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Minutes 08-22-12 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD BUDGET MEETING HELD ON WEDNESDAY, AUGUST 22, 2012, AT 6:00 P.M. AT THE INTRACOASTAL PARK CLUBHOUSE 2240 N. FEDERAL HIGHWAY, BOYNTON BEACH, FLORIDA PRESENT: Woodrow Hay, Chair Mack McCray, Vice Chair James"Buc~Buchanan Steve Holzman Mark Karageorge Marlene Ross (arrived at 6:39 p.rn.) Vivian Brooks, Executive Director James Cherof, Board Attorney I. Welcome by Board Chair Woodrow Hay Chair Hay called the meeting to order at 6:09 p.m. and welcomed all. II. Invocation and Pledge to the Flag Mr. Karageorge gave the invocation and Vice Chair McCray led the Pledge of Allegiance to the Flag. Vivian Brooks, Executive Director, commented there were eight policy decisions to be made by the Board. She suggested if a member of the public wanted to speak on an issue, they should speak after it was discussed. As to the budget in general, discussion could be held after it was presented. III. Year in Review Kathy Biscuiti, Special Events Director, explained the 2011 Holiday Extravaganza attracted over 3,000 people between the parade and concert. The parade was .75 miles and last year, had 46 entries. It had a high entertainment value. Staff held the tree and menorah lighting at the Schoolhouse Children's Museum and then moved right into the concert. Vice Chair McCray inquired if staff reached out to local bands. Ms. Biscuiti explained the City has a Recreation and Parks employee that works with the bands every year. When the first parade meeting is held, letters would be sent to the bands. Last year, the Holiday Boat Parade had 35 boats and over 2,000 toys were collected. It was staff's goal to have the Marines on site to be in the parade each year and collect the toys for needy children in Palm Beach County. 1 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 22,2012 The new Amphitheater, hosting the Movies on the Avenue series, was the central feature on Ocean Avenue and it was a beautiful facility, especially at night. A screen is on the stage so all could watch the movie and have an unobstructed view. Last year there were between 150 to 200 viewers in attendance for each movie and staff then started bringing in the food trucks, which went well. Ocean Avenue also hosted the concert series and about 300 people attended weather permitting. If it rained, about 75 to 100 attended. It also showcased the Amphitheater and the food trucks were again, well received. The Fourth of July event drew 2,500 to 3,000 individuals. This year, the event featured the Monique McCall Band, the patriotic salute and the Police Honor Guard. Attendees were bused in from the high school, and this year, the fireworks provided by Grucci were better than ever. Ms. Biscuiti explained two other series took place. The Sunday Fun Day at the Marina only drew about 75 or 80 people. For those that came, it was a fun event with inflatables, steel drums, special guests such as SWAT teams, the Fire Department, and Rick Brochu providing fishing instruction. The other series was the Downtown Open Market on Ocean Avenue. The market used the civic center and had food trucks and a band. Many people attended throughout the day. Staff's agreement with the proprietors of the market was staff would pay the majority of the bills the first year and if they wanted to continue, then the proprietor would pay the majority. Staff was still discussing the event with them and anticipated holding one or two events with them this year. Chair Hay inquired, in terms of the Amphitheater and events for the Farmers Market, if staff was doing anything differently to increase attendance. Ms. Biscuiti responded they were and she would elaborate on it later. Mr. Karageorge acknowledged Myra Jones ~or her participation in the Family Fun Day regarding the arts and crafts table she ran for children. He noted she brought all the supplies on her own. Ms. Jones was also honored in the FYI newsletter Margee Walsh, Marketing Director, explained her function was to promote and market the great work the CRA did. This year, a marketing initiative was launchedto create a campaign for local merchants which included a cooperative advertising element. It was a more affordable way for merchants and small businesses to purchase advertisements and get their names out to the public because it is done in groups. They partnered with the Palm Beach Post, Coastal Star, Comcast, and Palm Tran to create the Breeze into Boynton campaign. Each City had a slogan developed by the Convention and Visitors Bureau as a broader marketing tool. Staff obtained the County's permission to use it and brought it into the campaign for local merchants. 