HomeMy WebLinkAboutResolution - 2023-R0051 - North Overton TIF Annual ReportResolution No. 2023-R0051
Item No. 7.11
January 24, 2023
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the City Council of the City of Lubbock does hereby approve the North Overton
Tax Increment Financing Reinvestment Zone Annual Report for October 1, 2021
through September 30, 2022, 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 24, 2023
ATTEST:
Rebe a Garza, City Sec
APPROVED AS TO CONTENT:
Blu Kostelich, Chief Financial Officer
"-
Itelli Leisure, Assistant City Attorney
ccdocs/RES. North Overton Tax Increment Financing Reinvestment Zone — 2022 Annual Report
1.9.23
Resolution No. 2023-R0051
Lubboi'yck
North Overton Tax Increment Financing
Reinvestment Zone
Annual Report
October 1, 2021 - September 30, 2022
City of Lubbock, TX
North Overton
Tax Increment Financing Reinvestment Zone
Annual Report
October 1, 2021— September 30, 2022
Introduction ..............
Financial Report....
Appraised Values ...............
Table of Contents
..................................... 2
......................................................... 3
......................................................... 3
Tax Increment Fund Revenue...............................................................................
Performance Report..............................................................................................
Boardof Directors.................................................................................................
Maps.........................................................................
City of
Lubbock
TEXAS
3
4
7
8
City of Lubbock, TX
North Overton
Tax Increment Financing Reinvestment Zone
Annual Report
October 1, 2021— September 30, 2022
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 50.0 percent 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 on or before the 150`h day following 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 24,
2023 upon the recommendation of the North Overton Tax Increment Financing Reinvestment
Zone Board of Directors (Board) on January 19, 2023.
City of Vubbock
Page 2
Jeff Day e, Chairman
North Overton TIF Board of Directors
City of Lubbock, TX
North Overton
Tax Increment Financing Reinvestment Zone
Annual Report
October 1, 2021— September 30, 2022
Financial Report
As set by the Lubbock Central Appraisal District (LCAD), the appraised value of the Zone
increased $569,588,416 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 2022 Appraised Value (before abatements and
exemptions) $ 596,529,020
Less: 2002 Base Value 26,940,604
Current Captured Appraised Value Retained and
Shared (before abatements)* $ 569,588,416
*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
2022
Projected TIF
2002 Incremental
Fund Revenue
Taxing Jurisdiction 2022 Appraised 2022 Net Net Taxable
(100%
Tax Rate Value Taxable Value Value
Collection)
City of Lubbock
$0.476762
26,940,604
557,152,998
530,212,394
$ 2,527,851
Lubbock County
0.347720
26,940,604
557,163,398
530,222,794
1,843,691
Lubbock County Hospital
District
0.103164
26,940,604
557,163,398
530,222,794
546,999
High Plains Underground
Water Conservation District #1
0.004686
26,940,604
557,163,398
530,222,794
24,846
Total Fund Revenue
$ 4,943,387
Page 3
City of Lubbock, TX
North Overton
Tax Increment Financing Reinvestment Zone
Annual Report
October 1, 2021— September 30, 2022
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, 2022, the Zone received $4.9 million in property tax revenues
for the 2021 tax year. Any variance in the actual amount from the amount reported in the FY
2020-21 annual report can be attributed to uncollected taxes and/or exemptions. The Zone received
$453,170 in hotel motel tax revenue for debt service on the conference center, $81,455 in revenue
from the one percent of net revenue from the Overton Hotel and $76,803 in incentive rent from
the Overton Hotel. The Zone also earned $115,377 in interest.
Expenditures and Projects
The City Council has issued nine 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
April 15, 2016
1,280,000
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, 2021- September 30, 2022
North Overton TIF Expenditures
Expenditures To
FY2021-22 Date
Capital Projects
North Overton Phase I
- 909.192
The Centre, Phase I Project
- 1,959,363
Dinerstein II, Phase I Project
- 1,581.407
Tract #3
- 1.158.251
Tract #5
- 1,004.141
Tract #6
- 526,414
Tract #7
- 904,271
Dinerstein III
- 1,022,627
Walmart
- 2,521,914
Tract I 1 - Condo I
- 163,364
Tract 12 and Tract 13 - Condo 11 & III
- 215,690
Single Family
- 4,986.859
Pioneer Park Improvements
- 8,268
North Overton TIF Public Facilities"
- 22,652,438
Tract IA
- 84,411
ROW Acquire Glenna Goodacre Blvd.
- 3,253,991
Tract 1 B
- 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 TIT Street Reconstruction
- 871,062
Landscaping in the Parkway
- 89.281
North Overton TIF Public Improvements
- 2.523,508
Street Infrastructure Upgrades/Replacement
Roy Furr Pioneer Park
North Overton TIF Street UPG
Total Capital Project Expenditures
Administrative/Bond Issuance Expenditures
Administrative
Administrative Costs
Office Sup plies
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
Special Projects
Capital Outlay
Transfer to Capital Projects Fund
Total Expenditures
47,702 129,602
781,542 781,651
$ 829,243 54.272,564
$ 10,654
363,703
768
10,112
6,345
112,263
3,582
32,170
-
14,194
-
45,312
-
8,154
21,349
585,909
- 343,017
- 272,726
- 1,200
- 31,539
1,000,000 5,500.000
$ 1,021,349 6,734,391
Transfer to Debt Service $ 3,107,871 49.324.098
** This project is funded with $11.4million in bonds and $11 million in grants from
the CH Foundation and the Moody Foundation
*Unaudited
Page 5
City of Lubbock, TX
North Overton
Tax Increment Financing Reinvestment Zone
Annual Report
October 1, 2021— September 30, 2022
CITY OF LUBBOCK, TEXAS
DEBT SERVICE SCHEDULE
ALL CERTIFICATES & BOND ISSUES
ACCOUNTING
NORTH OVERTON TIF ALLOCATIONS
FISCAL TOTAL
YEAR PRINCIPAL INTEREST REQUIREMENTS
2022-23
2,660,000
425,287
3,085,287
2023-24
2,745,000
333,437
3,078,437
2024-25
2,685,000
234,557
2,919,557
2025-26
2,085,000
133,468
2,218,468
2026-27
1,535,000
60,534
1,595,534
2027-28
320,000
23,250
343,250
2028-29
190,000
11,000
201,000
2029-30
130,000
3,250
133,250
$
12,350,000
1,224,782
13,574,782
Page 6
City of Lubbock, TX
North Overton
Tax Increment Financing Reinvestment Zone
Annual Report
October 1, 2021— September 30, 2022
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 four 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 are the representatives of Lubbock County, Lubbock County Hospital District, and
the High Plains Underground Water Conservation District. 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.
Lubbock County Hospital District Representative:
Mark Funderburk, Chief Executive Officer; Designee: Jeff Dane, Chair
City Council Representative: Timothy Pridmore
McWhorter Cobb & Johnson LLP
Term: 03/01/22 — 03/01/24
City Council Representative: Kurt Metcalf
Overton Hotel
Term: 03/01 /21 — 03/01 /23
City Council Representative: Patrick Murfee
Murfee and Sons, Inc.
Term: 03/01 /21 — 03/01 /23
City Council Representative: Lisa West
Double Nickel Steakhouse
Term: 03/01/21—03/01/23
State Senator:
Honorable Charles Perry, State Senator
State Representative:
Honorable John Frullo, State Representative
Lubbock County Representative:
Gilbert A. Flores, Lubbock County Commissioner
High Plains Underground Water District Representative:
Jason Coleman, High Plains Underground Water District Appointee
Page 7
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