HomeMy WebLinkAboutResolution - 2008-R0487 - Authorize North Overton TIF RZ Annual Report - 12/17/2008Resolution No. 2008-80487
December 17, 2008
Item No. 5.6
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 North Overton Tax
Increment Financing Reinvestment Zone Annual Report for October 1, 2007 through
September 30, 2008, 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 this 17th day of December , 2008.
�� 6
TOM MARTIN, MAYOR
ATTEST:
Rebec a Garza, City Secretary
APPR VED S TO CONTENT:
Rob A lison, Assistant City anager
Development Services
APPROVED AS TO FORM:
Linda L. Chamales,
Economic Development Attorney
Uxityatt/l-inda/Res-NO TIF Annual Report 2008
September 10, 2008
Resolution No. 2008-RO487
North Overton Tax Increment Financing
Reinvestment Zone
Annual Report
October 1, 2007 - September 30, 2008
North Overton Tax Increment Financing Reinvestment Zone
Annual Report
October 1, 2007 - September 30, 2008
Table of'Contents
Introduction..................................................................................................................................... 2
FinancialReport............................................................................................................................. 3
AppraisedValues............................................................................................................................ 3
Tax Increment Fund Revenue......................................................................................................... 3
PerformanceReport........................................................................................................................ 4
Boardof Directors.......................................................................................................................... 7
Map................................................................................................................................................. 8
Introduction
The Lubbock City Council established the North Overton Tax increment Financing Reinvestment Zone
(TIF) by ordinance on March 14, 2002 to promote the development of the North Overton area. The TEF
was initiated by a petition of owners of more than 50% of the appraised value of land in the TIF. The
petition was received on October 31, 2001. The TIF was enacted after written notice and formal
presentations to the governing body of each taxing unit that levies real taxes in the TIF, and after a
properly advertised public hearing to hear public comments on the creation of the TIF.
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. This is
the seventh annual report of the TIF's activities. The report must be provided within 90 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:
'Ea' Amount and source of revenue in the tax increment fund established for the zone
IN Amount and purpose of expenditures from the fund
Amount of Drincipal and interest due on outstanding bonded indebtedness
01 Tax increment base and current captured appraised value retained by the zone
13 Captured appraised value shared by the city and other taxing units
Total amount of tax increments received
r� Anv 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 Lubbock City Council on December
17, 2008 upon the recommendation of the North Overton Tax Increment Financing Reinvestment Zone
Board of Directors on December 2, 2008.
�,� ,�,
el;! �- ,
Tom Martin, Mayor
City of Lubbock
f
Jack Driskill, Chairman
North Overton TIF Board of Directors
North Overton Tix Incrcnnent Financing Reinvestment Zone
2008 Annual Report, Page 2
Financial Report
According to the Lubbock Central Appraisal District (LCAD), the appraised value of the North Overton
Tax increment Financing Reinvestment Zone (TIF) in 2008 was $209,920,452 for each taxing entity.
However, exemptions and abatements by the City of Lubbock and other taxing jurisdictions lower the net
taxable amount available to the TIF as indicated on page 4.
Appraised Values
2008 Appraised Value (before abatements and $ 209,920,452
exemptions)
2002 Base Value 26,940,604
*Current Captured Appraised Value Retained and 182,979,848
Shared (before abatements and exemptions)
*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
Fuad Revenue
Taxing Jurisdiction 2002 Appraised 2008 Net Taxable 2008 Net Tax (100%
Tax Rate per $100 valuation Value Value Increment Value Collections)
City of Lubbock
$0.44640 $ 26,940,604 209,869,914 182,929,310 816,596
Lubbock County
$0.3262 26,940,604 209,870,714 182,930,110 596,718
Lubbock County Hospital
District
$0.12067 26,940,604 209,870,714 182,930,110 220,741
High Plains Underground
Water Conservation District
$0.00794 26,940,604 209,870,714 182,930,110 14,525
Total Fund Revenue* S 1,648,580
*The actual amount collected by the TIF could vary due to uncollected taxes and retainage by the Lubbock Central Appraisal
District for collection services.
North Overton Tax Ineretnent Financing Reinvestment Zone
2008 Annual Report, Page 3
Performance Report
The North Overton TIF Board and City Council are operating with the Fourth Amended Project and
Finance Plans approved by the North Overton TIF Board on November 20, 2006 and the Lubbock City
Council on January 12, 2007. The Plans outline the financial strategy to accomplish the goals of the
North Overton Tax Increment Finance Reinvestment 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 TIF.
Revenues
In FY 2007-08, the TIF received $1,455,110 in revenue based on 2007 values. The cost of collection
services performed by LCAD totaled $1,428.63. The variance between the actual amount and the
amount reported in the FY 2006-07 Annual Report can be attributed to uncollected taxes and retainage by
LCAD for collection services. The TIF earned $22,966 in interest during FY 2007-08.
The 2008 certified appraised values within the TIF total $209,920,452. The total current captured
appraised value, the total appraised value minus the base year value, is $182,979,848. Revenue for 2008
will be received in the 2009 payment from LOAD.
Expenditures and Projects
The City Council has issued six series of Certificate of Obligation Bonds to fund public improvement
projects for the TIF. 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
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.
North Cherton Tax Increment Financing Reinvestment Zone
2008 Annual Report, Page 4
The following chart illustrates the administrative expenditures and public infrastructure expenditures in
capital projects. (public infrastructure includes: sewer, water, electric, streets and landscaping in the
right-of-way).
