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Home My WebLink About2015 Fiscal Year End CRA Annual ReportSEBASTIAN COMMUNITY REDEVELOPMENT AGENCY ►h "4211m Under Chapter 163.356(3)(C) CITY OF SEBASTIAN HOME OF PELICAN ISLAND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 1225 MAIN STREET SEBASTIAN, FLORIDA 32958 SEBASTIAN COMMUNITY REDEVELOPMENT AGENCY ANNUAL REPORT TABLE OF CONTENTS Letter of Transmittal List of Principal Officials History Exhibit I - Sebastian CRA Boundary Accomplishments FY 2014 Sebastian CRA Activities Tax Increment Revenues 4 Exhibit II — Operating Millage Rates in Redevelopment Area 5 Exhibit III — Taxable Value in Redevelopment Area 6 Exhibit IV — Tax Increment Revenue 7 Financial Statements 8 Balance Sheet 9 Statement of Revenues, Expenditures, and Changes in Fund Balances 10 Budget and Actual 11 CITY OF SEBASTtAN HOME OF PELICAN ISLAND March 15, 2016 Sebastian Community Redevelopment Agency Board Chairman and Members City of Sebastian, Florida Dear Board Members: We are pleased to submit the Annual Activity Report of the Sebastian Community Redevelopment Agency for the fiscal year ended September 30, 2015. Section 163.356(8)(C), Florida Statutes, requires each CRA to file with its governing body, on or before March 31 each year, a report of its activities for the proceeding fiscal year, which report shall include a complete financial statement setting forth its assets, liabilities, income, and operating expenses as of the end of such fiscal year. In addition to meeting this legal requirement, the report provides additional information concerning the benefits afforded by the agency to other jurisdictions and citizenry in general. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the management of the City. We believe the data, as presented, is accurate in all material respects, and that all disclosures necessary to enable the reader to gain an understanding of the Sebastian CRA's operation and financial activity have been included. Respectfully submitted, Kenneth W. Killgore Administrative Services Director LIST OF PRINCIPAL OFFICIALS Chairman Board Member Board Member Board Member Board Member September 30, 2015 ii Richard Gilmore Jerome Adams Andrea Coy Bob McPartlan Jim Hill History of the Sebastian Community Redevelopment Agency (Sebastian CRA) The Sebastian Community Redevelopment Agency (Sebastian CRA) was created in 1995 by the City of Sebastian City Council under Chapter 163, Part III of the Florida Statutes. The original Sebastian CRA includes an area generally east of the FEC Railroad right-of-way to the eastern City limits. The Sebastian CRA was established to ensure that the downtown and surrounding vicinity would develop with a coherent community vision, and to encourage reinvestment throughout the CRA. The area later was expanded in 2003 to include the Sebastian Boulevard "Triangle" area west of the FEC Railroad right-of-way. The total Sebastian CRA area is 299 acres excluding road rights- of-way (Exhibit 1). The governing body of the Sebastian CRA is the Sebastian City Council. The Board is comprised of five (5) members. Under the State Statutes and the City ordinances, the Sebastian CRA has substantial powers and authority within the Sebastian CRA area. These include the power to make and execute contracts, to acquire and dispose property, to approve development plans, to implement a program of voluntary or compulsory rehabilitation of buildings, to mortgage its property, to borrow and invest money, and to apply for and accept grants and contributions. The major funding source for the Sebastian CRA is tax increment revenue. Tax increment revenue is the increase in ad valorem tax attributed to the increase in the assessed value over a `base year" for various jurisdictions in the redevelopment area. The jurisdictions remitting tax increment revenue to the Sebastian CRA are the City of Sebastian and the Indian River County Board of County Commissioners. After the establishment of the Sebastian CRA in 1995, the City established the Redevelopment Trust Fund and the base year for tax increment revenues as well as adopted the 1995 Community Redevelopment Plan. The boundary was later expanded to include the adjacent Sebastian Boulevard "Triangle" area in 2003, and the redevelopment plan was also modified by the Her Planning Group on behalf of the Sebastian CRA. The 2003 plan basically unifies the 1995 Sebastian CRA boundary and the expansion area as one cohesive CRA, and presents conceptual district recommendations, potential policy amendments, and capital improvements intended to meet the City's redevelopment goals. Areawide Recommendations 1. Retain 2-3 story maximum building height, 2 modify community design guidelines to remle= "Old Florida Fishing Village design theme. 