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HOME OF PELICAN ISLAND
COMMUNITY REDEVELOPMENT AGENCY (CRA)
(CITY COUNCIL)
AGENDA
WEDNESDAY, SEPTEMBER 19, 2007
IMMEDIATELY FOLLOWING SPECIAL CITY COUNCIL MEETING
CITY COUNCIL CHAMBERS
1225 MAIN ST, SEBASTIAN, FL
1. CALL TO ORDER
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
4. APPROVAL OF MINUTES - 8/22/07 Meeting
5. OLD BUSINESS
A. Indian River Drive/Main Street Improvement Project - Schulke Report/Public Input
6. NEW BUSINESS
07.169 A. Resolution No. 07-02 - FY 2008 CRA Budget (Finance Director Transmittal,
~-s R-07-02)
A RESOLUTION OF THE CITY OF SEBASTIAN COMMUNITY REDEVELOPMENT AGENCY (CRA)
ADOPTING A BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2007 AND ENDING
SEPTEMBER 30, 2008 AS PROVIDED FOR IN EXHIBIT "A"; PROVIDING FOR CONFLICTS; AND
PROVIDING FOR AN EFFECTIVE DATE.
7. ADJOURN
Any person who decides to appeal any decision made by the Agency at a later date as result of this
meeting, will need a record of the proceedings and may need to ensure that a verbatim record of the
proceedings is made, which record includes the testimony and evidence upon which the appeal is to
be heard. (286.0105 F.S.)
In compliance with the Americans with Disabilities Act (ADA), anyone who needs a special
accommodation for this meeting should contact the City's ADA coordinator at 589-5330 at least 48
hours in advance of this meeting.
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HOME OF PELICAN ISLAND
Pity of Cehactian f'nmmnnity Redevelnnment A~encv. Florida
Subject: Proposed Budget for Fiscal Year Agenda No. ~.+ ~ ~
2007/2008
Department Origin: Fin e
Appro ed for S bmittal by: City Manager City Attorney: _
City Clerk:
Date Submitted: September 12, 2007
e
For Agenda of: September 19, 2007
Exhibits:
• CRA Resolution No. 07-02
• Exhibit "A" -Proposed Budget and Line Item Detail
EXPENDITURE AMOUNT BUDGETED: APPROPRIATION
REQUIRED: N/A N/A REQUIIZED: N/A
SUMMARY
In accordance with Florida Statute 189.418(3), Community Redevelopment Agency (CRA)
should adopt a budget by resolution. A proposed budget for Fiscal Year 2007/2008,
beginning October 1, 2007 and ending September 30, 2008, was presented to the CRA
Board on August 22, 2007.
There have been no changes made to the proposed budget presented to the CRA Board
tonight for fmal adoption. The proposed budget for the CRA is $2,224,548. Proposed budget
and line item detail are presented as EXHIBIT "A".
RECOMMENDED ACTION
Move to adopt Resolution 07-02.
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CITY OF SEBASTIAN
COMMUNITY REDEVELOPMENT AGENCY
RESOLUTION N0.07-02
A RESOLUTION OF THE CITY OF SEBASTIAN COMMUNITY
REDEVELOPMENT AGENCY (CRA) ADOPTING A BUDGET
FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2007 AND
ENDING SEPTEMBER 30, 2008; MAHING FINDINGS;
AUTHORIZING AMENDMENTS; PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the City Manager of the City of Sebastian has submitted a budget
for the Sebastian Community Redevelopment Agency (CRA) for the Fiscal Year
beginning October 1, 2007 and ending September 30, 2008; and
WHEREAS, the budget includes the estimated expenditures necessary to carry out
the functions of the CRA for the Fiscal Year begmning October 1, 2007, and ending
September 30, 2008; and
WHEREAS, the budget includes the estimated revenues to be received by the CRA
during said. period from all sources, including tax increment funding and any amounts
carved over from prior fiscal years; and
WHEREAS, the CRA has examined and carefully considered the proposed budget
in a duly assembled meeting.
NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BOARD OF
CITY OF SEBASTIAN COMMUNITY REDEVELOPMENT AGENCY:
SECTION 1. The City of Sebastian Community Redevelopment Agency does
hereby adopt, confirm and approve the budget attached hereto as Exhibit "A" as the
budget for the CRA for the Fiscal Year beginning October 1, 2007 and ending September
31, 2008.
