HomeMy WebLinkAbout2007 Fiscal Year End CRA Annual ReportSEBASTIAN
COMMUNITY REDEVELOPMENT AGENCY
ANNUAL REPORT
Under Chapter 163.356(3)(C)
GTY OF
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HOME OF PELICAN ISLAND
FOR THE FISCAL YEAR ENDED
SEPTEMBER 30, 2007
1225 MAIN STREET
SEBASTIAN, FLORIDA 32958
TABLE OF CONTENTS
Letter of Transmittal i
List of Principal Official ii
History 1
Exhibit I -Sebastian CRA Boundary 2
FY 2006 Sebastian CRA Activities
Exhibit II -Operating Millage Rates in Redevelopment Area 4
Exhibit III -Taxable Value in Redevelopment Area 5
Exhibit IV -Tax Increment Revenue 6
Financial Statements 7
CITY Of
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HOME OF PELICAN ISLAND
1225 MAIN STREET • SEBASTIAN, FLORIDA 32958
TELEPHONE: (772) 589-5330 • FAX (772) 589-5570
March 18, 2008
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, 2007. Section
163.356(8)(C), Florida Statutes, requires each CRA to file with its governing body, on or
before March 31 each year, a report of its activities for the proceeding fiscal year, which
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.
submitted,
City Manager
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Kenneth W. Killgore
Finance Director
i
LIST OF PRINCIPAL OFFICIALS
September 30, 2007
Chairman
Board Member
Board Member
Board Member
Board Member
Andrea Coy
Sal Neglia
Al Paternoster
Dale I. Simchick
Eugene Wolff
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History of the Sebastian Community Redevelopment Agency (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 east of the FEC Railroad right-of--way to the eastern
City limits. 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. The total Sebastian CRA area is 299
acres excluding road rights-of--way (Exhibit 1).
The governing body of the Sebastian CRA is the Sebastian City Council. The 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 value over a
`base year" for various jurisdictions in the redevelopment area. The 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, and the redevelopment plan was also modified by the Iler
Planning Group on behalf of the Sebastian CRA. The 2003 plan basically unifies the 1995
Sebastian CRA boundary and the expansion area as one cohesive CRA, and presents conceptual
district recommendations, potential policy amendments, and capital improvements intended to
meet the City's redevelopment goals.
Since the establishment of the original Sebastian CRA in 1995, numerous projects have been
accomplished. Accomplishments are as follows:
^ Provided annual funding support to festivities such as Riverfront Christmas decorations,
Clam Bake festival, fine art festival, concert in the park, and Pelican Island celebration
since the year 2000.
^ 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
^ Initiated design work for the Indian River Drive/Main Street project.
^ Established a Facade, Sign and Landscaping matching grant program.
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City of Sebastian CRA
FI' 2007 Sebastian CRA Activities
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). Major accomplishments of the Sebastian CRA in
2007 include:
^ Purchased a portable bandstand in November 2006 for riverfront festivities.
^ Provided funding for concert in the park events and the fine art festival.
^ Provided funding for Holiday decorations.
^ Awarded five grants for the facade, sign, and landscape grant program to help business,
in the Sebastian CRA district, to improve the aesthetics of their properties and buildings.
^ Awarded bids for design and construction of the Main Street/Indian River Drive
intersection improvement project.
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.
3
The actual implementation of the tax increment financing was delayed until FY 2001. The City's
millage rate has been decreased from $5.00 per $1,000 in FY 2001 to $3.0519 per $1,000 in FY
2007. The millage for Indian River County has been decreased from $4.1014 per $1,000 in FY
2001 to $3.5204 per $1,000 in FY 2006. The millage rates from 2001 through 2006 are presented
in Exhibit II below.
Exhibit II
Sebastian Community Redevelopemnt Agency
Operating Millage Rates in Redevelopment Area
Indian City
River of Total
Fiscal Year County Sebastian Millage Rate
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
Total Tax Increment Millage Rate
10.0000
~ ---- --
8.0000 -
`_° 6.0000 ---- - __ - -
~ 4.0000
0
~ 2.0000
0.0000 _ ~- ~ T ___~- T _
2001 2002 2003 2004 2005 2006 2007
Fiscal Year
Source: City of Sebastian Finance Department
4
The taxable value of real property in the redevelopment area has risen significantly during the
same period. In 2001 the total taxable value of the redevelopment area was $45.8 million.
Compare to 2007 total taxable value of $134.8 million, the taxable value of the redevelopment
area has increased by 194%. The taxable values in redevelopment area from 2001 through 2007
are presented in Exhibit III below.
