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Home My WebLink AboutResolution - 2013-R0051 - CBD TIF Annual Report - 01/31/2013Resolution No. 2013-R0051 January 31, 2013 Item No. 5.4 RESOLUTION 11 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, 2011 through September 30, 2012, 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 31 _ _ , 2013. G N C. R ERTSON, MAYOR ATTEST: Rebe ca Garza, City Secret APPROVED AS TO CONTENT: Cheryl Bvrock—, Budget Director APPROVED AS TO FORM: Linda L. Chamales, Economic Development Attorney Lc city att/Linda/Res-CBD Annual Report 2012 November 20, 2012 Resolution No. 2013-R0051 r4e�-lubb&k Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2011 - September 30, 2012 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2011— September 30, 2012 Table 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 Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2011— September 30, 2012 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: M11 Amount and source of revenue in the Tax Increment Fund established for the Zone, 1001 Amount and purpose of expenditures from the Fund, 03 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, M. 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 31, 2013 upon the recommendation of the Central Business District Tax Increment Financing Reinvestment Zone Board of Directors (Board) on December 19, 2012. Gle . Robertson, Mayor City of Lubbock bert 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, 2011— September 30, 2012 Financial Report As set by the Lubbock Central Appraisal District (LCAD), the appraised value of the Zone increased $67,879,928 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 2012 Appraised Value (before abatements and exemptions) $173,738,179 Less: 2001 Base Value 105,858,251 Current Captured Appraised Value Retained and Shared (before abatements)* $ 67,879,928 *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/ Tax Rate City of Lubbock Lubbock County Lubbock County Hospital District High Plains Underground Water Conservation District #1 Total Fund Revenue Tax Increment Fund Revenue 0.119190 105,858,251 0.007540 105,858,251 Page 3 172,358,089 66,499,838 79,261 172,358,089 66,499,838 5,014 $ 641,466 Projected TIF 2001 2012 Net Tax Fund Revenue 2012 Appraised 2012 Net Increment (100% Tax Rate Value Taxable Value Value Collections) $0.492110 105,858,251 172,262,889 66,404,638 $ 326,784 0.346477 105,858,251 172,358,089 66,499,838 230,407 0.119190 105,858,251 0.007540 105,858,251 Page 3 172,358,089 66,499,838 79,261 172,358,089 66,499,838 5,014 $ 641,466 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2011— September 30, 2012 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 2011-12, the Zone received $556,185 in revenues for value earned in 2011. Any variance in the actual amount from the amount reported in the FY 2010-11 Annual Report can be attributed to uncollected taxes and/or exemptions. The Zone received $1.19 million of the $1.5 million Economic Development Administration grant awarded May 28, 2010 for the underground utilities project, and also earned $3,383 in interest during FY 2011-12. 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, 2011— September 30, 2012 Central Business District TIF Expenditures Expenditures FY2011-12* To -Date Capital Projects Public Utility Engineering and Coordination $ 70,670 222,148 Undergroujnd Utilities 1,903 1,903 EDA Grant 1,821,215 1,821,215 Total Capital Project Expenditures 1,893,788 2,045,267 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 Subtotal Special Projects Bond Sale Charges Capital Outlay Total Expenditures Transfer to Debt Service * Unaudited Page 5 45,027 163,548 1,457 2,590 3,832 32,682 1,994 15,207 52,311 214,027 - 100,000 - 75,547 - 8,500 - 25,254 - 8,396 354,000 1,365,552 - 342,619 3,001 37,631 357,001 1,963,498 14,493 - 58,101 409,312 2,250,118 $ 134,739 152,533 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2011— September 30, 2012 CENTRAL BUSINESS DISTRICT TIF FISCAL TOTAL YEAR PRINCIPAL INTEREST REQUIREMENTS 2012-13 55,638.18 74,059.47 129,697.64 2013-14 57,948.61 71,739.35 129,687.97 2014-15 60,580.34 69,065.61 129,645.95 2015-16 63,573.02 66,062.12 129,635.13 2016-17 66,536.99 63,145.05 129,682.04 2017-18 69,569.32 60,134.26 129,703.59 2018-19 72,553.82 57,126.38 129,680.20 2019-20 75,411.16 54,284.39 129,695.55 2020-21 78,755.21 50,976.85 129,732.07 2021-22 82,517.62 47,172.36 129,689.99 2022-23 86,542.53 43,165.74 129,708.26 2023-24 90,751.99 38,945.49 129,697.49 2024-25 95,243.09 34,478.73 129,721.82 2025-26 99,947.45 29,756.95 129,704.40 2026-27 104,904.74 24,799.92 129,704.66 2027-28 110,124.52 19,595.03 129,719.55 2028-29 115,528.87 14,131.39 129,660.26 2029-30 121,264.07 8,396.39 129,660.46 2030-31 109,180.23 2,729.51 111,909.74 2031-32 - - - 2032-33 - - - 2033-34 - - - 2034-3 5 - - - $ 1,616,571.78 829,765.00 2,446,336.78 Page 6 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2011— September 30, 2012 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: 1/27/11 — 1/01/13 Council Appointee: Mike Davis Watson Sysco Foods Term: 1/27/11-1/01/13 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, Assistant Superintendent High Plains Underground Water Conservation District Appointee: Jim Conkwright, Manager; Designee: Sherry Stephens 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, 2011— September 30, 2012 CBD TIF Preferred Plan DOWNTOWN REVITALIZATION ACTION PLAN PnMnd PrImry Dbblob i CpNy"a ProHob Cor... .r.w, CKY of Wbbxk Tnw H F.b-YS,MU EDAW / DEVELOPMENT STRATEGIES 1 PARKHILL, SMITH d COOPER Reinvestment Zone Boundary Map Page 8