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Home My WebLink AboutResolution - 2017-R0029 - CBD Tifannual Report - 01/26/2017Resolution No.2017-R0029 Item No.6.6 January 26,2017 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock 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 1,2015 through September 30,2016,which will be distributed to the chief executive officer of each taxing unit levying taxes within the Central Business District 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 26.2017 . DANIEL M.POPE,MAYOR ATTEST: *JLe £l^l- Rebeiica Garza, City Secretary APPROVED AS TO CONTENT: {~Mf-~lox^ox) Cheryl Brock, Executive Director of Budget APPROVED AS TO FORM: ccdoc*/RES.CentralBusinessDistrictTax Increment Financing Reinvestment Zone-2016 Annual Report JanuarysHr'2017 Resolution No. 2017-R0029 of bb'ock TEXAS Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2015 - September 30, 2016 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2015 — September 30, 2016 Table of Contents Introduction..................................................................................................................................... 2 FinancialReport .............................................................................................................................. 3 AppraisedValues............................................................................................................................ 3 Tax Increment Fund Revenue......................................................................................................... 3 Performance Report ... Board of Directors...... Maps f 4400. City of Lubbock TEXAS M ................................................ 7 n. City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2015— September 30, 2016 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 150 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: ■ Amount and source of revenue in the Tax Increment Fund established for the Zone, ■ Amount and purpose of expenditures from the Fund, H Amount of principal and interest due on outstanding bonded indebtedness, ■ Tax increment base and current captured appraised value retained by the Zone, ■ Captured appraised value shared by the City and other taxing units, S Total amount of tax increments received, and 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 26, 2017 upon the recommendation of the Central Business District Tax Increment Financing Reinvestment Zone Board of Directors (Board) on January 11, 2017. Daniel M. Pope, Mayor City of Lubbock O Robert Taylor, Chairman 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, 2015— September 30, 2016 Financial Report As set by the Lubbock Central Appraisal District (LOAD), the appraised value of the Zone increased $105,680,737 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 2016 Appraised Value (before abatements and exemptions) $211,538,988 Less: 2001 Base Value 105,858,251 Current Captured Appraised Value Retained and Shared (before abatements)* $105,680,737 *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 2001 2016 Net Tax Fund Revenue Taxing Jurisdiction/ 2016 Appraised 2016 Net Increment (100% Tax Rate Tax Rate Value Taxable Value Value Collections) City of Lubbock Lubbock County Lubbock County Hospital District High Plains Underground Water Conservation District #1 Total Fund Revenue $0.538020 105,858,251 0.358158 105,858,251 0.112055 105,858,251 0.007500 105,858,251 Page 3 210,285,569 104,427,318 $ 561,840 210,297,369 104,439,118 374,057 210,297,369 104,439,118 117,029 210,297,369 104,439,118 7,833 $ 1,060,759 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2015— September 30, 2016 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 2015-16, the Zone received $959,252 in revenues for value earned in 2015, and $16,986 in interest earned. Any variance in the actual amount from the amount reported in the FY 2015-16 Annual Report can be attributed to uncollected taxes and/or exemptions. The City Council approved the transfer of the 25 percent of Oil and Gas