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HomeMy WebLinkAbout09192007CRA AgendacmoF C~~ 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. ~DF ~~ ~ - ~ 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. 0 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; O (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. ~J 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 0 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 O ,. ~~ EXHIBIT"A SEBASTIAN RIVERFRONT REDEVELOPMENT AGENCY, FLORID COMMUNITY REDEVELOPMENT AGENCY EXPENDITURES ~~~P~ ~ anns~ 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 ~J 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 3 ~~~... 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" ~w~, 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 Y 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 3 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.