Loading...
HomeMy WebLinkAboutResolution - 2007-R0553 - Authorize North Overton TIF RZ Annual Report - 12/06/2007Resolution No. 2007-RO553 December 6, 2007 Item No. 5.7 RESOLUTION 3E 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 lirected to execute for and on behalf of the City of Lubbock the North Overton Tax ncrement Financing Reinvestment Zone Annual Report for October 1, 2006 through ieptember 30, 2007, which will be distributed to the chief executive officer of each axing unit levying taxes within the North Overton Tax Increment Financing teinvestment Zone, and to the Comptroller of the State of Texas. Said Annual Report is atached hereto and incorporated in this Resolution as if fully set forth herein and shall be ncluded in the minutes of the Council. Passed by the City Council this ATTEST: Rebe ca Garza, City Secretary 6th day of December , 2007. r� DAVID A. MILLER, MAYOR APPROVED T CONTENT: a, - Rob Allis , ssis ity Manager Develo ment Services APPROVED AS TO FORM: Linda L. Chamales, Senior Attorney Office Practice Section LexityaUfLinda/Res-NQ TIF Annual Report 2007 November 26, 2007 Resolution No. 2007-80553 North Overton Tux Increment Financing Reinvestment .Zone Annual Report October 1, 2006 - September 30, 2007 Nor-th Overton Tax Increment Financing Reinvestment ,done Annual Report October 1, 2006 -+September .34, 2007 Table of Contents Introduction............................................................................................... Z Tax Increment Fund Revenue................................................................... 4 PerformanceReport.................................................................................. 5 Boardof Directors.................................................................................... 9 Map......................................................................................................... 10 3 FinancialReport....................................................................................... AppraisedValues...................................................................................... 3 Tax Increment Fund Revenue................................................................... 4 PerformanceReport.................................................................................. 5 Boardof Directors.................................................................................... 9 Map......................................................................................................... 10 Introduction The Lubbock City Council established the North Overton Tax Increment Financing Reinvestment 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% of the appraised value of land in the zone that 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 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 North Overton Tax Increment Financing Reinvestment Zone'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: Ell Amount and source of revenue in the tax increment fund established for the zone :1 Amount and purpose of expenditures from the fund `. Amount of principal and interest due on outstanding bonded indebtedness €20 Tax increment base and current captured appraised value reiamea ay Lne zoac 01 Captured aDoraised value shared by the city and other taxing units �, Total amount of tax increments received FZ 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 North Overton Tax Increment Financing Reinvestment Zone Board of Directors on November 27, 2007. David A. Miller, Mayor City of Lubbock N Jack Driskill, Chairman North Overton TIRZ Board of Directors t^77,"'*%� North Overton Tux lncrerrrew Financing Reinvestment Zone 2007 Annual Report, Page 2 Financial Report According to the Lubbock Central Appraisal District, the appraised value of the North Overton Reinvestment Zone in 2007 was 5192,302,370 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 "fax Increment Fund as indicated on page 4. Appraised Values Zone 2007 Appraised Value (before $192,302,370 abatements and exemptions) 2002 Base Value $26,940,604 *Current Captured Appraised Value Retained $165,361,766 and Shared (before abatements and exemptions) *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). 1Vorth Overton Tax Increment Financing Reinvestment Zone 2007 Annual Report, Page 3 Tax Increment Fund Revenue Taxing Jurisdiction/Tax Rate City of Lubbock/.45505 Lubbock County/ .306148 Lubbock County Hospital District/. 11661 High. Plains Underground Water Conservation District #1/.00794 Total Fund Revenue* 2002 2007 Net Tax Appraised 2007 Net Increment Value Taxable Value Value $26,940,604 192,172,230 165,231,626 26,940,604 192,173,030 165,232,426 26,940,604 192,173,030 165,232,426 Projected TIF Fund Revenue (100% Collections) $751,886 50~,856 192,678 26,940,604 192,173,030 165,232,426 13,119 $1,463,539 *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 Cherton Tax Increment Financing Reinvestmetzt Zone 2007 Annual Report, Page 4 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 goal 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 district. Revenues The District received $1,2.89,119.01 in net revenue for value earned in 2006 after the deduction of $1,167.74 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 