TO: Chair and Members of the Board
FROM: Diane Colonna, Executive Director
DATE: October 20, 2016
Title
MCRA 5-YEAR FINANCING AND IMPLEMENTATION PLAN
BACKGROUND: Last year, MCRA staff introduced a 5-year Financing and Implementation Plan (“Plan”) that projected estimated revenue sources, and factored in the cost of planned projects, ongoing programs, and administrative expenses for the designated period.
The Plan is re-evaluated and adjusted annually as new information becomes available and projects and programs are added, amended or eliminated. The projections in the Plan are estimates based on the best information that is currently available and is intended to be used as a guide for preparing future budgets.
The 1st year of the Plan (FY2017) is the approved budget for the MCRA with FY’s 2018-2021 serving as the strategic vision that guides redevelopment planning. The following section provides an overview of the Plan.
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 2017 - FY 2021).
Tax Increment: $29,131,626
City Center Land Sales: 7,385,200 (Phases 1 & 2)
Property Management (rents): 2,192,600
Miscellaneous Earnings: 63,000
Carry-forward Fund Balance: 14,673,422
Total Sources: $53,445,848
Operations: $ 8,447,141
Debt Service: 9,561,515
Redevelopment Projects: 29,344,240
Total Uses: $47,352,896
Total Reserves: $ 6,092,952
Plan Sources
Tax Increment
Tax increment for FY 2017 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 2017 totals 7% with the Residential (9% growth) market segment being the primary growth driver. During the forecast period (i.e. FY 2018-2021), the Plan conservatively factors real estate value growth at 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 (includes Phases 1 and 2).
Property Management
Represents rent receipts from MCRA properties leased for private use (e.g. Chevy Chase, Ace Plaza, office rental). The rent receipts from Chevy Chase and Ace Plaza 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.
Carryforward Fund Balance
Represents the carryforward of fund balance (i.e. forecasted balance of unspent cash) within the MCRA that is available for investment in redevelopment projects.
Plan Uses
Operations
Consists of funding for personnel (team members partially funded by the MCRA based on relative workloads and include the: Business Development Coordinator funded at 75%; Accountant funded at 50%; and Office Specialist II funded at 50%), staff management, general operating expenditures, and reimbursement to the City for administrative services provided to the MCRA.
Debt Service
Represents funding for debt service on the Revenue Refunding Bonds, Series 2012 (taxable/tax-exempt).
Redevelopment Area Investment
Redevelopment Area Investment
Represents funding for redevelopment area investment over the five-year plan and includes the following:
Infrastructure and Streetscapes $ 3,874,000
City Center Development 16,975,550
Redevelopment Initiatives, Marketing and Special Events 2,937,800
Property Acquisition and Management 4,931,890
Consultants and Professional/Design Services 625,000
$29,344,240
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 approximately $6.1 million (includes $962,000 for debt service escrow on the Series 2012 Revenue Refunding Bonds). The reserves are higher in later years because the capital projects for those years have not yet been identified. 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.
As a result of the forecast of revenues in this Plan, the Five Year Capital Improvement Project Program Summary page of the budget was adjusted accordingly to match revenue sources in out years. No adjustments were made to the approved FY2017 budget.
RECOMMENDATION: No action necessary.
FISCAL IMPACT: Over specified 5-year period: estimated revenues $53,445,848; estimated expenditures: $47,352,896; estimated reserves: $6,092,952
CONTACT PERSON: Kim Vazquez, CRA Project Manager