3. Future study to further address puking needs in the CRA_ Capital Improvements 1. Rivmricw Park improvements. 2. Streciscape improvements to [IS -1, Riverside Drivc, and Sebastian Boulevard (east and westbaundj. I Reconfigure boat trailer puking. 4. Develop a stemawaterpark- 5 1 M Legend CRA, Boundary Oatey Treatment SMeelseapes and Pocket parks A Main street. +oo eco Activity Center IMUROME ]MORMAIN -" IIS 1 StrecIIenpe and "anild to 3. - 4 Gauuvm, 4 ent figs ppGateway a rt"zet g, A, 5 1 M Legend CRA, Boundary Oatey Treatment SMeelseapes and Pocket parks A Main street. +oo eco Activity Center IMUROME ]MORMAIN -" IIS 1 StrecIIenpe and "anild to Redevelopment Plan Summary Map City of Sebastian CRA =aX. cman SEBASTIAN m LZtR Vimley-Horn and Associates, Inc. Figure I Riftrvieny Park Activity Cem er Potential CRA Expansion w =w Park� 3. - 4 Gauuvm, 4 ent ppGateway fT rt"zet A, Redevelopment Plan Summary Map City of Sebastian CRA =aX. cman SEBASTIAN m LZtR Vimley-Horn and Associates, Inc. Figure I Riftrvieny Park Activity Cem er Potential CRA Expansion w =w Park� Accomplishments of the Sebastian Community Redevelopment AF-ency (Sebastian CRA) Since the establishment of the original Sebastian CRA in 1995, numerous projects have been accomplished. Accomplishments are as follows: ❑ Provided annual funding support to festivities such as Riverfront Christmas decorations, Clam Bake festival, fine art festival, concert in the park, and Pelican Island celebration since the year 2000. ❑ Completed Riverview Park Phase I, boat dock, landscaping, and shoreline stabilization project in 2001. ❑ Developed community redevelopment master plan in 2003. ❑ Completed Jackson Street extension, sidewalk, and street light project in 2004. ❑ Completed improvements to the Yacht Club. ❑ Completed construction on the Indian River Drive/Main Street project. ❑ Established a Fagade, Sign and Landscaping matching grant program. ❑ Received contribution from the Clambake Foundation and provided the balance of funding for the Flag Pole project, which enhanced the view at the western entrance to the CRA area. ❑ Designed billboard advertisements and rented billboards on Highway I-95. ❑ Contributed $20,000 to a film production about the story of Pelican Island. ❑ Constructed information boards at Riverview Park and at the Park at Indian River Drive/Main Street. ❑ Updated the CRA Master Plan in 2010. ❑ Completed construction on the Yacht Club finger pier project. ❑ Provided matching funds to the Stan Mayfield Grant that was used for the purchase of the Working Waterfront Properties. ❑ Executed lease with Crab E. Bills for a commercial retail fish market and a retail commercial limited food service "Eatery". ❑ Established a Sewer Connection Grant Program to encourage reduction of seepage into the Indian River Lagoon. ❑ Completed roadway improvements to the Presidential Streets. FY 2015 Sebastian CRA Activities The Sebastian CRA is treated as a special revenue fund of the City. An independent financial audit by an external CPA firm has been accomplished annually to be in compliance with Section 163.387(8), Florida Statutes. An annual budget is also adopted by the Sebastian CRA Board to be in compliance with Section 189.418(3). Major activities and accomplishments of the Sebastian CRA in 2015 included: ❑ Provided financial support for the clam bake, concert in the park events and fine art festival. ❑ Provided funding for Holiday decorations. ❑ Completed construction of roadway improvements to the Presidential Streets. ❑ Made necessary repairs to the Working Waterfront properties. ❑ Replaced picnic tables and benches at Riverview Park. ❑ Allocated funds to improvements to the CavCorp property. Tax Increment Revenue The tax increment revenue is determined annually as 95 percent of the difference between: (a) the amount of ad valorem taxes levied each year by each taxing authority contributing to the Sebastian CRA on taxable real property contained within the redevelopment area, exclusive of the following entities: Florida Inland Navigation District Indian River County