Fort Walton Beach Resolution — 2012-20--2012 CRA Plan Update — reading text

Community Redevelopment Act provides three crucial " keys" to inspire the local government' s success in addressing blighted conditions within their community : Local self -determination; An emphatic directive to maximize private enterprise participation in the redevelopment efforts; and A method for funding without raising additional taxes. Local self determination - lays out the framework for the local government to create a separate legal entity call a Community Redevelopment Agency ( CRA) via Ordinance and following the requirements of Chapter 163, Part III of the Florida Statutes. The directive to maximize private enterprise participation in redevelopment results in initiating programs and projects to stimulate private sector participation. The CRA should attempt to identify the impediments to private enterprise fulfilling its roles so that private enterprise can apply its resources to assist in ameliorating the area' s economic shortcomings as well as to operate a profitable venture for itself. The third " key ", Tax Increment Financing ( TIF), is the primary method of funding for projects and programs setup by the CRA though a Redevelopment Trust Fund. Authorized under the Community Redevelopment Act of 1969, ( Section 163. 330, F. S.), the Community Redevelopment Area functions as a Tax Increment Financing District. Often referred to as " TIF," it is a method to pay for redevelopment through the annual increase in ad valorem tax revenue. The process for calcualating TIF revenue requires first establishing a base assessed value ( Base AV). This is the total assessed value of the property within the district at the date the Redevelopment Trust Fund is established. At that point, the incremental increase in assessed value over the life of the TIF will continuo to generate ad valorem revenue, while the excess ( Incremental AV) will be distributed to the TIF agency ( CRA) and the Base AV amount 2012 City of Fort Walton Beach  2012 Community Redevelopment Plan will continue to be distributed to the original taxing agencies. The revenue collected is used to pay for qualifying programs and projects within the TIF district ( CRA). At the sunset of the TIF, the total revenue Innem IA4 collected through the assessed the Nrvement• ae — l a are value ( Post TIF AV) will once used to pay fa q- rdyirg p. ox again be distributed to each of Sa AY the taxing agencies according to their right. TIF TIF Gcnioo Dace Termination Dace TIF revenues may be expended by a CRA as described in the CRA Plan for the following purposes, including, but not limited to: Administrative and overhead expenses necessary or incidental to the implementation of a community redevelopment plan adopted by the CRA; Expenses of redevelopment planning, surveys, and financial analyses, including the reimbursement of the governing body or the CRA for such expenses incurred before the CPA Plan was approved and adopted; The acquisition of real property in the redevelopment area; The clearance and preparation of any redevelopment area for redevelopment and relocation of site occupants within or outside the CRA; The repayment of principal and interest or any redemption premium for loans, advances, bonds, bond anticipation notes, and any other form of indebtedness; All expenses incidental to or connected with the issuance, sale, redemption, retirement, or purchase of all bonds, bond anticipation notes, or other form of indebtedness, including funding of any reserve, redemption, or other fund or account provided for in the ordinance or resolution authorizing such bonds, notes, or other form of indebtedness; The development of affordable housing within the CRA; The development of community policing innovations; At the end of each fiscal year of the CRA, any funds that remain in the Redevelopment Trust Fund after the payment of expenses for the fiscal year, shall be: Returned to each taxing authority which paid the increment in the proportion that the amount of the payment of such taxing authority bears to the total amount paid into the Trust Fund by all taxing authorities for that year; Used to reduce the amount of any indebtedness to which TIF revenues are pledged; City of Fort Walton Beach 2012  2012 Community Redevelopment Plan Deposited into an escrow account for the purposes of later reducing any indebtedness to which TIF revenues are pledged; or Appropriated to a specific redevelopment project pursuant to an approved CRA Plan that will be completed within three ( 3) years from the date of such appropriation. The original Fort Walton Beach Redevelopment Trust Fund began with a base year assessed value of $15, 309, 825 in FY 1980 -81. At the time of the CRA expansion in FY 1999 -2000, the assessed value of the original CRA area had increased to $ 75, 326, 886, an increase of 60,017, 061. The projected assessed value of the original CRA area in FY 2011 - 12 is 163, 380, 136, and increase of $148, 070,311. The highest assessed value of the original CRA area occurred in FY 2008 -09, when the assessed value reached $ 203, 719, 445. The economic downturn began in the original CRA area in FY 2009 -10 and has decreased in assessed value each year since. Assessed Value Within Original CRA Boundaries 250, 000, 000 200, 000, 000 150, 000, 000 - -- a; `: ' ® Assessed Value stl 100, 000, 000 .. ++ e.! i!