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Home My WebLink About2007 Fiscal Year End CRA Annual ReportSEBASTIAN COMMUNITY REDEVELOPMENT AGENCY ANNUAL REPORT Under Chapter 163.356(3)(C) GTY OF ,,. ---- ~-}. ~~-~- _ _ - r , . ~. ~~ ~ ~ _ - 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 S~~S~'~~N 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 ~~~~~ 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 ~~ 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. 1 7.P:oPnr1 ~~~ . 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. 7 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 8 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 1Q