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AI# 11295
Regular City Council Meeting
7.10.
01/24/2023:
Information
Agenda Item
Resolution - Finance:
Consider a resolution approving the Central Business District Tax Increment Financing Reinvestment Zone Annual Report for October 1, 2021, through September 30, 2022.
Item Summary
The City Council created the Central Business District Tax Increment Financing (TIF) Reinvestment Zone and appointed the Central Business District TIF Reinvestment Zone Board on December 3, 2001. 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 tax increment finance zone. The report must be provided within 150 days of the end of the City’s fiscal year and a copy must also be sent to the State Comptrollers Office.
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;
Any additional information necessary to demonstrate compliance with the tax increment financing plan adopted by the City.
Staff prepared the 2022 annual report, which includes all the information required by the above statute, and submitted it to the Central Business District TIF Board of Directors for approval on January 12, 2023. A summary of the information included in the report is as follows:
In FY 2021-22, the Zone received $1,514,694.15 in property tax revenues and $34,877.33 in interest earnings. Any variance in the actual amount from the amount reported in the FY 2020-21 Annual Report can be attributed to uncollected taxes and/or exemptions.
Expenses in FY 2021-22 included $397,831 for special projects, $79,352 in administrative costs, $1,124 for office supplies, $7,407 on professional services, and $4,564 for Lubbock Central Appraisal District collection charges. Life-to-date capital expenditures were $13.6 million.
The City of Lubbock has issued bonds for the Central Business District TIF capital projects in the amount of $12.6 million. The total amount of principal and interest remaining on the bonds issued is $9.7 million principal and $2.6 million interest.
The Central Business District TIF appraised value is $277,056,107 in 2022 with a current captured appraised value of $171,197,856.
The current captured appraised value is the total value after the base year value is subtracted.
The total tax increment to be received by the Central Business District TIF for Tax Year 2022 is projected to be $1,582,330 from all taxing jurisdictions.
The Board of Directors approved the report at their January 12, 2023 meeting and is submitting it to the City Council for approval.
Fiscal Impact
None
Staff/Board Recommending
D. Blu Kostelich, Chief Financial Officer
Central Business District TIF Board of Directors
Attachments
Resolution CBD TIF
Annual Report - CBD TIF
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