On the agenda

1. 1Call to Order - Roll Call▶ 0:00
2. 2

   Approval of May 4, 2021 CRA Meeting Minutes

   approved

   The CRA Board approved the minutes of the May 4, 2021 meeting.

   • motion:Motion to approve the May 4, 2021 CRA meeting minutes. (passed)

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   [00:00:22] Next item on the agenda is the approval of the May 4th meeting minutes. [00:00:23] Move for approval. [00:00:24] Second. [00:00:26] All those in favor signify by saying aye. [00:00:29] Aye. [00:00:30] Opposed, like sign.

   This text was generated automatically from the meeting video. It is not a verbatim or official record. For exact wording, consult the video or the city clerk.

3. 3

   Financial Report

   discussed

   Finance Director Mrs. Feist presented the CRA's statement of revenues, expenditures, and changes in fund balance for the period ending April 30, 2021. The CRA received $1.77M in TIF from Pasco County, $2M TIF from the general fund, $6.5M in debt proceeds for the parking garage, and incurred $4.9M in expenditures including incentives, capital projects, debt service ($919,147), administrative transfers ($214,316), and the first repayment ($619,310) on an ~$8.7M general fund advance. Board members discussed the negative fund balance, debt structure history, and the recently announced 8.5% property value increase.

   📍Baptist Church property📍Highway 19 Main Street Gateway📍Railroad Square🏢Central Orange Partners Group🏢Kaiser University🏢Pasco County🏢SunTrust🏢Tampa Bay Water👤Mrs. Feist👤Ms. Mams👤Murphy👤Peters👤Stroman#2016 debt issuance#CRA Plan Update#Fiscal Year 2021 Financial Report#Highway 19 Main Street Gateway Project#Parking Garage Project#Railroad Square Improvement Project#Streetscape projects#Tax Increment Financing (TIF)

