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HomeMy WebLinkAbout2013 Fiscal Year End CRA Annual ReportMoo S HOME OF PELICAN ISLAND SEBASTIAN COMMUNITY REDEVELOPMENT AGENCY, FLORIDA AGENDA TRANSMITTAL FORM CRA MEETING DATE: March 12, 2014 AGENDA ITEM TITLE: Acceptance of the Annual Sebastian CRA Report RECOMMENDATION: Move to accept the Annual Sebastian CRA Report. BACKGROUND: Florida Statutes require the Community Redevelopment Agency to file a report of activities to the primary government by March 31 of each year and publish in the newspaper a notice of availability of the report. The annual Sebastian Community Redevelopment Agency report of activities for the fiscal year ending September 30, 2013 was prepared by the Finance Director and is also scheduled to be accepted by the City Council. Following acceptance by the City Council, the City Clerk will publish in the newspaper a notice of the Report's availability. IF AGENDA ITEM REQUIRES EXPENDITURE OF FUNDS: Total Cost: None Amount Budgeted in Current FY: NIA If Cost Requires Appropriation: N/A Amount of Appropriation Required: None Fund to Be Utilized for Appropriation: N/A ATTACHMENTS: Annual Sebastian CRA Report City Manager Authorization: Date: 3- r--/ � SEBASTIAN COMMUNITY REDEVELOPMENT AGENCY ANNUAL REPORT Under Chapter 163.356(3)(C) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 1225 MAIN STREET SEBASTIAN, FLORIDA 32958 SEBASTIAN COMMUNITY REDEVELOPMENT AGENCY ANNUAL REPORT TABLE OF CONTENTS Letter of Transmittal List of Principal Officials History Exhibit I - Sebastian CRA Boundary Accomplishments FY 2013 Sebastian CRA Activities ii 1 3 3 Tax Increment Revenues 4 Exhibit II — Operating Millage Rates in Redevelopment Area S Exhibit III — Taxable Value in Redevelopment Area 6 Exhibit IV — Tax Increment Revenue 7 Financial Statements 8 Balance Sheet 9 Statement of Revenues, Expenditures, and Changes in Fund Balances 10 Budget and Actual 11 .._ r 'Mma" March 5, 2014 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, 2013. 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. Respectfully submitted, Kenneth W. Killgore Finance Director LIST OF PRINCIPAL OFFICIALS Chairman Board Member Board Member Board Member Board Member September 30, 2013 H Bob McPartlan Jim Hill Andrea Coy Jerome Adams Don Wright 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. Legend :sate \ ... CRA Boundary Zi, '; t _• - -..._ Gateway Treatinem. 1 i ell /'`• /; � i��, n .•...� � :ice -�"y3 RhgsldeDrive - Stnxtsmpes and Pocket Parks Areawide Recommendations 1 I. Retain 2 -3 story maximum building height. ...... , fit• scats near Activity Stmt a � ' i4 Activity Ceatcr 2. Modify community design guidelines to reinforce "Old Florida Fishing Village" design theme. J _ \ IIi,I�E-' ^'?r.µM 57J:i7 A 3. Future study to further address panting needs in the CRA. Capital immoyements I ` Us I Streemeape - Enhancements „ r G and "Balld to 1. Riverview Park improvements. ! Street" 2. Streetscape improvements to (IS. 1, Riverside Drive, and Sebastian 1. ... .� ...�L._ Boulevard (east a� westbound). - .. _. 1 :'.J _ 1 1. T. _.: V Riverview Park 3. Reconfigure boat trailer parking. �dis Ii �. �? ` i.... : .. Aun ty Center .,: o Boulevard ,. 4. Develop a stormwatcr park. Trian tt. f Potential CRA Fxpansion to - } i.} nrprove en-kw Park Ll r 3 Gateway Treatment I ! Gatemy s'• - h Redevelopment Plan Summary Man City of Sebastian CRA =OF M SEBASTIAN. aa."