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 2021 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 13, 2022. A summary of the information included in the report is as follows:
In FY 2020-21, the Zone received $1,238,743 in property tax revenues and $7,424 in interest earnings. 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. In FY 2020-21, Market Lubbock Inc. transferred $35,073 to the CBD TIF Capital Project Fund for the Downtown Police Program.
Expenses in FY 2020-21 included $713,270 for special projects, $58,000 in administrative costs, $747 for office supplies, $6,629 on professional services, and $4,907 for Lubbock Central Appraisal District collection charges. Life-to-date capital expenditures were $12.3 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 $10.3 million principal and $3.0 million interest.
The Central Business District TIF appraised value is $249,695,117 in 2020 with a current captured appraised value of $143,836,866. 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 2021 is projected to be $1,384,725 from all taxing jurisdictions.
The Board of Directors approved the report at their January 13, 2022 meeting, and is submitting it to the City Council for approval.