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Home My WebLink AboutResolution - 2007-R0552 - Authorize Central Business District TIF RZ Annual Report - 12/06/2007Resolution No. 2007-RO552 December 6, 2007 Item Na_ 5.6 RESOLUTION 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 irected to execute for and on behalf of the City of Lubbock the Central Business District ax Increment Financing Reinvestment Zone Annual Report for October 1, 2006 through September 30, 2007, which will be distributed to the chief executive officer of each taxing unit levying taxes within the Central Business District Tax Increment Financing Reinvestment Zane, 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 6th TTEST: Garza, City ROVED TO ONTENT: —� Allis , ss Manager -lopment Services VED AS TO FORM: L. Chamales, Senior Attorney Practice Section city att/Linda/Res-CBD Annual Report 2007 iember 26, 2007 day of December , 2007. 01 DAVID A. MILLER, MAYOR Resolution No. 2007-RO552 Central Business District Tax Increment Financing Reinvestment Zane Annual Report October 1, 2006 - September 30, 2007 Central Business District Tax Increment Financing Reinvestment Zone Annnal Report October 1, 2006 - September 30, 2007 Table of Contents Tableof Contents...................................................................................... Introduction............................................................................................... 2 FinancialReport....................................................................................... 3 AppraisedValues...................................................................................... 3 Tax Increment Fund Revenue................................................................... 4 Performance Report.................................................................................. 5 Boardof Directors.................................................................................... 6 Reinvestment Zone Boundary Map ........................................................... 7 Introduction Because the Lubbock City Council desires to promote the development of the Central Business District area, it established the Central Business District Tax Increment Financing Reinvestment Zone by ordinance on December 3, 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 to hear 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. This is the sixth annual report of the Central Business District Tax Increment Financing Reinvestment Zone's activities. The report must be provided within 40 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: .N2 Amount and source of revenue in the tax increment fund established for the zone Amount and purpose of expenditures from the fund €3 Amount of principal and interest due on outstanding bonded indebtedness D Tax increment base and current captured appraised value retained by the zone 1.1 Captured appraised value shared by the city and other taxing units Total amount of tax increments received 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 Lubbock City Council on December 6, 2007 upon the recommendation of the Central Business District Tax Increment Financing Reinvestment Zone Board of Directors on November 27, 2007. l David Miller, Mayor City of Lubbock &A, - Brent Noble, Acting Chairman Central Business District TIRZ Board of Directors Central Business District Tax Increment financing Reini7estrnent Zane 2007 Annual Report, Page 2 Financial Report According to the Lubbock Central Appraisal District, the appraised value of the Central Business District Reinvestment Zone increased $55,724,200 for each taxing jurisdiction. However, exemptions and abatements by the City of Lubbock and other taxing jurisdictions lower the net taxable amount available to the Tax Increment Fund as indicated on page 4. Appraised Values Zone 2007 Appraised Value (before $161,582,451 abatements and exemptions) 2001 Base Value $105,858,251 *Current Captured Appraised Value Retained and Shared (Before Abatements) $55,724,200 *The captured appraised value of real property taxable by a taxing unit for a year is the total appraised value of all real property taxable by the unit and located in a reinvestment zone for that year less the tax increment base of the unit. Texas Tax Increment Finance Act Section 311.012(b). Central Business District Tai: Incremew Financing Reinvestment Zane 2007 Annual Report, Page 3 Tax. Increment Fund Revenue Total Fund Revenue $441,922 i^nl Central Business District Tux Increment Financing Reinvestinent Zone 2007 Annual Report, Page 4 Projected TIF Fund 2001 2007 Net Tax Revenue Taxing Jurisdiction/Tax Appraised 2007 Net Increment (100% Rate Value Taxable Value Value Collections) City of Lubbock/.45505 $105,858,251 155,747,677 49,889,426 $227,022 Lubbock County/.306148 105,858,251 155,754,041 49,895,790 152,755 Lubbock County Hospital District/. 11661 105,858,251 155,754,041 49,895,790 58,183 High Plains Underground Water Conservation District #11.00794 105,858,251 155,754,041 49,895,790 3,962 Total Fund Revenue $441,922 i^nl Central Business District Tux Increment Financing Reinvestinent Zone 2007 Annual Report, Page 4 Performance Report The Central Business District TIF Board and City Council are operating with the Second Amended Project and Finance Plans approved by the Central Business District TIF Board on November 14, 2006 and the Lubbock City Council on January 12, 2007. The Plans outline the financial strategy to accomplish the goal of the CBD Tax Increment Finance Reinvestment 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 May, 2007, the Central Business District TIF received $277,771.53 in net revenues for value earned in 2006 after the deduction of $1,625.26 for collection services. Any variance in the actual amount from the amount reported in the 2005-2006 Annual Report can be attributed to uncollected taxes and retainage by the Lubbock Central Appraisal District for collection services. The Central Business District TIF also earned $12,323 in interest during 2006-2007. Expenditures and Projects As of September 30, 2007, the City had expended $4,064.09 from the CBD TIF Board Administrative Fund. These expenses were for professional services. All expenditures are as defined in the Texas Tax Increment Finance Act Section 311-0020): 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. Centred Business 1 isfrict Tax lnc•rewent Financing Reinvesttnent Zone 2007 Annual Report, Page 5 Board of Directors The Central Business District TIF Reinvestment 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 TIF Board, the City Council specified a nine -member board with five members appointed by the Council. Council appointed Board representatives must be qualified voters of the municipality or at least 18 years of age and owners of real property in the TIF zone. The Board is responsible for administering the Tax Increment Financing Reinvestment Zone throughout its 20 -year life span and for recommending projects to be financed with the approval of the City Council. Council Appointee: Merle Blosser, Chair Real Estate Appraisal Term: 1/10/06 - 1/01108 Council Appointee: Tony Cardinal Cardinal Sports Term: 1/01/07 — 1/01/09 Council Appointee: Mike Davis Watson Sysco Foods Term: 1/01/07 — 1101/09 Council Appointee: Brent Noble Land Title Escrow Officer Term: 1/ 10/06 — 1/01/08 Council Appointee: Robert Taylor R. C. Taylor Wholesale Term: 1/10/06 — 1/01/08 Lubbock Independent School District Appointee: Art Martin, Assistant Superintendent High Plains Underground Water Conservation District Appointee: Jim Conkwright, Manager Lubbock County Hospital District Appointee and Designee: Jim Courtney, Chief Executive Officer Jeff Dane Lubbock County Commissioners Court Appointee: Honorable Tom Head, County Judge r^7 -,IN Central Business District Tai; Increinew I -financing Reinvestinew Zone 2007 Annual Report, Page 6 ei=1=a��a:a,