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Home My WebLink AboutResolution - 2020-R0022 - North Overton TIF Annual Report - 01/14/2020 Resolution No. 2020-R0022 Item No. 7.10 January 14,2020 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, 2018 through September 30, 2019, 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 14, 2020 DANIEL M. POPE, MAYOR ATTEST: Rebec •a Garza, City Secretar 6' - APPROVED AS TO CONTENT: Blu Kostelich, Chief Financial Officer APPROVED AS TO FORM: & 4X "61�� elli Leisure, Assistant City Attorney ecdocs/RLS.North Overton Tax Increment financing Reinvestment Zone- 2u 19:\nnual Report 12.13.19 Resolution No. 2020-R0022 City of Lub ock TEXAS North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2018 - September 30, 2019 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2018 —September 30, 2019 Fable of Contents Introduction.....................................................................................................................................2 FinancialReport.............................................................................................................................. 3 AppraisedValues............................................................................................................................ 3 Tax Increment Fund Revenue......................................................................................................... 3 PerformanceReport........................................................................................................................ 4 Boardof Directors........................................................................................................................... 7 Maps................................................................................................................................................ 8 City of Lubbock TEXAS City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1,2018—September 30, 2019 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"' 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 14, 2020 upon the recommendation of the North Overton Tax Increment Financing Reinvestment Zone Board of Directors (Board) on December 13, 2019. Daniel M. Pope, Mayor Jeff Dane, Chairman City of Lubbock North Overton TIF Board of Directors Page 2 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2018— September 30, 2019 Financial Report As set by the Lubbock Central Appraisal District (LCAD), the appraised value of the Zone increased $473,703,933 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 2019 Appraised Value(before abatements and exemptions) $ 500,644,537 Less: 2002 Base Value 26,940,604 Current Captured Appraised Value Retained and Shared (before abatements)* $ 473,703,933 *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 31 1.012(b). Tax Increment Fund Revenue 2019 Projected TIF 2002 Incremental Fund Revenue Taxing Jurisdiction 2019 Appraised 2019 Net Net Taxable (100% Tax Rate Value Taxable Value Value Collection) City of Lubbock $0.558020 26,940,604 500,584,437 473,643,833 $ 2,643,027 Lubbock County 0.339978 26,940,604 500,595,037 473,654,433 1,610,321 Lubbock County Hospital District 0.105186 26,940,604 500,595,037 473,654,433 498,218 High Plains Underground Water Conservation District#1 0.006300 26,940,604 500,595,037 473,654,433 29,840 Total Fund Revenue $ 4,781,406 Page 3 City of Lubbock,TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2018—September 30, 2019 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, 2019, the Zone received $4.8 million in property tax revenues for the 2018 tax year. Any variance in the actual amount from the amount reported in the FY 2017-18 annual report can be attributed to uncollected taxes and/or exemptions.The Zone received $517,779 in hotel motel tax revenue for debt service on the conference center, $95,842 in revenue from the one percent of net revenue from the Overton Hotel and $69,196 in incentive rent from the Overton Hotel. The Zone also earned $71,406 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, 2018-September 30, 2019 North Overton TIF Expenditures r.penditllres To FY 2018-19 Date Capital Projects North Overton Phase 1 $ 909,192 The Centre,Phase I Project 1,959,363 Dinerstein Il,Phase I Project 1,581,407 Tract 113 - 1,158,251 Tract 115 - 1,004,141 Tract#6 - 526,414 Tract 117 - 904,271 Dinerstein III - 1,022,627 Walmart - 2,521.914 'tract 11 -Condo I - 163.364 Tract 12 and Tract 13-Condo II&III - 215,690 Single Family - 4.986,859 Pioneer Park Improvements - 8,268 North Overton TIF Public Facilities'" - 22,652,438 Tract I - 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 TIF Street Reconstruction - 871,062 Landscaping in the Parkway - 89,281 North Overton TIF Public Improvements 206,497 1,914,468 Street Infrastructure Upgrades/Replacement - - Roy Furr Pioncer Park - - Total Capital Project Expenditures $ 206,497 52.752 272 Administrative/Bond Issuance Expenditures Administrative Administrative Costs $ 17,362 340,283 Office Supplies 330 7,975 Professional Services 6,327 94,321 LCAD Collections Charges 1,655 21,289 North Overton Zoning - 14,194 North Overton TIF Creation 45,312 North Overton TIF Board Administration - 8,154 Total Administrative Expenditures 25,674 531,528 Interest Expense - 343,017 Bond Sale Charges - 272,726 Special Projects 1,200 1,200 Cap ital Outlay - 31,539 Transfer to Capital Projects Fund 800,000 2,700,000 Total Ex:penditures $ 826,874 3,880,010 Transfer to Debt Service $ 3,187,466 39,912,054 ** This project is Funded with$11.4 million in bonds and$11 million in grants from the CH Foundation and the Moody Foundation Page 5 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2018—September 30, 2019 ALL CERTIFICATES &BOND ISSUES BUDGET' NORTH OVERTON TIF ALLOCATIONS FISCAL TOTAL YEAR PRINCIPAL INTEREST REQUIREMENTS 2019-20 S 2,400,000 771,626 3,171,626 2020-21 2,455,000 677,547 3,132,547 2021-22 2,560,000 577,076 3,137,076 2022-23 2,675,000 468,693 3,143,693 2023-24 2,790,000 352,223 3,142,223 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 2030-31 - - - S 19,825,000 3,313,223 23,138,223 Page 6 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2018—September 30, 2019 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 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. Lubbock County Hospital District Representative: Mark Funderburk, Chief Executive Officer; Designee: Jeff Dane, Chair City Council Representative: Timothy Pridmore McWhorter Cobb &Johnson LLP Term: 03/01/18—03/01/20 City Council Representative: Kurt Metcalf Overton Hotel Term: 03/01/19—03/01/21 City Council Representative: Patrick Murfee Murfee and Sons, Inc. Term: 03/01/19—03/01/21 City Council Representative: Yvonne Young American Campus Communities Term: 04/09/19—03/01/21 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 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2018—September 30,2019 Overton Park Master Plan Overton Park Martyr-Plan D.etrnHxtl exl(brtee�CBtd AMU ACC _ , wll)-rATI 1..�` _ -ot _ 5th Strcct t� long* Texas Techs Ala a'Lane University ahT `1t r+xr -�-,� _ !2r y F'errr WaGJrenr� -I Ptoaeer Park If6GLJSD i 7th_Stteet t sir City Bank Glenna Gatldacre Blvd Glenna Grwdam Blvd- 91h lvd 9th Sl 1 roMa+Y t � lei iliiili/IiolilYt reel 1 treet a tvn -- ( 7hB48lbOl* N• �—l.u ttb.r' E6 N ILII tree[ - 'loth SI—t¢t Hollday O M= L1Lofts StEfimbeUlS u.n•� P9,oadway CoC Inn Main Street uSter berh4 u SLELmbethY m a Warren's 5I HrorrdmuY "I Retail CatholtrChurch ltd' �l C amh of 2' t Reinvestment Zone Boundary Map v y ram IL ll.11lL11LIJ1111111W _1 - - -1 i 1 11,111� �a ® Llll_1 ,9-UFJ—TItl i, Ii..l.F-1 ]t—...................._.LJ �� I - - 1 : 1 1171 Page 8