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Home My WebLink AboutResolution - 2016-R0001 - North Overton TIF Annual Report - 01/14/2016No. 2016-R0001 No. 6.2 lanuary 14, 2016 17WO11UIRON 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 North Overton Tax Increment Financing Reinvestment Zone Annual Report for October 1, 2014 through September 30, 2015, 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 2016. GL . ROB RTSON, MAYOR ATTEST: Reb tea Garza, City Secret APPROVED AS TO CONTENT: Cheryl Br6ck Executive Director of Budget APPROVED AS TO FORM: Linda L. Chamales, Economic Development Attorney Lc: city att/Linda(Res-NO TIF Annual Report 2015 December 3. 2015 Resolution No. 2016-R0001 of MCityock TEXAS North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2014 - September 30, 2015 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2014 — September 30, 2015 Table of Contents Introduction..................................................................................................................................... 2 FinancialReport .................................................. Appraised Values.............................................................. Tax Increment Fund Revenue .......................................... 3 3 3 PerformanceReport ........................................................................................................................ 4 Board of Directors ............................................ Maps...................................................................... Cite of '►Lubbock T I X A 5 7 3 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2014 — September 30, 2015 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 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 within 150 days of 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, 2016 upon the recommendation of the North Overton Tax Increment Financing Reinvestment Zone Board of Directors (Board) on December 17, 2015. �KMayor Glen C. obertso City of Lubbock Page 2 Jack Driskill, Chairman North Overton TIF Board of Directors City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2014 — September 30, 2015 Financial Report As set by the Lubbock Central Appraisal District (LCAD), the appraised value of the Zone increased $333,303,075 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 2015 Appraised Value (before abatements and exemptions) $ 360,243,679 Less: 2002 Base Value 26,940,604 Current Captured Appraised Value Retained and Shared (before abatements)* $ 333,303,075 *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). Taxing Jurisdiction City of Lubbock Lubbock County Lubbock County Hospital District High Plains Underground Water Conservation District #1 Total Fund Revenue Tax Increment Fund Revenue 2002 2015 Appraised 2015 Net Tax Rate Value Taxable Value $0.538020 26,940,604 0.358158 26,940,604 0.115010 26,940,604 0.008026 26,940,604 Page 3 2015 Projected TIF Incremental Fund Revenue Net Taxable (100% Value Collection) 360,183,579 333,242,975 $ 1,792,914 360,194,179 333,253,575 1,193,574 360,194,179 333,253,575 383,275 360,194,179 333,253,575 26,747 $ 3,396,510 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2014 — September 30, 2015 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, 2015, the Zone received $3,286,427 in property tax revenues for the 2014 tax year. Any variance in the actual amount from the amount reported in the FY 2013-14 annual report can be attributed to uncollected taxes and/or exemptions. The Zone received $608,820 in hotel motel tax revenue for debt service on the conference center, $103,008 in revenue from the one percent of net revenue from the Overton Hotel and $65,527 in incentive rent from the Overton Hotel. The Zone also earned $283 in interest. Expenditures and Projects The City Council has issued eight 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 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, 2014 - September 30, 2015 