SECTION 2. The governing board of the CRA does hereby find that:
(a) The budget adopted has been prepared in accordance with generally
accepted accounting principles; and
(b) The estimated revenues to be received by the CRA during the Fiscal Year
beginning October 1, 2007, and ending September 30, 2008 from all sources, including tax
increment funding and any amounts carried over from prior fiscal years, equals the total
of appropriations for expenditures and reserves in the budget during said period; and
(c) The budget will regulate expenditures of the CRA and no expenditures or
contracts for expenditures shall be made except in pursuance of budgeted appropriations;
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(d) The budget is adopted in accordance with Section 189.418, Florida Statutes.
SECTION 3: In order to effect an orderly year-end closeout of all financial books
and records for the CRA, the City of Sebastian City Manager is hereby authorized and
directed to increase the corresponding line item appropriations in the budget to the extent of
those purchase orders which shall have been issued prior to September 30, 2007, but shall
not have been filled prior to that date, and is authorized and directed to pay all such purchase
orders upon receipt of the goods or services therein specified from the funds so
appropriated. The City of Sebastian City Manager is hereby further authorized and directed
to increase the budget appropriations to the extent of any unexpended balances from state,
federal or other grants as of the end of business on September 30, 2007, and to the extent of
any unexpended balances, whether or not encumbered, outstanding in projects as of the end
of business on September 30, 2007 and all such balances shall be appropriated to the
corresponding accounts in the same funds in which they were outstanding as of September
30, 2007; and the City Manager shall be authorized to expend such appropriations for the
purposes approved by the CRA in connection with such state, federal or other grants, and
projects. The City Manager shall, prior to December 31, 2007, report to the CRA all such
purchase orders, grants and projects. Corresponding changes in the anticipated revenue
accounts are hereby authorized.
SECTION 4: The City Manager is hereby authorized and directed to maintain and
amend the budget so as to reflect the anticipated revenue and the appropriation of, and
expenditure of, all grant funds and bond proceeds committed to, or received by the CRA
subsequent to September 30, 2007, and prior to October 1, 2008, in accordance with the
directions of the CRA as to the appropriation and expenditure of such grants and bond
proceeds as and when received.
SECTION 6: The City Manager shall have the authority to transfer appropriations
from one line item to another line item of the budget, so long as the total appropriations shall
not be increased thereby. Transactions affecting total appropriations, other than those
authorized herein in other sections shall require the prior approval of the CRA. Any such
transactions are subject to any restrictive statutes or ordinances, including those authorizing
the issuance of any outstanding bonds.
SECTION 7. This Resolution shall become effective October 1, 2007.
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The foregoing Resolution was moved for adoption by CRA Board member
The motion was seconded by CRA Board member and, upon being
put into a vote, the vote was as follows:
Andrea Coy, Chairman
Sal Neglia
Al Paternoster
Dale I. Simchick
Eugene Wolff
The CRA Chairman thereupon declared this Resolution duly passed and adopted this
19th day of September, 2007
By:
ATTEST:
Sally A. Maio, MMC City Clerk
CITY OF SEBASTIAN, FLORIDA
Andrea Coy, Chairman
Approved as to form and legality for
the reliance by the City of Sebastian
only:
Rich Stringer, City Attorney
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EXHIBIT"A"
SEBASTIAN RIVERFRONT REDEVELOPMENT AGENCY, FLORIDA
RIVERFRONT REDEVELOPMENT AGENCY (CRA)
The governing body of the CRA is the Sebastian City Council. All revenues and expenditures related to the
Community Redevelopment Agency are accounted for in a special revenue fund included in the City's
operation as a component unit. The FY 2007-2008 tax increment revenues for the Riverfront Redevelopment
Agency are estimated to be $513,023. The City's General Fund and Indian River County's General fund
make tax increment payments to the Riverfront Redevelopment Agency. The estimated tax increment
revenues for FY 2007-08 represent a decrease of $39,718 or 7.2% from FY 2006-2007 actual collections.
Another source of revenue is interest earnings.
