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Agenda 08-24-02COMMUNZTY REDEVELOPMENT AGENCY WORKSHOP Saturday~ August 24th, 2002 City Commission Chambers City Hall Boynton Beach 9:00 A.M. I. Call to Order. I~. Roll Call. ZTZ. Agenda Approval IV. CRA Planning: A. Proposed Budget and Funding Forecasting: V, Public Audience. VI. Other. VII. Adjournment. Any person who decides to appeal any decision of the Community Redevelopment Advisory Board with respect to any matter considered at this meeting will need a record of the proceedings and for such purpose may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. The City shall furnish appropriate auxiliary aids and services where necessary to afford an individual with a disability an equal opportunity to participate in and enjoy the benefits of a service, program, or activity conducted by the City. Please contact Douglas Hutchinson at 561-742-6435 at least twenty-four hours prior to the program or activity in order for the City to reasonably accommodate your reauest. Memo To: CRA Board Members, City Staff, and Media From: Doug Hutchinson Date: 8/21/02 Re: Budget Narrative Please note that I have found two typos in the Budget Narrative for Saturday's Workshop. On page 2, American Bank should be Bank of America. On page 3, the amount set aside for acquisition at Boynton Beach Blvd. and Federal Highway is $1,750,000.00 and NOT $7,750,000.00. Please make these notes to the narrative. Thank you. NOTTCE OF SPECZAL COMMUNTTY REDEVELOPMENT AGENCY WORKSHOP 9:00 AM, SATURDAY, AUGUST 24th, 2002. CITY COMMISSION CHAMBERS CITY HALL, BOYNTON BEACH, FLORIDA You are hereby notified of a Special .CRA Meeting to be held on Saturday, August 24th, 2002, beginning at 9:00 AM, for the purposes of: Discussing budget and funding forcasting. NOTICE IF A PERSON DECIDES TO APPEAL ANY DECISION MADE BY THE CITY COMMISSION WITH RESPECT TO ANY MATTER CONSIDERED AT THIS MEETING, HE/SHE WILL NEED A RECORD OF THE PROCEEDINGS AND, FOR SUCH PURPOSE, HE/SHE MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDING IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED. (F.S. 286.010.5) THE CITY SHALL FURNISH APPROPRIATE AUXILIARY AIDS AND SERVICES WHERE NECESSARY TO AFFORD AN INDIVIDUAL WITH A DISABILITY AN EQUAL OPPORTUNITY TO PARTICIPATE INANDEN]OYTHE BENEFITS OF A SERVICE.. PROGRAM, ORACTIVITYCONDUCTED BYTHE CITY. PLEASE CONTACT DOUGLAS HUTCHINSON AT (561) 74'2-6435 ATLEASTTWENTY- FOUR HOURS PRIOR TO THE PROGRAM OR ACTIVITY IN ORDER FOR THE CITY TO REASONABLY ACCOMMODATE YOUR REQUEST. S:\Development~.Administration\CRA Items~Advertisement\Special meeting notice - CRA Director interviews - 3-15-02.doc City of Boynton Beach Community Redevelopment Agency Budget Narrative 8/20/2002 Please find attached the first draft ora CRA Budget for October 1, 2002 to September 30, 2003. This period is setup to allow the CRA to match the City's financial year. Ifthe Board wishes to change to a calendar year, in December the Board would approve a budget for the next operating year starting in January 1, 2003. I have also proposed a five-year budget forecast with income and expense items. This will also allow for the Board to have a better feel of how fast certain projects are moving and how to budget for each. This Budget includes programs as defined in the proposed "Implementation Vision". Note that the Budgeted Funds are set aside, but may not be completely used and therefore would be carried over to the next budget year. The following notes highlight major items within the budget and attempt to provide insight as to their origination. At this point all are up for discussion. This being the first independent budget, items have been included or suggested to be included for your consideration. Please review and give direction. Personnel: This budget category is pretty straight forward. It includes four total positions, a Director, Controller, Events/Festivals Coordinator and secretary. There is no Assistant position or Events/Festivals Coordinator for now. I think the three positions can cover basic items such as phones and walk-ins for the first several months. Thereafter, we will need to evaluate the operations, as time goes on, for the need of an Assistant and Events/Festivals Coordinator. I forecast that to be around the second operating year for an Assistant and the third year for the Coordinator. The Assistant Director would have skills in program development and implementation; i.e.; Business development programs, incubator administration, events/festival operations, newsletter development, fagade grant administration, CRA operational aspects such meeting packages, etc. The Controller will be