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Home My WebLink AboutResolution - 2006-R0573 - Authorize Annual Report - NOTIFRZ, 10/1/2005-9/30/2006 - CST, OTAG - 12/07/2006Resolution No. 2006-RO573 December 7, 2006 Item No. 5.9 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, 2005 through September 30, 2006, which will be distributed to the chief executive officer of each taxing unit levying taxes within the North Overton Tax Increment Financing Reinvestment Zone, to the Comptroller of the State of Texas, and to the Office of the Texas Attorney General. 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 7th day of December , 2006. ATTEST: Rem Garza, City Secretary APPR VED AS TO CONTENT: Rob iso-, City Manager Development Services APPROVED AS TO FORM: -� C_.�--��"�C� -•�� _,�-•-�-cam_,-- Linda L. Chamales, Senior Attorney Office Practice Section Lc:cityatt/Linda/Res-NO TIF Annual Report 2006 November 20, 2006 Resolution No. 2006-RO573 North Overton Tax ,increment Rnancinq Reinispestwent Zone Annual Report giber 1, 2005-Sep►t+ember 30, 20M North► Overton Tax Increment financing Reinvestment Zone Annual Report Oefober.l. 2005-Sepi*mber 30, 200 Table of Contents Introduction............................................................................ 2 FinancialReport...................................................................... 3 AppraisedValues.....................................................................3 Tax Increment Fund Revenue ................................................... 4 Performance Report................................................................. 5 Board of Directors.................................................................1Q Map......................................................................................11 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 fourth 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 Office of the Texas Attorney General and the Texas Comptroller of Public Accounts. The Texas Tax Increment Finance Act specifies that the report must include: 1'. Amount and source of revenue in the tax increment fund established for the ►,cair 90 Amount and purpose of expenditures from the fund IN Amount of principal and interest due on outstanding bonded indebtedness Tax increment base and current captured appraised value retained by the zone 10 Captured appraised value shared ny the city and other taxing units Total amount of tax increments received 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 7, 2006 upon the recommendation of the North Overton Tax Increment Financing Reinvestment Zone Board of Directors on November 20, 2006. David A. Miller, Mayor (( City Of Lubbock ] Driskill, Chairman rth Overton TIRZ Board of Directors North Overton Tex Increment Financing Reinvestment Zone 2006 Annual Report, Page 2 Financia! Report According to the Lubbock Central Appraisal District, the appraised value of the North Overton Reinvestment Zone in 2006 was $185,442,083 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 Tax Increment Fund as indicated on page 4. Appraised Values Zone 2006 Appraised Value (before $185,442,083 abatements and exemptions) 2002 Ease Value $26,940,604 "Current Captured Appraised Value $158,501,479 Retained 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). North Overton Tax Increment Financing Reinvestment Zone 2006 Annual Report, Page 3 Tax Increment Fuad Revenue Taxing Jurisdiction/Tax 1002 2005 Net 2006 Net rax Projected TIF Rate Appraised Taxable Value Increment Fund Value Value Revenue (100% Collections) City oftubbock/.46199 $26,940,604 185,284,602 158,343,998 $731,533 Lubbock County/ 26,940,604 185,285,602 158,344,998 452,491 .285763 Lubbock County Hospital District/.1142 High Plains Underground Water Conservation District #1/. 