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HomeMy WebLinkAboutResolution - 2005-R0561 - Authorize Central Business District TIF RZ Annual Report FY 2004-05 - 12/01/2005Resolution No. 2005-RO561 December 1, 2005 Item 6.8 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, 2004 through September 30, 2005, 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, to the Comptroller of the State of Texas, 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 1st day of Dec er , 2005. fvfAgYmkDOUGAL, MAYOR ATTEST: Rebecca Garza, City Secretary APPROVED AS TO CONTENT: Rob Allirn, Exec _ irector Development Services APPROVED AS TO FORM: Linda L. Chamales, Senior Attorney Office Practice Section Lc: city att/Linda/Res-CBD Annual Report 2005 Central Business District Tax Increment Financing Reinvestment Zone Annual Report Central Business District Tax Increment Financing Reinvestment Zone Annual Report Table of Contents Table of Contents .............................................. I .......... ........ ... 1 Introduction............................................................................ Z FinancialReport....................................................................... 3 Appraised Values..................................................................... 3 Tax Increment Fund Revenue ................................................... 4 Performance Report................................................................. S Board of 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 fourth 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: M Amount and source of revenue in the tax increment fund established for the zone 101 Amount and purpose of expenditures from the fund IS Amount of principal and interest due on outstanding bonded indebtedness bra' Tax increment base and current captured aooraised value retained by the zone �3 Captured annraised value shared by the city and other taxina units 113 Total amount of tax increments received 12 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 December 1, 2005 upon the recommendation of the Central Business District Tax Increment Financing Reinvestment Zone Board of Directors on November 15, 2005. arc McD gal, Mayor le Blosser, Chairman City Of Lubbock Central Business District TIRZ Board of Directors Central Business District Tax Increment Financing Reinvestment Zone 2005 Annual Report, Page 2 Financial Report According to the Lubbock Central Appraisal District, the appraised value of the Central Business District Reinvestment Zone in 2005 was $128,228,159 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 2005 Appraised Value (before $1281228,159 abatements and exemptions) 2001 Base Value $105,856,989 *Current Captured Appraised Value Retained and Shared (Before $22,371,170 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). r^xl' Central Business District Tax Increment Financing Reln vestment Zone 2005 Annual Report, Page 3 Tax Increment Fund Revenue Taxing Jurisdiction/Tax 2001 Rate Appraised Value City of Lubbock/.44720 105,856,989 Lubbock 105,8561989 County/.26I623 Lubbock County Hospital 105,856,989 District/ .11034 High Plains Underground 105,956,989 Water Conservation District #1/.00830 Total Fund Revenue* 2005 Net 2005 Net Tax Projected TIF Taxable Value Increment Fund Value Revenue (100% Collections) 122,407,243 16,550,254 74,013 122,463,807 16, 606,818 43,447 122, 463, 807 16, 606, 818 18,323 122, 463, 807 16, 606, 818 1,378 137,161 *The actual amount collected by the TIF could vary due to uncollected taxes and retainage by the Lubbock Central Appraisal District for collection services. �1 Central Business District Tax Increment Financing Reinvestment Zone 2005 Annual Report, Page 4 Performance Report The CBD TIF Board and City Council are operating with the First Amended Project and Finance Plans approved by the CBD TIF Board on October 20, 2004 and the Lubbock City Council on November 18, 2004. 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 The District received $78,558.02 in revenue for value earned in 2004 after the deduction of $1,168.50 for collection services. Any variance in the actual amount from the amount reported in the 2003-2004 Annual Report can be attributed to uncollected taxes and retainage by the Lubbock Central Appraisal District for collection services. The appraised values within the District total $128,228,159 after the 2005 TIF roll was certified on October 18, 2005, resulting in a current captured appraised value of $22,371,170. Revenue for 2005 will be received in the 2006 payment from the Lubbock Central Appraisal District. Expenditures and Projects Administrative Expenditures Description 2004-2005 Life -to -Date Central Business District PS 23,754 Central Business District Board Admin 4,269 7,455 4,269 31,209 The current year expenditures were for professional services at $4,242 and office supplies at $27. 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. Debt Service/Banded Indebtedness No bonds have been issued in the CBD TIF. Central Business District Tax Increment Financing Reinvestment Zane 2005 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 77F Board, the City Council specified a nine -member board with five members appointed by the Council. Council appointed Board representatives must be at least 18 years of age and owners of real property in the TIF zone or qualified voters of the municipality. 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: Merle Blosser, Chair Blosser Appraisal Term: 1/10/04 - 1/10/06 Council Appointee: Tony Cardinal Cardinal Sports Term: 1/10/05 - 1/10/07 Council Appointee: Mike Davis Watson Sysco Foods Term: 4/28/05 - 1/10/07 Council Appointee: Brent Noble Service Title Term: 1/10/04 - 1/10/06 Council Appointee: Robert Taylor R. C. Taylor Wholesale Term: 4/28/05 - 1/10/06 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 Jeff Dane, Designee Lubbock County Commissioners Court Appointee: Honorable Tom Head, County Judge Central Business District Tax Increment Financing Reinvestment Zone 2005 Annual Report, Page 6 No Text