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Home My WebLink AboutResolution - 2020-R0047 - Central Business District TIF Reinvestment Zone Annual Report - 01/28/2020 Resolution No. 2020-R0047 Item No. 7.18 January 28,2020 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 Central Business District Tax Increment Financing Reinvestment Gone ("CBDTIF") 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 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 28, 2020 DANIEL M. POPE, MAYOR ATTEST: Reb gaarzZa-,--d"t�ySe-c-reln APPROVED AS TO CONTENT: Blu Kostelicl , Chief Financia icer APPROVED AS TO FORM: ,Y&&U4—�j lli Leisure, Assistant City Attorney ccddc:s/RCS.CBDTIF—2019 Annual Report 01.14.20 Resolution No. 2020-R0047 City 'rub o TEXAS Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2018 - September 30, 2019 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2018—September 30, 2019 Table of Contents Introduction..................................................................................................................................... 2 FinancialReport.............................................................................................................................. 3 AppraisedValues............................................................................................................................ 3 TaxIncrement Fund Revenue......................................................................................................... 3 PerformanceReport........................................................................................................................ 4 Boardof Directors........................................................................................................................... 7 Maps................................................................................................................................................ 8 City of Lubbock TEXAS City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2018—September 30, 2019 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 150'1' 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: V+ Amount and source of revenue in the Tax Increment Fund established for the Zone, 03 Amount and purpose of expenditures fi•om the Fund, Amount of principal and interest due on outstanding bonded indebtedness, : City of Lubbock,TX Central Business District 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 $115,474,281 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 2019 Appraised Value(before abatements and exemptions) $221,332,532 Less: 2001 Base Value 105,858,251 Current Captured Appraised Value Retained and Shared (before abatements)* $115,474,281 *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 2019 Net Tax Fund Revenue Taxing Jurisdiction/ 2019 Appraised 2019 Net Increment (100% Tax Rate Tax Rate Value Taxable Value Value Collections) City of Lubbock $0.558020 105,858,251 220,158,649 114,300,398 $ 637,819 Lubbock County 0.339978 105,858,251 220,220,149 114,361,998 388,806 Lubbock County Hospital District 0.105186 105,858,251 220,220,149 114,361,998 120,293 High Plains Underground Water Conservation District#1 0.006300 105,858,251 220,220,149 114,361,998 7,205 Total Fund Revenue $ 1,154,123 Page 3 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1,2018—September 30,2019 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 2018-19, the Zone received $1,050,512 in property tax revenues and $170,431 in interest earnings. 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. In FY 2018-19, $69,300 was transferred from General Fund to the CBD TIF for downtown redevelopment,and Market Lubbock Inc. transferred $89,085 to the CBD TIF Capital Project Fund for CBD TIF Special Projects. 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 1,2018-September 30,2019 Central Business District TIF Expenditures Expenditures FY 2018-19 To-Date Capital Projects Public Utility Engineering and Coordination S - 222,148 Underground Utilities - 7,111,115 EDA Grant - 2,245,614 Glenna Goodacre Boulevard Extension (206,497) 292,573 CBD TIF Special Projects 139,936 262,894 Gateways 61,177 373,577 Civic Center Hotel Project - - Utility Infrastructure Upgrades/Relocations - 121,216 Total Capital Project Expenditures (5,384) 10,629,137 Administrative/Bond Issuance Expenditures Administrative Administrative Costs 57,196 401,856 Office Supplies 330 9,281 Professional Services 6,578 88,863 LCAD Collections Charges 2,097 29,594 Capital Outlay - 58,101 Subtotal Adminstrative Expenses 66,201 587,695 Special Projects Downtown Redevelopment Plan - 100,000 Schrader&Cline-Project and Finance Plan - 75,547 Civic Lubbock Guitar Project - 8,500 Fiber Optic Line Relocation - 25,254 SGS Engineering - 8,396 Overland Partners 120,075 120,075 Primitive Social Agreement 36,000 71,300 McDougal Master Development Agreement 126,014 2,850,704 ROW Acquisition-GOB&Avenue Q - 342,619 Civic Center Hotel Feasibility Study - 49,686 Misc.Projects - 37,631 Transfer to Capital Project Fund - 1,114,048 Subtotal Special Projects 282,089 4,803,759 Bond Sale Charges - 119,912 Total Expenditures 348,290 5,511,366 Transfer to Debt Service $ 964,160 3,789,104 *Unaudited Page 5 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2018—September 30, 2019 CITY OF LUBBOCK, TEXAS DEBT SERVICE SCHEDULE ALL CERTIFICATES & BOND ISSUES BUDGET CENTRAL BUSINESS DISTRICT TIF FISCAL TOTAL YEAR PRINCIPAL INTEREST REQUIREMENTS 2019-20 483,279.34 492,043.35 975,322.69 2020-21 496,240.68 470,471.75 966,712.43 2021-22 519,591.68 446,950.94 966,542.62 2022-23 543,176.47 420,381.73 963,558.20 2023-24 576,917.12 392,379.39 969,296.51 2024-25 605,891.56 362,809.18 968,700.74 2025-26 640,021.87 332,336.34 972,358.21 2026-27 664,385.96 300,448.01 964,833.97 2027-28 698,983.84 266,960.64 965,944.48 2028-29 723,737.58 232,492.60 956,230.18 2029-30 768,803.05 197,129.09 965,932.14 2030-31 789,180.23 162,254.51 951,434.74 2031-32 710,000.00 130,225.00 840,225.00 2032-33 735,000.00 99,750.00 834,750.00 2033-34 770,000.00 68,000.00 838,000.00 2034-35 620,000.00 40,050.00 660,050.00 2035-36 440,000.00 20,275.00 460,275.00 2036-37 305,000.00 6,100.00 311,100.00 2037-38 - - - $ 11,090,209.38 $ 4,441,057.53 $ 15,531,266.91 Page 6 City of Lubbock,TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1,2018—September 30,2019 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 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: Robert Taylor, Chair United Supermarkets—Corporate Office Term: 01/01/18-03/01/20 Council Appointee: David Alderson Alderson Enterprises Term: 01/01/19—03/01/21 Council Appointee: Dan Williams Williams & Company Real Estate Term: 01/01/19—03/01/21 Council Appointee: Kade Wilcox Primitive Social Term: 01/01/18 -03/01/20 Council Appointee: Brett McDowell Centennial Bank Term: 06/28/18 —03/01/20 Council Appointee: Suzanne Blake Blake Cooper Financial Term: 04/09/19-03/01/21 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, 2018—September 30,2019 CBD TIF Preferred Plan DOWNTOWN REVITALIZATION ACTION PLANPrlPmkrmd may Dbbbl.8 Cawync P(*0w '.J�6 aNIS��f G11ri Sir•.� v��--_. ._ _ v�f •�v',,.r � �rqY Ci. a ,71 1 ' ....a.. TT I 44i L r ii m' ;� r '► :r l c.�f.a s��.., - �d' � f+ r�J I� C! tt, i 'f V6-6 �a+s tb� 1leadcf Vl - _ yww -A— Di.Mcl - ,l7 Cly of L.bbcek,T.... EOAW f DEVELOPMENT STRATEGIES!PARHHILL,SMITH A COOPER Reinvestment Zone Boundary Map f— -AUWRti f u a LEsnR.r 5110. � 1 P A L�.� _ N li a 7-1 Q i =—] L7J CLI._r,CJ7 1 - _ ILE -- j- T= LC7MC1]mm�7lZ(ICi7 - 4 : t - k Page 8