North Overton TIF Expenditures Administrative/Bond Issuance Expenditures Current Administrative Administrative Costs Office Supplies Professional Services LCAD Collections Charges North Overton Zoning North Overton TIF Creation North Overton TIF Board Administration Total Administrative Expenditures Interest Expense Bond Sale Charges Capital Outlay Total Expenditures S 20,907 Expenditures 1,047 FY2014-15 To Date Capital Projects 70,050 North Overton Phase I S - 909,192 The Centre, Phase 1 Project - 1,959,363 Dinerstein II, Phase I Project - 1,581,407 Tract #3 - 1,158,251 Tract #5 - 1,004,141 Tract #6 - 526,414 Tract 47 - 904,271 Dinerstein III - 1,022,627 Walmart - 2,521,914 Tract 1 I - Condo I - 163,364 Tract 12 and Tract 13 - Condo 11 & III - 215,690 Single Family - 4,986,859 Pioneer Park Improvements - 8,268 North Overton TIF Public Facilities'- - 22,652,438 Tract IA - 84,411 ROW Acquire Glenna Goodacre Blvd. - 3,253,991 Tract IB - 124,633 Tract 18 Commercial - 762,433 ULOFT - 86,049 Tract 1-B-3 - 68,867 Glenna Goodacre Blvd. Fast - 2,973,448 Tract 20 - 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 - 376,271 Total Capital Project Expenditures S - 51,214,075 Administrative/Bond Issuance Expenditures Current Administrative Administrative Costs Office Supplies Professional Services LCAD Collections Charges North Overton Zoning North Overton TIF Creation North Overton TIF Board Administration Total Administrative Expenditures Interest Expense Bond Sale Charges Capital Outlay Total Expenditures S 20,907 286,077 1,047 5,855 5,934 70,050 1,638 14,689 - 14,194 45,312 29,527 444,331 3,163 335,789 - 260,812 - 31,539 S 32,690 1,072,470 Transfer to Debt Service S 3,186,321 27,346,587 " This project is funded with 511.4 million in bonds and SII million in grants from the CH Foundation and the Moody Foundation *Unaudited Page 5 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2014 — September 30, 2015 CITY OF LUBBOCK, TEXAS DEBT SERViCESCHEDULE ALL CERTIFICATES & BOND ISSUES BUDGET NORTH OVERTON TIF ALLOCATIONS FISCAL TOTAL YEAR PRINCIPAL INTEREST REQUIREMENTS 2015-16 1,990,027.87 1,062,778.31 3,052,806.17 2016-17 2,073,424.54 980,694.57 3,054,119.12 2017-18 2,110,214.08 903,261.13 3,013,475.21 2018-19 2,222,807.80 827,973.32 3,050,781.12 2019-20 2,292,852.37 744,668.35 3,037,520.72 2020-21 2,343,462.56 656,036.83 2,999,499.39 2021-22 2,444,402.79 561,023.85 3,005,426.64 2022-23 2,545,673.08 458,205.83 3,003,878.91 2023-24 2,657,377.08 347,678.54 3,005,055.62 2024-25 2,544,562.05 235,750.39 2,780,312.44 2025-26 1,937,407.12 140,343.88 2,077,751.00 2026-27 1,545,506.78 69,002.47 1,614,509.25 2027-28 333,832.80 29,055.59 362,888.39 2028-29 207,592.55 14,179.78 221,772.34 2029-30 137,709.57 4,153.32 141,862.90 2030-31 - - - 2031-32 - - - 2032-33 - - - 2033-34 - - - 2034-35 - - - 29,389,291.38 8,244,421.91 37,633,713.29 This debt service schedule does not reflect the Build America Bonds subsidy from the IRS on the interest for the 2010 bonds issued. Page 6 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2014 — September 30, 2015 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 six 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. City Council Representative: Jack Driskill, Chair McWhorter Cobb & Johnson LLP Term: 03/01/14 — 03/01/16 City Council Representative: Kurt Metcalf Overton Hotel Term: 03/01/15 — 03/01/17 City Council Representative: Patrick Murfee Murfee and Sons, Inc. Term: 03/01/15 — 03/01/17 City Council Representative: Howard Thrash H. G. Thrash Term: 03/01/15 — 03/01/17 State Senator: Honorable Charles Perry, State Senator State Representative: Honorable John Frullo, State Representative Lubbock County Representative: Bubba Sedeno, Lubbock County Commissioners Appointee Lubbock County Hospital District Representative: David Allison, Chief Executive Officer; Designee: Jeff Dane High Plains Underground Water District Representative: Jason Coleman, High Plains Underground Water District Appointee Page 7 ,oex n —1