The URL can be used to link to this page

Home My WebLink AboutResolution - 2013-R0052 - North Overton TIF Annual Report - 01_31_2013REsolution No. 2013-R0052 January 31, 2013 Item No. 5.5 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, 2011 through September 30, 2012, 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 31, 2013 , 2013. G �N C. MBERTSON, MAYOR ATTEST: .I Rebec a Garza, City Secretary APPROVED AS TO CONTENT: Cheryl Brock Budget Director APPROVED AS TO FORM: Linda L. Chamales, Economic Development Attorney Lc city att/Linda/Res-NO TIF Annual Report 2012 November 20, 2012 Resolution No. 2013-R0052 ity of bbo&k TEXAS North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2011 - September 30, 2012 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2011— September 30, 2012 Table of Contents Introduction.....................................................................................................................................2 FinancialReport ..............................................................................................................................3 AppraisedValues.............................................................................................................................3 Tax Increment Fund Revenue..........................................................................................................3 PerformanceReport .........................................................................................................................4 Boardof Directors...........................................................................................................................7 Maps................................................................................................................................................8_ w.Al k ity of *Iubbo&k- TEXAS City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2011— September 30, 2012 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 must 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 150 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 31, 2013 upon the recommendation of the North Overton Tax Increment Financing Reinvestment Zone Board of Directors (Board) on December 19, 2012. Glen C./obe4rtso,ayor City of Lubbock ack 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, 2011— September 30, 2012 Financial Report As set by the Lubbock Central Appraisal District (LCAD), the appraised value of the Zone increased $284,575,132 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 2012 Appraised Value (before abatements and exemptions) $ 311,515,736 Less: 2002 Base Value 26,940,604 Current Captured Appraised Value Retained and Shared (before abatements)* $ 284,575,132 *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 2012 Projected TIF 2002 Incremental Fund Revenue 2012 Appraised 2012 Net Net Taxable (100% Tax Rate Value Taxable Value Value Collection) $0.49211 26,940,604 311,422,236 284,481,632 $ 1,399,963 0.346477 26,940,604 311,433,236 284,492,632 0.119190 26,940,604 311,433,236 284,492,632 0.007540 26,940,604 311,433,236 284,492,632 985,702 339,087 21,451 $ 2,746,203 Page 3 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2011— September 30, 2012 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, 2012, the Zone received $2,355,152 in property tax revenues for the 2011 tax year. Any variance in the actual amount from the amount reported in the FY 2010-11 Annual Report can be attributed to uncollected taxes and/or exemptions. The Zone received $381,730 in hotel motel tax revenue for debt service on the conference center and $78,830 in revenue from the one percent of net revenue from the Overton Hotel. The Zone also received $40 in base rent, $500,000 in grant funds from the CH Foundation and earned $616 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 $ 3,795,000 August 15, 2005 9,290,000 April, 15, 2006 6,307,749 August 15, 2007 4,111,341 January 17, 2008 11,805,000 May 23, 2008 1,943,758 April 8, 2009 961,386 January 20, 2010 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, 2011- September 30, 2012 North Overton TIF Expenditures Expenditures FY2011-12* To Date Capital Projects North Overton Phase 1 $ 909,192 The Centre, Phase 1 Project 1,959,363 Dinerstein 11, Phase 1 Project 1,581,407 Tract 93 1,158,251 Tract 95 1,004,141 Tract #6 526,414 Tract #7 904,271 Dinerstein 111 1,022,627 Walmart 2,521,914 Tract 11 - Condo I 163,364 Tract 12 - Condo 11 215,690 Single Family 4,986,859 Pioneer Park Improvements - 8,268 North Overton TIF Public Facilities" 500,000 22,652,438 Tract I - 84,411 ROW Acquire Glenna Goodacre Blvd. 3,253,991 Tract I 124,633 Tract 18 Commercial 762,433 ULOFT 86,049 Tract 1-B-3 68,867 Glenna Goodacre Blvd. East 2,973,448 Water Utilities North Overton TIF 148,910 North Overton TIF Electric Utility 322,374 Capstone 2,312,571 Wastewater Utilities North Overton TIF 125,574 North Overton TIF Street Reconstruction 871,062 Landscaping in the Parkway - 89,281 North Overton TIF Public Improvements 28,689 214,029 Total Capital Project Expenditures $ 528,689 51,051,833 Ad ministrativeBond Issuance Expenditures Current Administrative Administrative Costs $ 30,025 226,526 Office Supplies 1,258 2,341 Professional Services 4,371 53,457 LCAD Collections Charges 1,606 9,888 North Overton Zoning 14,194 North Overton TIF Creation 45,312 North Overton TIF Board Administration 8,154 Total Administrative Expenditures 37,260 359,872 Interest Expense 2,719 326,359 Bond Sale Charges - 260,812 Capital Outlay 31,539 Total Expenditures $ 39,980 978,581 Transfer to Debt Service $ 3,224,513 17,696,412 ** This project is funded with $11.4 million in bonds and $11 million in grants from the CH Foundation and the Moody Foundation Page 5 * Unaudited City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2011— September 30, 2012 CITY OF LUBBOCK, TEXAS DEBT SERVICE SCHEDULE ALL CERTIFICATES & BOND ISSUES TIF ALLOCATIONS FISCAL TOTAL YEAR PRINCIPAL INTEREST REQUIREMENTS 2012-13 1,625, 817.48 1,623,280.11 3,249,097.59 2013-14 1,700,950.97 1,545,354.39 3,246,305.36 2014-15 1,772,701.05 1,461,932,38 3,234,633.43 2015-16 1,865,045,56 1,372,974.73 3,238,020.29 2016-17 1,953,607,05 1,283,783.75 3,237,390.80 2017-18 2,038,737.91 I,I91,700.12 3,230,438.04 2018-19 2,140,035.86 1,092,014.29 3,232,050.15 2019-20 2,252,690.93 981,193.05 3,233,883.98 2020-21 2,363,593.16 862,801.73 3,226,394.88 2021-22 2,492,703.05 736,272.28 3,228,975.33 2022-23 2,638,225.66 600,186.04 3,238,411.71 2023-24 2,781,805.79 454,554.33 3,236,360.12 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 - - - 2034-3 5 - - - $ 32,706,364.91 13,812,703.17 46,519,068.09 Page 6 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2011— September 30, 2012 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: 03/01/12 — 03/01/14 City Council Representative: Kent Moore Blue Monkey/Leonards Term: 03/01/12 — 03/01/14 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: 03/01/12 — 03/01/14 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 Page 7 '. 1:, -:, , , rh 1 , , - � mwmm� 5t m� . - �� .r -�fl, T'VT 12 3,0.1.153 li i W.R2 I PPk3 6S 100V 3.lC, k 2