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Home My WebLink About2021 Fiscal Year End CRA Financial Reportfill 11 SE T" HOME OF PELICAN ISLAND CRA BOARD AGENDA TRANSMITTAL Council Meetina Date: April 27, 2022 Agenda Item Title: FY 20/21 Sebastian Riverfront CRA Annual Report Recommendation: Move to accept the FY 20121 Sebastian Riverfront CRA Annual Report Backaround: Chapter 163.371 Florida Statute requires the Community Redevelopment Agency to file a report of activities with the county or municipality that created the agency by March 31st of each year. The Sebastian CRA Annual Report was submitted to Indian River County and posted on the City of Sebastian website. The FY 20/21 Sebastian Riverfront CRA Annual Report of activities is presented for acceptance by the Community Redevelopment Agency Board of Directors at the regularly scheduled CRA meeting. If Agenda Item Reauires Exoenditure of Funds: Budgeted Amount: N/A Total Cost: N/A Funds to Be Utilized for Appropriation: N/A Attachments: 1. CRA Annual Report 2021 Administrative Services Department evie nlj ` City Attorney Review: Procurement Division Review, if a plicable: City Manager Authorization: Date: Manager 2 SEBASTIAN RIVERFRONT COMMUNITY REDEVELOPMENT AGENCY ANNUAL REPORT Chapter 163.371 Florida Statute C" o, SEBASTIAN HOME OF PELICAN ISLAND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 1225 MAIN STREET SEBASTIAN, FLORIDA 32958 SEBASTIAN RIVERFRONT COMMUNITY REDEVELOPMENT AGENCY ANNUAL REPORT TABLE OF CONTENTS Letter of Transmittal List of Principal Official's Hi story Exhibit I - Sebastian CRA Boundary Accomplishments FY 2020 Sebastian CRA Performance Activities Table I — Performance Activities 2020 Table II — Septic to Sewer Grant program Table III — Fagade, Sign, & Landscape Grant T 1 2 3 4 4 5 5 Tax Increment Revenues 6 Exhibit II — Operating Millage Rates in Redevelopment Area 7 Exhibit III — Taxable Value in Redevelopment Area 8 Exhibit IV — Tax Increment Revenue 9 Financial Statements 10 Balance Sheet 10 Statement of Revenues, Expenditures, and Changes in Fund Balances 1 I Budget and Actual 12 CTNeF 'ot- _ HOME OF PELICAN ISLAND March 31, 2022 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, 2021. 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, 2021 Chairman Ed Dodd Vice Chairman Jim Hill Board Member Bob McPartlan Board Member Fred Jones Board Member Christopher Nunn 13iston of the Sebastian Communitv Redevelonment Aaencv (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 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.163.3755) 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. Rlve:front CRAAnnual Report 2021 Page 1 EXHIBIT I - SEBASTIAN CRA BOUNDARY MAP C'c mmunih? Redevelopment Area Klw + CITY OF SEBA.MAN, FL s h �yi4^1S y�Svn�� 4 w� o � ,A' IOfMF s` cru rt 1, L ovi> " —1 Mrt <� CRA Laad,Axa 303 ierea TOTAL. CRA LAND AxsA 39e ACRW a 's CAx Caatenatlo° R_ � ti } 1!9 acin µrs vuwmlY.r ° C IYCWW Le P ae r�nc Fwpl Y1 a Id1ati 4 i � � `�ti wiuoaW � 9 6 Ynuiunrt ,nr d a vwrur.artf A N0. MLR r t ( L 1 �k Yr611110f1ii �V M` �V1oru any 4_+acreld' � J'� nNaM4^.M wuww P acmlusw � F W aLIN4Y }t a 7 c Y 6 WKM a g COWIaIAnY IGnC1aW Lrypyw( W N A A Riverfront CRAAnnual Report 2021 Page 2 Accomplishments of the Sebastian Communitv Redevelopment Aeenev (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 Riverfrom 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. Cl 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 Riverfrom CRA District. ❑ Completed Riverview Park Sidewalks per the Park Master Plan. Riverfront CRA Annual Report 2021 Page 3 FY 2021 Sebastian