COMMUNITY REDEVELOPMENT AGENCY REVENUES
Code: 140010
Account
Number Description
FY 03/04
Actual
FY 04/05
Actual
FY 05/06
Actual Amended
FY 06/07
Budget
FY 06/07
Proiected FY 07/08
Proposed
Budget
TAXES
338200 -Tax Increment Revenue -Sebastian 136,705 160,753 178,786 289,762 282,546 256,482
338200 Tax Increment Revenue -Indian River Coun 114,289 126,886 160,051 303,567 270,195 256,541
TOTAL TAXES 250,994 287,639 338,837 593,329 552,741 513,023
MISCELLANEOUS REVENUE
361100 Interest Income 2,737 8,747 28,500 24,000 30,000 24,000
TOTAL MISCELLANEOUS REVENUE 2,737 8,747 28,500 24,000 30,000 24,000
NON-REVENUE SOURCES
381320 Transfer from Capital Project Fund 0 21,598 0 0 0 0
384XXX Debt Proceeds 0 0 0 0 0 1,500,000
389991 Fund Balance Carried Forward 0 0 0 669,538 0 187,525
TOTAL NON-REVENUE SOURCES 0 21,598 0 669,538 0 1,687,525
TOTAL RIVERFRONT REDEVELOPMENT 253,731 317,984 367,337 1,286,867 582,741 2,224,548
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EXHIBIT"A
SEBASTIAN RIVERFRONT REDEVELOPMENT AGENCY, FLORID
COMMUNITY REDEVELOPMENT AGENCY EXPENDITURES
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Account
Number Description
FY 03/04
Actual
FY 04/05
Actual
FY 05/06
Actual Amended
FY 06/07
Budget
FY 06/07
Projected FY 07/08
Proposed
Budget
OPERATING EXPENDITURES
533100 Professional Services 5,000 5,000 14,492 8,500 15,000 8,500
533120 Consultants 28,491 0 0 5,000 0 5,000
533201 Admire Svcs Provided by the GF 5,118 7,203 9,086 13,583 13,583 12,826
533400 Other Contractual Services 0 0 .3,250 3,250 0
533425 Contract Mowing Services 5,000 0 0 0 0 0
534120 Postage 13S 24 0 50 S0 SO
534315 Public Lighting 11,604 8,453 13,OS3 13,500 13,500 13,500
534700 Printing and Binding 20S 0 0 0 0 0
534830 Special Events Expense 30,037 10,953 31,SOS 31,566 25,000 33,666
534920 Legal Ads 2S6 0 71 0 0 0
S3S200 Departmental Supplies 0 100 0 2S0 7S0 7S0
S3S410 Dues & Memberships 19S 39S 39S 39S 69S 69S
TOTAL OPERATING EXPENDITURES 86,041 32,128 68,602 76,094 71,828 74,987
CAPITAL OUTLAY AND PROJECTS
606100 Land 0 0 0 395,000 395,000 0
606310 Improvements Other Than Building 0 0 0 1,500 1,500 0
606400 Equipment 0 0 0 99,524 99,524 0
6069.00 Infrastructure -Yacht Club 0 0 0 29,207 29,207 0
606900 Infrastructure -Indian River Drive Engineer 0 0 0 190,841 190,841 0
606900 Infrastructure -Sebastian Gateway Enhance 0 0 0 0 0 90,825
606900 Infrastructure - Corridore St. Landscape 0 0 0 0 0 96,700
TOTAL CAPITAL OUTLAY AND PROJECTS 0 0 0 716,072 716,072 187,525
DEBT SERVICE
707140 Principal 0 0 0 0 0 150,000
707141 Interest 0 0 0 0 0 35,625
TOTAL DEBT SERVICE 0 0 0 0 0 185,625
GRANTS AND AIDS
820100 Facade/Sign Improvement Program 0 0 0 60,000 60,000 30,000
TOTAL GRANTS AND AIDS 0 0 0 60,000 60,000 30,000
NON-OPERATING
909133 Interfund Trfr to CIP Fund 330 0 0 0 215,401 215,401 1,500,000
909991 Reserve for Sebastian Gateway Enhanceme 0 0 0 90,825 0 0
909993 Reserve for Corridore St. Landscape 0 0 0 96,700 0 0
909990 Unappropriated 0 0 0 31,775 0 246,411
TOTAL NON-OPERATING 0 0 0 434,701 215,401 1,746,411
TOTAL RIVERFRONT REDEVELOPMENT 86,041 32,128 68,602 1,286,867 1,063,301 2,224,548
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EXHI
BIT"A"
SEBASTIAN RIVERFRONT REDEVELOPMENT AGENCY, FLORIDA
CRA Line Item Expenditures Justification
Account
Number Description
533100 Professional Services
533120 Consultant
533201 Admire Services Provided by General Fund
534120 Postage
534315 Public Lighting
534830 Special Events Expense
535200 Departmental Supplies
535410 Due & Membership
Total
Special Events Expense Estimate breakdown:
Concert in the Park ($500/concert)
Holiday Tree Display
Clambake Advertising
Trolly rental for festival
Fine Art Festival Advertising
Total
FY 2007/08
Proposed Justification
$ 8,500 Property Appraiser programing service
5,000 Reserve for consultant
12,826 2.5% of total tax increment revenue estimate
50 Based on projected usage
13,500 Based on FY 2007 projection
33,666 See breakdown below.
