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Home My WebLink AboutOrdinance - 2014-O0108 - North Overton PID - 09/04/2014First Reading August 28, 2014 Item No. 6.2 ORDINANCE NO. 2014-00108 Second Reading September 4. 2014 Item No. 2.3 AN ORDINANCE REVIEWING CLASSIFICATIONS FOR THE METHODS OF ASSESSING SPECIAL BENEFITS FOR THE SERVICES AND IMPROVEMENTS OF PROPERTY IN THE NORTH OVERTON PUBLIC IMPROVEMENT DISTRICT ("DISTRICT"); APPROVING, ADOPTING AND FILING WITH THE CITY SECRETARY THE ASSESSMENT ROLL; CLOSING THE HEARING AND LEVYING 2014 ASSESSMENTS FOR THE COST OF CERTAIN SERVICES AND/OR IMPROVEMENTS TO BE PROVIDED IN THE DISTRICT DURING FY 2014-15; FIXING CHARGES AND LIENS AGAINST THE PROPERTY IN THE DISTRICT AND AGAINST THE OWNERS THEREOF; AND PROVIDING FOR THE COLLECTION OF THE ASSESSMENT. WHEREAS, Chapter 372 of the Texas Local Government Code (the "Act") allows for the creation of public improvement districts; and WHEREAS, On October 9, 2003 the City Council passed Resolution No.2003- R0468 which made certain findings concerning the advisability of creating the North Overton Public Improvement District, authorized and created the District as a public improvement district under Chapter 372 of the Texas Local Government Code (map attached as Exhibit A), and designated the Lubbock City Council as the entity responsible for the management of and provision of services and improvements to the District; and WHEREAS, On October 23, 2003, the City Council passed Resolution No. 2003- R0492, approving the Service and Assessment Plan, which has been reviewed and revised each year when necessary. Exhibit B, attached hereto, contains a Revised 2014 Service and Assessment Plan for the North Overton Public Improvement District; and WHEREAS, Chapter 372 of the Texas Local Government Code requires that the City Council review the Service Plan; prepare a proposed assessment roll and file it with the City Secretary; and schedule a public hearing to consider the proposed assessments and receive public comment on an annual basis; and WHEREAS, after published and mailed notice of the hearing, pursuant to the Act, a public hearing was held August 28, 2014, to consider objections to the proposed assessments. The City Council closed the public hearing after receiving property owner's concerns and comments (both oral and written) on proposed 2014 assessments within the North Overton Public Improvement District and acted on any objections to proposed assessments for particular parcels; and WHEREAS, the City desired by the calling and holding of such public hearing to provide a reasonable opportunity for any owner of property located in the District to speak for or against the 2014 assessment rate for a special assessment against real property and real property improvements exclusive of public rights-of-way, to provide funding for the District for the purpose of supplemental services and improvements; and North Overton PID Assessment Ordinance - 2014 WHEREAS, the City Council desires to review classifications and formulas for the apportionment of the costs for the services and improvements of the property in the District, and approve, adopt and file with the City Secretary the proposed assessment roll (Exhibit C); and WHEREAS, the City Council finds after review that the revised service plan and assessment plan are feasible and sound and will serve the needs and desires of the property owners and that the assessment rate of $0.15 per $100.00 of net taxable value through year 2007, assessment rate of $0.17 per $100.00 of net taxable value for year 2008 through year 2010, and assessment rate of $0.18 per $100.00 valuation for year 2011 through 2018, as determined by the Lubbock Central Appraisal District, of the property or improvements to the property located in the District; are reasonable and adequate. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS: SECTION 1: That the facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct. SECTION 2: That the City Council after review of the Revised Service Plan approves the method of assessing special benefits of services and improvements and the Revised Service Plan, which is set forth in the Assessment Plan attached and incorporated herein as Exhibit B. Terms relating to property taxes in this ordinance shall be used as defined in Section 1.04 of the Texas Property Tax Code. In accordance with the Service Plan, each property owner in the District identified for assessments in 2014 receives the same amount of service for the assessment provided. The proposed method of assessment, which specifies included or excluded classes of assessable property, is based on the net taxable value of the real property and real property improvements as determined by the Lubbock Central Appraisal District in accordance with Chapter 25 of the Texas Property Tax Code. Public rights-of-way are exempt from assessment. All property zoned commercial and high-density residential under the City of Lubbock Zoning Ordinance will be assessed on an annual basis beginning January 1, 2004. All single-family and duplex -zoned property will