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HomeMy WebLinkAboutResolution - 2004-R0549 - Resolution Authorizing Mayor To Execute North Overton Tax Increment Report - 11_04_2004Resolution No. 2004-RO549 November 4, 2004 Item No. 27 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor Pro Tem 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, 2003 through September 30, 2004, 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 4th day of November , 2004. TOM MARTIN, MAYOR PRO TEM ATTEST: Reb cca Garza, City Secretary Ky APPRO AS TO NTENT: Craig Fa er, anaging Director of Planning And Transportation APPROVED AS TO FORM: Linda L. Chamales, Senior Attorney Office Practice Section Lcxityatt/Linda/Res-NO TIF Annual Report 2004 yk�r l � ✓.fit- ,� Table of Contents Introduction........................................... .............................. 2 FinancialReport.......................................................... a.... a .... ... 3 AppraisedValues..................................................................... 3 Tax Increment Fund Revenue ................................................... 4 Performance Report................................................................. S Boardof Directors ........................................... 6 Map........................................................................................ 7 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 third 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: 13 Amount and source of revenue in the tax increment fund established for the zone Amount and purpose of expenditures from the fund "His Amount of principal and interest due on outstanding bonded indebtedness 11-3 Tax increment base and current captured appraised value retained by the zone 13 Captured appraised value shared by the city and other taxing units 13 Total amount of tax increments received ME 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 4, 2004 upon the recommendation of the North Overton Tax Increment Financing Reinvestment Zone Board of Directors on October 20, 2004. Tom Martin, Mayor Pro-Tem City Of Lubbock 701 k riskill, Chairman h Overton TIRZ Board of Directors r&%7,*'% North Overton Tax Increment Financing Relnvestment Zone 2004 Annual Report, Page 2 Financial Report According to the Lubbock Central Appraisal District, the appraised value of the North Overton Reinvestment Zone in 2004 was $47,07.Z971 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 on page 4. Appraised Values Zone 2004 Appraised Value (before $47,072,971 abatements and exemptions) 2002 Base Value $26,940,604 *Current Captured Appraised Value $20,132,367 Retained and Shared (before abatements and exemptions) *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). r&%7'% North Overton Tax Increment Financing Reinvestment Zone 2004 Annual Report, Page 3 Tax Increment Fund Revenue Taxing lurisdictfon/Tan 2002 2004 Net 20M Net Tan Projected nF Rate App lsed Taxable Value increment Fund Value Value Revenue (100% Collections) City of Lubbock/.45970 26,940,604 46,565,150 19,624,546 90,214 Lubbock County/ 26,940,604 46,587,950 19,647,346 50,272 .25587 Lubbock County Hospital 26,940,604 46,587,950 19, 647,346 21,105 District/ .10742 High Plains Underground 26,940,604 46,587,950 19,647,346 1,631 Water Conservation District #1/.00830 rota/ Fund Revenue 163,222 9 North Overton Tax Increment Financing Reinvestment Zone 2004 Annual Report, Page 4 Performance Report The North Overton TIF Board and City Council are continuing to operate with the Amended Project and Finance Plans approved by the North Overton TIF Board on May 8, 2003 and the Lubbock City Council on May 22, 2003. The Plans 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 District received $94,556.74 in net revenue for value earned in 2003 after the deduction of $980.40 for collection services. The appraised values within the district total $47,072,971 after the 2004 tax roll was certified in August 2004, resulting in a current captured appraised value of $20,132,367. Revenue for 2004 will be received in the 2005 payment from the Lubbock Central Appraisal District. Expenditures and Projects On July 24, 2003, the City Council issued $3.795M in Certificate of Obligation Bonds to fund three public improvement projects. The chart below illustrates the expenditures and balances in the three construction Capital Projects. �j�v �+ Plri� e�c� Klai�n� "�� µ ,k ��. � � � k 3 � � �:, ' .��� �' dud e1t�:. _ �►c�ua 1 `fi�.;til�l�F�R� i�"/l� �fy i�I��J4�✓/,�`�-•*'�`ra ��,,..�: �.,. Vri .,V'fJ.� �,��i� � "���i�t ��.". DNNR_ Al""7`�'xx^`"1 IT, '�I EXP NDt`t�tl � jr: "ryr �� ., "$ 19, 0' 0 i s"'1.9' 469 * To be reimbursed in 2005 bond issuance. As of September 30, 2004, the City has expended $7,542 from the North Overton TIF Fund Administrative Capital Project. Insurance expenses were $7,500 and meeting costs were $42. All expenditures in these projects are as defined in the Texas Tax Increment Finance Act Section 311.002(1): (A) "capital costs," (D) "professional service costs," (G) "organizational costs," or (J) "implementation of the project plan." North Overton Tax Increment Financing Reinvestment Zone 2004 Annual Report, Page 5 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 TIF 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 are representatives of Lubbock County, the only school district or county levying taxes and participating in the TIF zone. 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: 03/14/04 - 03/14/06 City Council Representative: Richard Trussell Broadway Church of Christ Term: 03/14/04 - 03/14/06 City Council Representative: Walker Metcalf Attorney Term: 03/ 14/03 - 03/14/05 City Council Representative: Patrick Murfee, Vice -Chair Real Estate Appraisal Term: 03/14/04 - 03/14/06 City Council Representative: Don Rushing Real Estate/Investments Term: 04/24/03 - 03/14/05 City Council Representative: Steve Krier Attorney Term: 03/14/04 - 03/14/05 State Representative and Designee: Honorable Robert Duncan, State Senator Debby Hansard, Designee State Representative: Honorable Carl Isett, State Representative Lubbock County Representative: Gilbert Flores, Lubbock County Commissioner North Overton Tax Increment Financing Reinvestment Zone 2004 Annual Report, Page 6 No Text