Mosquito Control District Indian River County Hospital Maintenance District School District, and associated General Obligation Debt funded by ad valorem taxes Indian River County Land Acquisition Bond General Obligation Debt Emergency Services Dependent Taxing District St. Johns River Water Management District Sebastian Inlet Taxing District and (b) the amount of ad valorem taxes which would have been generated by the rate at which the tax is levied each year by the taxing authority, exclusive of the following entities: Florida Inland Navigation District Indian River County Mosquito Control District Indian River County Hospital Maintenance District School District, and associated General Obligation Debt funded by ad valorem taxes Indian River County Land Acquisition Bond General obligation Debt Emergency Services Dependent Taxing District St. Johns River Water Management District Sebastian Inlet Taxing District upon the total of the assessed value of the taxable real property in the community redevelopment area as shown on the assessment roll used by each taxing authority prior to March 22, 1995, the effective date of the ordinance creating the Redevelopment Trust Fund. Indian River County Board of County Commissioners and the City of Sebastian currently make tax increment payments into the Sebastian CRA Trust Fund. The actual implementation of the tax increment financing was delayed until FY 2001. The City's millage has decreased from $5.00 per $1,000 in FY 2001 to $3.8556 per $1,000 in FY 2015. The millage for Indian River County has been decreased from $4.1014 per $1,000 in FY 2001 to $3.3375 per $1,000 in FY 2015. Rates from 2001 through 2014 are presented in Exhibit II below. Exhibit IV Sebastian Community Redevelopement Agency Tax Increment Revenue Tax Increment Revenue $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 FF L�p1,y�p2,L�p3,L�p�,L�pS,L�p6,L�p� ,y�p92�p9,L� 10,L�112�12,L�13,y�1R2p15 Fiscal Year Source: City of Sebastian Administrative Services Department 5 Indian City River of Fiscal Year Count Sebastian Total 2001 $42,373 $51,656 $94,029 2002 89,664 101,625 191,289 2003 87,877 104,157 192,034 2004 114,289 136,705 250,994 2005 126,886 160,753 287,639 2006 160,051 178,786 338,837 2007 282,546 270,195 552,741 2008 252,885 250,499 503,384 2009 251,236 273,888 525,124 2010 206,450 223,585 430,035 2011 143,720 153,900 297,620 2012 123,248 131,821 255,069 2013 120,886 145,437 266,323 2014 127,169 144,891 272,060 2015 137,535 158,885 296,420 Tax Increment Revenue $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 FF L�p1,y�p2,L�p3,L�p�,L�pS,L�p6,L�p� ,y�p92�p9,L� 10,L�112�12,L�13,y�1R2p15 Fiscal Year Source: City of Sebastian Administrative Services Department 5 The taxable value of real property in the redevelopment area has risen significantly during the same period. In FY 2001 the total taxable value of the redevelopment area was $45.8 million. Compared to FY 2015 total taxable value of $84.9 million, the taxable value of the redevelopment area has increased by 85.3%. After subtracting the base year values, the 2015 incremental value has increased almost four times the 2001 value. The taxable values in redevelopment area from 2001 through 2015 are presented in Exhibit III below. Exhibit III Source: City of Sebastian Administrative Services Department 6 Sebastian Community Redevelopement Agency Tax Increment Values Taxable Value in Redevelopment Area J! 90.0 M % Change in Taxable Base Year Incremental Incremental Fiscal Year Value Value Value Value 2001 $45,834,920 $34,959,870 $10,875,050 30.0 2002 58,263,740 34,959,870 23,303,870 114.29% 2003 58,844,190 34,959,870 23,884,320 2.49% 2004 66,307,980 34,959,870 31,348,110 31.25% 2005 78,424,554 41,561,980 36,862,574 17.59% 2006 89,418,550 41,561,980 47,856,570 29.82% 2007 134,755,060 41,561,980 93,193,080 94.73% 2008 129,700,130 41,561,980 88,138,150 -5.42% 2009 127,735,740 41,561,980 86,173,760 -2.23% 2010 111,909,020 41,561,980 70,347,040 -18.37% 2011 90,533,980 41,561,980 48,972,000 -30.39% 2012 83,558,060 41,561,980 41,996,080 -40.30% 2013 82,753,350 41,561,980 41,191,370 -15.89% 2014 82,598,780 41,561,980 41,036,800 -2.28% 2015 84,939,810 41,561,980 43,377,830 5.31% Source: City of Sebastian Administrative Services Department 6 Tax Increment Values 100.0 -- J! 90.0 M 80.0 c 70.0 0 60.0 0 50.0 40.0 c 30.0 a 20.0 10.0 0.0 - 2001 2002 2003 2pOQ 2005 2006 200'1 2008 2009 2p10 2pO 2p12 2013 201 20A5 