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Home My WebLink AboutResolution - 2010-R0635 - North Overton TIF Annual Report For Fiscal Year 2010 - 12/15/2010Resolution No. 2010-RO635 December 15, 2010 Item No. 5.35 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, 2009 through September 30, 2010, 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 December 15 , 2010. TOM MARTIN, MAYOR ATTEST: Rebe a Garza, City Secreta APPR ED AS T CONTENT: 1 Rob Allison; Manager Development Services APPROVED AS TO FORM: Linda L. Chamales, Economic Development Attorney Lc: city att/Linda/Res-NO TIF Annual Report 2010 November 30, 2010 No Text City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2009 — September 30, 2010 Table of Contents Introduction................................................................. Financial Report .......................................................... Appraised Values........................................................ Tax Increment Fund Revenue ..................................... Performance Report .................................................... Rnsrd of T)irPr.tnrc Map............................................................................. ................................................................... 2 ................................................................... 3 z 400-1-liock ..................................... 3 ..................................... 4 ..................................... 7 Q City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2009 — September 30, 2010 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. This is the eighth annual report of the 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: ❑ 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 December 15, 2010 upon the recommendation of the North Overton Tax Increment Financing Reinvestment Zone Board of Directors on November 17, 2010. Tom Martin, Mayor City of Lubbock Page 2 ack Driskill, Chairman North Overton TIF Board of Directors City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2009 — September 30, 2010 Financial Report As set by the Lubbock Central Appraisal District (LCAD), the appraised value of the Zone increased $278,157,912 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 2010 Appraised Value (before abatements and exemptions) $ 305,098,516 Less: 2002 Base Value 26,940,604 Current Captured Appraised Value Retained and Shared (before abatements)* $ 278,157,912 *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 2010 2002 Incremental 2010 Appraised 2010 Net Net Taxable Tax Rate Value Taxable Value Value $0.456170 26,940,604 304,880,908 277,940,304 0.329458 0.120810 0.007850 26,940,604 304,882,108 277,941,504 26,940,604 304,882,108 277,941,504 Projected TIF Fund Revenue (100% Collection) 1,267,880 915,701 335,781 26,940,604 304,882,108 277,941,504 21,818 Page 3 $2,541,180 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2009 — September 30, 2010 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, 2010, the Zone received $2,284,223 in property tax revenues for the 2009 tax year. Any variance in the actual amount from the amount reported in the FY 2008-09 Annual Report can be attributed to uncollected taxes and/or exemptions. The Zone received $322,504 in hotel motel tax revenue for debt service on the conference center and $39,315 in revenue from the one percent of net revenue from the Overton Hotel. The Zone also received $1.42 million in grant funds from the CH Foundation and earned $11,465 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 2, 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, 2009 - September 30, 2010 North Overton TIF Expenditures Administrative/Bond Issuance Expenditures Current Administrative Administrative Costs Office Supplies Professional Services LCAD Collections Charges North Overton Zoning North Overton TIF Creation North Overton TIF