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Home My WebLink About2009 Fiscal Year End CRA Annual ReportSEBASTIAN COMMUNITY REDEVELOPMENT AGENCY ANNUAL REPORT Under Chapter 163.356(3)(C) CITY OF p HOME OF PELICAN ISLAND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009 1225 MAIN STREET SEBASTIAN, FLORIDA 32958 SEBASTIAN COMMUNITY REDEVELOPMENT AGENCY ANNUAL REPORT TABLE OF CONTENTS Letter of Transmittal i List of Principal Officials ii History 1 Exhibit I Sebastian CRA Boundary Accomplishments 3 FY 2009 Sebastian CRA Activities 3 Tax Increment Revenues 4 Exhibit II Operating Millage Rates in Redevelopment Area 5 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 March 10, 2009 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, 2009. 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 HOME OF PELICAN ISLAND 1225 MAIN STREET SEBASTIAN, FLORIDA 32958 TELEPHONE: (772) 589 -5330 FAX (772) 589 -5570 SEBATIAN s LIST OF PRINCIPAL September 30, Chairman Richard H. Gillmor Board Member Jim Hill Board Member Andrea B. Coy Board Member Eugene Wolff Board Member Don Wright ii OFFICIALS 2009 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. 1 Gateway Areawide Recommendations 1. Retain 2-3 story maximum building height. 2. Modify community design guidelines to reinforce "Old Florida Fishing Village" design theme. 3. Future study to further address parking needs in the CR.A. Capital improvements 1. Riverview Park improvements, 2. Streetscapc improvements to (1S-1, Riverside Drive, and Sebastian Boulevard (east and westbound). 3. Reconfigure boat trailer parking. 4. Develop a stoimwater park. LEM T. Kimlev-Horn and Associates, Inc. lidX11. :Pt Gateway Treatment Ficrtire 1 r. Boulevard Trianglelkkea I I City of Sebastian CRA Riverside Drive Streetscapes and Pocket Parks Legend CRA Boundary Gateway Treatment Main Street Activity Center Redevelopment Plan Summary Map GT Of SEBASTIAN US 1 Streetscape Enhancements and "Build to Street" Scalc 1 SOW o 400 400 =NM Riverview Park Activity Center Potential CRA Expansion to mprove verview Park 1 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 Facade, 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 three billboard advertisements and rented billboards on Highway I -95. Contributed $20,000 to a film production about the story of Pelican Island. Approved the construction of information boards at Riverview Park and at the Park at Indian River Drive /Main Street. FY 2009 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 2009 include: Provided funding for concert in the park events and the fine art festival. Provided funding for Holiday decorations. Awarded three 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. Contributed $20,000 to a film. production about the story of Pelican Island. Completed the Main Street/Indian River Drive intersection improvement project. Completed the Flag Pole project to enhance the western entrance to the CRA area. Constructed information boards at both Riverview Park and the Indian River Drive/Main Street Park. Designed three billboard advertisements and rented billboards on Highway I -95. 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 Navigat on District Indian River County Mosqui i Control District Indian River County Hospital aintenance District School District, and associated General Obligat n Debt funded by ad valorem taxes Indian River County Land Acquisition B nd General Obligation Debt Emergency Services Dependant Taxing District St. Johns River Water Man gement District Sebastian Inlet Taxi District and (b) the amount of ad valorem taxes which would ave been generated by the rate at which the tax is levied each year by the taxing authority, exclusiv: of the following entities: Florida Inland Navigat on District Indian River County Mosqui is Control District Indian River County Hospital aintenance District School District, and associated General Obliga4on Debt funded by ad valorem taxes Indian River County Land Acquisition and General obligation Debt Emergency Services Depend nt Taxing District St. Johns River Water Man gement District Sebastian Inlet Taxi 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 Redevelopnlent 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. 