Revenue that is deposited into the North and East Lubbock Neighborhood and Infrastructure Fund for Downtown Redevelopment and it will continue to be transferred to the CBD TIF each year. In 2015, the City Council approved the transfer of $108,490 from the North and East Lubbock Neighborhood and Infrastructure Fund to the CBD TIF for downtown redevelopment. Expenditures and Projects The City Council has issued five series of Certificates of Obligation to fund public improvement projects for the Zone. The principal amount of Certificates of Obligation is as follows: February 4, 2010 $ 247,564 March 15, 2011 1,404,380 May 1, 2014 2,165,000 April 28, 2015 2,690,000 April 15, 2016 2,005,000 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, 2015— September 30, 2016 Central Business District TIF Expenditures Capital Projects Public Utility Engineering and Coordination Underground Utilities EDA Grant Glenna Goodacre Boulevard Extension Total Capital Project Expenditures Administrative/Bond Issuance Expenditures Administrative Administrative Costs Office Supplies Professional Services LCAD Collections Charges Subtotal Adminstrative Expenses Special Projects Downtown Redevelopment Plan 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 Civic Center Hotel Feasibility Study Misc. Projects Transfer to Capital Project Fund Subtotal Special Projects Bond Sale Charges Total Expenditures Transfer to Debt Service * Unaudited Page 5 Fipendi to res FY 2015-16 To -Date $ - 222,148 4,193,004 5,977,947 - 2,245,614 1,220 28,584 4,194,223 8,474,293 23,267 287,537 1,187 7,936 4,186 49,701 2,071 23,284 30,712 368,458 - 100,000 - 75,547 - 8,500 - 25,254 - 8,396 231,722 2,393,391 - 342,619 5,625 49,686 - 37,631 200,000 1,000,000 437,347 4,041,023 10,059 69,786 478,118 4,479,266 $ 499,172 1,212,088 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2015— September 30, 2016 CITY OF LUBBOCK, TEXAS DEBT SERVICE SCMULE ALL CERTIFICATES & BOND ISSUES BUDGET' CENTRAL BUSINESS DISTRICT TIF FISCAL TOTAL YEAR PRINCIPAL INTEREST REQUIREMENTS 2016-17 256,536.99 396,144.88 652,681.87 2017-18 299,569.33 357,065.21 656,634.54 2018-19 317,553.82 341,999.91 659,553.73 2019-20 340,411.16 326,213.71 666,624.87 2020-21 348,755.21 309,323.36 658,078.57 2021-22 367,517.62 291,423.81 658,941.43 2022-23 386,542.52 272,556.65 659,099.17 2023-24 405,751.99 252,709.45 658,461.44 2024-25 425,243.09 231,836.87 657,079.96 2025-26 449,947.46 210,481.03 660,428.49 2026-27 469,904.74 188,002.63 657,907.37 2027-28 495,124.52 164,263.54 659,388.06 2028-29 510,528.87 140,052.27 650,581.14 2029-30 541,264.07 115,530.71 656,794.78 2030-31 549,180.23 91,054.51 640,234.74 2031-32 460,000.00 68,825.00 528,825.00 2032-33 475,000.00 48,550.00 523,550.00 2033-34 500,000.00 27,400.00 527,400.00 2034-35 340,000.00 10,450.00 350,450.00 2035-36 145,000.00 2,175.00 147,175.00 2036-37 - _ _ 2037-38 2038-39 2039-40 $ 8,083,831.62 $ 3,846,058.54 $ 11,929,890.16 Page 6 City of Lubbock, TX Central Business District Tax Increment Financing Reinvestment Zone Annual Report October 1, 2015— September 30, 2016 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: 1/01/16—1/01/18 Council Appointee: David Alderson Alderson Enterprises Term: 12/03/15 — 1/01/2017 Council Appointee: Linda L. Chamales, P.C. Term: 1/14/16 — 1/1/17 Council Appointee: Kade Wilcox Primitive Social Term: 6/23/16 — 1/01/18 Council Appointee: Henry Patel Prem Industries L.L.C. Term: 1/01/16—1/01/18 Lubbock Independent School District Appointee: Berhl Robertson, Superintendent High Plains Underground Water Conservation District Appointee: Jason Coleman, P.E., General Manager Lubbock County Hospital District Appointee and Designee: David Allison, Chief Executive Officer; Designee: Jeff Dane, C.F.O. 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, 2015— September 30, 2016 CBD TIF Preferred Plan DOWNTOWN REVITALIZATION ACTION PLAN Preft w C=ry OWTI.t6 & ablytk PIcI.a. �\\ z O T7 .— 77 JG Ciry of Lubbock. To— I. _ kL�u<y t1Me •. EDAW I DEVELOPMENT STRATEGIES / PARKHILL. SMITH 8 COOPER reinvestment Gone tsounclary map Page 8