00830 Total Fund Revenue* 26, 940, 604 185,285, 602 158,344, 998 26, 940, 604 185, 285, 602 158,344, 998 180,830 13,142 $1,377,996 *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 Increment Financing Reinvestment Zone 2006 Annual Report, Page 4 Performance Report The North Overton TIF Board and City Council are operating with the Third Amended Project and Finance Plans approved by the North Overton TIF Board on November 16, 2005 and the Lubbock City Council on January 12, 2006. 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 $933.267.96 in net revenue for value earned in 2005 after the deduction of $1,119.30 for collection services. Any variance in the actual amount from the amount reported in the 2004-2005 Annual Report can be attributed to uncollected taxes and retainage by the Lubbock Central Appraisal District for collection services. The appraised values within the district total $185,442,083 after the 2006 TIF roll was certified on September 27, 2006, resulting in a current captured appraised value of $158,501,479. Revenue for 2006 will be received in the 2007 payment from the Lubbock Central Appraisal District. Expenditures and Projects On July 15, 2003, the City Council issued $3.795 million in Certificate of Obligation Bonds (CO's) to fund public improvement projects. On August 15, 2005, the City Council issued $9.29 million in CO's to fund public improvement projects. And on April 15, 2006, the City Council issued $6.3 million in CO's to fund additional public improvements. The chart to the right illustrates the public infrastructure expenditures in the North Overton TIF Fund Capital Projects. (Public Infrastructure includes: sewer, water, electric, roads, and landscaping in the right- of-way) NORTH OVERTON TIF CAPITAL PROJECTS PUBLIC INFRASTRUCTURE PROJECT EXPENDITURES Project Name Public Infrastructure Expenditures North Overton Phase I, 'Project 1 909,192 The Centre, Phase I, Project 2 1,660,270 Dinerstein II, Phase I, Project 3 1,184,874 Tract 3 133,598 Tract 5 466,311 Tract 6 372,810 Tract 7 101,981 Dinerstein III 695,571 Walmart 1,892,173 Tract 11 163,364 Single Family 1,815,593 Pioneer Park Improvements 146 Public Facility 31,330 Tract 1A 84.411 Tract 1 B 2,457 Tract 18 Commercial 219,888 $ 9,733,969 North Overton Tax Increment Financing Reinvestment Zone 2006 Annual Report, Page 5 The above tract map was provided by McDougal Properties. Administrative and Debt Service Description 2005-2006 Life -to -Date Current Administrative Account 4854 8409 North Overton Zoning Account 14,194 North Overton TIF Creation 45,312 North Overton TIF Board Admin 8,154 LOAD Collections Charge 1119 2099 Total Administrative Expense 5,973 78,168 Transfer to Debt Service 1,284,127j 1,284,127 1,290,1001 1,362,295 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. Debt Service/Bonded Indebtedness Debt service schedule for the 7/15/03 debt issuance is included as Table i on page 7. Debt service schedule for the 8/15/05 debt issuance is Table 2 on page 8. Debt service schedule for the 4/15/06 debt issuance is Table 3 on page 9. North Overton Tax Increment Financing Rein vestment Zone 2006 Annual Report, Page 6 Table 1 CITY OF LUBBOCK, TEXAS DEBT SERVICE S CHEDULE Tax & TIF Revenue CO, Series 2003 Dated Date: 0711512003 $3,795,000 TIF ALLOCATIONS FISCAL TOTAL YEAR PRINCIPAL INTEREST REQUIREMENTS 2006-07 $ 135,000.00 154,100.00 289,100.00 2007-08 140,000.00 147,225.00 287,225.00 2008-09 145,000.00 140,825.00 285,825.00 2009-10 155,000.00 134,825.00 289,825.00 2010-11 160,000.00 128,525.00 288,525.00 2011-12 165,000.00 