CRA Performance Activities Major activities and accomplishments of the Sebastian CRA in 2021 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 II) 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 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. ❑ Provided waterfront/streetscape maintenance & facility improvements. ❑ Completed pedestrian walking trail connection from US Hwy I 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. TABLE 1 — PERFORMANCE ACTIVITIES PROJECT � ACTIVITY I CRA FER NCE ACHIEVEMENT AMOUNT Riverview Park Master Plan Construction Page 21, 23, 31, 33 On -going $40,714.00* improvements (survel, irrigation) Sign Master Plan implementation Working Waterfront Parking and Shoreline Improvement Marketing and Events Installation Page 21, 23, 31, 51 On -going $61,608.00* Construction Page 20, 22, 31, 51 Complete $510,553.00* Promotion Page 23, 51 On -going $32,125.00 Business Assistance Programs FSL Grants Page 24, 50, 51 On -going $37,703.25 S2S Grants _ Waterfront/Streetscape Maintenance Page 20, 23, 33, 37 On -going $111,516.00 Maintenance & Improvement Submerged Land Leases Maintenance Page 20, 22, 31, 51 Annual $4,302.00 N. Central Avenue Sidewalk *Includes other funding sources. Construction Page 21, 23, 31,33, Complete $169,480.00* 38 In addition to projects and programs funded by Sebastian CRA funds, the following projects were conducted within the CRA to further enhance and promote the Riverfront Business District. ➢ CDBG 5-year Consolidated Plan: Housing rehabilitation program for low-income residents and N. Central Ave sidewalk replacement Riverfront CRA Annual Report 2021 Page 4 vana r, ufa: a.a wuuaaa ra uJea.a 8 Date 21-SSP-01 825 U.S. Hwy 1 3/24/21 J&LC Ventures, Inc. 4128/21 21-SSP-02 13050 U.S. Hwy 1 Chancier Holding, LLC 5/26/21 21-SSP-03 1683 N. Central Ave Ronald Sypher 10/27/21 21-SSP-03(a) 1693 N. Central Ave Ronald Sypher 21-SSP-04 754 Martin Avenue 11/10/21 Kermit & Ava L. Stewart "Estimated reduction of over 4000 grams of nitrogen from groundwater Total funds from IRL Council $16,190.00 Totolfundsfrom CRA $16,190.00 TOTAL FUNDS AWARDED FY 202012021 $32,380.00 TABLE III Facade. SiRn. & Landscaoe Grant Account Summary FY 2020/2021 rullua mwdiwau $10,000 $5,000 $5,000 $2,380 $10,000 CRA FSL Grants $40,000 1. Sandy's Grille 171 Sebastian Blvd. 1 05/26/2021 $5,323.25 $5,323.25 I Less funds disbursed Available Funds Remainin, $34,676.75 Riverfront CRAAnnual Report 2021 Page 5 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 hidian 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, Mwrfmt CU Amu] Report 2021 Page 6 The City's millage decreased from $5.00 per $1,000 in FY 2001 to $3.1514 per $1,000 in FY 2021. The milflage for Indian River County has been decreased from $4.1014 per $1,000 in FY 2001 to $3.5475 per $1,000 in FY 2021. Rates from 2001 through 2021 are presented in Exhibit II below. Exhibit II Sebastian Community Redevelopement Agency Operating Millage Rates in Redevelopment Area Indian City River of Total Fiscal Year Coum Sebastian Millaee 2001 4.1014 5.0000 9.1014 2002 4.0501 4.5904 8.6405 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 6.3659 2010 3.0892 3.3456 6.4348 2011 3.0892 33041 6.3933 2012 3.0892 33041 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 Total Tax Increment Millage Rate Solon MEENHIMM no no ■■■■■ lin ■■ on .4 Fiscal Year Source: City of Sebastian Administrative Services Department Riverfinnt CRA Annual Report 2021 Page 7 The initial implementation of the tax increment fmancing 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 2021 total incremental value of $71,916,231, the