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Home My WebLink AboutResolution - 2008-R0436 - Central Business District Tax Increment Financing Reinvestment Zone Report - 11_20_2008Resolution No. 2008-RO436 November 20, 2008 Item No. 5.3 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, 2007 through September 30, 2008, 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 this 20th day of November '2008. TOM MARTIN, MAYOR ATTEST: Rebe ca Garza, City Secretary APPROVED AS O CONTENT: Rob All' on, Ass' ity Manager Development Services APPROVED AS TO FORM: Linda L. Chamales, Economic Development Attorney Lc: city att/Linda/Res-CBD Annual Report 2008 November 6, 2008 Resolution No. 2008-RO436 Central Business District Tax Increment Financing Reinvestment Zone October 1, 2007 - September 30, 2008 Central Business District Tax Increment Financing Reinvestment Zone AnnualReport October 1, 2007 - September 30, 2008 Table of Contents Tableof Contents....................................................................................... I Introduction............................................................................................... 2 FinancialReport........................................................................................3 AppraisedValues.......................................................................................3 Tax Increment Fund Revenue.................................................................... 4 Performance Report ...................................................... ................ S Boardof Directors..................................................................................... 6 Reinvestment 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 seventh 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 Texas Comptroller of Public Accounts. The Texas Tax Increment Finance Act specifies that the report must include: 0 Amount and source of revenue in the tax increment fund established for the zone VS Amount and purpose of expenditures from the fund Amount of principal and interest due on outstanding bonded indebtedness 1: Tax increment base and current captured appraised value retained by the zone Captured appraised value shared by the city and other taxing units :aq 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 November 20, 2008 upon the recommendation of the Central Business District Tax Increment Financing Reinvestment Zone Board of Directors on November 11, 2 00 8. Tom Martin, Mayor City of Lubbock 7 C� Robert Taylor, Chairman Central Business District TIFBoard of Directors Central Business District Tax Increment Financing Reinvestment 71-me FY 2007-08 Annual Report, Page 2 Financial Report According to the Lubbock Central Appraisal District, the appraised value of the Central Business District Reinvestment Zone increased $59,954,142 for each taxing jurisdiction. 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 on page 4. Appraised Values Zone 2008 Appraised Value (before $165,812,393 abatements and exemptions) 2001 Base Value $105,858,251 *Current Captured Appraised Value Retained and Shared (Before Abatements) $59,954,142 *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). Central Business District Tax Increment Financing Reinvestment7.nne FY 2007-08 Annual Report, Page 3 Tax Increment Fund Revenue Taxing Jurisdiction/Tax Rate City of Lubbock/.4464 Lubbock County/.3262 Lubbock County Hospital District/.12067 High Plains Underground Water Conservation District #1/.00794 Total Fund Revenue 2001 Appraised Value $105,858,251 105,858,251 2008 Net Taxable Value 160,258,513 160,335,113 2008 Net Tax Increment Value 54,400,262 54,476,862 105,858,251 160,335,113 54,476,862 105,858,251 160,335,113 54,476,862 A - ft, Central Business District Tax Increment Financing Reinvestment Zone FY 2007-08 Annual Report, Page 4 Projected TIF Fund Revenue (100% Collections) 242,843 177,704 65,737 4,326 $490,610 Performance Report The Central Business District TIF Board and the City Council are operating with the Second Amended Project and Finance Plans approved by the Central Business District TIF Board on November 14, 2006 and approved by the Lubbock City Council on January 12, 2007. The Plans outline the financial strategy to accomplish the goal of the CBD Tax Increment Finance Reinvestment 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 2007-08, the Central Business District TIF received $424,865.99 in net revenues for value earned in 2007 after.the deduction of $1,870 for collection services. Any variance in the actual amount from the amount reported in the FY 2006-07 Annual Report can be attributed to uncollected taxes and retainage by the Lubbock Central Appraisal District for collection services. The Central Business District TIF also earned $18,978 in interest during FY 2007-08. Expenditures and Projects Administrative and Project Expenditures 2007-08 Life -to -Date Expenses Collection Cost $ 1,870.00 7,339.55 Board Insurance 3,860.00 11,574.00 Administrative Cost 7,916.84 11,239.30 Projects Downtown Plan - 100,000.00 Schrader & Cline -Project and Finance Plan - 67,338.94 Schrader & Cline -Update Project and Finance Plan 8,207.97 8,207.97 Civic Lubbock - Guitar Project 8,500.00 8,500.00 Total Expenses $ 30,354.81 214,I99.76 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. Central Business District Tax Increment Financing Reinvestment 7-one FY 2007-08 Annual Report, Page 5 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. The Board is responsible for administering the Tax Increment Financing Reinvestment Zone throughout its 20-year life span and for recommending projects to be financed with the approval of the City Council. Council Appointee: Robert Taylor, Chair US Distribution Center Term: 1/01/08 — 1/01/10 Council Appointee: Tony Cardinal Cardinal Sports Term: 1/0 1/07 — 1 /01 /09 Council Appointee: Mike Davis Watson Sysco Foods Term: 1 /01 /07 — 1 /01 /09 Council Appointee: Latrelle Joy Mullin, Hoard and Brown Term: 11 /20/07 — 1 /01 / 10 Council Appointee: Brent Noble Land Title Escrow Officer Term: 1/01/08 — 1/01/10 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: David Allison, Chief Executive Officer Designee: Jeff Dane Lubbock County Commissioners Court Appointee: Honorable Tom Head, County Judge Central Business District Tax Increment Financing Reinvestment Zone FY 2007-08 Annual Report, Page 6 Sr ull+�tiFb it1 rtillJUI 110 154111"l :� �'rt51) Iittf�tlHt Iilirrtlit i Ilyjlp ii{ rti j 111 tiler lu r mlr 11{: 15 n1 rru 1IIcr1111 _ /Ptf#Ittrl Ilt]ftt T71 YtIR� 6111 arl'rirr 1Iri11Fr€i6 h ililr 1{� 3JIIdiSF P ilttf 1 ! :-_" —IMLF Alit IlIN1 iPr,iit tJt Ire '.... ire IIS�AI tq -I,P1 F" WhIlValf V3111t Ijr rlfrimp i111{fi1iG i rt'LLitj� �Itfx111'MiN11 1 6tiIMN 18{1ltlwI Meauiai EllrllllRt 111?f# 'r) 111111r�111 t1111Wii1 i � r�tii ;l lj7tt 11rP. 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