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   [00:00:32] Next, financial report. [00:00:33] Ms. Mams? [00:00:34] Yes, sir. [00:00:35] Mr. Mayor. [00:00:36] Pardon me. [00:00:37] Mr. Chairman. [00:00:38] Mrs. Feist, the city's finance director, is prepared this evening to present to you a [00:00:39] statement of revenues, expenditures, and changes in fund balance. [00:00:40] Mr. Chairman, I would like to ask you to sign this. [00:00:41] Thank you. [00:00:42] Thank you. [00:00:43] Thank you. [00:00:44] Thank you. [00:00:45] Thank you. [00:00:46] Thank you. [00:00:47] Thank you. [00:00:48] Thank you. [00:00:49] Thank you. [00:00:50] Thank you. [00:00:51] Thank you. [00:00:52] Thank you. [00:00:53] Thank you. [00:00:54] Next, the financial report of revenues, expenditures, and changes in fund balance for the financial [00:00:56] reporting period ending on April 30th, 2021. [00:00:57] Good evening. [00:00:58] Yes, tonight I will do just that. [00:00:59] Before we look at the actual statement, I want to go over the activities that fed into [00:01:00] those balances that you reviewed in your agenda packet. [00:01:01] I find that it will be easier to look at the details first, and then we'll look at the [00:01:02] summary in the statement. [00:01:03] Okay. [00:01:04] Thank you. [00:01:05] Thank you. [00:01:06] Thank you. [00:01:07] Thank you. [00:01:08] Thank you. [00:01:09] Thank you. [00:01:10] Thank you. [00:01:11] Thank you. [00:01:12] Thank you. [00:01:13] Thank you. [00:01:14] Thank you. [00:01:15] Thank you. [00:01:16] Thank you. [00:01:17] Thank you. [00:01:18] Thank you. [00:01:19] Thank you. [00:01:20] Thank you. [00:01:21] Thank you. [00:01:22] Thank you. [00:01:24] Thank you. [00:01:25] Thank you. [00:01:26] Thank you. [00:01:27] Thank you. [00:01:28] All right, so first off is revenues and other financing sources. [00:01:31] This is what funds the CRA and the resources that allow the CRA to operate. [00:01:39] As of fiscal year 21 and as of April 30th, 2021, the CRA did receive its tax increment [00:01:49] from Pasco County totaling $1,765,865 and also the tax increment from the general fund [00:02:00] totaling right over $2 million. [00:02:03] And both of those are due to the CRA by the end of the year. [00:02:07] So in this case, 12-31-20, both of those revenue sources were provided to the CRA. [00:02:17] The next item that was used by the CRA as a financing source was the proceeds from the [00:02:23] debt issuance, $6.5 million, which was specifically to be used to construct the parking garage. [00:02:34] And then finally, a transfer from the Street Improvement Fund of $20,000, which is to be [00:02:42] used toward streetscape projects. [00:02:50] Next is expenditures. [00:02:52] And so the first category is our general government category, which includes payroll and operating. [00:02:58] And so, so far, the CRA has incurred $249,736. [00:03:05] Next is our tax rebates, our incentive payments. [00:03:10] The CRA has provided Kaiser, well, the Kaiser University project with incentives of $787,500. [00:03:19] And the Central Orange Partners Group, they received tax rebates of $6,134. [00:03:30] So far this fiscal year, the CRA has provided 15 businesses with $141,260 in redevelopment, [00:03:40] our business incentives. [00:03:45] Continuing on with capital projects, the parking garage project has incurred almost $3.8 million [00:03:55] in expenditures, all of which has been funded by the debt proceeds. [00:04:02] The Railroad Square Improvement Project incurred $23,252 in expenditures. [00:04:09] And then finally, the Highway 19 Main Street Gateway Project, almost $6,000 in expenditures [00:04:16] related to design work. [00:04:21] And finally, under expenditures, there were transfers. [00:04:26] The first one being for administrative services, a transfer to the general fund totaling $214,316. [00:04:36] And just to refresh your memory on that, that's to cover the, just the administrative function [00:04:42] that the general fund provides to the CRA. [00:04:45] Any billing, the city manager's portion of the time that she dedicates to the CRA, the [00:04:55] city attorney, things of that nature. [00:04:58] The second transfer is to the general fund debt service account, and that's for debt [00:05:04] service payments. [00:05:05] And that's totaling $919,147. [00:05:10] And then finally, there was a payment, a repayment to the general fund for an advance. [00:05:19] We're starting those repayments this fiscal year. [00:05:25] The first one was for $619,310. [00:05:32] And so now, looking at the statement that was in your packet, and I apologize for that [00:05:36] being so small. [00:05:37] I didn't realize that it would show up this way. [00:05:41] So to bring it all together and to summarize, you'll see revenues are presented at the top, [00:05:47] almost $1.8 million, and then we have expenditures totaling $4.9, almost $5 million. [00:05:56] So that does create an excess of expenditures over revenues of about $3.2 million. [00:06:04] But then we factor in those other financing sources. [00:06:07] How do I turn the, oh, there we go. [00:06:14] So here, we have these other financing sources that I went over that will cover this initial [00:06:23] deficit. [00:06:24] You'll see the proceeds from debt issuance, the transfers in for general funds TIF portion, [00:06:33] and then other transfers. [00:06:35] And then that transfers out. [00:06:37] And so that creates a net change of about $3.5, $3.6 million. [00:06:46] You'll see at the bottom here, the fund balance at the beginning of the year was a negative [00:06:52] $4.9 million. [00:06:54] And then with this net change here, it leaves us with a fund balance as of 4-30 of negative [00:07:03] $1.3 million. [00:07:04] And so those are negative, just to refresh your memory, because of that advance that [00:07:10] the CRA owes the general fund. [00:07:12] Until we pay that down or pay it off, the CRA will continue to have a deficit in fund [00:07:20] balance. [00:07:21] And so the number I think we should focus on is this number I have circled in red, which [00:07:27] really