incremental value of the redevelopment area increased by 95.1% since Fiscal Year 2005. The taxable values in redevelopment area from 2001 through 2021 are presented in Exhibit III below. Exhibit III Sebastian Community Redevelopement Agency Taxable Value in Redevelopment Area % Change in Taxable Base Year incremental Incremental Fiscal Ye az 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 23,894,320 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 -223% 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 -0.39% 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 113,478,211 41,561,980 71,916,231 9.92% Tax Increment Values 100.0 @ 90.0 w 50.0 c 70.0 c 60.0 — I '0 50.0 n 40.0 �J 0 30.0 �EJO`J�j 20.0 uu f 10.0 I I 0.0 . . . H9 Fimal Year Source: City of Sebastian Administrative Services Department Riverfron[ CPA Annual Report 2021 Page 8 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 2021 has increased to $457,672. However, this is a 17.2% 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 2021 are presented in Exhibit 1V below. Exhibit IV Sebastian Community Redevelopement Agency Tax Increment Revenue Indian City River of Fiscal Year County 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 292,546 270,195 552,741 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 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 Tax Increment Revenue $s00,OOD $ao0,D0D f $400,000$200,--t00 wo �n�jn�"'jn�jl $100,0DDO �{ �--� H �-(H H �p M1cflf�''EPIM1.�JM1f#�M1(�'.yd�T'M1'EfQ'C.'P�O.P�'`jjj��l7ll113JJ'P ^.,LL1°1I Fiscal Year Source: City of Sebastian Administrative Services Department Rlvetfront CRA Annual Report 2021 Page 9 Sebastian Community Redevelopment Agency, Florida Balance Sheet September 30, 2021 Unaudited ASSETS Cash and cash equivalents $ 435,564 Investments 116,138 Prepaid items 1,054 Total assets $ 552,756 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 11,512 Total liabilities 11,512 Fund balances: Restricted 541,244 Total fund balance 541,244 Total liabilities and fund balance $ 552,756 Riverfrmt CRA Annual Report 2021 I Page 10 Sebastian Community Redevelopment Agency, Florida Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended September 30, 2021 Unaudited REVENUES: Taxes: Property $ 457,672 Investment earnings 1,466 Otherrevenue 36,000 Total revenues 495,138 EXPENDITURES: Current: General government 1,478 Economic environment 256,771 Total expenditures 258,249 Excess (deficiency) of revenues over (under) expenditures 236,889 OTHER FINANCING USES: Transfers in Transfers out (174,305) Total other financing uses (174,305) 1 Net changes in fund balance 62,584 Fund balance - beginning 478,660 Fund balance - ending $ 541,244 Riverfront CRA Annual Report 2021 Page 11 Sebastian Community Redevelopment Agency, Florida Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual For the Year Ended September 30, 2021 Unaudited REVENUES: Taxes: Property Investment earnings Other revenue Total revenues EXPENDITURES: Current: General government Economic environment Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING USES Transfers in 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) $ 443,884 $ 443,884 $ 457,672 $ 13,788 10,331 10,331 1,466 (8,865) 36,000 36,000 36,000 - 490,215 490,215 495,138 4,923 1,400 1,478 1,478 298,817 301,816 256,771 (45,045) 300,217 303,294 258,249 (45,045) 189,998 186,921 236,889 49,968 - 209,013 - (209,013) (189,998) (395,934) (174,305) 221,629 (189,998) (186,921) (174,305) 12,616 - - 62,584 62,584 478,660 478,660 478,660 - $ 478,660 $ 478,660 $ 541,244 $ 62,584 Rivertront CRA Annual Report 2021 Page 12