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08/12/1996 (2) ;:I~" ....:..,'.:.~.:'. '. :~~~I.:',\,~':':"'.:..~;,':~,~:.:,...."..r....~~:'~'::'~:~~~':"<:" . ".'. ........,~.. I:" ..... ........ I '" '~. ",' .":"'" ......',.,....' .,.:'::,:"::'..::~" " l'>'~ :/.. ,'F , 'CJ: :",', ':; " ' " t] COMMUNITY REDEVELOPMENT AGENCY MEETING CITY OF CLEARWATER August 12, 1996 Present: Rita Garvey J. B. Johnson Robert Clark Ed Hooper Karen Seel Elise Winters Kathy S. Rice Elizabeth M. Deptula Pamela K. Akin Cynthia E. Goudeau Patricia O. Sullivan Absent: David Stone Chair/CRA Trustee CRA Trustee CRA Trustee CRA Trustee CRA Trustee Ex-Officio Trustee Interim Director/Deputy City Manager City Manager City Attorney City Clerk Board Reporter Ex-Officio Trustee The Chair called the meeting to order at 1 :07 p.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. '~. f' ' ,. .... \I~.t J ITEM #2 - Aooroval of Minutes Trustee Clark moved to approve the minutes of the meeting of July 15, 1996, as recorded and submitted in written summation to each Trustee. The motion was duly seconded and carried unanimously. A reference was made to the DDBts (Downtown Development Board) goal setting plan described on page 3. Ex-Officio Trustee Elise Winters requested the CRA (Community Redevelopment Agency) complete the form for use at the November 2, 1996, joint CRA/DDS meeting. Staff will review the form and bring back suggestions to also address CRA concerns. ITEM #3 - New Business a) Amended Budget for FY (Fiscal Year) 1995/96 Staff is presenting an amended FY 1995/96 budget for Trustee consideration and approval. The revenue budget is proposed to be amended to reflect changes in amounts already received or amounts expected to be received. The expenditure budget is proposed to be amended to reflect Changes in the CRA (Community Redevelopment Agency) office. Staff also recommends the Trustees authorize the appropriation of the entire balance remaining in the eRA Trust Fund as of September 30, 1996, for previously approved redevelopment projects and projects to be idf3ntified in the redevelopment plan. ~ In response to a question, the City Manager said when the Atrium Building was constructed, the DOB agreed to pay their tax increment from the project to the CRA. In mcrOS.96 1 08/12/96 , , ~".". \.' ~.:\.' ..' " ,'. " 1 ,.0... " ".' >.'.. ""'" ;.,.:.....:.:, > t.:. "":;':'1" <;'",';j..:.....,,:.,.',.I...<;..;.. '..,..',.I..'....".....:~..".:'.....::...:~\.,;... .,<': "_' ,., ,.,'. '\""'1'" ",."',, ',' ""'."", ' ,.J.'", ,:>>:'..' .:',' .'..,: >,:",:, :', ..',,"'.,,,.',' ':',:' '.' ,','> ':'<: .,", ::'.':...',ie" :'~",: ,~,:':>, ~':l'" :', ')Q'~' .', '...,~'.',;:,:~'. ,,'. :>~, '",'," ::,: ..,.' ":' "::':,,' : .' ., ' ,\ ' , '; -, -: " '. ", , - ' ,.' '.. " \ '., : , ' ", ' .', . . . . , \ jo " .... '. I); " . . . '. ..' ':"":"" . '.r~.",. '."'.~". :,",'\'>~' '>,..',""'.::..:":":.,:,,_~~,:;:,,,,,:,:,;,:,~,...}"';,,.,:;:;'. I:: .....'.. :':":~ :\;.... ':' ..... :.~ :~, J.... ::,"'::,,':.,.: ....... ...':.... :::> Ii....: .:.". ",":'.j .:~':Il::' /~ I answer to question, Finance Director Margie Simmons said $400 of ttother income" comes from copying charges and other small amounts. Trustee Seel questioned why the debt reserve interest earnings budgeted for $10,000 was amended to $0. Ms. Simmons said it has been placed under another category. The expense for Harborview Center parking covers the cost of removing meters from that lot. Ms. Simmons said the large increase in administration costs reimbursed the City for a loan officer and contract clerical employee while the CRA had no staff or executive director. In answer to a question, Interim Director/Deputy City Manager Kathy S. Rice said the eRA pays the parking fund for Checkers' employees. Staff will check and report on the time limit of this arrangement. The transfers for funding redevelopment projects were questioned. The City Manager indicated that amount, an estimate of funds expected to be left over at the end of the year, will be transferred to the CIP. Ms. Simmons said an anticipated $10,000 charge was not needed because of staff vacancies. Trustee Johnson moved to approve the amended budget for FY 1995/96 and authorize the appropriation of the entire balance