....aaaa. Wley-Hom and Associates, Inc. Figure 1 now Accomplishments of the Sebastian Community Redevelopment Agency (Sebastian CRA) 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. ❑ Completed construction on the Indian River Drive/Main Street 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. ❑ Designed billboard advertisements and rented billboards on Highway I -95. ❑ Contributed $20,000 to a film production about the story of Pelican Island. ❑ Constructed information boards at Riverview Park and at the Park at Indian River Drive/Main Street. ❑ Updated the CRA Master Plan in 2010. ❑ Completed construction on the Yacht Club finger pier project. ❑ Provided matching funds to the Stan Mayfield Grant that was used for the purchase of the Working Waterfront Properties. FY 2013 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 activities and accomplishments of the Sebastian CRA in 2013 included: ❑ Provided financial support for the clam bake, concert in the park events and fine art festival. ❑ Provided funding for Holiday decorations. ❑ Initiated preliminary design for improvements to the Presidential Streets. ❑ Completed gateway enhancement features. ❑ Made necessary repairs to the Working Waterfront properties. ❑ Executed lease with Crab E. Bills for a commercial retail fish market and a retail commercial limited food service "Eatery"> ❑ Awarded grants for the fagade, sign, and landscape grant program to help two businesses, in the Sebastian CRA district, to improve the aesthetics of their properties and buildings. 3 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. M The actual implementation of the tax increment financing was delayed until FY 2001. The City's millage has decreased from $5.00 per $1,000 in FY 2001 to $3.7166 per $1,000 in FY 2013. The millage for Indian River County has been decreased from $4.1014 per $1,000 in FY 2001 to $3.0892 per $1,000 in FY 2013. Rates from 2001 through 2013 are presented in Exhibit II below. Exhibit II Sebastian Community Redevelopemnt Agency Operating Millage Rates in Redevelopment Area Total Tax Increment Millage Rate 10.0000 8.0000 a� 6.0000 4.0000 - - - - 0 2.0000 - - - - 0.0000 O� Off' 00 Off` O� <ZP N Fiscal Year Source: City of Sebastian Administrative Services Department W, Indian City River of Total Fiscal Year Counly 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 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 Total Tax Increment Millage Rate 10.0000 8.0000 a� 6.0000 4.0000 - - - - 0 2.0000 - - - - 0.0000 O� Off' 00 Off` O� <ZP N Fiscal Year Source: City of Sebastian Administrative Services Department W, The taxable value of real property in the redevelopment area has risen significantly during the same period. In FY 2001 the total taxable value of the redevelopment area was $45.8 million. Compared to FY 2013 total taxable value of $82.8 million, the taxable value of the redevelopment area has increased by 79.7 %. After subtracting the base year values, the 2013 incremental value has increased over three and one -half times the 2001 value. The taxable values in redevelopment area from 2001 through 2013 are presented in Exhibit III below. Exhibit III Tax Increment Values 100.0 -- _ - - -- - -- - -- - - - - -- In 80.0 — — 0 60.0 0 = 40.0 o 20.0 — — — — — � i 0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 (1) {1) (1) (1} (1) (1) (1) (1) {1) Fiscal Year (1) The revenues include the triangle area, which was added in the redevelopment area in 2003. Source: City of Sebastian Administrative Services Department 2 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(l) 78,424,554 41,561,980 36,862,574 17.59% 2006(l) 89,418,550 41,561,980 47,856,570 29.82% 2007(l) 134,755,060 41,561,980 93,193,080 94.73% 2008(l) 129,700,130 41,561,980 88,138,150 - 5.42% 2009(l) 127,735,740 41,561,980 86,173,760 -2.23% 2010(l) 111,909,020 41,561,980 70,347,040 - 18.37% 2011(l) 90,533,980 41,561,980 48,972,000 - 30.39% 2012(l) 83,558,060 41,561,980 41,996,080 - 40.30% 2013(l) 82,753,350 41,561,980 41,191,370 - 15.89% Tax Increment Values 100.0 -- _ - - -- - -- - -- - - - - -- In 80.0 — — 0 60.0 0 = 40.0 o 20.0 — — — — — � i 0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 (1) {1) (1) (1} (1) (1) (1) (1) {1) Fiscal Year (1) The revenues include the triangle area, which was