represents the cash or the funds that the CRA has for the remaining portion of the [00:07:34] fiscal year. [00:07:35] That's the funds that they have available to use. [00:07:37] So that really represents the true activity of the fiscal year that we're discussing. [00:07:44] And that is what I have for the evening. [00:07:46] So... [00:07:47] Mr. Stroman, you had a question? [00:07:48] Yeah, a couple. [00:07:49] One, under revenues, you've got the tax increment financing from the county. [00:07:54] And I know I've had this discussion before with auditors, but the general, the transfers [00:07:59] in general fund, TIF, the TIF funding there, you know, if I had it my way, it would be [00:08:07] up there with the revenues, because the tax increment, and I'm not saying it's supposed [00:08:11] to be, because it's in a company or it's in a city. [00:08:15] But the reality is, you know, you're working with those two figures, which are statutorily [00:08:22] cash coming into your fund every year. [00:08:25] And then the negative fund balance, which we had some discussion with the county commissioners [00:08:31] when we met the last time we met for our annual meeting two or three years ago, whenever that [00:08:36] was, where they were all excited because our fund balance was so high without recognizing [00:08:42] that it was a negative fund balance. [00:08:44] But the negative fund balance is reflecting the write-down of our inventory at the Baptist [00:08:50] Church property and some of the properties when the church was demolished and we had [00:08:56] to write off the building, which was, if you may recall, quite a controversy here internally [00:09:03] as well, which the write-off was prevailing because it's inventory to a more enterprise [00:09:14] type fund, which is holding those assets to sell. [00:09:17] And I think we didn't buy the church to keep it. [00:09:20] We bought the church to foster redevelopment. [00:09:22] So it's out on the books as inventory. [00:09:26] So the negative is based on a loss of a capital asset that we had purchased from previous [00:09:34] tax increments way back in the day and borrowed from. [00:09:40] So when you talk about the cash, you're changing fund balance of $3,582,000, which I would [00:09:49] agree you want to focus on. [00:09:52] You would also add the beginning balance of cash to that if you were going to talk about [00:09:57] cash because you had... [00:09:59] So can we go back to the balance sheet again? [00:10:02] Do you have... [00:10:03] I didn't know. [00:10:04] The balance sheet is not presented, but you're correct in that. [00:10:06] So if we've left with whatever our cash balance was at the beginning of this year, you would [00:10:11] tag that on to the change in revenues we received versus expenditures incurred. [00:10:17] So all of that is cash transaction up top. [00:10:19] When you get to the fund balance, it's a combination of... [00:10:24] Because maybe a combination that... [00:10:28] I think it's more the church maybe and the losses that we took and some of the loans [00:10:34] as well. [00:10:35] I think there's two components of that, but thank you. [00:10:40] My other question is, you showed the debt earlier, how much we paid on those bonds. [00:10:46] Sometimes we have payments to make twice a year. [00:10:49] Do we still have in the fiscal year any more debt service payments or does that... [00:10:55] That includes all for the fiscal year. [00:10:59] Okay. [00:11:00] So that's it for the year. [00:11:02] That's done. [00:11:03] You have money left in the bank. [00:11:05] The parking garage, you spent 3.7 million. [00:11:08] I remember when we took the debt, that there was talk that you could refund and lower the [00:11:13] debt if you wanted to, or you could identify another project that it could be available [00:11:18] to be used for. [00:11:19] We had that discussion. [00:11:23] How is that... [00:11:26] What's left in the liability on the parking garage, I guess? [00:11:29] Is it the full 6 million or I'm trying to remember, or I don't remember. [00:11:35] The project was bid on a 6.5 million dollar budget. [00:11:42] Our expectation, though, is that it will come in under budget, likely in the area of 500,000. [00:11:51] So there'll be something. [00:11:52] Maybe. [00:11:53] Yeah, maybe. [00:11:54] 500,000. [00:11:55] Good. [00:11:56] Better than nothing, huh? [00:11:57] All right. [00:11:58] Mr. Murphy, any questions or comments? [00:11:59] No, I think I'm good on this. [00:12:00] Mr. Peters? [00:12:02] So, yeah, a couple questions. [00:12:03] On the bond issue, that 6.5 million, now, did we... [00:12:10] Was some of that going to be earmarked or was able to be used for the library and or [00:12:18] fire station, the bonding portion? [00:12:22] So the total issuance was 11 million. [00:12:28] The 6.5 that I'm reporting here was exclusively for the parking garage. [00:12:31] Just for the parking garage. [00:12:32] Okay. [00:12:33] I just wanted to clarify that. [00:12:34] Okay. [00:12:35] All right. [00:12:36] And so on the debt service there, a couple things was that you mentioned the loan repayment [00:12:43] of 619,000, and that was the first. [00:12:50] What is the balance on that? [00:12:51] How many more payments have we got? [00:12:53] 19, I believe. [00:12:55] 19 payments? [00:12:58] Okay. [00:12:59] So we owe another... [00:13:00] The total is about 8.7 million. [00:13:04] That was advanced to the CRA many years ago in 2014, I believe. [00:13:10] And debt was generated from... [00:13:13] If I can answer your question, I was the finance director at the time when that happened. [00:13:17] I'm just looking for the answer. [00:13:21] The debt was generated from a SunTrust loan, which was in special assets, because when [00:13:28] 2007 came and the economy tanked and some of our properties dropped in half, the cream [00:13:38] on the top, that's where the CRA gets its money, disappeared. [00:13:42] And so we were in a position where the general fund was having to help make some of the payments. [00:13:46] Of course, they allocated some of those capital