responsible for grants, capital campaigns, revolving loan administration, faCade grant program accounting, human resources/personnel, benefits management, etc. than extensive accounting work during the early months, however I feel (as do other CRAs) that it is very wise to bring this person on line as soon as possible to establish the basic books, accounting procedures, software selection, etc. It also makes sense not to have to re-do accounting or change people early in the project. The Events/Festival Coordinator will be responsible for events, seminars, festivals, etc and the coordinating of sponsors, nonprofits, volunteers, etc. The position will include fund raising for events and marketing. The job descriptions will be developed in our Policy and Procedure Manual. City of Boynton CRA Budget Narrative Page I of 4 The wage scale proposed is based on City and other CRA positions and pay. The benefits are budgeted as "employee" status and not contract labor. It is hoped that all staff will be employees by October 1, 2002, however, if not the costs to the CRA would be the same, but passed through for employees'to pay. Operating - Professional & Audit Fees: This budget includes $2,500 for audit help in double-checking our transition into our own systems fi:om the 'City's accounting. Legal is budgeted at $1,800/month which is approximately the cost per month currently. More activity may mean more legal fees; therefore these items may need to be increased. Staff is recommending that the CRA retain the City's IT services to service, maintain, and support our computer/interact hardware and software. Over time, I believe this excellent staff will save the CRA time and aggravation. Contracted services include a budget for misc. projects that may arise, Number is arbitrary and can be adjusted t° best serve the Board. Operating - Office Lease/Rent: This budget is based on the projected office sizing being +/- 2,400 sq. ft. comprising a lobby, work/copy/break room, storage room, board/meeting room, restroom, and three offices. As of this date no office has been found, therefore this is an estimate based on market information. Leasehold improvements have been projected to be a one-time cost of $35,000. Rental rate is $1.50/sq.ft./month including CAM, plus utilities. Operating - Insurances: This is a budget item that may not apply if the CRA adopts an employee program, as insurances for liability, bonding, etc. would be covered by the City's umbrella. These costs are the coverage for the Director, Assistant Director and Controller. Operating - Debt Costs: It is recommended, based on cash requirement projections that the $3,000,000 loan balance at American Bank be paid off as soon as possible and a $3,000~000 line of credit be secured for any quick response situations. Operating - Printing and Binding: The major cost proposed is the expense for information flyer on the CRA to explain what do and don't do. We may also want to start. doing a "year end" public information piece as part of our public awareness effort. The budget is small and the number of pieces is very small, but most of the time these flyers become obsolete before they are used UP. The Chamber has offered space and/or insert services for their newsletter which reaches 20,000+ local people. We may be able to write items and/or a column to disseminale information or stuff our flyer/brochures. An other option might be to "stuff' utility bills. Capital Outlay - CRA Land Acquisitions: This budget is estimated for completed projects which may or may not be finished in this budget period, therefore may need to The funds are be carried forward to the next budget, proposed to be focused as per previously approved priorities; i.e., Assembliflg properties at the south west comer of the intersection of Federal and Boynton Beach Blvd., which are proposed for parking City of Bo, ~y~ton' CRA Budget Narrative Page 2 of 4 development, ($7,750,000 and $100,000 for demolition.) and Properties to build the Promenade-and Riverwalk - $750,000. The Relax Inn purchase and demolition are budgeted at $1,100,000. $250,000 has been budgeted for MLK properties with a total budget of $1,000,000 for MLK acquisitions over the next three years. Additionally, in the 4 and 5 years, $500,000 is budgeted for acqmslt~ons for a total orS1,000,000. Capital Outlay - CRA Improvements: Way-Finding Signage Phase I is design and initial sign construction/installation. - $25,000 (Phase II is for major projects $225,000 in following years). Boynton Beach Blvd. Extension, Promenade and RiverWalk construction/bid documents for Phase I - $280,500 in year one, Phase I - $1,870,000 in year two. Phase II - $1,115,500 