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HomeMy WebLinkAboutResolution - 2012-R0004 - CBD TIF RZ Annual Report - 01/12/2012Resolution No. 2012-80004 January 12, 2012 Item No. 5,3 RESOLUTION 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, 2010 through September 30, 2011, 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 12, 2012 , 21". TOM MARTIN, MAYOR ATTEST: Rebec)q Garza, City Secreta APPROVED AS TO CONTENT: Andy Burcham, Chief Financial Officer APPROVED AS TO FORM: Linda L. Chamales, Economic Development Attorney Le: city att/Linda/Res-CBD Annual Report 2011 December 6, 2011 Resolution No. 2012-R0004 ■1 ■ 1 - ■� ■ ■ It 111111 ■1■ - ■■■ 111 ■ ■11111 111= u ■■111■ tl ■ I■ ■11111 ■ tl t ■■ ■ ■1 ■ ■■1111Elio ■ ■ i 1711 t�■ ■ ■ � ■111 ■• 11 ■■ ■■■ .■ ■- ■ ■■®,■� ■ ■ ■ ■ ■ ■■ ■ NE EF■ H .■■ ■■■ ■:.C.■■ VIII �■ ■■ ■�■1 ■� ■� ■ 11■ ■ -■ III ■.� ■■ 111111111'1 ■ ■� �� _ ■� 1■ ■� 111111 hill TE ■ ■ ■■ ■ ■■ ■ ■■ ill i■■ LE ■I in a : 1■ ■■ :1 - Eli Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2010 - September 30, 2011 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2010 — September 30, 2011 Table of Contents Introduction.....................................................................................................................................2 FinancialReport ..............................................................................................................................3 AppraisedValues.............................................................................................................................3 Tax Increment Fund Revenue..........................................................................................................3 PerformanceReport .........................................................................................................................4 Boardof Directors...........................................................................................................................7 Maps................................................................................................................................................8 lubb'ooc',k City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2010 — September 30, 2011 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 120 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: 3 Amount and source of revenue in the Tax Increment Fund established for the Zone, 113 Amount and purpose of expenditures from the Fund, 13 Amount of principal and interest due on outstanding bonded indebtedness, €3 Tax increment base and current captured appraised value retained by the Zone, 18 Captured appraised value shared by the City and other taxing units, .3 Total amount of tax increments received, and 3 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 12, 2012 upon the recommendation of the Central Business District Tax Increment Financing Reinvestment Zone Board of Directors (Board) on December 16, 2011. T Martin, Mayor Ro rt Taylor, Chairman City of Lubbock 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, 2010 — September 30, 2011 Financial Report As set by the Lubbock Central Appraisal District (LCAD), the appraised value of the Zone increased $65,728,987 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 2011 Appraised Value (before abatements and exemptions) $171,587,238 Less: 2001 Base Value 105,858,251 Current Captured Appraised Value Retained and Shared (before abatements)* $ 65,728,987 *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 Projected TIF 2001 2011 Net Tax Fund Revenue 2011 Appraised 2011 Net Increment (100% Tax Rate Value Taxable Value Value Collections) $0.474000 105,858,251 168,274,091 62,415,840 $ 295,851 0.329458 105,858,251 168,379,691 62,521,440 205,982 0.120720 105,858,251 168,379,691 62,521,440 75,476 0.007760 105,858,251 168,379,691 Page 3 62,521,440 4,852 S 582,1.61 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2010 — September 30, 2011 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 2010-11, the Zone received $546,101 in revenues for value earned in 2010. Any variance in the actual amount from the amount reported in the FY 2009-10 Annual Report can be attributed to uncollected taxes and/or exemptions. The Zone also earned $2,592 in interest during FY 2010-11. Expenditures and Projects The City Council has issued one 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, 2010 — September 30, 2011 Central Business District TIF Expenditures Capital Projects Public Utility Engineering and Coordination Total Capital Project Expenditures Administrative/Bond Issuance Expenditures Administrative Administrative Costs Office Supplies Professional Services LCAD Collections Charges Total Administrative Expenditures Special Projects Downtown Redevelopment Pian 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 Total Special Project Expenditures Bond Sale Charges Capital Outlay Total Expenditures Transfer to Debt Service *I'naudited Page 5 Expenditures FY 2010-11* To Date $ 90,089 151,478 $ 90,089 151,478 $ 37,536 118,521 481 1,133 3,748 28,850 2,083 13,213 43,849 161,716 - 100,000 - 75,547 - 8,500 - 25,254 - 8,396 419,605 1,011,552 342,619 342,619 22,087 34,629 784,311 1,606,497 12,638 14,493 - 58,101 $ 840,797 $ 1,840,806 $ 17,794 17,794 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2010 — September 30, 2011 CITY OF LUBBOCK, TEXAS DEBT SERVICE SCHEDULE ALL CERTIFICATES AND BOND ISSUE Page 6 CENTRAL BUSINESS DISTRICT TIF FISCAL TOTAL YEAR PRINCIPAL INTEREST REQUIREMENTS 2011-12 $ 31,124.42 103,614.50 134,738.92 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 - - - 2034-35 - - - S 1,647,696.19 933,379.50 2,581,075.70 Page 6 City of Lubbock„ TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2010 — September 30, 2011 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: 1/01/10 — 1101/12 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: Latrelle Joy Mullin, Hoard and Brown Term: 1101/10 — 1/01/12 Council Appointee: Brent Noble Service Title Term: 1/01/10 — 1/01/12 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, 2010 — September 30, 2011 CBD TIF Preferred Plan Preferred WIRIM " REVITALIZATION ACTION PLAN Prim Oary Districts 6 Catalytic Praise CD .. 0 IT I TV 447 N CNV of W6eoak Tum EDAW 1 DEVELOPMENT STRATEGIES I PARWHILL, SMITH b COOPER i� MIS aw ERIFER Wo Reinvestment Zone Boundary Map Pale $ e�I