The FY 2013 CRA Budget was adopted on September 12, 2012; the main focus of the operating budget is the effective implementation of Programs and Projects. The two major categories of the Budget are Operating Costs, and Implementing Redevelopment Projects Costs. Each category is further divided into descriptive line items.
For FY 2013 the CRA is estimated to receive $5,091,083 in TIF Funds*. This amount will fund CRA Operating Costs, while proceeds from the Branch Banking & Trust (BB&T) Bank Loan will be utilized to implement projects moving forward in the Fiscal Year (FY). The BB&T Loan proceeds totals $25,500,000 and will fund implementation of the CRA’s Redevelopment Program. The Redevelopment Program is further refined by the Geostrategic Zones (referred to interchangeably as Redevelopment Priority Areas).
*For a concise description of the TIF Process and information about CRA’s in general, please see the Florida Redevelopment Association’s website.
- The FY 2013 Budget of $36,398,526 is a $2.1 million reduction from the previous year. The reduction is largely related to a reduction in Other Revenues and use of the BB&T Project Loan Fund. In FY 2012, the de-obligation of the City Services Reimbursement Fee was reversed and reported as income.
- Tax Increment Revenues of $5,091,083 is projected to decline by only 1% over the prior year. The tax base in the Riviera Beach CRA is expected to remain stable through FY 2015.
- Personnel, Administrative and Program expenses total $3,587,310. The addition of debt service in the amount of $3,647,685 requires us to offset unrestricted cash reserves by $2.1 million to balance our budget against anticipated cash inflows (primarily Tax Increment Revenues). In other words, these expenses ideally should not exceed the annual collections of TIF revenues. This imbalance will correct itself in FY 2016. The balance in unrestricted cash reserves is sufficient to cover these expenses.
- The budget includes the possibility of $1,010,000 in capital outlays for potential real estate and equipment purchases. The CRA’s Real Estate Acquisition & Disposition Policy requires the Board’s prior approval before the purchase or sale of real estate. The balance in unrestricted cash reserves would again be the source to offset this expense.
- The Agency is projecting working capital cash reserves in the amount of $6,362,827 once the new fiscal year begins. There is no margin for expenses beyond existing debt service, operations, personnel, and limited program activities as budgeted.
- During the year, we anticipate disbursing $11,041,060 for Board approved Project Initiatives. We have mobilized our capital project resources to effect redevelopment at the Marina District and assist towards more catalytic development along the Broadway corridor.