Fiscal Year Source: City of Sebastian Administrative Services Department 6 Based on the millage rates and the significant increases in taxable values, the tax increment revenue has risen dramatically. In 2001, the total tax increment revenue was $94,029. In 2015, the tax increment revenue has increased to $296,420 but this is a 46.4% decrease from the high year of 2007. The tax increment revenues for the redevelopment area for the Fiscal Year 2001 through 2015 are presented in Exhibit IV below. Exhibit IV Sebastian Community Redevelopement Agency Tax Increment Revenue Tax Increment Revenue $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 - TF7 Zpp12pp2 Lpp3 LppA LppS Zpp6 Lpp12pp8 Lpp97. A 0If 112.1 _S 13 Lp1A tp15 Fiscal Year (1) The revenues include the triangle area, which was added in the redevelopment area in 2003. Source: City of Sebastian Administrative Services Department Financial Statements 7 Indian City River of Fiscal Year Coun Sebastian Total 2001 $42,373 $51,656 $94,029 2002 89,664 101,625 191,289 2003 87,877 104,157 192,034 2004 114,289 136,705 250,994 2005 126,886 160,753 287,639 2006 160,051 178,786 338,837 2007 282,546 270,195 552,741 2008 252,885 250,499 503,384 2009 251,236 273,888 525,124 2010 206,450 223,585 430,035 2011 143,720 153,900 297,620 2012 123,248 131,821 255,069 2013 120,886 145,437 266,323 2014 127,169 144,891 272,060 2015 137,535 158,885 296,420 Tax Increment Revenue $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 - TF7 Zpp12pp2 Lpp3 LppA LppS Zpp6 Lpp12pp8 Lpp97. A 0If 112.1 _S 13 Lp1A tp15 Fiscal Year (1) The revenues include the triangle area, which was added in the redevelopment area in 2003. Source: City of Sebastian Administrative Services Department Financial Statements 7 The Sebastian CRA is considered a blended component unit of the City and therefore it is included in the City's annual financial audit. In order to meet the requirement of Section 163.387(8), Florida Statutes, which requires the CRA to provide for annual audit of the redevelopment trust fund, the Sebastian CRA has been treated as a major fund of the City. The financial statements included herein are unaudited statements of the Sebastian CRA. Audited statements are included in the City's Comprehensive Annual Financial Report (CAFR) for the fiscal year ending September 30, 2015 and may be obtained in the City Clerk's office 1225 Main Street, Sebastian, Florida or online at http://www/cityofsebastian.ore. 0 Sebastian Community Redevelopment Agency, Florida Balance Sheet September 30, 2015 Unaudited ASSETS Cash and cash equivalents Investments Total assets LIABILITIES AND FUND BALANCE Liabilities: Accounts payable Total liabilities Fund balances: Restricted Total fund balance Total liabilities and fund balance $ 358,515 96,706 $ 455,221 $ 8,493 8,493 446,728 446,728 $ 455,221 Sebastian Community Redevelopment Agency, Florida Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended September 30, 2015 Unaudited REVENUES: Taxes: Property Investment earnings Otherrevenue Total revenues EXPENDITURES: Current: General government Economic environment Capital outlay: Captial outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING USES: Transfers out Total other financing uses Net changes in fund balance Fund balance - beginning Fund balance - ending 10 $ 296,420 1,890 36,000 334,310 2,568 161,545 26,096 190,209 144,101 (77,427) (77,427) 66,674 380,054 $ 446,728 Sebastian Community Redevelopment Agency, Florida Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual For the Year Ended September 30, 2015 Unaudited REVENUES: Taxes: Property Investment earnings Other revenue Total revenues EXPENDITURES: Current: General government Economic environment Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING USES Transfers out Total other financing (uses) Net changes in fund balances Fund balances - beginning Fund balances - ending Actual Variance with Budget Amounts Amounts on Final Budget - a Budgetary Positive Original Final Basis (Negative) $ 287,844 $ 287,844 $ 296,420 $ 718 718 1,890 36,000 36,000 36,000 _ 324,562 324,562 334,310 8,576 1,172 9.748 2,500 2,500 2,568 68 268,135 274,869 161,545 (113,324) - 26,266 26,096 (170) 270,635 303,635 190,209 (113,426) 53,927 20,927 144,101 123,174 (160,000) (338,774) (77,427) 261,347 (160,000) (338,774) (77,427) 261,347 (106,073) (317,847) 66,674 384,521 380,054 380,054 380,054 - $ 273,981 $ 62,207 $ 446,728 $ 384,521 11