be assessed on a block -by -block basis determined by the public improvements to be maintained by PID funds which are completed and existing in that block on January 1 of each year. SECTION 3: The City Council hereby approves, adopts and files with the City Secretary the assessment roll attached hereto and made a part of and marked as Exhibit C (the "Assessment Roll"). The Assessment Roll states an estimate of the assessment against each parcel of land in the District, as determined by the method of assessment set forth in the Service plan and this Ordinance. The City Secretary shall file the Assessment Roll in the official City records. The Assessment Roll shall be subject to public inspection. North Overton PID Assessment Ordinance - 2014 2 SECTION 4: That the City Council finds that the notice of the City Council's intention to consider the proposed assessments at a public hearing on August 28. 2014 at 5:30 p.m. in the City Council Chamber, 1625 13th Street, Lubbock, Texas was published in the official newspaper of the City of Lubbock, Texas before the 10th day before the date of the hearing. The notice stated: (1) the date, time and place of the hearing; (2) the general nature of the services and improvements; (3) the cost of the services and improvements; (4) the boundaries of the District; and (5) that written or oral objections will be considered at the hearing. SECTION 5: That the City Council finds that Lubbock City staff mailed to the owners of property liable for assessment, notice of the hearing as the ownership appears on the City tax roll. The notice contained the information required by the Act. The notice was mailed before the 10th day before the date of the hearing to the last known address of the property owner on the City tax roll. The failure of the property owner to receive notice does not invalidate the proceeding. SECTION 6: That the City Council finds that the assessments should be made and levied against the respective parcels of property within the District and against the owners thereof, and are substantially in proportion to the benefits to the respective parcels of property by means of the services and improvements in the District for which such assessments are levied, and further finds that in each case the property assessed is specially benefited by means of the said services and improvements of the District, and further finds that the apportionment of costs of the services and improvements is in accordance with the law in force in this City and the State and in the proceedings of the City heretofore had with reference to the formation of the District and the imposition of assessments for said services and improvements are in all respects valid and regular. SECTION 7: That there shall be and is hereby levied and assessed against the parcels of property within the District, and against the real and true owners thereof (whether such owners be correctly named or not), the sums of money calculated by applying the assessment rate to the final 2014 city net taxable value in the manner described in the assessment attached hereto in Exhibits B and C and made part hereof shown opposite the description of the respective parcels of property, and the several amounts assessed against the same, and the owners thereof. SECTION 8: That the several sums above mentioned and assessed against the j' said parcels of property and the owners thereof, and interest thereon at the rate per annum established in Section 9 together with reasonable attorney's fees and costs of collection, if incurred, are hereby declared to be and are made a first and prior lien against the property assessed, superior to all other liens and claims except liens and claims for ad valorem taxes and is a personal liability of and charge against the owners of the property regardless of whether the owners are named. The lien shall attach on January 1 of each year to the property to secure the North Overton PID Assessment Ordinance - 2014 payment of all assessments, penalties, and interest ultimately imposed for the year on the property, whether or not the assessments are imposed in the year the lien attaches and shall be effective until the assessment is paid. The lien is perfected on attachment and perfection requires no further action by the governing body. SECTION 9: That the assessments levied herein shall be due and payable in full on receipt of the assessment bill and are delinquent if not paid by January 31, 2015 except as provided in Sections 31.02(b), 31.03, and 31.04 of the Texas Property Tax Code. A delinquent assessment incurs a penalty of six percent of the amount of the assessment for the first calendar month it is delinquent plus one percent for each additional month or portion of a month the assessment remains unpaid prior to July 1 of the year in which it becomes delinquent. However, an assessment delinquent on July 1 incurs a total penalty of twelve percent of the amount of the delinquent assessment without regard to the number of months the assessment has been delinquent. A delinquent assessment continues to incur the penalty provided by