remaining in the CRA Trust Fund as of September 30, 1996. for previo~sly approved redevelopment projects and projects to be identified in the redevelopment plan. The motion was duly seconded and carried unanimously. b) Budget for FY 1996/97 , '~1'4 t"..) The FY 1996/97 budget is presented for Trustee consideration and approval. The revenue budget is based on estimates of taxable values and assumes the DDB's payment of the tax increment. Interest income assumes the 1986 CRA bonds continue to be outstanding. The expenditure budget assumes the transfer of $50,000 to the City for staffing the CRA office. This budget assumes the 1986 CRA bonds remain outstanding, therefore, the transfer of $1 56,935 to the Debt Service Fund is required. Funding this budget requires transferring $89,911 from prior years' working capital. Ms. Rice said the DDB may request some changes following the joint eRA/DD8 November meeting, after the start of the next fiscal year. In answer to a question, the City Manager said this year (1995/96), the CRA had to dedicate 20% of their tax increment revenues to debt service. This resulted in the CRA having to contribute approximately $4,600 to the debt service reserve after the DOB's entire $23,000 plus contribution was returned to the DOB. In FY 1996/97, the CRA must allocate an additional $156,935 above the 20% to meet debt service reserve requirements. If the CRA used 20% of the DOB contribution, the amount the CRA has to put into the debt reserve would be reduced by a like amount. The Chair recommended establishing a policy to address the ODB's contribution. The City Manager agreed it would be more accurate for the DDB to contribute 20% of their tax increment revenue to the debt service and reduce the CRA's contribution by a like amount. l~ Ms. Winters said last year the CRA did not charge the DOB for the 20% debt service requirement and this year it is Ita wash. It She hoped this issue will be corrected by legislation and not be ongoing. She suggested the eRA return the DDB's contribution for uses allowable by the CRA. It was suggested legislation may not address this issue within the next year and the CRA may wish to retain the DDB contribution to fund half the staff. The City Manager said, according to the recommended FY 1996/97 budget, the eRA would use $4,708 of its mcr08.96 2 08/12/96 ::';"';':':"_'" ' ',: . , "..,,' , ':.,..,:::' ';' ',...':....:": ,"::..,:,:",',;.i::':P<'.':",'."',.::',,,::>\;;."<\',".'(',';',',':',~.,''-;':.':,'',;::'.',:.,:..:,,',:,:,':'"';:'-..::"":';:'..;,:,,..,':'::',,:',> ,':'" "':''':'',::';?',,1~.~': ":" '",.':' ;":' ',',:,".. ',,":';,' ."",""',".'.'..',..,' \,+,,\," .'..~I~",'.:'I....I:",'..::"!,"".,""',:,';'" !::" .1;.',; '1,. ....~_ . .'.1" <It -'. I.'.,: .:..:. ',f'..,....:' ':,,1' .~'. ';'.',..) .:......-'\~ ".'..: ,'.':,:.' 't,' \~. .,r.,'. 1:: . I.. I ': .,:' .... :'1" . ~ ,-:. '.: . .:: ' , .. '::: I,'. ~.: 'I:;~ ....}::: .~:-.~ ~:: .-':'..' h ~ ;:'t. . '; ~ : I :-h ..' ~ ,':...' . ;.. .: ", " d....'.:.. ,', I ' '; '. ; I,.:'., .. ':"", ~ :', t. . . ::.. ~ '. " : ' ~. " :: .:. :: ,'.', 'I' ~ ': "'. <" . ~~.:: .: ~" , .' ,") savings account to fund the debt service requirements if the entire DDS contribution is returned to the DDB. In answer to a question, the City Attorney said according to State statute, only a few entities are exempt from paying the increment. During a period when entities could have applied for exemption, the DDB did not as it did not think the requirement to pay applied to it. It was noted the DDB paid the tax increment last year for the first time. Ms. Rice said the CRA returned the DDB's full contribution then had to allocate 20% of that amount to the debt service. The 1996/97 proposed budget includes the eRA returning the DDB's full $23,540 contribution. Ms. Winters said when the opinion regarding the required DDS contribution was rendered, the DDB had considered contesting it. Based on the CRA's approval of an interlocal agreement whereby the full DDB contribution was returned and the entities agreed to work together to obtain the exemption, the DDB did not contest it. In answer to a question, Ms. Rice said the debt service funds will payoff two parking bonds. Ms. Simmons said after the bonds are paid