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Home My WebLink AboutResolution - 2003-R0533 - Resolution For Central Business District TIF Financial Report - 12_08_2003Resolution No. 20034?0533 December 8, 2003 Item No. 12 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, 2002 through September 30, 2003, 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 8th day of Del fnber, '2003. GAL, MAYOR ATTEST: Reb cca Garza, City Secretary 17 AV AS T NTENT: Craig Farmer, Managing Director of Planning And Transportation APPROVED AS TO FORM: M. Knight, as/cityatt/John/Resolutions/RES-CBD TIF Annual Report Resolution No. 2003-RO533 c AV 'w ent Business District Tax, 14crement Financing Reinvestment Zone Annual Report Central Business District Tax Increment Financing Reinvestment Zone .Annual Report Table of Contents Tableof Contents ............................................. I ................... ... I Introduction............................................................................ Z FinancialReport...................................................................... 3 AppraisedValues.....................................................................3 Tax Increment Fund Revenue ................................................... 4 Performance Report................................................................. 5 Board of Directors................................................................... 6 Reinvestment Zone Boundary Map ............................................ 7 Po03-PC633 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 second 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: 131 Amount and source of revenue in the tax increment fund established for the zone Amount and purpose of expenditures from the fund mv Amount of principal and interest due on outstanding bonded indebtedness m. Tax increment base and current captured appraised value retained by the zone ml Captured appraised value shared by the city and other taxing units Total amount of tax increments received Anv 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 ******upon the recommendation of the Central Business District Tax Increment Financing Reinvestment Zone Board of Directors on November 12, 2003. Marc McDougal, Mayor City Of Lubbock 6 Central Business District Tax Increment Financing Rein vestment Zone 2003 Annual Report, Page 2 Financial Report Report According to the Lubbock Central Appraisal District, the appraised value of the Central Business District Reinvestment Zone increased $12, 771,837 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 as indicated in the following tables. In addition to the abatements that were in place when the TIF base was established, the COD TIF Board approved two (2) tax abatements recommended by Market Lubbock, Inc, in 2003. Appraised Values Zone 2003Appraised Value (before $114,147,891 abatements and exemptions) 2001 Base Value $101,376, 054 *Current Captured Appraised Value Retained and Shared (Before $12,771,837 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 reinvestment zone for thatyearless the tax increment base of the unit. Texas Tax Increment Finance Act Section 311.012(b). n� d Central Business District Tax Increment Financing Rein vestment Zone 2003 Annual Report, Page 3 ,°663 Tax Increment Fund Revenue Taxing Jurisdiction/Tax 2001 2003 Net 2003 Net Tax Rate Appraised Taxable Value Increment Value Value City of Lubbock/,5457 Lubbock County/ .25954 Lubbock County Hospital District/ .10896 High Plains Underground Water Conservation District #1/.00830 Total Fund Revenue $101,376,054 $108,507,657 $7,131,603 101,376,054 108,573,854 7,197,800 101,376,054 108,573,854 7,197,800 101,376,054 108,573,854 7,197,800 Projected 2003 TIF Fund Revenue (100% Collections) $38,917 18,681 7,843 597 $66,038* *According to the Lubbock Central Appraisal District, the citywide average for tax collections is 97%, so a conservative figure for planning purposes for Total Fund Revenue available in 2004 is $64,057. Central Business District Tax Increment Financing Reinvestment Zone 2003 Annual Report, Page 4 16b3 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 $101,376,054 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 2003 tax roll was certified in July 2003, the appraised value of the zone had increased to $114,147,891, a gain of $12,771,837. However, this increased value was offset by abatements and exemptions totaling $5,640,234 for the city and $5,574,037 for each of the other taxing jurisdictions. The 2003 Net Tax Increment Value detailed in the Tax Increment Fund Revenue table on page 5 will yield $66,038 at a 100% collection rate. According to the Lubbock Central Appraisal District, the citywide average for tax collections is 97%, so a conservative figure for planning purposes for Total Fund Revenue available in 2004 is $64,057. Expenditures and Projects No funds were expended from the Tax Increment Fund in 2002-2003 as none were received. There is no principal or interest due as there is no bonded indebtedness at this point. As of September 30, 2003, the City had expended $25,347 (01/02 and 02/03) from the TIF fund for professional services toward creation of the Central Business District Tax Increment Financing Reinvestment Zone and administrative costs for CBD TIF board meetings. 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," (E) "administrative costs," (G) "organizational costs," and (1) "implementation of the project plan." Central Business District Tax Increment Financing Reinvestment Zone 2003 Annual Report, Page 5 V-a5 33 Board of Directors The Central Business District TIF Reinvestment 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 TIF zone. 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: 1/10/03-1/10/05 Council Appointee: Bob Greenhill TNM&O Coaches Term: 1/10/03-1/10/05 Council Appointee: Brent Noble Land Title Escrow Officer, Service Title 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: Art Martin, 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 Central Business District Tax Increment Financing Rein vestment Zone 2003 Annual Report, Page 6 No Text