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Home My WebLink AboutResolution - 2012-R0003 - NO TIF RZ Annual Report - 01_12_2012Resolution No. 2012-R0003 January 12, 2012 Item No. 5.2 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 North Overton Tax Increment Financing Reinvestment Zone Annual Report for October 1, 2010 through September 30, 2011, 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 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 on January 12, 2012 ,2ft}}. e ! TOM MARTIN, MAYOR ATTEST: Rebec a Garza, City Secretary APPROVED AS TO CONTENT: �cQivl��llh'Y' Andy Burcham, Chief Financial Officer APPROVED AS TO FORM: Linda L. Chamales, Economic Development Attorney Lc: city att/Linda/Res-NOTIF Annual Report 2011 December 6, 2011 Resolution No. 2012-R0003 city of )bock TEXAS North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2010 - September 30, 2011 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October l,2080—September 30,2011 Table of Contents Introduction..................................................................................................................................... 2 Financial Report -----.---------.-------.---.---~---------..--.3 AppraisedValues ............................................................................................................................. 3 Tax Increment Fund Revenue .......................................................................................................... 3 Performance Report ---.-------.--..------..--.-------------.---4 BoardofDirectors ........................................................................................................................... 7 Maps................................. .............................................................................................................. 0 city of lub 4 TEX4S City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2010 — September 30, 2011 Introduction The Lubbock City Council established the North Overton Tax Increment Financing Reinvestment Zone (Zone) by ordinance on March 14, 2002 to promote the development of the North Overton area. The Zone was initiated by a petition of owners of more than 50% of the appraised value of land in the Zone. The petition 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 for public comments on the creation of the Zone. According to the Texas Tax Increment Finance Act Section 311.016, the City roust submit an annual report to the chief executive officer of each taxing unit that levies taxes on property within a zone. The report must be provided within 120 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: ❑ Amount and source of revenue in the Tax Increment Fund established for the Zone, ❑ Amount and purpose of expenditures from the Fund, ❑ Amount of principal and interest due on outstanding bonded indebtedness, ❑ 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, and ❑ 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 City Council on January 12, 2012 upon the recommendation of the North Overton Tax Increment Financing Reinvestment Zone Board of Directors (Board) on December 21, 2011. Tom Martin, Mayor City of Lubbock Jack Driskill, Chairman North Overton TIF Board of Directors Page 2 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2010 — September 30, 2011 Financial Report As set by the Lubbock Central Appraisal District (LOAD), the appraised value of the Zone increased $268,368,567 in value since the 2002 base year for each taxing jurisdiction. However, exemptions and abatements by the City and other taxing jurisdictions lower the net taxable amount available to the Tax Increment Fund as indicated on this page. Appraised Values Zone 2011 Appraised Value (before abatements and exemptions) $ 295,309,171 Less: 2002 Base Value 26,940,604 Current Captured Appraised Value Retained and Shared (before abatements)* $ 268,368,567 *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). Taxing Jurisdiction City of Lubbock Lubbock County Lubbock County Hospital District High Plains Underground Water Conservation District #1 Total Fund Revenue Tax Increment Fund Revenue 2011 Projected TIF 2002 Incremental Fund Revenue 2011 Appraised 2011 Net Net Taxable (100% Tax Rate Value Taxable Value Value Collection) $0.474000 26,940,604 295,1 13,288 268,172,684 $ 1,271,139 0.329458 26,940,604 295,124,288 268,183,684 883,553 0.120720 26,940,604 295,124,288 268,183,684 323,751 0.007760 26,940,604 295,124,288 268,183,684 20,811 $ 2,499,254 Page 3 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2010 — September 30, 2011 Performance Report The Board and City Council are operating with the Fifth Amended Project and Finance Plans approved by the Board on December 10, 2009 and approved by the City Council on February 25, 2010. The Plans outline the financial strategy to accomplish the goal of the 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 Zone. Revenues For the year ended September 30, 2011, the Zone received $2,531,269 in property tax revenues for the 2010 tax year. Any variance in the actual amount from the amount reported in the FY 2009-10 Annual Report can be attributed to uncollected taxes and/or exemptions. The Zone received $365,905 in hotel motel tax