Exhibit III
Sebastian Community Redevelopemnt 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 (1) 78,424,554 41,561,980 36,862,574 17.59%
2006 (1) 89,418,550 41,561,980 47,856,570 29.82%
2007 (1) 134,755,060 41,561,980 93,193,080 94.73%
--
i
Taxable Value
' 100.0
I; ~ 80.0
~a
0
0 60.0
w
0
~ 40.0
0
20.0
0.0
~ - ~ - - --
I
2001 2002 2003 2004 2005 (1) 2006 (1) 2007 (1)
Fiscal Year
(1) The taxable and base year values include the triangle area, which was added in the
redevelopment area in 2003.
Source: City of Sebastian Finance Department
5
Based on the millage rates and the significant increases in taxable values, the tax increment
revenue has risen dramatically during the same period. In 2001, the total tax increment revenue
was $94,029. In 2007, the tax increment revenue has increased to $552,741. The tax increment
revenues for the redevelopment area for the Fiscal Year 2001 through 2007 are presented in
Exhibit IV below.
Exhibit IV
Sebastian Community Redevelopemnt 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 (1) 126,886 160,753 287,639
2006 (1) 160,051 178,786 338,837
2007 (1) 282,546 270,195 552,741
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
~i $0
Tax Increment Revenue
2001 2002 2003 2004 2005 (1) 2006 (1) 2007 (1)
Fiscal Year
(1) The revenues include the triangle area, which was added in the redevelopment area
in 2003.
Source: City of Sebastian Finance Department
6
Financial Statements
The Sebastian CRA is considered a blended component unit of the City and therefore it is
included in the City's annual financial audit. In order to meet the requirement of Section
163.387(8), Florida Statutes, which requires the CRA to provide for annual audit of the
redevelopment trust fund, the Sebastian CRA has been treated as a major fund of the City. The
financial statements included herein are unaudited statements of the Sebastian CRA. Audited
statements are included in the City's Comprehensive Annual Financial Report (CAFR) for the
fiscal year ending September 30, 2007 and maybe obtained in the City Clerk's office 1225 Main
Street, Sebastian, Florida or online at http://www/cityofsebastian.org.
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Sebastian Community Redevelopment Agency, Florida
Balance Sheet
September 30, 2007
Unaudited
ASSETS
Cash and cash equivalents
Investments
Interest receivable
Total assets
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable
Total liabilities
Fund balances:
Reserved for:
Encumbrance
Unreserved:
Undesignated
Total fund balance
Total liabilities and fund balance
$ 20,009
336,726
2,331
$ 359,066
$ 3,101
3,101
106,249
249,716
355,965
$ 359,066
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Sebastian Community Redevelopment Agency, Florida
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Year Ended September 30, 2007
Unaudited
REVENUES:
Taxes:
Property
Investment earnings
Other revenue
Total revenues
EXPENDITURES:
Current:
Economic environment
Capital outlay
Total expenditures
Excess (deficiency) of revenues over (under) expenditures
Fund balance -beginning
Fund balance -ending
$ 552,741
33,209
100
586,050
80,279
609,822
690,101
(104,051)
675,417
$ 571,366
9
Sebastian Community Redevelopment Agency, Florida
Schedule of Revenue, Expenditures, and Changes in Fund Balances
Budget and Actual
For the Year Ended September 30, 2007
Unaudited
Actual Variance with
Budget Amounts Amounts on Final Budget -
REVENUES:
Taxes:
Property
Investment earnings
Other revenue
Total revenues
EXPENDITURES:
Current:
Economic environment
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING USES
Transfers out
Net changes in fund balances
Fund balances -beginning
Fund balances -ending
Explanation of differences:
a Budgetary Positive
Original Final Basis (Negative)
$ 593,329 $ 593,329 $ 552,741 $ (40,588)
24,000 24,000 33,209 9,209
- - 100 100
617,329 617,329 586,050 (31,279)
132,844 159,086 80,279 78,807
95,256 716,072 620,815 95,257
228,100 875,158 701,094 174,064
389,229 (257,829) (115,044)
- (215,401) (215,401)
389,229 (473,230) (330,445)
675,417 675,417 675,417
$ 1,064,646 $ 202,187 $ 344,972
Encumbrances for professional services contracted but not completed is reported in the
year the service is contracted for budgetary purposes, but are reported in the year the
services are received for GAAP purposes.
Current year encumbrances 106,249
Current year encumbrances (95,256)
Amount reported as ending fund balance in the statement of revenues,
expenditures and changes in fund balance $ 355,965
142,785
142,785
$ 142,785
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