TO: Chair and Members of the Board
FROM: Diane Colonna, Executive Director
DATE: August 18, 2015
Title
DISCUSSION OF PROPOSED CRA BUDGET FOR FY 15/16
BACKGROUND:
A presentation will be made on the proposed CRA budget for FY 2016. A brief description of the major components of the budget is as follows.
Revenues
Revenues for the CRA total $21 million for FY 2016 and include the following:
Tax Increment $ 4,477,379
Property Management: 601,500
Miscellaneous 36,500
Carryforward Fund Balance (from all funds) $15,561,580
Total: $20,676,959
Tax Increment
The primary source of revenue for the CRA is derived of tax increment received from the City (est. millage rate: 6.3402 mills), County (est. millage rate: 5.4584 mills), and the North Broward Hospital District (est. millage rate: 1.5939 mills). The FY 2016 tax increment revenues for the CRA are as follows:
City of Margate $ 2,119,655
Broward County 1,824,852
North Broward Hospital District 532,872
Total: $ 4,477,379
Property values within the CRA for FY 2016 increased 3.4% to $659 million. The Residential (11% growth) market segment was the primary growth driver.
Property Management
Represents rent receipts from CRA properties leased for private use and includes:
Chevy Chase $ 320,000
Ace Plaza 280,000
Late Payment Fees 1,500
Total: $ 601,500
Miscellaneous
Includes estimated revenue from the investment of CRA funds and event fees:
Investment Earnings $ 21,500
Event Fees 15,000
Total: $ 36,500
Expenditures
Expenditures for the CRA total $18.8 million for FY 2016 and include the following:
Operations $ 1,463,655
Debt Service 1,912,304
Redevelopment Projects 10,314,000
Total: $ 13,689,959
Operations
Totals $1.46 million for FY 2016 and includes the following components:
• New City Positions shared by CRA (Business Development Coordinator position and Accountant position each funded 75% by the CRA based on relative workloads); $117,055.00
• CRA management which includes funding for a CRA Executive Director, CRA Project Manager, CRA Project Engineer, CRA Coordinator, and part-time CRA Marketing Coordinator: $572,500.00
• Miscellaneous operating expenditures; $174,445.00 and
• City administrative cost allocation which represents reimbursement to the City for administrative services provided to the CRA (e.g. Finance Department for payroll, vendor payments; City Clerk for agenda support) $600,000.00
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 and includes the following:
Infrastructure and Streetscape Initiatives
Neighborhood Identification Signs $ 25,000
Copans Road Landscaping 350,000
Melaleuca Drive Sidewalks and Landscaping 250,000
Sports Complex (design) 250,000
David Park/Community Center Enhancements 50,000
Winfield Blvd. Improvements (design) 40,000
Kaye Stevens Statue-Park enhancements 30,000
Wayfinding Signage 50,000
Other 5-Year CIP Capital Projects 2,490,000
Total: $ 3,535,000
City Center Development
Stormwater Improvements $ 550,000
Waterfront Park and Amphitheater (design) 200,000
State Road 7 Greenways (design) 150,000
Other City Center Capital Projects 970,000
Total: $ 1,870,000
Redevelopment Initiatives, Marketing and Special Events
Commercial Property Improvement Grants $ 200,000
Home Repair Grants 100,000
Economic Development Incentive Grants 50,000
Special Events/Event Sponsorships 168,000
Marketing and Promotions 100,000
Total: $ 618,000
Property Acquisition and Management
Property Acquisition $ 3,200,000
Property Mgmt., Maint., and Landscaping 360,000
Property Mgmt., Maint. (Chevy Chase) 155,000
Property Mgmt., Maint., (Ace Plaza) 130,000
Property Insurance 111,000
Property Taxes 110,000
Total: $ 4,066,000
Professional/Design & Consulting Services
Consultants/Professional Services $ 150,000
Redevelopment Plan Update 75,000
Total: $ 225,000
Total Redevelopment Area Investment: $ 10,314,000
Reserves
The FY 2016 budget includes an allocation to Reserve totaling $7 million ($200,000 within the CRA Trust Fund, $5.8 million within the CRA Capital Improvements Fund/CRA Land Acquisition Fund, and $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: Discuss and provide direction.
FISCAL IMPACT: Total CRA proposed budget for FY 2016 is 22,911,763.
CONTACT PERSON: Diane Colonna, Executive Director