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HomeMy WebLinkAbout2023 Fiscal Year End CRA Financial Report\ �1 lon SEBASTIAN CRA BOARD AGENDA TRANSMITTAL Council Meetine Date: March 20, 2024 Aeenda Item Title: Annual Sebastian CRA Report FY 22/23 Recommendation: Recommend that City Council accept the Annual Sebastian CRA Report 2023 Backeround: Florida Statutes require the Community Redevelopment Agency to file a report of activities to the primary government each year. The annual Sebastian Community Redevelopment Agency report of activities for the fiscal year ending September 30, 2023 is presented to the Community Redevelopment Agency Board of Directors for review and recommendation that City Council approve the Report. Following acceptance by the City Council, the report will be published on the agency's website and sent to the taxing agencies. If Aeenda Item Requires Expenditure of Funds: Budgeted Amount: N/A Total Cost: N/A Funds to Be Utilized for Appropriation: N/A Attachments: Sebastian CRA FY 22/23 Annual Report Administrative Services Department Review: City Attorney Review:/ / vV-k-�t Procurement Division Review, if applicable: Ni'+ City Manager Authorization: Date: )h )%aoay , SEBASTIAN RIVERFRONT COMMUNITY REDEVELOPMENT AGENCY ANNUAL REPORT Chapter 163.371 Florida Statute cn OF SEBAST!tN HOME OF PELICAN ISLAND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 1225 MAIN STREET SEBASTIAN, FLORIDA 32958 Riverfront CRA Annual Report 2023 SEBASTIAN RIVERFRONT COMMUNITY REDEVELOPMENT AGENCY ANNUAL REPORT TABLE OF CONTENTS Letter of Transmittal List of Principal Official's History Exhibit I - Sebastian CRA Boundary Accomplishments FY 2023 Sebastian CRA Performance Activities Table I — Performance Activities 2023 Table II — Fagade, Sign, & Landscape Grant t ii I 2 3 4 4 5 Tax Increment Revenues 5 Exhibit II — Operating Millage Rates in Redevelopment Area 6 Exhibit III — Taxable Value in Redevelopment Area 7 Exhibit IV — Tax Increment Revenue 8 Financial Statements 9 Balance Sheet 9 Statement of Revenues, Expenditures, and Changes in Fund Balances 10 Budget and Actual 11 Riverfront CRA Annual Report 2023 CmOF SEBASTLAN HOME OF PELICAN ISLAND March 20, 2023 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, 2023. In accordance with Chapter 163.371 Florida Statutes, each CRA is required to file with its governing body on or before March 31 each year a report of its activities for the preceding fiscal year. This 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, Alix Bernard Community Development Director/CRA Manager City of Sebastian Kenneth W. Killgore Administrative Services Director City of Sebastian Riverfront CRA Annual Report 2023 Chairman Vice Chairman Board Member Board Member Board Member LIST OF PRINCIPAL OFFICIALS Community Redevelopment Board As of September 30, 2023 Fred Jones Christopher Nunn Kelly Dixon Ed Dodd Bob McPartlan Riverfront CRA Annual Report 2023 History of the Sebastian Communitv Redevelopment A2encv (Sebastian CRAJ 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 bounded on the north, south and east by the City limits as of 1995, and on the west by the FEC Railroad right-of-way. 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, which includes industrial and commercial land use. The total Sebastian CRA land area is approximately 398 acres (Exhibit 1). Excluding road rights - of -way, zoning and land use covers approximately 299 acres. The governing body of the Sebastian CRA is the Sebastian City Council. The CRA 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 property value over a set `base year" for the redevelopment area. The government 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, establishing a new base year for this area of the CRA. The redevelopment plan was also modified on behalf of the Sebastian CRA in 2003, unifying the 1995 Sebastian CRA boundary and the expansion area as one cohesive CRA. The Master Plan was again updated in 2010, presenting conceptual district recommendations, potential policy amendments, and capital improvements intended to meet the City's redevelopment goals. Termination of Sebastian CRA (F.S.163.37551 A community redevelopment agency in existence on October 1, 2019, shall terminate on the expiration date provided in the agency's charter on October 1, 2019, or on September 30, 2039, whichever is