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HomeMy WebLinkAboutResolution - 2010-R0636 - Central Business District TIF Annual Report For Fiscal Year 2010 - 12/15/2010Resolution No. 2010-RO636 December 15, 2010 Item No. 5.36 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, 2009 through September 30, 2010, 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, 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: F�� Rebec a Garza, City Secretary APPROVED AS TO CONTENT: y. Rob Allmon, Assts _fity Manager Development Services APPROVED AS TO FORM: Linda L. Chamales, Economic Development Attorney Lc: city att/Linda/Res-CBD Annual Report 2010 November 30, 2010 Resolution No. 2010-RO636 Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2009 - September 30, 2010 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2009 — September 30, 2010 Table of Contents Introduction..................................................................................................................................... 2 FinancialReport .............................................................................................................................. 3 AppraisedValues............................................................................................................................ 3 Tax Increment Fund Revenue......................................................................................................... 3 PerformanceReport ........................................................................................................................ 4 Boardof Directors........................................................................................................................... 7 Maps................................................................................................................................................ 8 bock riub City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2009 — September 30, 2010 Introduction The Lubbock City Council established the Central Business District (CBD) Tax Increment Financing Reinvestment Zone (Zone) by ordinance on December 3, 2001 in order to promote the development of the CBD. The Zone was created 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 regarding 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 ninth 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 submitted to the Texas Comptroller of Public Accounts. The Texas Tax Increment Finance Act specifies that the report must include: Frq Amount and source of revenue in the Tax Increment Fund established for the Zone. Amount and purpose of expenditures from the Fund, 1513 Amount of principal and interest due on outstanding bonded indebtedness, Tax increment base and current captured appraised value retained by the Zone, 13 Captured appraised value shared by the City and other taxing units, M. Total amount of tax increments received, and 12 Any additional information necessary to demonstrate compliance with the Tax Increment Financing Ply i dopted by the City. Q Distribution of thio 2� ,val report was approved by resolution of the City Council on December 15. 2010 upon tly Q yommendation of the Central Business District Tax Increment Financing Reinvestment Z(�, ward of Directors (Board) on December 8, 2010. Tom Martin, Mayor City of Lubbock Robert Taylor, Chairman Central Business District TIF Board of Directors Page 2 City of Lubbock, TX Central Business District 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 $65,183,170 in value since the 2001 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 2009 Appraised Value (before abatements and exemptions) $171,041,421 Less: 2001 Base Value 105,858,251 Current Captured Appraised Value Retained and Shared (before abatements)* $ 65,183,170 *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). Tax Increment Fund Revenue Projected TIF 2001 2010 Net Tax Fund Revenue Taxing Jurisdiction/ 2010 Appraised 2010 Net Increment (100% Tax Rate Tax Rate Value Taxable Value Value Collections) City of Lubbock $0.456170 105,858,251 167,743,779 Lubbock County 0.329458 105,858,251 167,839,379 Lubbock County Hospital District 0.120810 105,858,251 167,839,379 High Plains Underground Water Conservation District #1 0.007850 105,858,251 167,839,379 Total Fund Revenue Page 3 61,885,528 61,981,128 61,981,128 $ 282,303 204,202 74,879 61,981,128 4,866 $ 566,250 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2009 — September 30, 2010 Performance Report The Board and the City Council are operating with the Fourth Amended Project and Finance Plans approved by the Board on August 25, 2009 and approved by the City Council on September 24, 2009. 