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HomeMy WebLinkAbout2022 Fiscal Year End CRA Financial Report%T ♦V SV'PAST�IA I. 1k r, HOME OF PELICAN ISLAND CRA BOARD AGENDA TRANSMITTAL Council Meeting Date: April 260 2023 Agenda Item Title: Annual Sebastian CRA Report FY 21/22 Recommendation: Move to accept the Annual Sebastian CRA Report 2022 Bac round: Florida Statues 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, 2022 is presented to the Community Redevelopment Agency Board of Directors for review and approval. Following acceptance by the City Council, the report will be published on the agency's website and sent to the taxing agencies. If Agenda Item Renuires Exnenditure of Funds: Budgeted Amount: N/A Total Cost: N/A Funds to Be Utilized for Appropriation: N/A Attachments: 1. 2022 CRA Annual Activity Report Administrative Services Departt Review:/1 . 1 -Il C A, City Attorney Review: / r Procurement Division Review, if applicable: City Manager Authorization:, Date: 'I Af -r SEBASTIAN RIVERFRONT COMMUNITY REDEVELOPMENT AGENCY ANNUAL REPORT Chapter 163.371 Florida Statute E �T�I HOME OF PELICAN ISLAND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 1225 MAIN STREET SEBASTIAN, FLORIDA 32958 SEBASTIAN RIVERFRONT COM2KUNrrY REDEVELOPMENT AGENCY ANNUAL REPORT TABLE OF CONTENTS Letter of Transmittal List of Principal Official's History Exhibit I - Sebastian CRA Boundary Accomplishments FY 2022 Sebastian CRA Performance Activities Table I — Performance Activities 2022 Table II — Septic to Sewer Grant prograom Table III — Fagade, Sign, & Landscape Grant i 11 1 2 3 4 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 CV F SEBASTIAN ,,.� HOME OF PELICAN LAND March 31, 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, 2022. 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, Lisa Leger Frazier, AICP Community Development Director/CRA Manager City of Sebastian Kenneth W. Killgore Administrative Services Director City of Sebastian i LIST OF PRINCIPAL OFFICIALS Community Redevelopment Board As of September 30, 2022 Chairman Fred Jones Vice Chairman Christopher Nunn Board Member Kelly Dixon Board Member Ed Dodd Board Member Bob McPartlan ii History of the Sebastian Community Redeveloament .Aeenev (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 bounded on the north, south and eak by the City limits as of 1995, and on the west by the FEC Railroad right-Df-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 &rr..►.timately 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 err. ✓e development plans, to implement a 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 redevehoy..A ,Ait 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 2022 Page 1 EXHIBIT I - SEBASTIAN CRA BOUNDARY MAP q_w-S�C.olliYlllulity Rede-velopment Area Kl� 11 A�, C'IT17 CIF SFBAS'TIAN, FL TOTAL CRA LAM ARU "a ACMM vF /. =3ito 6 IItA i CwItIAC�C- o VVY i ` 9 T14�bIGZ: F Irlep�w E % C cnesoa G C1FaYl9l✓ .I1. GN4:6W U�u 4M4:x+mtlf r�ruavUO tl p D uuccwav R � i 6 g`ng t � B Ics lu c 5 lxb.7 rr enecan C:Ie ij pAIVB 1" mLNKIEA Wn e[t'1Oe 6 IRILSAbt 6yyJ� VCSAGG6T�� �. c-.cncssa a pf .el 'e J b �a nx� naa: t T9J SSA: oucnamann N A om ar 2mm- Riverfront CRA Annual Report 2022 Page 2 AcconmUshments of the Sebastian Community Redeveloument Agenev (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: v Completed Riverview Park Phase L boat dock, landscaping, and shoreline stabilization project in 2001. o Developed community redevelopment master plan in 2003. o Completed Jackson Street extension, sidewalk, and street light project in 2004. o Completed improvements to the Yacht Club including the finger pier project. v Completed construction on the Indian River Drive/Main Street intersection project. co Established a Fagade, Sign and Landscaping matching grant program. o 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. o Contributed $20,000 to a film production about the story of Pelican Island. v Constructed information boards at Riverview Park and at the Main Street Boat Ramp Park. o Updated the CRA Master Plan in 2010. o 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". o 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. v Completed roadway improvements to the Presidential Streets and Baffle Box installation for ..;� . ✓ed water quality at the outfalls. D Completed