Board Administration Total Administrative Expenditures Interest Expense Bond Sale Charges Capital Outlay Total Expenditures Transfer to Debt Service $ 46,411 146,831 Expenditures 730 FY 2009-10* To -Date Capital Projects 6,607 North Overton Phase 1 $ 909,192 The Centre, Phase I Project 8,154 1,959,363 Dinerstein 11, Phase I Project - 1,581,407 Tract #3 17,668 1,158,251 Tract #5 73,282 1,004,141 Tract #6 - 526,414 Tract#7 73,844 904,271 Dinerstein III - 1,022,627 Walmart 2,521,914 Tract 11 - Condo I - 163,364 Tract 12 - Condo II 345 215,535 Tract 13 - Condo III - 155 Single Family 7,026 4,986,859 Pioneer Park Improvements - 8,268 North Overton TIF Public Facilities** 1,420,000 21,072,438 Tract IA - 84,411 ROW Acquire Glenna Goodacre Blvd. 1,971,651 3,253,991 Tract 1 B - 124,633 Tract 18 Commercial - 762,433 ULOFT 41,345 86,049 Tract 1-B-3 - 68,867 Glenna Goodacre Blvd. East 690,752 2,980,446 Water Utilities North Overton TIF - 148,910 North Overton TIF Electric Utility 22,955 304,735 Capstone 41,965 2,312,571 Wastewater Utilities North Overton TIF 57,294 125,574 North Overton TIF Street Reconstruction 29,960 871,062 Landscaping in the Parkway 89,281 89,281 Total Capital Project Expenditures $ 4,537,370 49,247,162 Administrative/Bond Issuance Expenditures Current Administrative Administrative Costs Office Supplies Professional Services LCAD Collections Charges North Overton Zoning North Overton TIF Creation North Overton TIF Board Administration Total Administrative Expenditures Interest Expense Bond Sale Charges Capital Outlay Total Expenditures Transfer to Debt Service $ 46,411 146,831 438 730 5,094 42,214 1,577 6,607 14,194 45,312 8,154 53,521 264,043 16,044 318,958 14,628 250,916 31,539 31,539 $ 115,732 865,456 $ 3,118,072 11,232,298 * Unaudited ** This project is funded with $11.4 million in bonds and $11 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, 2009 — September 30, 2010 CITY OF LUBBOCK, TEXAS DEBT SERVICE SCHEDULE ALL CERTIFICATES & BOND ISSUES Page 6 TIF ALLOCATIONS FISCAL TOTAL YEAR PRINCIPAL INTEREST REQUIREMENTS 2010-11 1,430,880.95 1,862,482.97 3,293,363.92 2011-12 1,532,896.09 1,744,092.60 3,276,988.69 2012-13 1,605,817.48 1,672,138.63 3,277,956.11 2013-14 1,685,950.97 1,592,998.71 3,278,949.68 2014-15 1,767,701.05 1,510,231.92 3,277,932.98 2015-16 1,855,045.56 1,423,713.36 3,278,758.92 2016-17 1,953,607.05 1,330,427.31 3,284,034.36 2017-18 2,043,737.91 1,234,276.21 3,278,014.13 2018-19 2,150,035.86 1,129,735.61 3,279,771.47 2019-20 2,267,690.93 1,013,681.22 3,281,372.15 2020-21 2,383,593.16 889,888.27 3,273,481.42 2021-22 2,512,703.05 758,467.49 3,271,170.53 2022-23 2,653,225.66 619,129.91 3,272,355.57 2023-24 2,796,805.79 471,448.65 3,268,254.45 2024-25 2,653,129.98 324,888.33 2,978,018.31 2025-26 2,067,221.31 195,479.02 2,262,700.33 2026-27 1,664,283.61 87,842.91 1,752,126.52 2027-28 350,513.40 29,472.61 379,986.01 2028-29 207,592.55 14,179.78 221,772.34 2029-30 137,709.57 4,153.32 141,862.90 2030-31 - - - 2031-32 - - - 2032-33 - - - 2033-34 - - - $ 35,720,141.95 17,908,728.83 53,628,870.78 Page 6 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2009 — September 30, 2010 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: 03/01/09-03/01/11 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: 03/01/09-03/01/11 City Council Representative: Howard Thrash H. G. Thrash Term: 05/28/09-03/01/11 State Representative and Designee: Honorable Robert Duncan, State Senator Debbie Hansard, Designee State Representative: Honorable Carl Isett, State Representative Lubbock County Representative: Gilbert Flores, Lubbock County Commissioners Appointee Page 7 ('(i T, I - A' I Sharp IIII I®I'S'O! 72 110 s n so,f ice, unl II 1132,&WWM 7rmt ',H 113kkt I1 [. -- -'- •• w I�i3011 Si.yj -. •. .., 'Ihkl6 N IX09 A(m —i 4 68 100 t P� (rm • 'fr .. � Itu(� 19., L n i I1N �6S sj f nrt f9B J`7hxx11; t + y 7trr 11 7F Ifx 'Ililrf 1112 Ihxt 29 fu.,xf IW N 81,9 5