TO: Chair and Members of the Board
FROM: Diane Colonna, Executive Director
DATE: October 14, 2015
Title
MCRA 5-YEAR FINANCING AND IMPLEMENTATION PLAN
Body
BACKGROUND:
At the September MCRA meeting the board approved the budget for FY 2016. A number of capital projects were included, particularly in relation to the City Center redevelopment plan. These projects will be implemented over the next several years. In looking ahead, MCRA staff has prepared a 5-year Financing and Implementation Plan that looks at revenues and expenses for the period of FY 2016 through FY 2020. This plan is a projection of estimated revenue sources, and factors in the cost of planned projects, ongoing programs, and administrative expenses for the designated period. These projections are estimates that are based on the best information that is currently available and are intended to be used as a guide for preparing future budgets. The plan will be re-evaluated and adjusted every year as new information becomes available and projects and programs are added, amended or eliminated.
The first column (in yellow) is the 5-year total of revenues and expenditures for each of the items listed. The second column (in green) is the adopted FY 2016 budget. The remaining columns are projections for the years 2017-2020.
Executive Summary of 5-Year Plan (All CRA Funds)
The following section provides a summary of the Plan’s sources and uses over the five-year period (i.e. FY 2016 - FY 2020).
Tax Increment: $25,174,245
City Center Land Sales: 7,385,200 (NOTE: does not include Phase 3 payment - outside of 5-yr time frame)
Property Management (rents): 2,478,900
Miscellaneous Earnings: 159,392
Carry-forward Fund Balance: 15,423,000
Total Sources: $50,620,737
Operations: $ 7,411,725
Debt Service: 9,561,520
Redevelopment Projects: 30,845,040
Total Uses: $47,818,285
Total Reserves: $ 2,802,452
Plan Sources
Tax Increment
Tax increment for FY 2016 is based on preliminary taxable value figures provided by the Broward County Property Appraiser and an estimate of contributing authority millage rates. Taxable value growth for FY 2016 totals 3.4% with the Residential (11% growth) market segment being the primary growth driver. During the forecast period (i.e. FY 2017-2020), the Plan conservatively factors real estate value growth at 2-3% annually.
City Center Land Sales
Represents forecasted land sale proceeds during the five-year Plan in accordance with the terms submitted by New Urban Communities. This includes payments for Phases 1 and 2 properties (Swap Shop site, NW Corner and Ace Plaza) - Phase 3 closing will occur outside of the Plan’s 5-year time frame.
Property Management (Rents)
Represents rent receipts from CRA properties leased for private use (e.g. Chevy Chase and Ace Plaza). The rent receipts are forecasted to cease in FY 2020 as the properties are redeveloped.
Miscellaneous Earnings:
Represents forecasted investment earnings and special event fees over the five-year period.
Carry-forward Fund Balance
Represents the carry-forward of fund balance (i.e. forecasted balance of unspent cash) within the CRA that is available for investment in redevelopment projects.
Plan Uses
Operations
Consists of funding for personnel (Business Development Coordinator position and Accountant position each funded 75% by the CRA based on relative workloads), staff management, general operating expenditures, and reimbursement to the City for administrative services provided to the CRA (e.g. Finance Department for payroll, vendor payments, etc.).
Debt Service
Represents funding for debt service on the Revenue Refunding Bonds, Series 2012 (taxable/tax-exempt).
Redevelopment Area Investment
Represents funding for redevelopment area investment over the five-year plan and includes the following:
Please refer to the Plan for a detailed listing of redevelopment projects.
Reserves
Represents the estimated reserves generated over the five-year period and totals $2.8 million (includes $960,000 for debt service escrow on the Series 2012 Revenue Refunding Bonds). Reserves are an integral part of the Plan and are necessary to cover deficiencies in revenue collection/forecasting as well as provide flexibility to invest in redevelopment opportunities as they arise.
RECOMMENDATION: No action necessary.
FISCAL IMPACT: Over specified 5-year period: estimated revenues $50,620,737; estimated expenditures: $47,818,285; estimated reserves: $2,802,452
CONTACT PERSON: Diane Colonna, Executive Director