repairs to the CavCorp boat parking property. o 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. o Provided continued financial support for many events within the Riverfi-ont 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. o Provided funding for Holiday decorations to enhance attraction to business district during holiday season. o 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. o Funded necessary repairs to the Working Waterfront historic property including: historic building repairs; new elastic coating roof; new plumbing and dock maintenance. o Funded Submerged Land Leases for continued waterfront access and riverfront activities. v Completed design work on the Landscape and Signage for the Working Waterfront and CRA District. v Completed conceptual park design and canopy tree preservation plan for Riverview Park that included: trees, sidewalks, parking, and event areas. o Initiated Sign Master Plan design by incorporating compatible public property identification signs throughout Riverfront CRA District. o Completed Riverview Park Sidewalks per the Park Master Plan. o Continued implementation of the Sip Master Plan for the Working Waterfront and Riverfront CRA District. o Completed construction of the Working Waterfront Shoreline Protection and Commercial Fishing Distribution Center Parking Lot Improvement Plan. o Completed Florida Inland Navigation District fiords reporting for Fisherman's Landing Working Wat:.-L..t Park. o 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. v Continued funding of improvements to Riverfront Park including irrigation and landscape. o Worked with FDOT on Complete Streets design for pending improvement project on US Hwy 1. Riverfront CM Annual Report 2022 Page 3 FY 2022 Sebastian CRA Performance Activities Major activities and accomplishments of the Sebastian CRA in 2022 are shown in TABLE I and described below. ❑ Provided financial support for many events within the Riverfront District that attract many participants, providing revenue to our local businesses including: 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. ❑ Continued funding grant programs that support public private projects including: the Septic to Sewer assistance program (TABLE IT) and the Facade, Sign and Landscape grant program (TABLE III). ❑ 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. ❑ Secured DEO grant for CRA Master Plan update. TABLE I — PERFORMANCE ACTIVITIES PROJECT Sign Master Plan implementation Working Waterfront Maintenance & Improvements Marketing and Events Business Assistance Programs Waterfront/Streetscape Maintenance & jpprovement Submerged Land Leases *Includes other funding sources. ACTIVITY I CRA PLAN REFERENCE Installation Page 21, 23, 31, 51 Maintenance Page 20, 22, 31, 51 Promotion Page 23, 51 FSL Grants Page 24, 50, 51 S2S Grants Maintenance Page 20, 23, 33, 37 Maintenance Page 20, 22, 31, 51 ACHIEVEMENT I ANIOUNT On -going $15,266.00* On -going $19,044.00 On -going $45,369.00 On -going $46,593.00 On -going $109,527.00 Annual $4,429.00 Grant Project Address Project Funds Awarded # Date 22-SSP-01 1716 U.S. Highway 1 9/28/2022 $5,000 Krasco Real Investments, LLC "Estimated reduction of over 8,176 grams of nitrogen from groundwater Total funds from CRA $5,000.00 TOTAL FUNDS AWARDED FY 202112023 $5,000.W Riverfront CRA Annual Report 2022 Page 4 TABLE III Facade, Sign, & Landscape Grant Account Summary FY 2021/2022 1. 1 Purple Pelican Carwash 13020 U.S. Highway 1 10/27/2021 $8,048.85 $9,048.85 2. Robin Raiff Team 3. Suzanne Wllle Studios 4. 1 District 2790, LLC Available Funds Remaining 1101 U.S. Highway i 1103 U.S. Highway 1 1105 U.S. Highway i Tax Increment Revenue 7/27/2022 $9,992.53 Under Construction 7/27/2022 $12,468.55 Under Construction 7/27/2022 $11,083.21 Under Construction 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. Riverfront CRA Annual Report 2022 Page 5 The City's millage decreased from $5.00 per $1,000 in FY 2001 to $3.0043 per $1,000 in FY 2022. 