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Home My WebLink AboutResolution - 2024-R0029 - Lbk Business Park Tax Increment Financing Reinvestment Zone Annual Rpt 10.1.22 - 01/23/2024Resolution No. 2024-R0029 Item No. 6.4 January 23, 2024 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, 2022 through September 30, 2023, 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 January 23, 2024 ATTEST: Courtney Paz, City Secretary APPROVED AS TO CONTENT: Blu oste ch, Chief �inancial Ofiicer APPROVED AS TO FORM: r � elli Leisure, Senior Assistant City Attorney ccdocs/RES. CBDTIF 2023 Annual Report 1.11.24 Resolution No. 2024-R0029 r . � �� of � tY u oc TEXAS Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2022 - September 30, 2023 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2022 — September 30, 2023 Table of Contents Introduction..................................................................................................................................... 2 Financial Report ................................................................ Appraised Values .............................................................. ... 3 .... 3 Tax Increment Fund Revenue ......................................................................................................... 3 PerformanceReport ........................................................................................................................ 4 Boardof Directors ........................................................................................................................... 7 Maps................................................................................................................................................ 8 "��` City of � Lubbock � TEAAS City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2022— September 30, 2023 Introduction The Lubbock City Council established the Central Business District (CBD) Tax Increment Financing Reinvestment Zone (Zone) by ordinance on December 3, 2001, with a termination date of December 31, 2020, 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. On September 24, 2009 the Lubbock City Council held a public hearing and passed an ordinance extending the termination date of the Zone to December 31, 2040. 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 150th 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 specifes 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 23, 2024 upon the recommendation of the Central Business District Tax Increment Financing Reinvestment Zone Board of Directors (Board) on January 16, 2024. Tr ayne, Mayor City of Lubbock 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, 202� September 30, 2023 2023 Tax Rate As set by the Lubbock Central Appraisal District (LCAD), the appraised value of the Zone increased $180,673,793 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 2023 Appraised Value (before abatements and exemptions) Less: 2001 Base Value Current Captured Appraised Value Retained and Shared (before abatements)* $286,532,044 105,858,251 $180,673,793 *The captured appraised value of ta�cable 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 Taxing Jurisdiction/ Tax Rate City of Lubbock Lubbock County Lubbock County Hospital District High Plains Underground Water Conservation District #1 Total Fund Revenue Financial Report Projected TIF 2001 2023 Net Tax Fund Revenue Appraised 2023 Net Increment (100% Value Taxable Value Value Collectionsl $0.480164 105,858,251 285,315,215 179,456,964 0347507 105,858,251 285,359,781 179,501,530 $ 861,688 623,780 0.103164 105,858,251 285,359,781 179,501,530 185,181 0.004200 105,858,251 285,359,781 179,501,530 7,539 Page 3 $ 1,678,188 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2022— September 30, 2023 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 2022-23, the Zone received $1,636,605 in properly tax revenues and $149,221 in interest earnings. Any variance in the actual amount from the amount reported in the FY 2021-22 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 Apri128, 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, 2022- September 30, 2023 Central Business District TIF Expenditures brpentlitures FY2022-23 To-Date Capital Projects Public Utility Fngineering and Coordination $ - 222,148 Underground Utilities - 7,111,115 mA Grant - 2,245,614 Glenna Goodacre Boulevard F.