year three and Phase III (with the Museum Option plus $1,000,000 for special features) $7,500,000 in year 'four. Balance of funds for the Museum project ($3,929,000) would come from grants and other sources. The proposed bond reduces the requirement for outside funds to complete the museum project. However, from initial responses, funding from outside sources could easily exceed $4,000,000. In this case, the bonding for construction would be reduced. Capital Outlay - Festivals/Events/Seminars: These items are newly proposed for the CRA budget; however, staff feels they are of great importance. It is proven that festivals and events help to draw people and investment into an area. There is no better way to develop an identity and community support for redevelopment. The budget proposes to help underwrite two major festival/event in the CRA area during this budget period at $20,000 each. Note that future budgets would address three major events at $20,000 for the next year. Capital Outlay - Facade Grant Program: The budget reflects two changes to the program. First is that the'single project amount would increase from $5,000 to $15,000 and second the number of grants would grow. This would make the program more responsive and produce more dramatic results. The recommendations are based on the concept that the CRA is interested in cleaning up the look of many older properties. I t should be noted that this program could be better targeted to areas in greatest need and not used in areas which building replacement is preferred. The point being that either make the program more aggressive or eliminate it. Capital Outlay - Venture Capital/Revolving Loan Fund: One of the suggestions has been to develop a revolving loan fund for the CRA. This budget' addresses the formation of a joint venture effort targeted at specific neighborhoods and participants. The proposal is that the CRA fund, based on outside matching up to $50,000 to establish a venture capital and revolving loan fund. This may be a one time injection or on going. The CRA would be a 1/3 partner in the program. The other anticipated partners would be the targeted community area 1/3, and outside grant funding 1/3 for a project total of $150,000. It is proposed that this $150,000 be divided as follows; $50,000 Incubator program, support - Rent Subsidy, Professional Services Aid, Training, Shared Services, etc. and $100,000 Revolving Loan/Venture Capital - Venture Capital and Loan City of Boynton CRA Budget Narrative Page 3 of 4 processing would be the same, except that a loan may be turned into ownership at the approval and wishes of the program board. The program is targeted at specific area requirements, income levels and minority status. The fund would be overseen by an appointed Board of community leaders, professionals and citizens. Proposed .to be between 5 and 7 members and overseen by CRA staff. Requests would be reviewed monthly or quarterly depending on the pleasure of the Board. The program encourages community buy-in, develops neighborhood'pride, hope and will encourage private sector development. Capital Outlay - Business Assistance and Economic Incentive Program: This budget item was an existing line item from previous budgets. A defined program including qualifying criteria, application process and reporting program should be developed prior to extensive use of the fund. The program budget is $1,300,000 over the next five years. Bonding - Bonding is projected to be as follows: Issue "A" $3,000,000 to provide land acquisition funding. Issue "B" $7,500,000 would be for construction of the RiverWalk Complex. Issue "C" underwrites the CRA's contribution to the museum construction in the amount of $7,500,000..Note that the museum operations should net $750,000 per year and $350,000 has been identified for debt repayment. The CRA reserve balance needs to be discussed by the Board as to its size and management policy. The budget targets approximately $1,000,000 as reserves. Note that $30,000 income has been projected from the reserve balances or about 3%. Also note that some reserves will be required by the proposed bond covenants to be set aside. The Budget forecasts an Administrative percentage of TIF funds ranging from 20% down to 13.8%, which is very good in comparison to other CRAs. Bond debt rises to 50.5%, however, Administrative costs decline as the Bond Debt rises so that annual reserves approximate a 35.7% level of TIF funds available for new projects. Note that the TIF income profile (analysis performed by City Planning Department) used to project revenues is at a pessimistic projection and does not include any projects that would be