earlier. Unless the governing body of the County or municipality that created the community redevelopment agency approves its continued existence by a majority vote of the members of the governing body, the Sebastian CRA shall sunset on September 30, 2039. Riverfront CRA Annual Report 2023 — 1 5 * m Community Redevelopment Area C'I1-Y OF SEBASTIAN, I, Q .1 TOTAL CRA LAND AREA 398 ACRES P "o d a.y5 o � CRA L"i'Arv, 303 icro= a ai } h C" i � C0IIRltYKI00 A. p� z ,H,t ..WILROry � RnWLR� Y �rw Lq�f 9 j _ 1 1.4 Lf mncusxx ta.Oib� p i - i /IN,� ;wsLat � 1 ec wwr(u> M.RRIM MapYpGS CqA ]918 _ GtS GIB ]!'Px'15 Riverfront CRA Annual Report 2023 — 2 — Accomplishments of the Sebastian Community Redevelopment Aaencv (Sebastian CRA) 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). The Sebastian CRA has continued to move towards achievement of the goals set out in the adopted Community Redevelopment Master Plan (2010). Since the establishment of the original Sebastian CRA in 1995, numerous projects have been accomplished. Accomplishments are as follows: ❑ 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 including the finger pier project. ❑ Completed construction on the Indian River Drive/Main Street intersection 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. ❑ Contributed $20,000 to a film production about the story of Pelican Island. ❑ Constructed information boards at Riverview Park and at the Main Street Boat Ramp Park. ❑ Updated the CRA Master Plan in 2010. ❑ 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 in 2015 to encourage septic to sewer conversions and reduce pollution into the Indian River Lagoon. Obtained funding assistance from IRLNEP for the Septic to Sewer assistance program in 2018 to the present. ❑ Completed roadway improvements to the Presidential Streets and Baffle Box installation for improved water quality at the outfalls. ❑ Completed repairs to the CavCorp boat parking property. ❑ Completed a Riverfront Parking Study in 2011 resulting in the establishment of the Parking -in -lieu program for parking within right-of-way of business district. ❑ Provided continued financial support for many events within the Riverfront District that attract many participants, providing revenue to our local businesses since 2000 including: Pelican Island Festival, Earth Day, Clam Bake, Shrimpfest, Concerts in the Park Series, and Fine Art Festival. ❑ Provided funding for Holiday decorations to enhance attraction to business district during holiday season. ❑ Acquired property along the Indian River shoreline for preservation as an extension of public property. ❑ Re -paved Indian River Drive and improved drainage swales and provided new enhanced pedestrian cross walks. ❑ Funded necessary repairs to the Working Waterfront historic property including: historic building repairs; new elastic coating roof; new plumbing and dock maintenance. ❑ Funded Submerged Land Leases for continued waterfront access and riverfront activities. ❑ Completed design work on the Landscape and Signage for the Working Waterfront and CRA District. ❑ Completed conceptual park design and canopy tree preservation plan for Riverview Park that included: trees, sidewalks, parking, and event areas. ❑ Initiated Sign Master Plan design by incorporating compatible public property identification signs throughout Riverfront CRA District. ❑ Completed Riverview Park Sidewalks per the Park Master Plan. ❑ Continued implementation of the Sign Master Plan for the Working Waterfront and Riverfront CRA District. ❑ Completed construction of the Working Waterfront Shoreline Protection and Commercial Fishing Distribution Center Parking Lot Improvement Plan. ❑ Completed Florida Inland Navigation District funds reporting for Fisherman's Landing Working Waterfront Park. ❑ Completed pedestrian walking trail connection from US Hwy 1 to Indian River Drive by constructing sidewalk on N. Central Avenue as part of CDBG action plan. ❑ Continued funding of improvements to Riverfront Park including irrigation and landscape. ❑ Worked with FDOT on Complete Streets design for pending improvement project on US Hwy 1. Riverfront CRA Annual Report 2023 — 3 FY 2023 Sebastian CRA Performance Activities Major activities and accomplishments of the Sebastian CRA in 2023 are shown in TABLE I and described below. ❑ Provided funding for Holiday decorations to enhance attraction