750 Based on projected usage
695 - Based on FY 2007 actual expenditure
$ 74,987
$ 5,000
14,416
8,250
2,400
3,600
$ 33,666
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XHIBIT"A"
(SEBASTIAN RIVERFRONT REDEVELOPMENT AGENCY. FLORIDA(
RIVERFRONT REDEVELOPMENT AGENCY (CRAB
The governing body of the CRA is the Sebastian City Council. All revenues and expenditures related to the
Community Redevelopment Agency are accounted for in a special revenue fund included in the City's
operation as a component unit. The FY 2007-2008 tax increment revenues for the Riverfront Redevelopment
Agency are estimated to be $513,023. The City's General Fund and Indian River County's General fund
make tax increment payments to the Riverfront Redevelopment Agency. The estimated tax increment
revenues for FY 2007-08 represent a decrease of $39,718 or 7.2% from FY 2006-2007 actual collections.
Another source of revenue is interest earnings.
COMMUNITY REDEVELOPMENT AGENCY REVENUES
Code: 140010
Account
Number Description
FY 03/04
Actual
FY 04/05
Actual
FY 05/06
Actual Amended
FY 06/07
Budget
FY 06/07
Projected FY 07/08
Proposed
Bud et
TAXES
338200 Tax Increment Revenue -Sebastian 136,705 160,753 178,786 289,762 282,546 256,482
338200 Tax Increment Revenue -Indian River Co 114,289 126,886 160,051 303,567 270,195 256,541
TOTAL TAXES 250,994 287,639 338,837 593,329 552,741 513,023
MISCELLANEOUS REVENUE
361100 Interest Income 2,737 8,747 28,500 24,000 30,000 24,000
TOTAL MISCELLANEOUS REVENUE 2,737 8,747 28,500 24,000 30,000 24,000
NON-REVENUE SOURCES
381320 Transfer from Capital Project Fund 0 21,598 0 0 0 0
389991 Fund Balance Carved Forward 0 0 0 669,538 0 187,525
TOTAL NON-REVENUE SOURCES 0 21,598 0 669,538 0 187,525
TOTAL RIVERFRONT REDEVELOPMENT 253,731 317,984 367,337 1,286,867 582,741 724,548
NEVI S ED
XHIBIT"A"
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SEBASTIAN RIVERFRONT REDEVELOPMENT AGENCY, FLORID
COMMUNITY REDEVELOPMENT AGENCY EXPENDITURES
Code: 14UU51
Account
Number Description
FY 03/04
Actual
FY 04/05
Actual
FY 05/06
Actual Amended
FY 06/07
Budget
FY 06/07
Projected FY 07/08
Proposed
Budget
OPERATING EXPENDITURES
533100 Professional Services 5,000 5,000 14,492 8,500 15,000 8,500
533120 Consultants 28,491 0 0 5,000 0 5,000
533201 Admin Svcs Provided by the GF 5,118 7,203 9,086 13,583 13,583 12,826
533400 Other Contractual Services 0 0 3,250 3,250 0
533425 Contract Mowing Services 5,000 0 0 0 0 0
534120 Postage 135 24 0 50 50 50
534315 Public Lighting 11,604 8,453 13,053 13,500 13,500 13,500
534700 Printing and Binding 205 0 0 0 0 0
534830 Special Events Expense 30,037 10,953 31,505 31,566 25,000 33,666
534920 Legal Ads 256 0 71 0 0 0
535200 Departmental Supplies 0 100 0 250 750 750
535410 Dues & Memberships 195 395 395 395 695 695
TOTAL OPERATING EXPENDITURES 86,041 32,128 68,602 76,094 71,828 74,987
CAPITAL OUTLAY AND PROJECTS
606100 Land 0 0 0 395,000 395,000 0
606310 Improvements Other Than Building 0 0 0 1,500 1,500 0
606400 Equipment 0 0 0 99,524 99,524 0
606900 Infrastructure -Yacht Club 0 0 0 29,207 29,207 0
606900 Infrastructure -Indian River Drive Enginee 0 0 0 190,841 190,841 0
TOTAL CAPITAL OUTLAY AND PROJECTS 0 0 0 716,072 716,072 0
GRANTS AND AIDS
820100 Fagade/Sign Improvement Program 0 0 0 60,000 60,000 30,000
TOTAL GRANTS AND AIDS 0 0 0 60,000 60,000 30,000
NON-OPERATING
909133 Interfund Trfr to CIP Fund 330 0 0 0 215,401 215,401 619,561
909991 Reserve for Sebastian Gateway Enhanceme 0 0 0 90,825 0 0
909993 Reserve for Corridore St. Landscape 0 0 0 96,700 0 0
909990 Unappropriated 0 0 0 31,775 0 0
TOTAL NON-OPERATING 0 0 0 434,701 215,401 619,561
TOTAL RIVERFRONT REDEVELOPMENT 86,041 32,128 '68,602 1,286,867 1,063,301 724,548
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XHIBIT"A"
(SEBASTIAN RIVERFRONT REDEVELOPMENT AGENCY, FLORIDA
CRA Line Item Expenditures Justification
Account
Number Description
533100 Professional Services
533120 Consultant
FY 2007/08
Proposed Justification
$ 8,500 Property Appraiser programing service
5,000 Reserve for consultant
533201 Admire Services Provided by General Fund
534120 Postage
534315 Public Lighting
534830 Special Events Expense
535200 Departmental Supplies
535410 Due & Membership
Total
Special Events Expense Estimate breakdown:
Concert in the Park ($500/concert)
Holiday Tree Display
Clambake Advertising
Trolly rental for festival
Fine Art Festival Advertising
Total
12,826 2.5% of total tax increment revenue estimate
50 Based on projected usage
13,500 Based on FY 2007 projection
33,666 See breakdown below.