122,025.00 287,025.00 2012-13 170,000.00 115,325.00 285,325.00 2013-14 180,000.00 108,325.00 288,325.00 2014-15 185,000.00 100,909.38 285,909.38 2015-16 195,000.00 92,950.01 287,950.01 2016-17 205,000.00 84,450.01 289,450.01 2017-18 210,000.00 75,368.76 285,368.76 2018-19 220,000.00 65,693.76 285,693.76 2019-20 235,000.00 55,309.38 290,309.38 2020-21 245,000.00 44,056.25 289,056.25 2021-22 255,000.00 32.,181.25 287,181.25 2022-23 270,000.00 19,712.50 289,712.50 2023-24 280,000.00 6,650.00 286,650.00 $ 3,550,000.00 1,628,456.30 5,178,456.30 i North Overton Tax Increment ,Financing Reinvestment Zone 2006 Annual Report, Page 7 Table 2 CITY OF LUBBOCK, TEXAS DEBT SERVICE SCHEDULE Tax & Waterworks System Surplus Revenue CO, Series 2005 Dated Date: 08/15/2005 S46,525,000 TIF ALLOCATIONS FISCAL TOTAL YEAR. PRINCIPAL INTEREST REQUMMENTS 2006-07 $ 320,000.00 392,352.50 712,352.50 2007-08 330,000.00 382,390.00 712,390.00 2008-09 345,000.00 371,639.38 716,639.38 2009-10 355,000.00 359,838.76 714,838.76 2010-11 365,000.00 347,347.51 712,347.51 2011-12 380,000.00 333,943.76 713,943.76 2012-13 395,000.00 319,118.76 714,118.76 2013-14 410,000.00 301,168.76 711,168.76 2014-15 430,000.00 282,856.26 712,856.26 2015-16 450,000.00 263,543.76 713,543.76 2016-17 475,000.00 240,418.76 715,418.76 2017-18 495,000.00 218,643.76 713,643.76 201.8-19 520,000.00 195,743.76 715,743.76 2019-20 545,000.00 169,118.76 714,118.76 2020-21 570,000.00 141,243.76 711,243.76 2021-22 600,000.00 111,993.76 711,993.76 2022-23 630,000.00 80,850.01 710,850.01 2023-24 665,000.00 47,665.63 712,665.63 2024-25 700,000.00 15,312.50 715,312.50 $ 8,980,000.00 4,575,190.15 13,555,190.15 North Overton Tax Increment Financing Reinvestment Zone 2006 Annual Report, Page 8 Table 3 CITY OF LUBBOCK, TEXAS DEBT SERVICE SCHEDULE Tax. & Waterworks System Surplus Revenue CO, Series 2006 Dated Date: 04/15/2006 $76,950,000 TIF ALLOCATIONS FISCAL TOTAL YEAR PRINCIPAL INTEREST REQUIREMENTS 2006-07 $ 81,972.05 409,198.99 491,171.04 2007-08 206,159.69 300,726.74 506,886.43 2008-09 214,356.90 292,316.41 506,673.31 2009-10 223,373.82 283,561.80 506,935.62 2010-11 233,620.33 273,253.81 506,874.14 2011-12 245,506.28 261,275.65 506,781.93 2012-13 258,211.94 248,682.70 506,894.64 2013-14 271,327.47 235,444.21 506,771.68 2014-15 285,262.72 221,529.45 506,792.17 2015-16 300,017.69 206,897.44 506,915.13 2016-17 315,182.51 191,517.44 506,699.95 2017-18 331,167.06 175,358.70 506,525.76 2018-19 348,381.19 158,369.99 506,751.18 2019-20 366,415.04 140,500.08 506,915.12 2020-21 384,858.75 121,718.24 506,576.99 2021-22 404,941.90 101,973.23 506,915.13 2022-23 425,434.92 81,213.81 506,648.73 2023-24 447,157.51 59,399.00 506,556.51 2024-25 470,109.68 36,467.32 506,577.00 2025-26 494,291.43 12,357.29 506,648.72 6,307,748.88 3,811,762.30 10,119,511.18 North Overton Tax Increment Financing Reinvestment Zone 2006 Annul Report, Page 9 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 Co 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: lack Driskill, Chair McWhorter Cobb & Johnson LLP Term: 03/14/06 - 03/01/08 City Council Representative: Carolyn McDougal McDougal Properties Term: 06/09/06 - 03/01/08 City Council Representative: Stan Mayfield City Bank Term: 03/14/05 - 03/01/07 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: 03/14/05 - 03/01/07 City Council Representative: Steve Krier Clifford Krier Wilkerson & Wright PC Term: 03/14/05 - 03/01/07 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 North Overton Tax Increment Financing Reinvestment Zone 2006 Annual Report, Page 10 Resolution Pio. 2006-RO573 Reinvestment Zane Boundary Map North Overton Tax Increment Financing Reinvestment Zone 2006 Annual Report, Page 11