this section as long as the assessment remains unpaid, regardless of whether a judgment for the delinquent assessment has been rendered. That if default be made in the payment of any of the said sums hereby assessed against said property owners and their property, collection thereof, including costs and attorney's fees, shall be enforced by the governing body in the same manner that an ad valorem tax lien against real property may be enforced by the governing body under Chapters 31, 32 and 33 of the Texas Property Tax Code. The owner of the assessed property may pay at any time the entire assessment on any lot or parcel, along with any interest and penalty that has accrued on the assessment. SECTION 10: That all assessments levied are a personal liability and charge against the real and true owners of the premises described, notwithstanding such owners may not be named, or may be incorrectly named. SECTION 11: That the assessments herein levied are made and levied under and by virtue of the terms powers and provisions of the Public Improvement District Assessment Act, Chapter 372 of the Texas Local Government Code, as amended. SECTION 12: That the City may contract with the Lubbock Central Appraisal District and/or any competent attorney to collect the assessments and to represent the North Overton Public Improvement District to enforce the collection of delinquent assessments. The attorney's compensation shall be set in the contract, but the total amount of compensation provided may not exceed 20 percent of the amount of delinquent assessment, penalty, and interest collected, as required in Section 6.03 of the Texas Property Tax Code. North Overton PID Assessment Ordinance - 2014 4 AND IT IS SO ORDERED. Passed by the City Council on first reading on August 28 , 2014. Passed by the City Council on second reading onSclAmber 4 2014. GLUK VRKERTSON, MAYOR ATTEST: Rebec a Garza, City Secretary APPROVED AS TO CONTENT: ee&n& &CAtJJ Cheryl Br ck Executive Director of Budget APPROVED AS TO FORM: Linda L. Chamales, Economic Development Attorney Lc:city att/Linda/Ordmances/NO PID Ordinance 2014 Assessment August 12,2014 North Overton PID Assessment Ordinance - 2014 5 C. D w a Z O W 0 x 0 z 1 LL IL ce a a W Lu ce rl■ AVENUE Q 11111 loll rel- �L UNIVERSITY STREET °a w m �r ■■ ii ■ ii ii• UNIVERSITY STREET °a w m City of Lubbock, TX Finance Department North Overton PID Assessment and Service Plan Exhibit B Method of Assessment + Properties will be assessed based on the City's 2014 "net taxable value" as established by the Lubbock Central Appraisal District and submitted to the City under Tax Code Section 26.04. Exhibit D reflects an estimation of assessments based on the preliminary 2014 values, however, the actual assessment will be based on the final 2014 net taxable values. Assessment will be $0.185100.00 valuation. All property zoned commercial and high - density residential under the City of Lubbock's Zoning Ordinance will be assessed beginning January 1, 2004. All single-family and duplex -zoned property will be assessed on a block -by -block basis. Assessment will begin for property in a single-family or duplex -zoned block, at the time public improvements to be maintained by PID funds are completed in that block, as of January I of the assessed year. Service Plan Actual Budget Pronosed Calendar Year Property Values " Discounted Property Values Fiscal Year Revenues Interest Earnings Assessment ® $0.18 Total Expenses Lighting Landscape Annual Operating Cost Administrative Costs Subrogation Reimbursement Total 2011 ts 2012 2013 2014 2015 2016 2017 2018 Totals 250,852,305 265,378,108 285,905,478 341,141 225 365,362,252 383,630,365 402,811,883 422,952,477 S 422,952,477 250,852,305 265,378,108 285,905,478 319,649,328 342,344,430 359,461,652 377,434,734 396,306,471 396,306,471 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Totals* 1,157 114 104 326 409 577 793 1,060 25,420 412,034 473,493 514,630 575,369 616,220 647,031 679,383 713,352 4,631,511 413,191 473,607 514,734 575,694 616,629 647,608 680,175 714,411 6,379,653 42,712 27,015 40,000 41,200 42,436 43,709 45,020 46,371 429,956 391,572 383,087 451,519 456,034 465,155 474,458 483,947 493,626 4,996,955 3,252 3,845 4,633 4,772 4,915 5,063 5,214 5,371 66,364 16,568 8,045 12,000 40,441 36,930 38,038 39,180 40,355 231,558 - (10,054) - - - - - - (10,054) 454,104 411,939 508,152 542,448 549,436 561,268 573,361 585,723 5,861,159 163,502 230,694 317,034 423,847 552,536 5 552,536 Cash Reserve " 62,005 123,673 130,255 The total column includes prior yenr nntorrnthat are hidden and do not show on the spreadsheet. Assessment Information 2004-2007 Assessment per $100,000 2008-2010 Assessment per $100,000 2011-2018 Assessment per $100,000 8/14/2014 Q \Business Development\PIDWorih Overton PID\2014 Ordinance\North Overton PID Service Plan 2014 - budget V3 vNl N S 'NV r1 N U 10 C 0 J En Sppp CA S ren N 0 Q rn m O p O O Q O rn v� O p F F F F F F F F U YFY CdX U'�G U1 s� z Lu ¢ z W c O� Q a ¢ a M ¢ !t ¢ a '�+' W Q a Q c ¢ a ¢ Q a a. N r �o vi 8 o '^V en •.. 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