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. The Project Plan describes the types of projects anticipated to occur in the district. Revenues In FY 2009-10, the Zone received $532,785.49 in revenues for value earned in 2009. 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 also earned $5,683 in interest during FY 2009-10. Expenditures and Projects The City Council has issued one series of Certificates of Obligation to fund public improvement projects for the Zone. The Certificates of Obligation were issued as follows: January 2, 2010 $ 251,431 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. Page 4 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2009 — September 30, 2010 Central Business District TIF Expenditures Capital Projects Public Utility Engineering and Coordination Total Capital Project Expenditures Administrative/Bond Issuance Expenditures Administrative Administrative Costs Office Supplies Professional Services LCAD Collections Charges Total Administrative Expenditures Special Projects Downtown Redevelopment Plan Schrader & Cline - Project and Finance Plan Civic Lubbock Guitar Project Fiber Optic Line Relocation SGS Engineering McDougal Master Development Agreement Misc. Projects Total Special Project Expenditures Bond Sale Charges Capital Outlay Total Expenditures Transfer to Debt Service *Unaudited Page 5 Expenditures FY 2009-10* To -Date $ 61,389 61,389 $ 61,389 61,389 $ 37,558 80,984 438 652 3,878 25,101 1,956 11,129 43,830 117,867 - 100,000 - 75,547 - 8,500 - 25,254 - 8,396 326,448 591,948 1,924 12,542 328,372 822,186 1,855 1,855 58,101 58,101 $ 432,157 $ 1,000,009 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2009 — September 30, 2010 CITY OF LUBBOCK, TEXAS DEBT SERVICE SCHEDULE Page 6 ALL CERTIFICATES & BOND ISSUES CENTRAL BUSINESS DISTRICT TIF FISCAL TOTAL YEAR PRINCIPAL INTEREST REQUIREMENTS 2010-11 4,248.05 18,932.99 23,181.04 2011-12 9,070.16 12,225.39 21,295.56 2012-13 9,347.63 11,938.67 21,286.30 2013-14 9,787.74 11,507.59 21,295.33 2014-15 10,237.42 11,055.64 21,293.06 2015-16 10,658.40 10,633.58 21,291.98 2016-17 11,050.68 10,244.18 21,294.85 2017-18 11,433.38 9,802.72 21,236.10 2018-19 11,768.25 9,281.52 21,049.77 2019-20 12,131.82 8,726.62 20,858.44 2020-21 12,514.53 8,132.87 20,647.40 2021-22 12,925.94 7,504.13 20,430.07 2022-23 13,366.05 6,831.18 20,197.23 2023-24 13,834.87 6,111.32 19,946.19 2024-25 14,351.53 5,308.95 19,660.48 2025-26 14,925.59 4,425.95 19,351.54 2026-27 15,518.78 3,507.75 19,026.54 2027-28 16,140.68 2,552.90 18,693.59 2028-29 16,791.29 1,559.67 18,350.96 2029-30 17,461.02 526.62 17,987.65 2030-31 - - - 2031-32 - - - 2032-33 - - - 2033-34 - - - $ 247,563.83 160,810.27 408,374.09 Page 6 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2009 — September 30, 2010 Board of Directors The 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 Board, the City Council specified nine members with five members appointed by the City Council. City Council appointed Board representatives must be qualified voters of the municipality or at least 18 years of age. 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. Council Appointee: Robert Taylor, Chair US Distribution Center Term: 1/01/10-1/01/12 Council Appointee: Tony Cardinal Cardinal Sports Term: 1/01/09 — 1/01/11 Council Appointee: Mike Davis Watson Sysco Foods Term: 1/01/09-1/01/11 Council Appointee: Latrelle Joy Mullin, Hoard and Brown Term: 1/01/10-1/01/12 Council Appointee: Brent Noble Service Title Term: 1/01/10-1/01/12 Lubbock Independent School District Appointee: Art Martin, Assistant Superintendent High Plains Underground Water Conservation District Appointee: Jim Conkwright, Manager; Designee: Sherry Stephens Lubbock County Hospital District Appointee and Designee: David Allison, Chief Executive Office; Designee: Jeff Dane Lubbock County Commissioners Court Appointee: Honorable Tom Head, County Judge Page 7 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2009 — September 30, 2010 CBD TIF Preferred Plan DOWNTOWN REVITALIZATION ACTION PLAN CRY of Lubbock, Tun F.bwyS.2= EDAW 1 DEVELOPMENT STRATEGIES r PARKHILL, SMITH 6 COOPER Reinvestment Zone Boundary Map Probrrod PHrosry Distrkb 6 CSWytIc ProJsols tpuk O Y.s.. 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