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Home My WebLink AboutResolution - 2014-R0015 - Central Business Diestrict TIF Annual Report - 01/09/2014RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock the Central Business District Tax Increment Financing Reinvestment Zone Annual Report for October 1, 2012 through September 30, 2013, which will be distributed to the chief executive officer of each taxing unit levying taxes within the Central Business District 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 9 , 2014. W-/" GL E C. ROBERTSON, MAYOR ATTEST: Rebcca Garza, City Secretary APPROVED AS TO CONTENT: 0AILa , &W4�1j' Cheryl Bro k, Executive Director of Budget APPROVED AS TO FORM: Linda L. Chamales, Economic Development Attorney Lc: city att/Linda/Res-CBD Annual Report 2013 December 18, 2013 ity of zbliock TEXAS Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2012 - September 30, 2013 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2012 — September 30, 2013 Introduction ...................................... Financial Report ............................... Appraised Values .............................. Tax Increment Fund Revenue........... Performance Report .......................... Board of Directors ............................ Maps................................................. Table of Contents ..........................................................................................2 .......................................................................................... 3 .......................................................................................... 3 ..........................................................................................3 ..........................................................................................4 .......................................................................................... 7 .......................................................................................... 8 City of 4Lubbock TEXAS City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2012 — September 30, 2013 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 within 150 days of the end of 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: 013 Amount and source of revenue in the Tax Increment Fund established for the Zone, Amount and purpose of expenditures from the Fund, 13 Amount of principal and interest due on outstanding bonded indebtedness, aral Tax increment base and current captured appraised value retained by the Zone, Eli Captured appraised value shared by the City and other taxing units, 121 Total amount of tax increments received, and 10. 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 9, 2014 upon the recommendation of the Central Business District Tax Increment Financing Reinvestment Zone Board of Directors (Board) on December 18, 2013. /nC. eertson,yor City of Lubbock Robert Taylor, 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, 2012 — September 30, 2013 Financial Report As set by the Lubbock Central Appraisal District (LCAD), the appraised value of the Zone increased $75,832,333 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 2013 Appraised Value (before abatements and exemptions) $181,690,584 Less: 2001 Base Value 105,858,251 Current Captured Appraised Value Retained and Shared (before abatements)* $ 75,832,333 *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 Taxing Jurisdiction/ Tax Rate 2013 Tax Rate 2001 Appraised Value 2013 Net Taxable Value 2013 Net Tax Increment Value Fund Revenue (100% Collections) City of Lubbock $0.50441 105,858,251 181,154,656 75,296,405 $ 379,803 Lubbock County 0.34531 105,858,251 181,261,949 75,403,698 260,376 Lubbock County Hospital District 0.11844 105,858,251 181,261,949 75,403,698 89,308 High Plains Underground Water Conservation District # 1 0.00810 105,858,251 181,261,949 75,403,698 6.108 Total Fund Revenue Page 3 $ 735,595 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2012 — September 30, 2013 Performance Report The Board and the City Council are operating with the Fourth Amended Project and Finance Plans approved by the Board on August 25, 2009 and approved by the City Council on September 24, 2009. 