�dension - 292,573 CBD TIF Special Projects - 531,651 Crateways 1,617,893 3,564,292 Civic Center Hotel Project 30,000 53,045 Parking Master Plan - 99,573 Historic District Designation 23,526 23,526 Utility Infrastructure Upgrades/Relocations - 121,216 Civic Center Convention Center Hotel - - Civic Park 1,009,908 2,009,908 Total Capital Project E�enditures $ 2,681,327 16,274,660 A�ninistratite/Bondlssuance L�cpenditures Administrative Administrative Costs Office Supplies Professional Services L.CAD Collections Charges Capital Outlay Subtotal Adminstrative Fa�enses $ 83,083 595,619 960 11,979 18,371 115,017 4,793 48,244 - 58,101 107,208 828,960 Special Projects Downtown Redevelopment Plan Schrader & Cline - Project and Finance Plan Civic Lubbock Cltitar Project Fiber Optic Line Relocation SC� Fngineering Overland Partners Primitive Social Agreement McDougal Master Development Agreement ROW Acquisition - G(� & Avenue Q Civic Center Hotel Feasibility Study Misc. Projects Transfer to Capital Project Fund Subtotal Special Projects Bond Sale Charges Total Expenditures 'IYansfer to Debt Service * Unauclited - 100,000 - 75,547 - 8,500 - 25,254 - 8,396 - 232,224 - 199,300 261,114 3,675,419 - 342,619 - 49,686 - 37,631 - 1,720,548 261,114 6,475,123 - 119,912 368,322 7,423,995 $ 942,235 6,667,930 Page 5 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2022- September 30, 2023 CITY OF LUBBOCK, TEXAS DFBT S ERVICE S CH�ULE ALL C�tTIFICATFS & BOND ISSiJFS BLIDGEI' CFINTRALBUSINESS DISTRICTTIF FISCAL TOTAL YEAR PRINCIPAL INTEREST REQUIRF1vIMENTS 2023-24 202425 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 203435 2035-36 2036-37 620,000 326,261 946,261 640,000 300,954 940,954 670,000 277,051 947,051 685,000 251,897 936,897 710,000 225,269 935,269 740,000 197,733 937,733 775,000 169,555 944,555 790,000 142,190 932,190 710,000 116,429 826,429 720,000 91,050 811,050 715,000 64,960 779,960 620,000 40,050 660,050 440,000 20,275 460,275 305,000 6,100 311,100 9,140,000 2,229,774 11,369,774 Page 6 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2022— September 30, 2023 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 specifed 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/O 1/2023 — 03/O 1/25 Council Appointee: Robert Taylor United Supermarkets — Corporate Offce Term: 03/O1/22 — 03/O1/24 Council Appointee: Jeremy Hamilton Term: 03/O1/23 — 03/O1/25 Council Appointee: Gabe Vitela Term: 03/O1/22 — 03/O1/24 Council Appointee: Brett McDowell MGB Interests, LLC Term: 03/O1/22 — 03/O1/24 Council Appointee: Suzanne Blake Blake Cooper Financial Term: 03/O1/23 — 03/Ol/25 High Plains Underground Water Conservation District Appointee: Jason Coleman, P.E., General Manager Lubbock County Hospital District Appointee and Designee: Mark Funderburk, Chief Executive Offcer; Designee: Jeff Dane, C.F.O. Lubbock County Commissioners Court Appointee: Honorable Curtis Panish, County Judge Page 7 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2022— September 30, 2023 CBD TIF Master Plan .. :.. ,._ • C� � ..: � ,.�, •,��f.� �_.y� , . r� Ak•;'"•}i�M1��'+�'�'.. y- \ ` �c'�'•'•�^v� tr, ...1,,._:..:;•- � y'xr � r � , ..� �. �`�: � �+y�;`¢� �L ' � . ' . .- . . ' �..r . '1 . _ +�� e�� ' • ' ' , y �''` .�'�� . �.. - � _ oAaaOE• M1�E0 us6 . r� 4� ,. —� •. .�h.,f"`_ .,. 4,� + ;r� B�oo,�ko��r,�►s,�. . ARTS r ., '� � • . , BROADVIAY �q " s : i"�,.� "'� � _ ! � ' �- ��. , � . � � � � ; �.�� . � ''�.:.�Z.��f�. � ,'� •�.:'`�•.� . . � `� • �'> 'i. .�y J� � R�'ti i � �.,,��$ � 1 �°� AYENUEJ M�ERSAtfiE , • �*.'I�j�.r "`—+•+� �•�-,- ;- . ,, r+� • :.` t '.� � �: ;� . �. 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