added in the redevelopment area in 2003. Source: City of Sebastian Administrative Services Department 2 Based on the millage rates and the significant increases in taxable values, the tax increment revenue has risen dramatically. In 2001, the total tax increment revenue was $94,029. In 2013, the tax increment revenue has increased to $266,323 but this is a 51.8% decrease from the high year of 2007. The tax increment revenues for the redevelopment area for the Fiscal Year 2001 through 2013 are presented in Exhibit IV below. Exhibit IV Sebastian Community Redevelopemnt Agency Tax Increment Revenue Tax Increment Revenue $600,000 - - - - -- - - - -- -- - - - - -- ------- - - - - -� $500,000 -! $400,000 $300,000 $200,000 - - - $100,000 $0 100' let, X000 1601' `ti1 OrO`1 O�`1 O�``1 �0`.1 `1 `1 `S1 �O rL0 �O r10 �O ,y0 ,y0 ,ti0 ,LO Fiscal Year (1) The revenues include the triangle area, which was added in the redevelopment area in 2003. Source: City of Sebastian Administrative Services Department 7 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(l) 126,886 160,753 287,639 2006(l) 160,051 178,786 338,837 2007(l) 282,546 270,195 552,741 2008(t) 252,885 250,499 503,384 2009(f) 251,236 273,888 525,124 2010(l) 206,450 223,585 430,035 2011 (1) 143,720 153,900 297,620 2012(l) 123,248 131,821 255,069 2013(l) 120,886 145,437 266,323 Tax Increment Revenue $600,000 - - - - -- - - - -- -- - - - - -- ------- - - - - -� $500,000 -! $400,000 $300,000 $200,000 - - - $100,000 $0 100' let, X000 1601' `ti1 OrO`1 O�`1 O�``1 �0`.1 `1 `1 `S1 �O rL0 �O r10 �O ,y0 ,y0 ,ti0 ,LO Fiscal Year (1) The revenues include the triangle area, which was added in the redevelopment area in 2003. Source: City of Sebastian Administrative Services Department 7 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, 2013 and may be obtained in the City Clerk's office 1225 Main Street, Sebastian, Florida or online at http: / /www /cityofsebastian.oig. 8 Sebastian Community Redevelopment Agency, Florida Balance Sheet September 30, 2013 Unaudited ASSETS Cash and cash equivalents $ 462,367 Investments 100,984 Total assets $ 563,351 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 8,413 Total liabilities 8,413 Fund balances: Restricted 554,938 Total fund balance 554,938 Total liabilities and fund balance $ 563,351 z Sebastian Community Redevelopment Agency, Florida Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended September 30, 2013 Unaudited REVENUES: Taxes: Property Investment earnings Other revenue Total revenues EXPENDITURES: Current: General government Economic environment Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING USES: Transfers out Total other financing uses Net changes in fund balance Fund balance - beginning Fund balance - ending 10 $ 266,323 1,513 6,000 273,836 2,326 122,730 6,562 131,618 142,218 (66,175) (66,175) 76,043 478,895 $ 554,938 Sebastian Community Redevelopment Agency, Florida Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual For the Year Ended September 30, 2013 Unaudited REVENUES: Taxes: Property Investment earnings Other revenue Total revenues EXPENDITURES: Current: General government Economic environment Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING USES Transfers out Total other financing (uses) Net changes in fund balances Fund balances - beginning Fund balances - ending Budget Amounts Original Final Actual Variance with Amounts on Final Budget - a Budgetary Positive Basis (Negative) $ 264,809 $ 264,809 $ 266,323 3,064 3,064 1,513 - - 6,000 267,873 267,873 273,836 $ 1,514 (1,551) 6,000 5,963 - - 2,326 2,326 150,040 144,540 122,730 (21,810) - 5,500 6,562 1,062 150,040 150,040 131,618 (18,422) 117,833 117,833 142,218 24,385 (310,000) (310,000) (66,175) 243,825 (310,000) (310,000) (66,175) 243,825 (192,167) (192,167) 76,043 268,210 478,895 478,895 478,895 - $ 286,728 $ 286,728 $ 554,938 $ 268,210 11