The City Council created the North Overton Tax Increment Financing (TIF) Reinvestment Zone and appointed the North Overton TIF Reinvestment Zone Board on March 14, 2002. 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 2021 Annual Report, which includes the information required by the above statute, and submitted it to the North Overton TIF Board of Directors for approval on January 20, 2022. A summary of the information included in the report is as follows:
For the year ended September 30, 2021, the Zone received $4.5 million in property tax revenues for the 2020 tax year. Any variance in the actual amount from the amount reported in the FY 2019-20 annual report can be attributed to uncollected taxes and/or exemptions. The Zone received $666,320 in hotel motel tax revenue for debt service on the conference center, $65,051 in revenue from the one percent of net revenue from the Overton Hotel and $71,778 in incentive rent from the Overton Hotel. The Zone also earned $58,323 in interest.
Expenses in FY 2020-21 included $7,882 in administrative costs, $641 for Office Supplies, $6,111 for Professional Services, $3,855 for Lubbock Central Appraisal District collection charges, a $1.5 million transfer to capital, and $3,132,547 that was transferred to debt service. Life-to-date capital expenditures were $53.4 million.
The City of Lubbock has issued bonds for the North Overton TIF Capital Projects in the amount of $41.5 million. These capital projects include sewer, water, electric, streets, and landscaping in the parkway. The total amount of principal and interest remaining on the bonds issued is $14.9 million principal and $1.8 million interest.
The North Overton TIF appraised value is $528,386,546 in 2021, with a current captured appraised value of $501,445,942. 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 North Overton TIF for Tax Year 2021, is projected to be $4,939,997 from all taxing jurisdictions.
The Board of Directors approved the report at their January 20, 2022 meeting and is submitting it to the City Council for approval.
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