off, the 20% debt service charge requirement no longer will be in effect. Trustee Seel noted funds transferred to the debt service allow funds to accumulate to payoff the bonds sooner. Balancing the budget required taking $89,911 out of the CIP projects. If the DDB is charged for the debt service payment on their contribution, that amount can be reduced. The City Manager recommended delaying approval of this budget until September. The budget currently does not include CRA support staff for the economic development effort. Trustee Hooper suggested part of the DDB's $23,540 contribution could be used toward shared office expenses. <:) Trustee Hooper moved to continue the 1996/97 Budget until September 16, 1996. The motion was duly seconded and carried unanimously. ITEM #4 M Executive Director Verbal Reoorts Ms. Rice reported staff is making little progress with the International Jazz Hall of Fame regarding their interest in locating to Clearwater. The group is splintered and trying to reorganize. ITEM #5 - Other Trustee Business Trustee Clark questioned what legislative steps have been taken to remedy the tax increment issue between the eRA and DDS. The City Attorney said there are two options: 1) add the DDB to the list of exempted entities or 2) reopen the window to allow application for exemptions. Any change would affect more than Clearwater and have a Statewide impact. The City Attorney knew of no legislative bill prepared by the eRA or DDB. Commissioner Clark recommended the CRA and DDS reach consensus regarding this issue. The City Attorney said the City Commission had not indicated a willingness to petition a change of legislation. She said the two groups could enter into an annual agreement that designates how the money will be spent. Ms. Winters recommended resolving this issue legislatively as annual conflict can arise. The Chair expressed concern legislative proposals may not address City concerns. The City U Attorney said entering annual agreements is the only alternative to changing State legislation. mcr08.96 3 08/12/96 .H .~.....,. .........~.............. ." q; _' ,', '. ;.... ." . "'. . . . . ",:. '.. ,'. ,,' .... ': .' ':'",' :,""';':',,' '.;" ..'.... '::,' .....' i;:: ........ ..::, .....';.;,"i.;:.,i7;,' ::,"'; :\>" " ,',,' ".. '. .'", ","'"" . I .. ."",. ",' ",'" " , ....... . ~. ,.r ."" ',. ," ..' , f,'" ;...H......;,.u.i.......uJ-t..;,:..'/..\ ....\...i:'...~... ....'.1...<.:...:.:. ;""'.':.,:..., ::.;::..:.<l:.....r:r.;-:...... ':'.,":".,. :...',.:.'..,..'....,'. " ''. "';::::". ..l.,'.\...~.:....:. .....::..:.... " ~' " : c / ~t '. It' '.c, ~ .~\ .. ,'::. ' > () Ms. Winters noted the two organizations has not yet agreed on the allocation of these tax " increment funds. In answer to a question, Ms. Winters believed the DDS and CRA, as currently composed, can work harmoniously and recommended reaching a solution before the composition changes. In answer to 8 quastion, the City Attorney said both the CRA and City Commission would have to act to support the change to State law. Information on the number of cities that would be affected by a proposed change was requested. The City Manager requested direction as sponsors and local delegation support will be necessary. DDS Consultant Judi Hackett suggested the Florida Redevelopment Association, staffed through the Florida League of Cities; could provide advice and information regarding the impact on other cities. The City Clerk noted the members of the legislature body will not be determined until Novemberts election. If information is available, this issue will be agendaed for the August 15, 1996, City Commission meeting. Commissioner Hoocer questioned the time line for hiring the Development Director. The City Manager said the consultant evaluation responses are expected mid-week and the Human Resource Department input is expected by early next week. A decision will be reached shortly thereafter. In answer to a question, the City Manager expected a City representative only will visit the site where the top candidate currently works. ITEM U6 - Adiournment The meeting adjourned at 1 :46 p.m. ::b= (~ Chair Community Redevelopment J\gency Attest: , ~~ t /.:L fJ.... 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