HomeMy WebLinkAboutResolution - 2002-R0526 - Resolution To Authorize Central Business District Tax Annual Report - 12_12_2002Resolution No. 2002-R0526
December 12, 2002
Item No. 26
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, 2001 through
September 30, 2002, 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 Office of the Texas Attorney General. 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 this 12th day of Decmember e:2 /, 2002.
McDOUZAL. MAYOR
ATTEST:
Re ecca Garza, City Secretary
MAPPI) AS CONTENT:
Craig VarrKer, Managing Director of Planning
And Transportation
APPROVED AS TO FORM:
Linda L. Chamales, Supervising Attorney
Office Practice Section
Resolution No. 2002-R052f
centra/Sus- mess D-Zs'tria-
Tax Increment R-Wan c ing
Rein v-es-t-m,,e.nt--Z--,one--
Annual Report
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Central Business D st_tct
Tax Increment Financing
Re in vestme_.nt Zon.e
Annual Deport
Table of Contents
Table of Contents....................................................................1
Introduction............................................................................
2
Financial Report.......................................................................
3
Appraised Values.....................................................................
3
Tax Increment Fund Revenue ...................................................
4
Performance Report.. N. N ........ N.NN ...... N-N-NN-N ......
5
Board of Directors....................................................................
6
Rein vestment Zone Boundary Map .......................................... . .
7
Introduction
Because the Lubbock City Council desires to promote the development of the Central
Business District area, it established the Central Business District Tax Increment
Financing Reinvestment Zone by ordinance on December 3, 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 to hear 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. This is the first annual report of the Central Business
District Tax Increment Financing Reinvestment Zone's activities. The report must be
provided within 90 days of the end of the city's fiscal year (September 30), and a copy
must be sent to the Office of the Texas Attorney General.
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
13 Amount and purpose of expenditures from the fund
Amount of principal and interest due on outstanding bonded indebtedness
13 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
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 Lubbock City
Council on December 12, 2002 upon the recommendation of the Central Business
District Tax Increment Financing Reinvestment Zone Board of Directors on November
20, 2002.
Marc McDo al,
City Of Lubbock
0 1
Central Business District Tax Increment Financing Rein vestment Zone
2002 Annual Report, Page 2
Financial Report
According to the Lubbock Central Appraisal District, the appraised value of
the Central Business District Reinvestment Zone increased $1,102,408.00 for
each taxing jurisdiction. However, exemptions and abatements by the City
of Lubbock and other taxing jurisdictions lowered the net taxable amount
available to the Tax Increment Fund below the 2001 base value as indicated
in the following tables
Appraised Values
Zone 2002 Appraised Value (before $102,478,462
abatements and exemptions)
2001 Base Value $101,376,054
*Current Captured Appraised Value
Retained and Shared (Before $If102,408
Abatements)
*The captured appraised value of real property taxable by a taxing unit for a year is the total
appraised value of all real property taxable by the unit and located in a rein vestment zone for
that year less the tax increment base of the unit. Texas Tax Increment Finance Act Section
311.012(b).
Central Business District Tax Increment Financing Rein vestment Zone
2002 Annual Report, Page 3
Tax Increment Fund Revenue
Taxing Jurisdiction/Tax
Rate
City of Lubbock/,5700
Lubbock County/
.19110
Lubbock County
Hospital District/
.10435
High Plains
Underground Water
Conservation District
#11.00840
Total Fund Revenue
2001
2002 Net
2002 Net Tax
Projected TIF
Appraised
Taxable Value
Increment
Fund Revenue
Value
Value
(100%
Collections)
101,376,054
101,110,762
(265,292)
(1,512.16)
101,376,054
101,176,762
(199,292)
(380.85)
101,376,054
101,176,762
(199,292)
(207.96)
101,376,054
101,176,762
(199,292)
(16.74)
(2,117.71)
Central Business District Tax Increment Financing Rein vestment Zone
2002 Annual Report, Page 4
Performance Report
The Project and Financing Plans approved by the Central Business District TIF Board on
April 10, 2002 and the Lubbock City Council on December 12, 2002 outline the financial
strategy to accomplish the goal of the Central Business District Tax Increment Finance
Reinvestment 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
district.
Revenues
The appraised values within the district totaled $101,454,552 according to the 2001
certified tax roll used for creation of the CBD TIF zone. This value is the base year
value for the district upon which all future increments will be based. After the 2002 tax
roll was certified in July 2002, the appraised value of the zone had increased to
$102,657,776, a gain of $1,203,224. However, this increased value was offset by
abatements and exemptions totaling $1,367,700 for the city and $1,301,700 for each of
the other taxing jurisdictions. Therefore, there is no projected revenue for the Tax
Increment Fund in 2002.
Expenditures and Projects
No funds were expended from the Tax Increment Fund in 2002 as none were received.
There is no principal or interest due as there is no bonded indebtedness at this point.
As of September 30, 2002, the City had expended $25,312.00 from the general revenue
fund for professional services toward creation of the Central Business District Tax
Increment Financing Reinvestment Zone. These expenditures are considered to be TIF
reimbursable project costs as defined in the Texas Tax Increment Finance Act, Section
311.002(1):
(D) "professional service costs,"
(G) "organizational costs," and
(J) "implementation of the project plan."
Central Business District Tax Increment Financing Reinvestment Zone
2002 Annual Report, Page 5
Board of Directors
The Central Business District TIF Rein vestment 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 TIF Board, the City Council specified a nine -member board
with five members appointed by the Council. Council appointed Board representatives must be
qualified voters of the municipality or at least 18 years of age and owners of real property in
the TlFzone. The Board is responsible for administering the Tax Increment Financing
Rein vestment Zone throughout its 20-year life span and for recommending projects to be
financed with the approval of the City Council
Council Appointee: Merle Blosser, Chair
Real Estate Appraisal
Term: 1/10/02 - 1/10/04
Council Appointee: R.J. Givens
Real Estate
Term: 1/10/02 — 1/10/03
Council Appointee: Dolores Milhous
Property Management/Investments
Term: 1/10/02 — 1/10/03
Council Appointee: Brent Noble
Land Title Escrow Officer
Term: 1/10/02 — 1/10/04
Council Appointee: Jim Shearer, Vice -Chair
Executive Director, CenterCorp
Term: 1/10/02 — 1/10/04
Lubbock Independent School District Appointee:
David Polnick, Assistant Superintendent
High Plains Underground Water Conservation District Appointee:
Jim Conkwright, Manager
Lubbock County Hospital District Appointee and Designee:
Jim Courtney, Chief Executive Officer
Dereesa Purtell Vice -President
Lubbock County Commissioners Court Appointee:
Honorable Tom Head, County Judge
e
Central Business District Tax Increment Financing Rein vestment Zone
2002 Annual Report, Page 6
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