•• w. , 5.. 50, 000, 000 0 FY 1980 -81 FY 1999 -00 FY 2008 -09 FY 2011 -12 projected) The base year assessed value of the expanded area of the Fort Walton Beach CRA is 37, 439, 782 in FY 1999 -00. The projected assessed value of the expanded portion of the CRA in FY 2011 - 12 is $ 75, 810, 333, an increase of $38, 370, 551. The highest assessed value of the expanded portion of the CRA area occurred in FY 2007 -08, when the assessed value reached 111, 800, 011. The economic downturn began in the expanded CRA area in FY 2008 -09 and has decreased in assessed value each year since at a higher rate than the original CRA area. The TIF revenues of the CRA after the expansion in 1998 steadily increased until capping out in FY 2007 -08 and FY 2008 -09. Since FY 2008 -09, there has been a steady decrease in the FIT revenues due to the economic downturn. City of Fort Walton Beach 2012  2012 Community Redevelopment Plan Assessed Value with Expanded CRA Boundaries 120,000, 000 4100, 000, 000 60, 000, 000 60, 000, 000 Assessed Value 40, 000, 000 20, 000, 000 r, 0 O O N 9 q O O d LL LL LL 4 The revenue collected in the Redevelopment Trust Fund is reinvested into the CRA within the guidelines established by the Community Redevelopment Act and in accordance with the goals and objectives set forth in the CRA Plan. The increment is determined annually and is equal to 95 percent of the difference between: a) The amount of ad valorem taxes levied each year by each taxing authority, exclusive of any amount from any debt service millage, on taxable real property contained within the geographic boundaries of a community redevelopment area; and b) The amount of ad valorem taxes which would have been produced by the rate upon which the tax is levied each year by or for each taxing authority, exclusive of any debt service millage, upon the total of the assessed value of the taxable real property in the community redevelopment area as shown upon the most recent assessment roll used in City of Fort Walton Beach  2012 Community Redevelopment Plan connection with the taxation of such property by each taxing authority prior to the effective date of the ordinance providing for the funding of the trust fund. Budget development begins early each year, usually in February or March. Each year, CRA staff begins to develop and compile an annual plan of programs and projects that meet the goals of the Community Redevelopment Area Plan. During this time, the City will solicit participation from residents and businesses located within the boundaries of the CRA. This is the opportunity each year for the public to contribute to the development of the CRA budget and provide valuable input on CRA programs and projects. Budget items must be consistent with the goals and objectives of the CRA Plan and be consistent with the overall mission of the Community Redevelopment Area. For this reason, all submission, requests, and staff generated budget items must be evaluated against the primary purpose of the CRA, which is to eliminate blight and slum. More specifically, programs and projects focus on three general areas as identified in the Florida Statutes: 1. Encouraging private enterprise. This shall include the consideration of certain development and job creation incentives as well as the acquisition and transfer of real property in the CRA in order to promote revitalization and redevelopment ( Sections 163. 345, 163. 370, and 163. 380, F. S.). 2. Installation of necessary public improvements. This shall include installation, constmetion, or reconstme[ ion of streets, utilities, parks, playgrounds, and other public areas as well as furnishing and repair of these facilities ( Section 163. 370( c)( 3), F. S.) 3. Provision of affordable housing. This shall include the acquisition of property, demolition, removal of buildings and improvements, transfer of property, and other activities for purposes of meeting the housing goals and objectives of the CRA Plan Section 163. 370, F. S.). Once developed, the draft annual budget will be submitted to the Community Redevelopment Agency Board of Commissioners in April or May and finalized in June or July. The CRA Board and City Council will then adopt the final budget in September for the fiscal year of October I" through September 30". CRA expenditures must be balanced with CRA revenues each year. City of Fort Walton Beach