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Home My WebLink AboutResolution - 2021-R0038 - FY 2019-20 North Overton TIF Annual ReportResolution No. 2021-R0038 Item No. 7.10 January 26, 2021 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Council of the City of Lubbock does hereby approve the North Overton Tax Increment Financing Reinvestment Zone Annual Report for October 1, 2019 through September 30, 2020, which will be distributed to the chief executive officer of each taxing unit levying taxes within the North Overton Tax 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, 2021 �J DANIEL M. POPE, MAYOR ATTEST: Rebecca Garza, City Secretary APPROVED AS TO CONTENT: Z)L Blu Kostelich, Chief -Financial Officer APPROVED AS TO FORM: &'A/XM-t' elli Leisure, Assistant City Attorney ccdocs/RES. North Overton Tax Increment Financing Reinvestment Zone— 2020 Annual Report 01.11.21 Resolution No. 2021-R0038 City of Lubbock TEXAS North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2019 - September 30, 2020 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2019 — September 30, 2020 Table of Contents Introduction..................................................................................................................................... 2 Financial Appraised Values Tax Increment Fund Revenue ........................................ c to 91 PerformanceReport ........................................................................................................................ 4 Boardof Directors........................................................................................................................... 7 Maps................................................................................................................................................ 8. �f City of rLubbock TEXAS City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2019 —September 30, 2020 Introduction The Lubbock City Council established the North Overton Tax Increment Financing Reinvestment Zone (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 50.0 percent of the appraised value of land in the Zone. The petition 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 for 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. The report must be provided on or before the 150°i day following 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: ❑ Amount and source of revenue in the Tax Increment Fund established for the Zone, ❑ Amount and purpose of expenditures from the Fund, ❑ 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, ❑ 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, 2021 upon the recommendation of the North Overton Tax Increment Financing Reinvestment Zone Board of Directors (Board) on January 12, 2021. le � Y Daniel M. Pope, Mayor City of Lubbock Page 2 Jeff Dane; Chairman North Overton T1F Board of Directors City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2019 — September 30, 2020 Financial Report As set by the Lubbock Central Appraisal District (LCAD), the appraised value of the Zone increased $480,385,078 in value since the 2002 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 2020 Appraised Value (before abatements and exemptions) $ 507,325,682 Less: 2002 Base Value 26,940,604 Current Captured Appraised Value Retained and Shared (before abatements)* $ 480,385,078 *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 311.412(b). Tax Increment Fund Revenue 2020 Projected TIF 2002 Incremental Fund Revenue Taxing Jurisdiction 2020 Appraised 2020 Net Net Taxable (100% Tax Rate Value Taxable Value Value Collection) City of Lubbock Lubbock County Lubbock County Hospital District High Plains Underground Water Conservation District # 1 $0.541573 0.339978 26,940,604 506,704,123 479,773,519 $ 2,598,324 26,940,604 506,725,123 479,784,519 1,631,162 0.103164 26,940,604 506,725,123 479,784,519 494,965 0.005500 26,940,604 506,725,123 479,784,519 26,388 Total Fund Revenue $ 4,750,839 Page 3 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2019 — September 30, 2020 Performance Report The Board and City Council are operating with the Fifth Amended Project and Finance Plans approved by the Board on December 10, 2009 and approved by the City Council on February 25, 2010. 