revenue for debt service on the conference center and $61,427 in revenue from the one percent of net revenue from the Overton Hotel. The Zone also received $1.08 million in grant funds from the CH Foundation and earned $1,963 in interest. Expenditures and Projects The City Council has issued eight series of Certificates of Obligation to fund public improvement projects for the Zone. They were issued as follows: July 15, 2003 August 15, 2005 April, 15, 2006 August 15, 2007 January 17, 2009 May 23, 2008 April 8, 2009 January 2, 2010 $ 3,795,000 9,290,000 6,307,749 4,111,341 11,805,000 1,943,758 961,386 1,982,958 All expenditures are made 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." Page 4 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2010 - September 30, 2011 North Overton TIF Expenditures Expenditures FY 2010-11" To Date Capital Projects North Overton Phase I S 909,192 The Centre, Phase I Project 1.959 363 Dinerstein 11, Phase 1 Project - 1.581.407 Tract k3 (12.519) 1,141,732 Tract 95 1.004141 Tract 96 526,414 Tract 47 904271 Dinerstein111 - 1.022627 Walmarl - 2,521,914 Tract i l - Condo 1 163,364 Tract 12 - Condo 11 215,535 Single Famdv 4.986,859 Pioneer Park Improvements - 8,268 North Overton TIF Public Facilities** 1.080.000 22,152,438 Tract LA - 94,411 ROW Acquire Glenna Ctoodacre Blvd. 3253,991 Tract IB - 124633 Tract 18 Commercial - 762.433 ULOFT - 86.049 Tractl-B-3 - 68,867 Glenna Goodacre Blvd. East (6,997) 2,973,448 Water Utilities North Overton TIF - 148,910 North Overton TIF Electric Utility 16,827 322,374 Capstone - 2312,571 Wastewater Utilities North Overton TIF 125,574 North Overton TIF Street Reconstruction - 871,062 Landscaping it the Parkway - 89.281 North Overton TIF Public Improvements 197,859 198014 Total Capital Project Expenditures S 1275,169 50,523,144 Administrative/Boad Issuance Expenditures Current Administrative Administrative Costs S 49,670 196.501 Office Supplies 353 1,083 Professional Services 6,872 53,051 LCAD Collections Charges 1,674 8,282 North Overton Zoning 14,194 .'forth Overton TIF Creation 45312 Nonh Overton TIF Board Administration 8,154 Total Administrative Expenditures 58,569 326,578 lnt rest Expense 4.691 321,062 Bond Sale Charges 9,895 308-426 Capital Outlay 31,539 Total Expenditures $ 73,145 987,604 Transfer to Debt Sen ice S 3237,815 14.481,468 ** Ibis project is funded with $1 1.4 million in bonds and $1 I million in grants from the CH Foundation and the Moodv Foundation * Unaudited ** This project is funded with $11.4 million in bonds and $l l million in grants from the CH Foundation and Moody Foundation Page 5 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2010 — September 30, 2011 CITY OF LUBBOCK, TEXAS DEBT SERVICE SCHEDULE ALL CERTIFICATES AND BOND ISSUE TIF ALLOCATIONS FISCAL TOTAL YEAR PRINCIPAL INTEREST REQUIREMENTS 2011-12 S 1,532,896.09 1,699,544.83 3,232,440.92 2012-13 1,605,817.48 1,627,617.61 3,233,435.09 2013-14 1,700,950.97 1,548,191.89 3,249,142.86 2014-15 1,772,701.05 1,464,769.88 3,237,470.93 2015-16 1,865,045.56 1,375,812.23 3,240,857.79 2016-17 1,953,607.05 1,286,621.25 3,240,228.30 2017-18 2,038,737.91 1,194,537.62 3,233,275.54 2018-19 2,140,035.86 1,094,851.79 3,234,887.65 2019-20 2,252,690.93 984,030.55 3,236,721.48 2020-21 2,363,593.16 865,639.23 3,229,232.38 2021-22 2,512,703.05 737,753.53 3,250,456.58 2022-23 2,653,225.66 600,273,54 3,253,499.21 2023-24 2,796,805.79 454,579.33 3,251,385.12 2024-25 2,653,129.98 310,233.82 2,963,363.80 2025-26 2,067,221.31 183,261.88 2,250,483.19 2026-27 1,664,283.61 78,160.32 1,742,443.93 2027-28 350,513.40 22,425.73 372,939.13 2028-29 207,592,55 9,874.55 217,467.11 2029-30 137,709.57 2,699.66 140,409.23 2030-31 - - - 2031-32 - - - 2032-33 - - - 2033-34 - - - 2034-35 - - - S 34,269,261.00 15,540,979.25 49,810,140.25 Page 6 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2010 — September 30, 2011 Board of Directors Because the Zone was initiated by a petition of the property owners, by statute the board must consist of nine members. The City Council appoints six board members, who must be at least 18 years of age and owners, or a representative of owners, of real property in the Zone 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 is the representative of Lubbock County. The Board is responsible for administering the Zone throughout its life span and for recommending projects to be financed with the approval of the City Council. City Council Representative: Jack Driskill, Chair McWhorter Cobb & Johnson LLP Term: 03/01/10 — 03/01 / 12 City Council Representative: Carolyn McDougal McDougal Properties Term: 03/01/ 10 — 03/01 /12 City Council Representative: Stan Mayfield City Bank Term: 03/01/11 — 03/01/13 City Council Representative: Patrick Murfee, Vice -Chair Murfee and Sons, Inc. Realtors Term: 03/01 / 10 — 03/01 / 12 City Council Representative: Don Rushing Lubbock Commercial Building Term: 03/01/ 11 03/01/ 13 City Council Representative: Howard Thrash H. G. Thrash Term: 03/01/11—03/01/13 State Representative and Designee: Honorable Robert Duncan, State Senator Debbie Hansard, Designee State Representative: Honorable John Frullo, State Representative Lubbock County Representative: Gilbert Flores, Lubbock County Commissioners Appointee Page 7 No Text