacre Boulevard Extension Gateways Utility Infrastructure Upgrades/Relocations Total Capital Project Expenditures Administratiw/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 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 FY2016-17 To -Date $ - 222,148 1,133,168 7,111,115 - 2,245,614 470,486 499,070 171,600 171,600 121,216 121,216 1,896,470 10,370,763 23,747 311,284 597 8,533 26,076 75,777 2,114 25,397 52,534 420,991 - 100,000 - 75,547 - 8,500 - 25,254 - 8,396 178,540 2,571,930 - 342,619 - 49,686 - 37,631 - 1,000,000 178,540 4,219,562 50,126 119,912 281,199 4,760,465 $ 649,401 1,861,489 CTI'Y OF LUBBOCK, TEXAS DEBT SERVICE SCHEDULE ALL CERTIFICATES & BOND ISSUES BUDGET CENTRAL BUSINESS DISTRICT TIF FISCAL YEAR PRINCIPAL INTEREST TOTAL REQUIREMENTS 2017-18 379,569.33 587,080.21 966,649.54 2018-19 452,553.82 515,249.91 967,803.73 2019-20 485,411.16 493,863.71 979,274.87 2020-21 498,755.21 472,198.36 970,953.57 2021-22 522,517.62 448,548.81 971,066.43 2022-23 546,542.52 421,806.65 968,349.17 2023-24 575,751.99 393,709.45 969,461.44 2024-25 605,243.09 364,086.87 969,329.96 2025-26 639,947.46 333,481.03 973,428.49 2026-27 664,904.74 301,377.63 966,282.37 2027-28 700,124.52 267,638.54 967,763.06 2028-29 725,528.87 232,927.27 958,456.14 2029-30 771,264.07 197,280.71 968,544.78 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 - - - $ 11,937,294.63 $ 5,555,903.66 $ 17,493,198.29 Page 6 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 qualified voters of the municipality or at least 18 years of age. 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 Term: 01/01/16 — 01/01/18 Council Appointee: David Alderson Alderson Enterprises Term: 01/01/17 — 01/01/19 Council Appointee: Linda L. Chamales, P.C. Term: 01/01/17 — 01/01/19 Council Appointee: Kade Wilcox Primitive Social Term: 6/23/16 — 01/01/18 Council Appointee: Henry Patel Prem Industries L.L.C. Term: 01/01/16 — 01/01/18 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: David Allison, Chief Executive Officer; Designee: Jeff Dane, C.F.O. Lubbock County Commissioners Court Appointee: Honorable Tom Head, County Judge Page 7 CBD TIF Preferred Plan DOWNTOWN REVITALIZATION ACTION PLAN pl`I'R° primary o(m-ts a catalyst vro)am CD =57— i brk.. 1 9 City of Lvbbuck. Texas EDAW / DEVELOPMENT STRATEGIES! PAR1 ILL, SMITH T f"7 T a COOPER 1 lL 1tGlllVGJl.111G11L Z�UIIU DUUIIUdly IVIUP 1 1 1 I. Page 8