projects to the CRA because it looked like [00:13:51] it was having the money. [00:13:53] The money came from the water and sewer department, from an allocation, was it principal or interest? [00:14:00] Interest. [00:14:01] Of interest on the sale of our water fields at Starkey to Tampa Bay Water. [00:14:09] So we decided, we found legally we could claim all the back interest. [00:14:13] We shifted it over to the general fund, so it didn't really come from the general fund. [00:14:18] And it's even listed, I think, in our CRA plan update as being water and sewer money, [00:14:27] but it really turned from water and sewer money back to general fund money. [00:14:32] The general fund money loaned it. [00:14:35] So what it did is providing really a... [00:14:38] We need those 20 years of that money to filter back in because the general fund's not getting [00:14:43] any of the benefit of these tax value increases. [00:14:46] So I think it's a good strategy that at least that money's coming back to the general fund. [00:14:52] So to me, it's good news that we have 20 more years to pay for it because that's 20 more [00:14:56] years of shifting money back in to... [00:15:00] That's okay, and that makes sense, Peter. [00:15:03] I appreciate the history on that, [00:15:04] because I didn't have all that knowledge. [00:15:07] I know that, and the debts are the 900,000, [00:15:09] the 919 you have there, [00:15:11] how many more payments of that do we have? [00:15:17] 19, well, that includes, that's our 2016 debt, [00:15:22] so we've been paying on it since then. [00:15:25] I can come up, I can give you, [00:15:26] get back to you with the exact number, [00:15:28] but I believe it's through the life of the CRA. [00:15:31] Yeah, well, that's my point, so. [00:15:36] And just to make, I just try to make clear a little bit, [00:15:39] so we really have right there, [00:15:42] we don't think that there's gonna be [00:15:43] a lot of difference changes in that 214,000 [00:15:46] from year to year, it's gonna be about that, [00:15:49] up or down a little bit. [00:15:50] So we've got, you know, that's 1.5, [00:15:54] so we've got about 1.7 million dollars [00:15:57] of earmarked money that has to come [00:15:59] from the CRA every year, right, [00:16:01] before we spend the first dollar, [00:16:04] just to take care of debt and administrative costs. [00:16:08] That's kind of just what I wanted to make clear. [00:16:11] So that's almost matches, 1.7 almost matches [00:16:15] the revenue we're getting from the county each year of 1.7. [00:16:19] So that leaves you with about two million, [00:16:22] and maybe the up to, toward the upward [00:16:24] of about 2.3 million each year [00:16:26] to really fund your capital projects [00:16:28] and, you know, your other expenditures. [00:16:31] And that's what I was trying to do, [00:16:31] is get round figures, get down and say, [00:16:33] hey, really what, you know, make it clear, [00:16:36] maybe for anybody that's watching, [00:16:37] understand really how much, you know, [00:16:39] we talk about all these different numbers, [00:16:40] but the bottom line is, we know this is the revenue, [00:16:44] and perhaps that revenue could potentially increase [00:16:47] a little bit, but we know we've got these fixed debt [00:16:53] payments and expenditures indicating, [00:16:55] and so then the bottom line number, [00:16:57] what we have to work with is that two [00:17:01] to two and a half million dollars a year. [00:17:03] Does that make sense? [00:17:04] Except for the note, the news we just got, [00:17:08] I guess, of the percentage of increase [00:17:12] in the property values that just came in, [00:17:14] which was due first of the month, [00:17:16] which was 8.5% in property value. [00:17:22] That's where the increase would come from. [00:17:23] So that, I'm just, I did something, [00:17:25] I roughed it up, but I think it's almost, [00:17:30] it's about $500,000 more this year than last year. [00:17:34] So if we kept getting 8%, you know, [00:17:37] those numbers would be good, but the total, [00:17:41] maybe I said that wrong. [00:17:45] Yeah, from 3.8 million, we should be looking [00:17:48] at like 4.4 million to the CRA next year, if that's true. [00:17:54] I mean, if it all turns out to be taxable income [00:17:59] and doesn't get changed, but not that that means [00:18:01] much to us today, but the reason to make it a deal, [00:18:06] and I'm glad you brought it up, [00:18:07] is because it's the increase in the tax base [00:18:10] that fuels the thing. [00:18:12] So you can, you know, how. [00:18:15] And that 8% would obviously make the change [00:18:19] from the county, the 1.7, [00:18:22] it would also affect the general fund, [00:18:24] providing that there's no, we wouldn't make another change, [00:18:29] say, for the millage rate, right? [00:18:32] Or would that general, if we change the millage rate, [00:18:34] say, if the millage rate would decrease, [00:18:37] would the general fund revenue change from this $2 million? [00:18:39] It would decrease as well. [00:18:40] So we may not have, you know, [00:18:43] Peter, if I remember correctly, [00:18:45] you've always talked before, [00:18:46] we need to catch up on the decrease, [00:18:48] or seeing might change the millage rate, [00:18:50] which would bring part of that back down, [00:18:52] providing all the numbers work out. [00:18:54] So that's, I'm just trying to get, you know, [00:18:57] I apologize, my first time on this CRA budget, [00:19:01] and I've been trying to look at it, [00:19:02] make sure I'm understanding, [00:19:03] and so I was just trying to bring it into clear, [00:19:06] you know, hey, money in, money out, [00:19:08] what I've got left, what I think's gonna change [00:19:11] in the future, and that's, you know, [00:19:16] kind of get my head around things, [00:19:17] and apologize if I took us too long on that.

   This text was generated automatically from the meeting video. It is not a verbatim or official record. For exact wording, consult the video or the city clerk.

4. 4Communications▶ 19:18
5. 5Adjournment▶ 43:52