to business district during holiday season. ❑ Continued funding grant programs that support public private projects including: the Facade, Sign and Landscape grant program (TABLE II). ❑ Funded Submerged Land Leases for continued waterfront access and riverfront activities. ❑ Continued implementation of the Sign Master Plan for the Working Waterfront and Riverfront CRA District. ❑ Completed Florida Inland Navigation District funds reporting for Fisherman's Landing Working Waterfront Park. ❑ Provided waterfront/streetscape maintenance & facility improvements. ❑ Continued funding of improvements to Riverfront Park including irrigation and landscape. ❑ Worked with FDOT for pending improvement project on US Hwy 1. ❑ Completed CRA Master Plan update. TABLE I —PERFORMANCE ACTIVITIES Sign Master Plan implementation Working Waterfront Maintenance & Improvements Marketing and Events Business Assistance Programs Waterfront/Streetscape Maintenance & Improvement Submerged Land Leases *Includes other funding sources. ACTIVITY I CRA PLAN I ACHIEVEMENT I AMOUNT Installation Page 21, 23, 31, 51 On -going Maintenance Page 20, 22, 31, 51 On -going $15,266.00* $19,044.00 Promotion Page 23, 51 On -going $45,369.00 FSL Grants Page 24, 50, 51 On -going $46,593.00 Maintenance I Page 20, 23, 33, 37 On -going Maintenance I Page 20, 22, 31, 51 Annual TABLE II Facade. Sign. & Landscape Grant Account Summary FY 2022/2023 $109,527.00 $4,429.00 1. 1 Robin Raiff Team 1101 U.S. Highway 1 7/27/2022 $9,992.53 Under Construction 2. 1 Suzanne Wille Studios 3. 1 District 2780, LLC Less funds disbursed Available Funds Remaining 1103 U.S. Highway 1 1105 U.S. Highway 1 $33,544.29 Riverfront CRA Annual Report 2023 — 4 — 7/27/2022 $12,468.55 7/27/2022 $11,083.21 Under Construction Under Construction 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 City's millage decreased from $5.00 per $1,000 in FY 2001 to $2.9050 per $1,000 in FY 2023. The millage for Indian River County has been decreased from $4.1014 per $1,000 in FY 2001 to $3.5475 per $1,000 in FY 2023. Rates from 2001 through 2023 are presented in Exhibit III below. Riverfront CRA Annual Report 2023 � 5 Exhibit 11 Sebastian Community Redevelopement Agency Operating Millage Rates in Redevelopment Area Fiscal Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 10.0000 9.0000 8.0000 7.0000 0 6.0000 5.0000 4.0000 3.0000 1- 2.0000 1.0000 Indian City Total River of Millage Co un Sebastian Applied 4.1014 5.0000 9.1014 4.0501 4.5904 8.6405 3.8729 4.5904 8.4633 3.8377 4.5904 8.4281 3.6233 4.5904 8.2137 3.5204 3.9325 7.4529 3.1914 3.0519 6.2433 3.0202 2.9917 6.0119 3.0202 3.3456 6.3658 3.0892 3.3456 6.4348 3.0892 3.3041 6.3933 3.0892 3.3041 6.3933 3.0892 3.7166 6.8058 3.2620 3.7166 6.9786 3.3375 3.8556 7.1931 3.3602 3.8556 7.2158 3.3602 3.8000 7.1602 3.4604 3.4000 6.8604 3.4604 3.1514 6.6118 3.5475 2.9399 6.4874 3.5475 3.1514 6.6989 3.5475 3.0043 6.5518 3.5475 2.9050 6.4525 Total Tax Increment Millage Applied Fiscal Year Source: City of Sebastian Administrative Services Department The initial implementation of the tax increment financing was for the Fiscal Year 2001 and its base year value was set at the taxable value for 1994. When the CRA area was expanded, the base year value for the expanded area was set at the taxable value for 2003. As a result, by Fiscal Year 2005, the total incremental value was $36,862,574. As compared to the Fiscal Year 2023 total incremental value of $70,979,320, the incremental value of the redevelopment area increased by 92.6% since Fiscal Year 2005. The taxable values in redevelopment area from 2001 through 2023 are presented in Exhibit III below. Riverfront CRA Annual Report 2023 - 6 - Exhibit III Sebastian Community Redevelopement Agency Taxable Value in Redevelopment Area % Change in Taxable Base Year Incremental Incremental Fiscal Year Value Value Value Value 2001 $45,834,920 $34,959,870 $10,875,050 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 -14.24% 2013 82,753,350 41,561,980 41,191,370 -1.92% 2014 82,598,780 41,561,980 41,036,800 -0.38% 2015 84,939,810 41,561,980 43,377,830 5.70% 2016 91,018,390 41,561,980 49,456,410 14.01% 2017 91,875,329 41,561,980 50,313,349 1.73% 2018 97,801,122 41,561,980 56,239,142 11.78% 2019 102,731,140 41,561,980 61,169,160 8.77% 2020 106,989,123 41,561,980 65,427,143 6.96% 2021 108,269,522 41,561,980 66,707,542 1.96% 2022 