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Home My WebLink AboutResolution - 2002-R0545 - Resolution Authorizing North Overton Tax Increment Financing Report - 12_12_2002Resolution No. 2002—RO545 December 12, 2002 Item No. 50 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Senior Council Member of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock the North Overton 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 North Overton 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 December , 2002. T.J. PATT R ON, SENIOR CO L MEMBER ATTEST: Re cca Garza, City Secretary APPROVED AS TO CONTENT: Craig 174mer, Managi , Director o �'R�ar"ing And Transportation APPROVED AS TO FORM: Linda L. Chamales, Supervising Attorney Office Practice Section _i n4 _ � .. "p _ ,yq ., -. f Il..-=w3 �""• '•1l�rl .'.'A' ��M .mow 1w m'�a 47i� �.. sir—^' r �`" �. .a +w�. y y �s..;�* �'r � �s�-`��-€•» psi,..;., ",�,�"� 4 � ..,,�. �5� ., 3•.��.. M!W#1 ,ram r.law,. ORW ,., � ".. :, : -:•mow. i� "�'r�,� "K�„ �E W ... a', s ` sir E .,.... ' Y *� ` .,�• • ,�. 'e rtn Uvet-on, lax .[ncremen I�e_nvestrnent ZonE Annual Revert North ovrerton Tam 1ncre—ent Financing Rein vestment Zone Annual Repro t � r f 1%, 17 7 7, If Table of Contents Introduction............................................................................ 2 Financial Report .... .... ............ ....-... ....... ..... ....... .......... .......... ... 3 Appraised Values.... N .... N.N ...... N— ... N.-N ..... NN ... N— ........ N-N.N.—N ....... 3 Performance Report................................................................. 4 Board of Directors. . - N .. N ... N N ... N-N .... N-N .... N—N .... N .... --N—N ..... NNN ...... 5 Map......................................................................................N. 6 Introduction Because the Lubbock City Council desires to promote the development of the North Overton area, it established the North Overton Tax Increment Financing Reinvestment Zone by ordinance on March 14, 2002. The zone was initiated by a petition of owners of more than 50% of the appraised value of land in the zone that 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 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 North Overton 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: ICE Amount and source of revenue in the tax increment fund established for the FOGI I Amount and purpose of expenditures from the fund IF Amount of DrinciDal and interest due on outstandina bonded indebtedness Tax increment base and current captured appraised value retained by the zone 0 IF Captured appraised value shared by the citv and other taxina 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 North Overton Tax Increment Financing Reinvestment Zone Board of Directors on November 13, 2002. T. J. Patter on, Senior Council Member City Of Lubbock ,oe North Overton Tax Increment Financing Reinvestment Zone 2002 Annual Report, Page 2 Financial Report According to the Lubbock Central Appraisal District, the net appraised value of the North Overton Reinvestment Zone was $26,940,604 for each taxing entity, However, exemptions and abatements by the City of Lubbock and other taxing jurisdictions lower the net taxable amount available to the Tax Increment Fund as indicated below, Appraised Values Taxable Value Increment Taxable Value Increment of By Taxing Jurisdiction 2002 Base Value City of Lubbock $26,393,602 Lubbock County $26,485,518 Lubbock County Hospital District $26,485,518 High Plains Underground Water $26,485,518 Conservation District #1 Zone Appraised Value (before $26,940,604 abatements and exemptions) *Current Captured Appraised Value $0.00 (Base Year) Retained *Current Captured Appraised Value $0.00 (Base Year) Shared *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 reinvestment zone for that year less the tax increment base of the unit. Texas Tax Increment Finance Act Section 311.012(b). yob North Overton Tax Increment Financing Rein vestment Zone 2002 Annual Report, Page 3 Performance Report The Project and Financing Plans approved by the North Overton TIF Board on June 12, 2002 and the Lubbock City Council on June 26, 2002 outline the financial strategy to accomplish the goal of the North Overton 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 total $26,940,604 after the 2002 tax roll was certified in July 2002. This value will be used as the base value for the district in calculating future increments. There was no revenue accumulated in the Tax Increment Fund, as this is the base year. Expenditures and Projects No funds were expended from the Tax Increment Fund, as none were received for 2002. 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 $51,441 from the general revenue fund for professional services and $107,516 for water and sewer improvements toward creation of the North Overton 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): (A) "capital costs" (D) "professional service costs" (G) "organizational costs," and (1) "implementation of the project plan." On July 11, 2002, the City Of Lubbock, McCanton Woods, Ltd. and Lubbock Student Housing, L.P. signed an agreement regarding funding of public improvements in the area located between 8th and Main Streets and between V and W within the North Overton Tax Increment Financing Reinvestment Zone. The City will use future TIF revenues to finance bonds to pay for public improvements related to these developments in Bond Issue One, Phase I of the Project Plan. oo� North Overton Tax Increment Financing Reinvestment Zone 2002 Annual Report, Page 4 Board of Directors Because the North Overton TIF Reinvestment Zone was initiated by a petition of the property owners, by statute the board must consist of nine members The Lubbock City Council appoints six board members, who must be at least 18 years of age and owners of real property in the TlFzone 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 are representatives of Lubbock County, the only school district or county levying taxes and participating in the TlFzone. The Board is responsible for administering the Tax Increment Financing Reinvestment Zone throughout its 30-year life span and for recommending projects to be financed with the approval of the City Council, City Council Representative: Jack Driskill, Chair Attorney Term: 03/14/02 - 03/14/04 City Council Representative: Victor Hernandez City Councilman/Attorney Term: 03/14/02 - 03/14/04 City Council Representative: Walker Metcalf Attorney Term: 03/14/02 - 03/14/03 City Council Representative: Patrick Murfee, Vice -Chair Real Estate Appraisal Term: 03/14/02 - 03/14/04 City Council Representative: Ted Rushing Real Estate/Investments Term: 03/14/02 - 03/14/03 City Council Representative: Margaret Talkington Businesswoman/Investments Term: 03/14/02 - 03/14/03 State Representative: Honorable Robert Duncan / Nancy Sharp State Senator State Representative: Honorable Carl Isett State Representative Lubbock County Representative: Gilbert Flores County Commissioner/Businessman o® �r North Overton Tax Increment Financing Reinvestment Zone 2002 Annual Report, Page 5 Reinvestment Zone Boundary Map North Overton Tax Increment Financing Rein vestment Zone 2002 Annual Report, Page 6