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Home My WebLink AboutResolution - 2023-R0050 - Central Business District TIF Annual ReportResolution No. 2023-R0050 Item No. 7.10 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 Central Business District Tax Increment Financing Reinvestment Zone ("CBDTIF") 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 CBDTIF, 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 ATTEST: Rebe ca Garza, City Secktar APPROVED AS TO CONTENT: Blu ost ich, Chief Financial Officer APPROVED AS TO FORM: elli Leisure, Assistant City Attorney ccdocs/RES. CBDTIF - 2022 Annual Report 1.9.23 January 24, 2023 Resolution No. 2023-R0050 City of bbock TEXAS Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2021 - September 30, 2022 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2021— September 30, 2022 Table of Contents Introduction..................................................................................................................................... 2 FinancialReport.............................................................................................................................. 3 AppraisedValues............................................................................................................................ 3 Tax Increment Fund Revenue......................................................................................................... 3 Performance Report Board of Directors.......... Maps..... City ofL"- ubbock TEXAS 4 h ...... 8 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2021— September 30, 2022 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. The report must be provided on or before the 150`h day following 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: 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, 3 Tax increment base and current captured appraised value retained by the Zone, :: Cantured annraised value shared by the Citv and other taxinu unite 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 Central Business District Tax Increment Financing Reinvestment Zone Board of Directors (Board) on January 12, 2023. p9" e, Mayor ubbock Dan Williams, 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, 2021— September 30, 2022 Financial Report As set by the Lubbock Central Appraisal District (LCAD), the appraised value of the Zone increased $171,197,856 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 2022 Appraised Value (before abatements and exemptions) $277,056,107 Less: 2001 Base Value 105,858,251 Current Captured Appraised Value Retained and Shared (before abatements)* $171,197,856 *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 2022 Net Tax Fund Revenue Taxing Jurisdiction/ 2022 Appraised 2022 Net Increment (100% Tax Rate Tax Rate Value Taxable Value Value Collections) City of Lubbock Lubbock County Lubbock County Hospital District High Plains Underground Water Conservation District #1 Total Fund Revenue $0.476762 105,858,251 0.347720 105,858,251 0.103164 105,858,251 0.004686 105,858,251 Page 3 275,548,690 169,690,439 $ 809,020 275,603,956 169,745,705 590,240 275,603,956 169,745,705 175,116 275,603,956 169,745,705 7,954 $ 1,582,330 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2021— September 30, 2022 Performance Report The Board and the City Council are operating with the Fifth Amended Project and Finance Plans approved by the Board on March 22, 2017 and approved by the City Council on April 27, 2017. 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 2021-22, the Zone received $1,514,694.15 in property tax revenues and $34,877.33 in interest earnings. 