111,457,189 41,561,980 69,895,209 4.78% 2023 112,541,300 41,561,980 70,979,320 1.55% Tax Increment Values 100.0 90.0 80.0 I O 70.0 0 60.0 I 0 50.0 — — w 40.0 — — 0 30.0 — — 20.0 — 10.0 — 0.0 $`11° ti°°ti°°bti°°P $1)°ti°°ti°°ti°�11 f ;P rp $Z rp 1Z 11)1°�ti°titi°ti2°�P Fiscal Year Source: City of Sebastian Administrative Services Department Based on the millage rates and significant increases in taxable values, the tax increment revenue has risen dramatically. The total tax increment revenue in 2001 was $94,029. The required tax increment revenue in 2023 has increased to $469,960. However, this is a 27.04% decrease from the highest year of 2007 when the total was $552,741. The tax increment revenues for the redevelopment area for the Fiscal Year 2001 through 2023 are presented in Exhibit IV below. Riverfront CRA Annual Report 2023 — 7 — Exhibit IV Sebastian Community Redevelopement Agency Tax Increment Revenue Indian City River of Fiscal Year COun Sebastian 2001 $42,373 $51,656 2002 89,664 101,625 2003 87,877 104,157 2004 114,289 136,705 2005 126,886 160,753 2006 160,051 178,786 2007 282,546 270,195 2008 252,885 250,499 2009 251,236 273,888 2010 206,450 223,585 2011 143,720 153,900 2012 123,248 131,821 2013 120,886 145,437 2014 127.169 144,891 2015 137,535 158,885 2016 157,874 181,150 2017 160,610 181,631 2018 184,879 181,652 2019 201,086 183,130 2020 220,498 182,732 2021 242,367 215,305 2022 192,832 192,833 2023 274,075 195,885 Total $94,029 191,289 192,034 250,994 287,639 338,837 552,741 503,384 525,124 430,035 297,620 255,069 266,323 272,060 296,420 339,024 342,241 366,531 384,216 403,230 457,672 385,665 469,960 Note: The $192,832 in 2022 should have been $227,698. A shortage of $34,866 which was collected in 2023, in addition to $239,209 which was the corrected required amount due for 2023. $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 Tax Increment Revenue yo0 �p0 �00 �00 200 ryo0 boo , Lo0 ry�0 ryp1 ryb1 ryo� ryo� ryo� ? Lo' � ryo1 ryo� , Lod �0� rye' Y 2p` L1, yp` L1ryp` 19 Fiscal Year Source: City of Sebastian Administrative Services Department Riverfront CRA Annual Report 2023 - 8 Sebastian Community Redevelopment Agency, Florida Balance Sheet September 30, 2023 Unaudited ASSETS Cash and cash equivalents $ 7579343 Investments 1343,158 Accounts receivable - Interest receivable - Inventory - Lease receivable 171,476 Prepaid items 705 Total assets $ 9093,682 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 31326 Total liabilities 31326 Deferred inflows of resources Deferred lease amounts 173,071 Fund balances: Nonspendable 705 Restricted 888,580 Total fund balance 88%285 Total liabilities and fund balance $ 9099682 Riverfront CRA Annual Report 2023 � 9 Sebastian Community Redevelopment Agency, Florida Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended September 30, 2023 REVENUES: Taxes: Property $ 4699960 Rental income 35,701 Investment earnings 18,989 Total revenues 5249650 EXPENDITURES: Current: Economic environment 24%700 Total expenditures 2499700 Revenues over (under) expenditures 274,950 OTHER FINANCING USES: Transfers out (13,550) Total other financing uses (13,550) Net changes in fund balance 261,400 Fund balance - beginning 627,885 Fund balance - ending $ 8895285 Riverfront CRA Annual Report 2023 — 10 Sebastian Community Redevelopment Agency, Florida Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual For the Year Ended September 30, 2023 Unaudited Variance Actual with Final Budget Amounts Amounts on Budget - a Budgetary Positive Original Final Basis (Negative) REVENUES: Taxes: Property $ 380,580 $ 3803,580 $ 4691,960 $ 8%380 Investment earnings 71,719 7,719 18,989 113,270 Other revenue 36,000 36,000 351,701 (299) Total revenues 4243,299 424,299 5245650 1005351 EXPENDITURES: Current: Economic environment 260,918 247,869 24%700 19831 Total expenditures 2%918 2475869 2499,700 1,831 Excess (deficiency) of revenues over (under) expenditures 163,381 1763,430 274,950 98,520 OTHER FINANCING USES Transfers in - - - - Transfers out (15,000) (7%001) (133,550) 56,451 Total other financing (uses) (15,000) (7%001) (13,550) 56,451 Net changes in fund balances 1481,381 1069,429 2613,400 1543,971 Fund balances - beginning 6271,885 6275885 6275885 - Fund balances - ending $ 7761,266 $ 7345314 $ 88%285 $ 154,971 Riverfront CRA Annual Report 2023 — 11 Riverfront CRA Annual Report 2023 12