North Overton TIF earned $447,017 in interest during 2006-07. The appraised values within the district total $192,302,370 after the 2007 TIF roll was certified on October 10, 2007, resulting in a current captured appraised value of $165,361,766. Revenue for 2007 will be received in the 2008 payment from the Lubbock Central Appraisal District. Expenditures and Projects The City Council has issued Certificate of Obligation Bonds (CO's) four times to -date to fund public improvement projects for the North Overton TIF. They were issued as follows: July 15, 2003 $3.795 million August 15, 2005 $9.290 million April 15, 2006 $6.308 million August 15, 2007 $4.111 million The chart on the following page illustrates the public infrastructure expenditures in North Overton TIF Fund Capital Projects. (Public Infrastructure includes: sewer, water, electric, roads, and landscaping in the right-of-way) North Overton Tax Increnicia t` huincing Reinvestment Zane 2007 Annual Report, Page 5 North Overton TIF Capital Projects Public Infrastructure Project Expenditures Project Name LTD Public Infrastructure Expenditures North Overton Phase I $ 909,192 The Centre, Phase I Project 1,959,363 Dinerstein Il, Phase I Project 1,581,407 Tract #3 257,865 Tract #5 647,478 Tract #6 363,656 Tract #7 242,708 Dinerstein III 947,484 Walmart 2,430,165 Tract 10 - Condo IV 116 Tract 11 - Condo I 163,364 Tract 12 - Condo II 41,670 Tract 13 - Condo III 116 Single Family 2,972,193 Pioneer Park Improvements 465 Public Facilities 440,384 Tract 1 A 84,411 ROW Acquire Glenna Goodacre Blvd. 427,447 Tract 1B 38,520 Tract 18 Commercial 762,433 ULOFT 11,889 Tract 1-B-2 34,160 Tract 1-B-3 34,160 Glenna Goodacre Boulevard East 14,228 Water/Sewer East End Commercial 7,968 Tract 19 116 Tract 27 116 North Overton. TIF Electric Utility 45,807 Total $ 14,418,881 Vorth CAerlon Tux Incrersrew Financing Reinvestment Zone 2007 Annual Report, Page 6 ©VERTON PARK - — - - — - - - -- MARSHA SHARP FREEWAY •• �°' br��W���r�� e � �dA�rra"�'"� l! ti.. ........ ... .. ............ The above master plan was provided by McDougal Properties. Administrative/Bond Issuance Expenditures Description 2406-07 Life -to -Date Current Administrative Account $ 41,870 50,279 North Overton Zoning Account - 14,194 North Overton TIF Creation - 45,312 North Overton TIF Board Admin - 8,154 LCAD Collections Charge 1,168 3,267 Total Administrative Expenses 43,038 121,206 Transfer to Debt Service 1,492,624 2,776,751 $ 1,535,662 2,897,957 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 (Aerton Tax Increment Financing Reinve•strnent Zone 2007 Annual Report, Page 7 Debt Service/Bonded Indebtedness Debt service schedule for all bond issuances for the North Overton TIF City Of Lubbock, Texas Debt Service Schedule North Overton TIF Fiscal Total Year Principal Interest Requirements 2007-08 $ 798,077.98 1,033,658.98 1,831,736.96 2008-09 834,571.41 1,002,740.20 1,837,311.61 2009-10 869,359.61 970,358.24 1,839,717.84 2010-11 901,098.81 934,637.35 1,835,736.16 2011-12 940,198.86 895,451.17 1,835,650.02 2012-13 980,840.03 853,650.20 1,834,490.23 2013-14 1,026,891,07 807,381.92 1,834,272.98 2014-15 1,074,483.24 759,244.44 1,833,727.67 2015-16 1,127,895.13 708,413.11 1,836,308.23 2016-17 1,187,438.28 652,029.78 1,839,468.05 2017-18 1,238,522.57 595,149.51 1,833,672.07 2018-19 1,340,475.73 535,754.78 1,836,230.51 2019-20 1,368,248.62 470,973.46 1,839,222.08 2020-21 1,433,234.89 401,807.47 1,835,042.35 2021-22 1,505,942.71 328,353.81 1,834,296.52 2022-23 1,584,421.11 250,725.98 1,835,147.09 2023-24 1,665,211.20 168,69&25 1, 833, 909.44 2024-25 1,457,952.27 92,039.91 1,549,992.18 2025-26 797,644.34 37,098.50 834,742.83 2026-27 319,584.63 8,389.10 327,973.73 S 22,412,092.42 11,506,556.13 33,918,648.55 North Overton Tax Increment Financing Reinvestment Zone 2007 Annual Report, Page 8 Board of ' Directors Because the North Overton TIF Reinvestment Zone 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 of real property in the TIF 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 are representatives of Lubbock County, the only school district or county levying taxes and participating in the TIF zone. The Board is responsible for administering the Tax Increment Financing Reinvestment Zone 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: 03/14/06 — 03/01/08 City Council Representative: Carolyn McDougal McDougal Properties Term: 06/09106 — 03/01/08 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: 03/14/06 — 03/01/08 City Council Representative: Don Rushing Lubbock Commercial Building Term: 03/01/07 — 03/01/09 City Council Representative: Steve Krier Clifford Krier Wilkerson & Wright PC Term: 03/01/07 — 03/01/09 State Representative and Designee: Honorable Robert Duncan, State Senator Debby Hansard, Designee State Representative: Honorable Carl Isett, State Representative Lubbock County Representative: Gilbert Flores, Lubbock County Commissioners Appointee ^'4' North Overton Tax Increment Financing Reinvestment Zone 2007 Annual Report, Page 9 Resolution No. 2007-RO553 Reinvestment Zone Boundary Map Ill�l 11 III■1111.11NE1= IN1111111111111111111111011111■11 , IIE �1 ord? l ircr ion TUx Increln w Firt�rrtchicRei171TS1171c'17t 2011C 2007 Annual Report, Page 10