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Home My WebLink AboutResolution - 2015-R0028 - Central Business District TIF - 01/08/2015Resolution No. 2015-R0028 Item No. 6.6 January 8, 2015 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock the Central Business District Tax Increment Financing Reinvestment Zone Annual Report for October 1, 2013 through September 30, 2014, 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 8, 2015 2(H4 GLE .R B RTSON,MAYOR A [TEST: ebe Aca Garza, City Secretary APPROVED AS TO CONTENT: Cheryl Brock, Executive Director of Budget APPROVED AS TO FORM: Linda L. Chamales, Economic Development Attorney Lc city ulULinda/Rcs-CUD Mnual RcpoM1 2014 Dcccmber 3, 2014 Resolution No. 201 S -R0028 y� City of Lubbock [EXAS Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2013 - September 30, 2014 City of Lubbock, Tx Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2013— September 30, 2014 Table of Contents FinancialReport ............................................................................ Appraised Values.......................................................................... Tax Increment Fund Revenue....................................................... Performance Report Board of Directors... Lubbock TESIE City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2013— September 30, 2014 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: W Amount and source of revenue in the Tax Increment Fund established for the Zone, W Amount and purpose of expenditures from the Fund, I.7 Amount of principal and interest due on outstanding bonded indebtedness, 1.7 Tax increment base and current captured appraised value retained by the Zone, 1-7 Captured appraised value shared by the City and other taxing units, Y 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 8, 2015 upon the recommendation of the Central Business District Tax Increment Financing Reinvestment Zone Board of Directors (Board) on December 17, 2014. Mayor Cu of Lubbock Robert Taylor, 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, 2013— September 30, 2014 Financial Report As set by the Lubbock Central Appraisal District (LCAD), the appraised value of the Zone increased $85,287,072 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 2014 Appraised Value (before abatements and exemptions) $191,145,323 Less: 2001 Base Value 105,858,251 Current Captured Appraised Value Retained and Shared (before abatements)* $ 85,287,072 *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 2014 Net Tax Fund Revenue Taxing Jurisdiction/ 2014 Appraised 2014 Net Increment (100% Tax Rate Tax Rate Value Taxable Value Value Collections) City of Lubbock $0.522400 105,858,251 190,577,695 Lubbock County 0.341358 105,858,251 190,672,895 Lubbock County Hospital District 0.116800 105,858,251 190,672,895 High Plains Underground Water Conservation District #1 0.008026 105,858,251 190,672,895 Total Fund Revenue Page 3 84,719,444 84,814,644 84,814,644 $ 442,574 289,522 99,063 84,814,644 6,807 $ 837,966 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2013— September 30, 2014 Performance Report The Board and the City Council are operating with the Fourth Amended Project and Finance Plans approved by the Board on August 25, 2009 and approved by the City Council on September 24, 2009. 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 2013-14, the Zone received $729,303 in revenues for value earned in 2013, and $1,731 in interest earned. Any variance in the actual amount from the amount reported in the FY 2012-13 Annual Report can be attributed to uncollected taxes and/or exemptions. Expenditures and Projects The City Council has issued three series of Certificates of Obligation to fund public improvement projects for the Zone. The principal amount of Certificates of Obligation is as follows: January 2, 2010 $ 247,564 March 15, 2011 1,404,380 May 1, 2014 2,165,000 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, 2013— September 30, 2014 Central Business District TIF Expenditures AdministrathmBond 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 Gttitar Project Fiber Optic Line Relocation SGS Engineering McDougal Master Development Agreement ROW Acquisition - GGB & Avenue Q Mise. Projects Transfer to Capital Project Fund Subtotal Special Projects Bond Sale Charges Capital Outlay Total Expenditures Transfer to Debt Service e Unaudited Page 5 26,368 232,897 Expenditures 5.121 FY 2013-14 To -Date Capital Projects 19,127 34,423 Public Utility Engineering and Coordination S - 222,148 Underground Utilities 231,071 252,431 EDA Grant - 2,245,614 Glenna Goodacre Boulevard Extension 8,072 14,339 Total Capital Project Expenditures 239,144 2,734,532 AdministrathmBond 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 Gttitar Project Fiber Optic Line Relocation SGS Engineering McDougal Master Development Agreement ROW Acquisition - GGB & Avenue Q Mise. Projects Transfer to Capital Project Fund Subtotal Special Projects Bond Sale Charges Capital Outlay Total Expenditures Transfer to Debt Service e Unaudited Page 5 26,368 232,897 1,286 5.121 4.788 41,343 1,981 19,127 34,423 298,488 100.000 75.547 8.500 25.254 8,396 238,462 1,961,548 - 342,619 37,631 800.000 238,462 3,359,494 21,516 36,008 - 58,101 294.401 3.752,091 $ 129,994 412,225 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2013—September 30, 2014 CITY OF LUBBOCK, TEXAS DEBT SERVICE SCI IEDULE ALL CERTIFICATES & BOND ISSUES CENTRAL BUSINESS DISTRICETIF FISCAL YEAR PRINCIPAL INTEREST TOTAL REQUIREMENTS 2014-15 105,580.34 201,878.22 307,458.56 2015-16 128,573.02 172,606.95 301,179.96 2016-17 136,536.99 167,314.87 303,851.86 2017-18 144,569.32 160,940.21 305,509.54 2018-19 152,553.82 153,874.91 306,428.73 2019-20 160,411.16 146,713.71 307,124.87 2020-21 168,755.21 138,823.36 307,578.57 2021-22 177,517.62 130,173.81 307,691.43 2022-23 181,542.53 121,181.65 301,724.18 2023-24 190,751.99 111,834.46 302,586.45 2024-25 200,243.09 101,961.87 302,204.96 2025-26 214,947.45 91,431.03 306,378.49 2026.27 224,904.74 80,277.64 305,182.38 2027-28 235,124.52 68,613.54 303,738.06 2028-29 245,528.87 56,42728 301,956.15 2029-30 261,264.07 43,580.71 304,844.78 2030.31 254,180.23 30,605.51 284,784.74 2031-32 155,000.00 20,375.00 175,375.00 2032-33 160,000.00 12,500.00 172,500.00 2033-34 170,000.00 4,250.00 174,250.00 2034-35 3,667984.99 2,015,363.72 5,683,348.71 Page 6 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2013— September 30, 2014 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: 1/01/14 —1/01/16 Council Appointee: Tony Cardinal Cardinal Sports Term: 1/01/13 — 1/O1/15 Council Appointee: Vacant Term: 3/28/13 — 1/O1/15 Council Appointee: Dan Pope Benchmark Business Solutions Term: 1/01/14 — 1/01/16 Council Appointee: Henry Patel Prem Industries LLC Term: 1/24/14 — 1/01/16 Lubbock Independent School District Appointee: Berhl Robertson, Superintendent High Plains Underground Water Conservation District Appointee: Jason Coleman, Manager Lubbock County Hospital District Appointee and Designee: David Allison, Chief Executive Officer; Designee: Jeff Dane Lubbock County Commissioners Court Appointee: Honorable Tom Head, County Judge Page 7 ��¢gg j j Y�Ilii iiiiin jj�friilli�i �i!iilli�lu i � �i �! i � l l i l 2�e}®0 D® �a�il�li,poo .. a �� ^ N N (. 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