attracted by the CRA activity or projects over the 5 years. I believe therefore that a significant bonding or project funding capacity will be available to future CRA Boards. City of Boynton CRA Budget Narrative Page 4 of 4 0°8 oo cD ooo ooo oo o© 8 ooo oo oo ooo°°°o° 8 o° o© o° 8 8 o° 8 ooo 8 8 o° o° ooo o o Community Redevelopment Agency Fund Balance Statement As of July 31, 2002 Beginning Fund Balance Revenues to date Expenditures to date Fund Balance @ 7-31-02 Encumbrances outstanding $ 3,989,703 2,288,559 (272,787) $ 6,005,475 $ (17,755) $ 5,987,72O Fund Balance Componets Equity in Treasurer's Fund @ Bank of Amedca Local Government Investment Pool Money Market @ Sun Trust $ 39,012 409,370 5,539,338 $ 5,987,720 Boynton Beach Blvd. Extension, Promenade and Riverwalk Preliminary budget Estimates 8/19/2002 Phase I (Federal Highway to NE 6th Street) Boynton Beach Blvd; Extension Paving $ 1,300,000 Entrance Gateway $ 120,000 Fountains $ 150,000 Landscape $ 120,000 Wall / Fence $ 80,000 Lighting $ 100,000 Subtotal $ 1,870,000 A/E & Contingency 15% $ 280,500 Total Phase I $ 2,150,500 Phase II (NE 6th Street to Intercoastal) Promenade Paving $ 480,000 Gateway $ 60,000 Treelis Structures $ 80,000 Shade Structures $ 80,000 Restrooms $ 80,000 Fountains $ 100,000 Landscaping $ 50,000 Lighting $ 40,000 Subtotal $ 970,000 A/E & Contingency 15% $ 145,500 Total Phase II $ 1,115,500 Phase III (Riverwalk at Intercoastal) Riverwalk Deck Pilings $ 2,800,000 Stage / Observation Tower $ 180,000 Amphitheater $ 420,000 Trellis Structure $ 80,000 Kiosks $ 200,000 Shade Structures $ 200,000 Manatee Interaction $ 80,000 Historic Fishing Village $ 300,000 Marina $ 360,000 Landscape $ 80,000 Lighting $ 180,000 Subtota $ 4,880,000 A / E & Contingency 15% $ 732,000 Total Phase III $ 5,612,000 Project Total $ 8,878,000 Boynton Beach Blvd. Extension, Promenade and Riverwalk Preliminary Budget Estimates with Museum 8/19/2002 Phase I (Federal Highway to NE 6th Street) Boynton Beach Blvd. Extension Paving $ 1,300,000 Entrance Gateway $ 120,000 Fountains $ 150,000 Landscape $ 120,000 Wall/Fence $ 80,000 Lighting $ 100,000 Subtota $ 1,870,000 A / E & Contingency 15% $ 280,500 Total Phase I $ 2,150,500 Phase II (NE 6th Street to Intercoastal) Promenade Paving Gateway Treelis. Structures Shade Structures Restrooms Fountains Landscaping Lighting Subtotal A / E & Contingency 15% Total Phase II $ 480,000 $ 6O,OOO $ 8O,OOO $ 8O,OOO $ 80,000 $ 100,000 $ 50,000 $ 40,000 $ 970,000 $ 145,500 $ 1,115,500 Phase III (Riverwalk at Intercoastal) Riverwalk with Deck Pilings Stage / Observation Tower IMAX Theater Museum Specialty Features & Contruction Trellis Structure Kiosks Shade Structures Manatee Interaction Historic Fishing Village Marina Landscape Lighting Subtotal A / E & Contingency 15% Total Phase III Museum $ 2,800,000 $ 180,000 $ 3,000,000 $ 8,000,000 $ 1,000,000 $ 80,000 $ 200,000 $ 200,000 $ 80,000 $ 300,000 $ 360,000 $ 80 000 $ 180,000 $ 16,460,000 $ 2,469,000 $ 18,929,000 Project Total $ 22,195,000 1994/95: Commercial (1983) Commercial- Expanded (1989) Residential (1989) 1995/96: Commercial (1983) Commercial- Expanded (1989) Residential (1989) 1996/97: Commerce'al (1983) Commercial- Expanded (1989) Residential (1989) 1997/98: Commercial (1983) Commercial- Expanded (1989) Residential (1989) 1998/99: Commercial (1983) Commercial - Expanded (1989) Residential (1989) 1999/00: Commercial (1983) Commercial- Expanded (1989) Residential (1989) Community Redevelopment Agency Tax Increment Financing Taxable Value Base Final Year Evaluation 25,024,468 $ 34,752,417 14,610,759 14,181,671 20,132,525 22,995,575 Increment $ 9,727,949 (429,088) 2,863,050 $ 12,161,911 25,024,468 $ 35,506,078 $ 10,481,610 14,610,759 14,546,101 (64,658) 20,132,525 23,446,751 3,314,226 $ 13,731,178 25,024,468 $ 35,890,443 14,610,759 14,846,621 20,132,525 23,975,874 $ 74,71~938 $ 10,865,975 235,862 3,843,349 $ 14,945,186 25,024,468 $ 36,129,193 14,610,759 15,050,257 20,132,525 24,540,080 $ 75,716530 $ 11,104,725 439,498 4,407,555 $ 15,951,778 25,024,468 $ 36,919,601 14,610,759 15,459,453 20,132,525 26,031,329 $ 78,41~383 $ 11,895,133 848,694 5,898,804 $ 18,642,631 25,024,468 $ 37,526,314 14,610,759 15,975,187 20,132,525 28,426,845 $ 81,928,346 $ 12,501,846 1,364,428 8,294,320 $ 22,160,594 Tax Revenues $ 141,167 $ 158,398 $ 172,660 189,808 219,894 261,389 2.2% 2.6% 2.0% 1.1% 2.1% 2.3% 0.7% 1.4% 2.4% 2.2% 2.7% 6.1% 1.6% 3.3% 9.2% 00000 OC) O00 00000 0000 ~ ~0~ 0 000 0 0 0 O0 ~~ ~ o ooo ~ 8 ~ o ~ O~ ~ ~ ~ ~ '~ '~1 ~ ~j:~:~:.~ !~ :~ ~*~.~::~ '::: --" c o ~ o= ~ ~.,~ o~:.: ~. ,:.:~ ~:~ rjj C:Z..¢_. o ~" o .4.-' I ~' ~1 ~ ~"~ --' ~--' t- J ~ E E ~ ~ E '- o e = '- o ~ ~1~°°~° I 0 '" z~ · ~ gg