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 and the potential project financing that revenue may support. The Project Plan describes the types of projects anticipated to occur in the Zone. Revenues For the year ended September 30, 2020, the Zone received $4.8 million in property tax revenues for the 2019 tax year. Any variance in the actual amount from the amount reported in the FY 2018-19 annual report can be attributed to uncollected taxes and/or exemptions. The Zone received $378,916 in hotel motel tax revenue for debt service on the conference center, $76,482 in revenue from the one percent of net revenue from the Overton Hotel and $70,788 in incentive rent from the Overton Hotel. The Zone also earned $68,690 in interest. Expenditures and Projects The City Council has issued nine series of Certificates of Obligation to fund public improvement projects for the Zone. They were issued as follows: July 15, 2003 $ 397959000 August 15, 2005 9,290,000 April, 15, 2006 6,307,749 August 15, 2007 4,1119341 January 17, 2008 111,805,000 May 23, 2008 1,943,758 April 8, 2009 961,386 January 20, 2010 19982,958 April 15, 2016 19280,000 All expenditures are made 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 North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2019 - September 30, 2020 North Overton TIF Expenditures fkpenditures To FY2019-20 Date Capital Projects North Overton Phase I $ - 909,192 The Centre, Phase I Project - 1,959,363 Dinerstein II, Phase 1 Project - 1,581,407 Tract #3 - 1,158,251 Tract #5 - 1,004,141 Tract #6 - 526,414 Tract #7 - 904,271 Dinerstein III - 1,022,627 Walmart - 2,521,914 Tract 11 - Condo I - 163,364 Tract 12 and Tract 13 - Condo 1I & III - 215,690 Single Family - 4,986,859 Pioneer Park Improvements - 8,268 North Overton TIF Public Facilities" - 22,652,438 Tract IA - 84,411 ROW Acquire Glenna Goodacre Blvd. - 3,253,991 Tract 1 B - 124,633 Tract 18 Commercial - 762,433 ULOFT - 86,049 Tract 1-B-3 - 68,867 Glenna Goodacre Blvd. East - 2,973,448 Water Utilities North Overton TIF - 148,910 North Overton TIF Electric Utility - 322,374 Capstone - 2,312,571 Wastewater Utilities North Overton TIF - 125,574 North Overton TIF Street Reconstruction - 871,062 Landscaping in the Parkway - 89,281 North Overton TIF Public Improvements 609,039 2,523,508 Street Infrastructure Upgrades/Replacement - - Roy Furr Pioneer Park - - Total Capital Project Expenditures $ 609,039 53,361,312 Administrative/Bond Issuance Expenditures Administrative Administrative Costs $ 4,885 345,167 Office Supplies 728 8,703 Professional Services 5,486 99,808 LCAD Collections Charges 3,444 24,733 North Overton Zoning - 14,194 North Overton TIF Creation - 45,312 North Overton TIF Board Administration - 8,154 Total Administrative Expenditures 14,543 546,071 Interest Expense - 343,017 Bond Sale Charges - 272,726 Special Projects - 1,200 Capital Outlay - 31,539 Transfer to Capital Projects Fund 300,000 3,000,000 Total Expenditures $ 314,543 4,194,554 Transfer to Debt Service $ 3,171,626 43,083,680 ** This project is funded with $11.4 million in bonds and $11 million in grants from the CH Foundation and the Moody Foundation Page 5 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2019 — September 30, 2020 ALL CERTIFICATES & BOND ISSUES BUDGET NORTH O V ERTON TIE ALLOCATIONS FISCAL TOTAL YEAR PRINCIPAL INTEREST REQUIREMENTS 2020-21 2,505,000.00 626,168.55 3,131,168.55 2021-22 2,580,000.00 527,870.96 3,107,870.96 2022-23 2,660,000.00 425,286.86 3,085,286.86 2023-24 2,745,000.00 333,436.71 3,078,436.71 2024-25 2,685,000.00 234,557.01 2,919,557.01 2025-26 2,085,000.00 133,467.51 2,218,467.51 2026-27 1,535,000.00 60,534.38 1,595,534.38 2027-28 320,000.00 23,250.00 343,250.00 2028-29 190,000.00 11,000.00 201,000.00 2029-30 130,000.00 3,250.00 133,250.00 2030-31 - - - $ 17,435,000.00 $ 2,378,821.98 $ 19,813,821.98 Page 6 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Annual Report October 1, 2019 — September 30, 2020 Board of Directors Because the Zone was initiated by a petition of the property owners, by statute the board must consist of nine members. The City Council appoints four board members, who must be at least 18 years of age and owners, or a representative of owners, of real property in the 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 is the representative of Lubbock County. 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. Lubbock County Hospital District Representative: Mark Funderburk, Chief Executive Officer; Designee: Jeff Dane, Chair City Council Representative: Timothy Pridmore McWhorter Cobb & Johnson LLP Term: 03/01 /20 — 03/01 /22 City Council Representative: Kurt Metcalf Overton Hotel Term: 03/01/19 — 03/01/21 City Council Representative: Patrick Murfee Murfee and Sons, Inc. Term: 03/01 /19 — 03/01 /21 City Council Representative: Yvonne Young American Campus Communities Term: 04/09/ 19 — 03/01 /21 State Senator: Honorable Charles Perry, State Senator State Representative: Honorable John Frullo, State Representative Lubbock County Representative: Gilbert A. Flores, Lubbock County Commissioner High Plains Underground Water District Representative: Jason Coleman, High Plains Underground Water District Appointee Page 7 II' n"�L1 k`.II'1 1 a�w xy Par Pioneer Park wrw-- Wit® �.:.... Wens I ,.,,� - In„r7