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 2022. Rates from 2001 through 2022 are presented in Exhibit III below. Exhibit II Sebastian Community Redevelopemem Agency Operating Millage Rates in Redevelopment Area Indian City River of Total Fiscal Year Co tm Sebastian Millage 2001 4.1014 5.0000 9.1014 2002 4.0501 4.5904 9.6405 2003 3.8729 4.5904 8.4633 2004 3.8377 4.5904 8.4281 2005 3.6233 4.5904 8.2137 2006 3.5204 3.9325 7.4529 2007 3.1914 3.0519 6.2433 2008 3.0202 2.9917 6.0119 2009 3.0202 3.3456 6.3658 2010 3.0892 3.3456 6.4348 2011 3.0892 3.3041 6.3933 2012 3.0892 3.3041 6.3933 2013 3.0892 3.7166 6.8058 2014 3.2620 3.7166 6.9786 2015 3.3375 3.8556 7.1931 2016 3.3602 3.8556 7.2158 2017 3.3602 3.8000 7.1602 2018 3.4604 3.4000 6.8604 2019 3.4604 3.1514 6.6118 2020 3.5475 2.9399 6.4874 2021 3.5475 3.1514 6.6989 2022 3.5475 3.0043 6.5518 Total Tax Increment Millage Rate 10.0000 9.0000 d 8.0000 7.0000 6.0000 g 5.0000 4.0000 0 3.0000 2.0000 1.0000 ,10�5A A10�2v-ti0�'C ti0�rAe'`M1Q``M1�.�ry�.��0``ry�.�ryp,�ry6,���.�,0,ry0,rjary0 Fiscal Year Source: City of Sebastian Administrative Services Department Rlverfront CRA Annual Report 2022 Page 6 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 2022 total incremental value of $69,895,209, the incremental value of the redevelopment area increased by 89.6% since Fiscal Year 2005. The taxable values in redevelopment area from 2001 through 2022 are presented in Exhibit III below. Exhibit M Sebastian Community Redevelopernent 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% Tax Increment Values a ■ ■ 0 ■ in no In on ME no am a am as Flacal Year Source: City of Sebastian Administrative Services Department Riverfront CRA Annual Report 2022 Page 7 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 tax increment revenue in 2022 has increased to $385,665. However, this is a 30.2% 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 2022 are presented in Exhibit N below. Exhibit IV Sebastian Community Redevelopement Agency Tax Increment Revenue 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 337,535 158,885 296,420 2016 157,874 181,150 339,024 2017 160,610 181,631 342,241 2018 184,879 181,652 366,531 2019 201,086 183,130 384,216 2020 220,498 182,732 403,230 2021 242,367 215,305 457,672 2022 192,832 192,833 385,665 Tax Increment Revenue $600,000 - $500.000 $400,000 $300,000 1 fill $200,000 $100,000 Fiscal Year Source: City of Sebastian Administrative Services Department Riverhont CRA Annual Report 2022 Page 8 Sebastian Community Redevelopment Agency, Florida Balance Sheet September 30, 2022 ASSETS Cash and cash equivalents $ 5027708 Investments 1259689 Accounts receivable - Interest receivable - Inventory - Lease receivable 519918 Prepaid items 395 Total assets $ 68%710 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 19611 Total liabilities 11611 Deferred inflows of resources Deferred lease amounts 51,214 Fund balances: Nonspendable 395 Restricted 6272490 Total fund balance 6272885 Total liabilities and fund balance $ 680,710 Mvedront CRA Annual Report 2022 Page 9 Sebastian Community Redevelopment Agency, Florida Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended September 30, 2022 REVENUES: Taxes: Property $ 3853665 Rental income 36,704 Investment earnings 52813 Total revenues 428,182 EXPENDITURES: Current: Economic environment 2910969 Total expenditures 2919969 Revenues over (under) expenditures 1369213 OTHER FINANCING USES: Transfers out (492572) Total other financing uses (4%572) Net changes in fund balance 861,641 Fund balance - beginning 541,244 Fund balance - ending $ 6279885 Riverkont CRA Annual Report 2022 Page 10 Sebastian Community Redevelopment Agency, Florida Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual For the Year Ended September 30, 2022 REVENUES: Taxes: Property Investment earnings Other revenue Total revenues EXPENDITURES: Current: Economic environment Total expenditures Excess (deficiency) of revenues over (under) expenditures O Y xtiLR FINANCING USES Transfers in Transfers out Total other financing (uses) Net changes in fund balances Fund balances - beginning Fund balances - ending Actual Budget Amounts Amounts on a Budgetary Original Final Basis $ 431,641 $ 431,641 $ 3859665 49780 41780 59813 369000 369000 369704 472,421 472,421 4289182 3209827 330,778 291,969 3209827 330,778 291,969 151,594 1419643 13 6,213 1239406 15,287 - (275,000) (1562930) (499572) (1519594) (141,643) (499572) - - 86,641 5413244 5419244 5419244 $ 5419244 $ 5419244 $ 627,885 Variance with Flual Budget - Positnve (Negative) $ (45,976) 1,033 704 (44,239) (389809) (389809) (5,430) (159287) 107,358 92,071 86,641 $ 86,641 Riverfrom CRA Annual Report 2022 Page 11