4 The actual implementation of the tax increment financing was delayed until FY 2001. The City's millage rate has decreased from $5.00 per $1,000 in FY 2001 to $3.3456 per $1,000 in FY 2009. The millage for Indian River County has been decreased from $4.1014 per $1,000 in FY 2001 to $3.0689 per $1,000 in FY 2009. The millage rates from 2001 through 2009 are presented in Exhibit II below. m C) cts 2 0 F- 10.0000 8.0000 6.0000 4.0000 2.0000 0.0000 Exhibit II Sebastian Community Redevelopment Agency Operating Millage Rates in Redevelopment Area Indian City River of Fiscal Year County Sebastian 2001 4.1014 5.0000 2002 4.0501 4.5904 2003 3.8729 4.5904 2004 3.8377 4.5904 2005 3.6233 4.5904 2006 3.5204 3.9325 2007 3.1914 3.0519 2008 3.0202 2.9917 2009 3.0689 3.3456 Source: City of Sebastian Finance Department Total Tax Increment Millage Rate 5 Total Millage Rate 9.1014 8.6405 8.4633 8.4281 8.2137 7.4529 6.2433 6.0119 6.4145 2001 2002 2003 2004 2005 2006 2007 2008 2009 Fiscal Year 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 2009 total taxable value of $127.7 million, the taxable value of the redevelopment area has increased by 179 Although a 22.28% decrease was experienced in 2008, a 18.97% increase from the 2008 level was experienced for 2009. The taxable values in redevelopment area from 2001 through 2009 are presented in Exhibit III below. Exhibit III Sebastian Community Redevelopment Agency Taxable Value in Redevelopment Area Change in Fiscal Taxable Base Year incremental Incremental 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% 2008 (1) 113,994,150 41,561,980 72,432,170 22.28% 2009 (1) 127,735,740 41,561,980 86,173,760 18.97% 100.0 80.0 60.0 40.0 20.0 0.0 Taxable Value 2001 2002 2003 2004 2005 2006 2007 2008 2009 (1) (1) (1) (1) (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 Administrative Services Department 6 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 2009, the tax increment revenue has increased to $525,124, which is a 4.3% increase from the 2008 level. The tax increment revenues for the redevelopment area for the Fiscal Year 2001 through 2009 are presented in Exhibit IV below. Fiscal Year 2001 2002 2003 2004 2005 (1) 2006 (1) 2007 (1) 2008 (1) 2009 (1) $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 Exhibit IV Sebastian Community Redevelopment Agency Tax Increment Revenue Indian River County $42,373 89,664 87,877 114,289 126,886 160,051 282,546 252,885 251,236 City of Sebastian $51,656 101,625 104,157 136,705 160,753 178,786 270,195 250,499 273,888 Total $94,029 191,289 192,034 250,994 287,639 338,837 552,741 503,384 525,124 Tax Increment Revenue 2001 2002 2003 2004 2005 2006 2007 2008 2009 (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 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, 2009 and may be obtained in the City Clerk's office 1225 Main Street, Sebastian, Florida or online at http://www/cityofsebastian.org. 8 Sebastian Community Redevelopment Agency, Florida Balance Sheet September 30, 2009 Unaudited ASSETS Cash and cash equivalents 609,416 Investments 375,251 Interest receivable 6 Total assets 984,673 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable 35 Total liabilities 35 Fund balances: Unreserved: Undesignated 984,638 Total fund balance 984,638 Total liabilities and fund balance 984,673 9 EXPENDITURES: Current: Economic environment Total expenditures Excess (deficiency) of revenues over (under) expenditure 10 Sebastian Community Redevelopment Agency, Florida Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended September 30, 2009 Unaudited REVENUES: Taxes: Property 525,124 Investment earnings 1,990 Total revenues 527,114 1 67,470 1 67,470 359,644 OTHER FINANCING USES: Transfers in 668,590 Transfers out (60,000) Total other financing uses 608,590 Net changes in fund balance 968,234 Fund balance beginning 16,404 Fund balance ending 984,638 Sebastian Community Redevelopment Agency, Florida Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual For the Year Ended September 30, 2009 Unaudited Excess (deficiency) of revenues over (under) expenditures Net changes in fund balances Fund balances beginning Actual Variance with Budget Amounts Amounts on Final Budget a Budgetary Positive Original Final Basis (Negative) REVENUES: Taxes: Property 528,092 528,092 525,124 (2,968) Investment earnings 26,000 26,000 1,990 (24,010) Total revenues 554,092 554,092 527,114 (26,978) EXPENDITURES: Current: Economic environment 123,100 188,100 167,470 20,630 Total expenditures 123,100 188,100 167,470 20,630 430,992 365,992 359,644 (6,348) OTHER FINANCING USES Transfers in 45,000 668,590 623,590 Transfers out (60,000) (60,000) (60,000) Total other financing (uses) (60,000) (15,000) 608,590 623,590 370,992 350,992 968,234 617,242 16,404 16,404 16,404 Fund balances ending 387,396 367,396 984,638 617,242 11 4