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 2012-13, the Zone received $629,472 in revenues for value earned in 2012. Any variance in the actual amount from the amount reported in the FY 2011-12 Annual Report can be attributed to uncollected taxes and/or exemptions. The Zone received $276,782 of the $1.5 million Economic Development Administration grant awarded May 28, 2010 for the underground utilities project, and also earned $597 in interest during FY 2012-13. Expenditures and Projects The City Council has issued two series of Certificates of Obligation to fund public improvement projects for the Zone. The principal amount of Certificates of Obligation is as follows: January 2, 2010 $ 247,564 March 15, 2011 1,404,380 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, 2012 - September 30, 2013 Central Business District TIF Expenditures Capital Projects Public Utility Engineering and Coordination Underground Utilities EDA Grant Glenna Goodacre Boulevard Extension Total Capital Project Expenditures Administrative/Bond Issuance Expenditures Administrative Administrative Costs Office Supplies Professional Services LCAD Collections Charges Subtotal Adminstrative Expenses Special Projects Downtown Redevelopment Plan Schrader & Cline - Project and Finance Plan Civic Lubbock Guitar Project Fiber Optic Line Relocation SGS Engineering McDougal Master Development Agreement ROW Acquisition - GGB & Avenue Q Misc. Projects Transfer to Capital Project Fund Subtotal Special Projects Bond Sale Charges Capital Outlay Total Expenditures Trans ferto Debt Service * Unaudited Page 5 Expenditures FY 2012-13 To -Date $ - 222,148 19,456 21,359 424,399 2245,614 6,267 6,267 450,122 2,495,389 42,981 206,529 1,245 3,835 3,872 36,554 1,940 17,147 50,038 264,065 - 100,000 - 75,547 - 8,500 - 25,254 - 8,396 357,534 1,723,086 - 342,619 - 37,631 800,000 800,000 1,157,534 3,121,032 14,493 - 58,101 1,207,572 3,457,690 $ 129,698 282,231 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2012 — September 30, 2013 CITY OF LUBBOCK, TEXAS DEBT SERVICE SCHEDULE ALL CERTIFICATES & BOND ISSUES $ 1,560,933.60 $ 795,780.12 $ 2,356,713.72 Page 6 CENTRAL BUSINESS DISTRICT TIF FISCAL TOTAL YEAR PRINCIPAL INTEREST REQUIREMENTS 2013-14 57,948.61 75,259.18 133,207.80 2014-15 60,580.34 72,585.44 133,165.78 2015-16 63,573.02 69,581.95 133,154.96 2016-17 66,536.99 66,664.87 133,201.86 2017-18 69,569.32 63,565.21 133,134.54 2018-19 72,553.82 60,374.91 132,928.73 2019-20 75,411.16 57,338.71 132,749.87 2020-21 78,755.21 53,823.36 132,578.57 2021-22 82,517.62 49,798.81 132,316.43 2022-23 86,542.53 45,556.65 132,099.18 2023-24 90,751.99 41,084.46 131,836.45 2024-25 95,243.09 36,336.87 131,579.96 2025-26 99,947.45 31,306.03 131,253.49 2026-27 104,904.74 26,027.64 130,932.38 2027-28 110,124.52 20,488.54 130,613.06 2028-29 115,528.87 14,677.28 130,206.15 2029-30 121,264.07 8,580.71 129,844.78 2030-31 109,180.23 2,729.51 111,909.74 2031-32 - - - 2032-33 - - - 2033-34 - - - 2034-35 - - - $ 1,560,933.60 $ 795,780.12 $ 2,356,713.72 Page 6 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2012 — September 30, 2013 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 qualified voters of the municipality or at least 18 years of age. 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: 1/01/12 —1/01/14 Council Appointee: Tony Cardinal Cardinal Sports Term: 1/01/13 —1/01/15 Council Appointee: Brandt Beal The Gibraltar Group Term: 3/28/13 —1/01/15 Council Appointee: Dan Pope Benchmark Business Solutions Term: 8/23/12 —1/01/14 Council Appointee: Brent Noble Service Title Term: 1/01/12 —1/01/14 Lubbock Independent School District Appointee: Berhl Robertson, Superintendent High Plains Underground Water Conservation District Appointee: Jason Coleman, Manager Lubbock County Hospital District Appointee and Designee: David Allison, Chief Executive Office; Designee: Jeff Dane Lubbock County Commissioners Court Appointee: Honorable Tom Head, County Judge Page 7 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2012 — September 30, 2013 CBD TIF Preferred Plan DOWNTOWN REVITALIZATION ACTION PLAN 0. ....................... City of Lubbock, Texas F Ix-ry S,M EDAW / DEVELOPMENT STRATEGIES / PARKHILL, SMITH & COOPER Reinvestment Zone Boundary Map P,. re Primary Districts Catalytic Projects b �w 10 _. Page 8 I r.i �n ' r _ 1 ,.L7 T4fr—Ce r r Page 8