750 Based on projected usage
695 Based on FY 2007 actual expenditure
$ 74,987
$ 5,000
14,416
8,250
2,400
3,600
$ 33,666
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TO: Members of the Sebastian City Council
FROM: AI Minner, City Manager
RE: INDIAN RIVER DRIVE/MAIN STREET PROJECT FINANCING
DATE: Tuesday, September 18, 2007
On Thursday, September 6, 2007 all communities with a Community Redevelopment Agency
District received a "curve ball" from the Florida Supreme Court. Briefly, the Court ruled in Strand
vs. Escambia County, that taxing jurisdictions could no longer use tax increment revenues to
"bond" projects unless a referendum is passed. This decision changed over 25 years of
precedent, which stated that incremental financing was permissible as long as it did not affect the
tax authority of the jurisdiction.
As you know, we have proposed the use of a short term financing, in the amount of $1.5 million,
to fund the Indian River Drive/Main Street Project. The main purpose behind this proposal was to
help with cash flow, prevent cancellation of others projects and to minimize the need to rely on
other special revenues to fund this project.
This court decision came to our attention rather quickly, as such; I have not had opportunity until
early this week to sit down with Shai Francis to devise other financing proposals. Because any
money spent on this project going forward will be coming before you for approval, I do not think it
is necessary to approve any particular financing vehicle at Wednesday's CRA meeting. However,
it will be critical to approve the budget, knowing that it will need to be amended sometime in the
fiscal year.
Having provided that information, I have enclosed for you a spreadsheet of a modified FY 08
CRA Budget. This budget proposes to fund the project in cash by (1) using reserved
Recreational Impact Fees; and, (2) canceling all other CRA projects (Corridor Street Landscape
and Gateway Enhancements Projects) to generate $1,834,962 in cash. This is $165,038 short of
the estimated $2,000,000 needed for the project. The $165,038 gap can be filled by using grant
money. Any overage can then be reallocated to cancelled projects and DST revenues can
potentially be borrowed to fund any shortfall. Below is a table that depicts this proposal:
URRENT ALLOCATIONS
FY 2008 Previously Scheduled Debt Payment 185,625
FY 07 IRD/Main Street Carryover 215,401
Recreational Impact Fees 500,000
DDITIONAL FUND SOURCES
Cancel all CRA Funded Projects 187,525
FY OS Unallocated 246,411
Additional Use of Recreation Impact Fees 500,000
RANT OR OTHER SPECIAL REVENUES
FIND Grantor DST Revenue 165,038
TOTAL CASH AVAILABLE $2,000,000
As a reminder, the cancellation of existing CRA projects effects the City's ability to compete the
Gateway Enhancement Project, previously funded at $90,825. This project was originally
scheduled with Gene Billero to improve the 512 triangle. When plans fell through to complete this
project it was modified to be the "Flag Pole" project. The other project affected by this proposal is
the cancellation of the Street Landscape project that aimed to improve other district aesthetic.
$96,700 was budgeted for this project.
Should Council decide that the above financial vehicle is not an idea plan, some other financing
options would be as follows:
1. Go to referendum on the original financing proposal.
2. Use a commercial note to finance the project where the tax authority of the jurisdiction is
not used as a pledge.
3. Borrow cash from other special revenue funds that have enough surplus, such as the
general fund.
As always, should you have any questions on this or any other matter, please feel free to contact
me at your earliest convenience.