North Overton TIF Expenditures
Public Infrastructure Capital Projects
North Overton Phase I
The Centre, Phase I Project
Dinerstein 11, Phase I Project
Tract #3
Tract #5
Tract #6
Tract #7
Dinerstein III
Walmart
Tract 10 - Condo IV
Tract 11 - Condo I
Tract 12 - Condo 11
Tract 13 - Condo III
Single Family
Pioneer Park Improvements
North Overton TIF Public Facilities*
Tract l A
ROW Acquire Glenna Goodacre Blvd.
Tract 1 B
Tract 18 Commercial
ULOFT
Tract 1-B-2
Tract I -B-3
Glenna Goodacre Blvd. East
Water Utilities North Overton TIF
Tract 19
Tract 27
North Overton TIF Electric Utility
Capstone
Wastewater Utilities North Overton TIF
Total Capital Project Expenditures
Expenditures
FY 2007-08 To -Date
$ - $
909,192
-
1,959,363
-
1,581,407
154,873
412,738
29,963
677,440
162,758
526,414
222,423
465,131
75,143
1,022,627
91,749
2,521,914
(116)
-
-
163,364
23,046
64,716
(116)
1,801,638
4,773,831
1,109
1,574
7,947,959
8,628,123
-
84,411
427,447
854,894
86,113
124,633
-
762,433
32,411
44,299
(34,160)
-
34,707
68,867
100,336
114,564
132,331
140,299
(116)
(116)
139,355
185,162
91,238
91,238
54,539
54,539
$ 11,574,514 $
26,233,173
Administrative/Bond lssuance Expenditures
Current Administrative Account
Adminstrative Cost
S 27,411 S
57,176
Office Supplies
65
65
Professional Services
3,246
24,739
L CAD Collections Charge
1,429
3,473
Total Current Administrative Account
32,150
85,454
North Overton Zoning Account
North Overton TIF Creation
North Overton TIF Board Admin
Total Administrative Expenditures
14,194
45,312
8,154
$ 32,150 $ 153,114
Transfer to Debt Service $ 1,759,071 $ 3,508,076
North Overton Tax Increment Financing Reinvestment Zone
2008 Annual Report, Page 5
Debt S'ervacelBonded Indebtedness
Debt service schedule for all bond issuances for the North Overton TIF
CITY OF LUBBOCK, TEXAS
DEBT SERVICE SCHEDULE
ALL OUTSTANDING DEBT
FISCAL
TOTAL
YEAR
PRINCIPAL
INTEREST
REQUIREMENTS
2008-09 $
1,231,400.02
1,813,260.27
3,044,660.30
2009-10
1,311,000.21
1,726,902.50
3,037,902.71
2010-11
1,365,860.45
1,667,546.56
3,033,407.01.
2011-12
1,428,393.64
1,603,511.46
3,031,905.11
2012-13
1,497,467.96
1,535,508.68
3,032,976.64
2013-14
1,572,264.25
1,461,546.62
3,033,810.87
2014-15
1,648,601.68
1,384,215.60
3,032,817.27
2015-16
1,731,070.92
1,302,683.16
3,033,754.08
2016-17
1,824,983.53
1,213,944.30
3,038,927.84
2017-18
1,910,437.29
1,122,915.03
3,033,352.32
2018-19
2,012,228.06
1,024,359.89
3,036,587.95
2019-20
2,124,838.56
914,932.52
3,039,771.07
2020-21
2,235,130.60
798,366.88
3,033,497.48
2021-22
2,358,300.25
674,588.14
3,032,888.39
2022-23
2,492,552.59
543,385.58
3,035,938.17
2023-24
2,629,428.71
404,361.62
3,033,790.32
2024-25
2,478,567.93
267,269.95
2,745,837.87
2025-26
1,884,814.19
148,133.89
2,032,948.08
2026-27
1,473,776.84
51,140.43
1,524,917.27
2027-28
151,680.60
3,792.02
155,472.62
2028-29
-
-
-
2029-30
-
-
-
2030-31
-
-
-
2031-32
-
-
-
2032-33
-
-
-
2033-34
-
-
-
$ 35,362,798.28 19,662,365.09 55,025,163,37
North Overton Tax Increment Financing Reinvestment .done
2008 Annual Report, Page 6
Board of Directors
Because the TIF was initiated by a petition of the property owners, by statute the board must consist of
nine members. The Lubbock 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 TIF or employees or agents of
someone who owns property in the TIF. The State Senator and State Representative for the TIF or their
designees are also board members, as is the representative of Lubbock County. The Board is responsible
for administering the TIF throughout its 30 -year 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: 03/01108 — 03/01/10
City Council Representative: Carolyn McDougal
!McDougal Properties
Term: 03/01/08 — 03/01/10
City Council Representative: Stan Mayfield
City Bank
Term: 03/01/07 — 03/01/09
City Council Representative: Patrick Murfee, Vice -Chair
Murfee and Sons, Inc. Realtors
Term: 03/01/08-03/01/10
City Council Representative: Don Rushing
Lubbock Commercial Building
Term: 03/01/07 — 03/01/09
City Council Representative: Vacant
Term: 03/01/07 03/01/09
State Representative and Designee:
Honorable Robert Duncan, State Senator
Debbie Hansard, Designee
State Representative:
Honorable Carl Isett, State Representative
Lubbock County Representative:
Gilbert Flores, Lubbock County Commissioners Appointee
North Overton Tax Increment Financing Reinvestment Zone
2008 Annual Report, Page 7
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