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. Expenditures and Projects The City Council has issued six series of Certificates of Obligation to fund public improvement projects for the Zone. The principal amount of Certificates of Obligation is as follows: February 4, 2010 $ 247,564 March 15, 2011 1,404,380 May 1, 2014 2,165,000 April 28, 2015 2,690,000 April 15, 2016 2,005,000 April 15, 2017 4,110,000 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, 2021- September 30, 2022 Central Business District TIF Expenditures Capital Projects Public Utility Engineering and Coordination Underground Utilities EDA Grant Glenna Goodacre Boulevard Extension CBD TIF Special Projects Gateways Civic Center Hotel Project Parking Master Plan Historic District Designation Utility Infrastructure Upgrades Relocations Civic Center Convention Center Hotel Civic Park Total Capital Project Expenditures Administrative/Bond Issuance Expenditures Administrative Administrative Costs Office Supplies Professional Services LCAD Collections Charges Capital Outlay Subtotal Administrative Expenses Special Projects Downtown Redevelopment Plan Schrader & Cline - Project and Finance Plan Civic Lubbock Guitar Project Fiber Optic Line Relocation SGS Engineering Overland Partners Primitive Social Agreement McDougal Master Development Agreement ROW Acquisition - GGB & Avenue Q Civic Center Hotel Feasibility Study Misc. Projects Transfer to Capital Project Fund Subtotal Special Projects Bond Sale Charges Total Expenditures Transfer to Debt Service *Unaudited Page 5 Expenditures FY2021-22 To -Date $ - 222,148 7,111,115 2,245,614 292,573 110,200 531,651 187,215 1,946210 - 23,045 94,931 99,573 121,216 1,000,000 1,000,000 $ 1,392,346 13,593,145 $ 79,352 595.619 1,124 11,979 7,407 115,017 4,564 43,451 - 58,101 92,447 824,167 - 100,000 - 75,547 - 8,500 - 25,254 - 8,396 - 232,224 52,000 199,300 245,831 3,414,305 - 342,619 - 49,686 - 37,631 100,000 1,720,548 397,831 6,214,009 - 119,912 490,278 7,158,087 $ 941,828 6,667,930 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2021- September 30, 2022 CITY OF LUBBOCK, TEXAS DEBT SERVICE SCHEDULE ALL CERTIFICATES & BOND IS SUES ACCOUNTING CENTRAL BUSINESS DISTRICTTIF FISCAL TOTAL YEAR PRINCIPAL INTEREST REQUIREMENTS 2022-23 590,000 352,235 942,235 2023-24 620,000 326,261 946,261 2024-25 640,000 300,954 940,954 2025-26 670,000 277,051 947,051 2026-27 685,000 251,897 936,897 2027-28 710,000 225,269 935,269 2028-29 740,000 197,733 937,733 2029-30 775,000 169,555 944,555 2030-31 790,000 142,190 932,190 2031-32 710,000 116,429 826,429 2032-33 720,000 91,050 811,050 2033-34 715,000 64,960 779,960 2034-35 620,000 40,050 660,050 2035-36 440,000 20,275 460,275 2036-37 305,000 6,100 311,100 $ 9,730,000 2,582,009 12,312,009 Page 6 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2021— September 30, 2022 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 six members appointed by the City Council. City Council appointed Board representatives must be at least 18 years of age and be a resident of the county in which the zone is located or a county adjacent to that county or own real property in the zone. 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: Dan Williams, Chair Williams & Company Real Estate Term: 03/01/2021— 03/01/23 Council Appointee: Robert Taylor United Supermarkets — Corporate Office Term: 03/01 /22 — 03/01 /24 Council Appointee: Jeremy Hamilton Term: 03/01 /21 — 03/01 /23 Council Appointee: Gabe Vitela Term: 03/01 /22 — 03/01 /24 Council Appointee: Brett McDowell MGB Interests, LLC Term: 03/01 /22 — 03/01 /24 Council Appointee: Suzanne Blake Blake Cooper Financial Term: 03/01 /21 — 03/01 /23 High Plains Underground Water Conservation District Appointee: Jason Coleman, P.E., General Manager Lubbock County Hospital District Appointee and Designee: Mark Funderburk, Chief Executive Officer; Designee: Jeff Dane, C.F.O. Lubbock County Commissioners Court Appointee: Honorable Curtis Parrish, County Judge Page 7 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2021— September 30, 2022 CBD TIF Master Plan Jr ' �` GARAOE+ lakuUSE ` BOOOYHOLLYARTS HALJ. ARTS „ 4. aaa BROADWAY "a ; sr' x 1 XU�FflUCFRSPACF c • _ r FM HA L �' OARAOE, MIJ�O fISF � mow, 'F �r �y r!S► a OR MTEHMN8 : •� , �� a .IF� '� �. ,. .� �• =r� ¢� �_ 7I � ��, 4 ,. �'S N111Y-P80FrrH0' 4 UKULCRYcrngHs TowEH � ` i DEPOT AR10YOFINFILLROWN0 a #� BROADWAY ''" _. +t ,�,�;. '��i�•'•.. 4`� • ��. � i•' ��, ,-�, � ..Yn fit. �dp - DOWNTOWN NEIGHBORHOOD h16THSTREET' ' Page 8 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2021— September 30, 2022 Reinvestment Zone Boundary Map 6L-- f w jam JIB INUO 111 r M !■!!Jw!l11il1� •f i�w1♦�'iii■a■■Ili ■■ ■r r■ r� 1 �Iil r ■r ■• rr wn r i■ r■ w ��■ ■i i� ii w.• 1i �• T �1++ ■ r■ ■t fi Irii we ■ ii rr.tAn. ...,., �. FI 11 !1 !! Altgatr !r r< AN #I I F1 Is !ai M! g �I ��fi�� r>f a! �� R� ■ 11 ! �� it 11 � Page 9