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 22, 2012 A list of merchants that participated and an example of a cooperative ad was viewed. Staff limited the business names to four per ad for optimal exposure. Along with the campaign, street banners were created and placed on Ocean Avenue and Boynton Beach Boulevard. Staff received positive feedback with the banners and the Marina District. The CRA collateral was viewed as were other advertising campaigns, such as the November "Shop Local", and the June, "Spring Deals and Steals". Additionally each year, the CRA purchased an ad for the Chamber of Commerce Directory. This year, staff submitted their 2011 Annual Report to the Florida Redevelopment Agency (FRA) for its marketing award. Staff pointed out it was a marketing tool as well as a financial tablet. Staff also recognized the importance of working with the City and County and their marketing team. Staff was very busy with events. Examples were the MLK Seacrest Revitalization Project which began in June 2010 as a City/CRA collaboration using federal stimulus dollars. The CRA was able to obtain funds for its artwork design. The Walmart grand opening took place in October. As the result of the Direct Incentive Finance Agreement (DIFA), it created 150 full-time jobs. The Ocean Breeze West ground breaking ceremony took place in January. Currently, two homes were built and six more were under construction. The Seabourn Cove grand opening took place in June, and was nationally recognized as the largest green, multi-family community constructed under the National Green Standards in the country. The Heart of Boynton "Bury the Violence March" and City Hall painting were City projects staff helped to promote. On August 16th, the CRA held their first successful familiarization tour. Eleven food editors and writers met at the CRA office, and took a trolley ride, stopping at five downtown restaurants. The event went well and the feedback was amazing. Ms. Walsh listed the names of the attendees. Mayor Hay and his wife joined the tour to welcome all to the City. Ms. Walsh noted the type of editorial coverage the area would receive as a result of the tour would be incredible and both the Little House and Chrissy Benoit, the owner would be featured this week in the Sun Sentinel. Ms. Walsh discussed the Agency's website. Staff has their meetings videotaped and has the audio of each monthly meeting available so residents could listen to them at their convenience. Staff added a page to the Boynton Harbor Marina website for local businesses and because of staff's involvement with the County's Marine Task Force, they were asked by the Convention and Visitors Bureau (CVB) to participate in a virtual tour of the downtown which would feature Boynton Beach on their website for the first time. Ms. Walsh explained part of marketing is to promote special events to get people downtown. Mr. Karageorge commended Ms. Walsh on the seminars for the businesses. He commented it was not mentioned, but it was vey successful and well received. He 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 22,2012 looked forward to seeing more of them. Vice Chair McCray also commended staff on the logos. Mike Simon, Development Director, reviewed the development projects they had this year, some of which crossed over from last year. The first was the Amphitheater, which was significant to the west end of Ocean Avenue and the activation of the Town Square as contained in the Master Plan and the CRA Redevelopment Plan. He noted it was a great way to see tax dollars at work. The next project was the Ruth Jones Cottage relocation and reconstruction. The cost was $393,930 and the project changed a corner of the downtown area to an active use with awnings, trees and music. Having the cottage relocated and getting media coverage made it a great town event. Photographs of the cottage were reviewed and Ms. Jones, the prior owner, attended the grand opening and greeted and spoke with the patrons. She commented the Cottage was "a good house." The ceiling, wood, and interior walls were constructed with the wood existing in it at the time of the move. The entire inside was taken apart, board by board, except for the floor. The wood was stacked and with the help of another contractor, was re-planed and stained from top to bottom. It was a great use of wood and greening practices. The Little House interior costs were anticipated to be $237,000 but were actually reduced to $182,000 which was a 25% savings. Overall, there was a savings of about $100, 000. Mr. Simon noted the $182,000 was not all Community Redevelopment Agency funding; about $40,000 was from the owner. Next was the Marina Entry Tower feature. It was the part of the Marina improvements which were being implemented in phases due to cost. Staff submitted the slip project, which was close to $700,000, and the fuel dock reconstruction project to the FRA and hopefully would receive an award. Before and after photographs were submitted and it pointed out the improvements were a significant investment in the downtown. Staff was working with their design firm to move each phase of the Marina Redevelopment Master Plan forward. Photographs were viewed. Besides the landscape and hardscape improvements, staff was undertaking drive lane and traffic improvements, which doubled the size of the lot by 50%. It extended along the water and made it more active. This project was a much better use of the entire space. It was permitted, drawn, and ready to go. The third phase was the Boynton Marina Harbor Master Building and Fuel Dock project. Staff had to redesign the fuel system and adjust its location. High speed pumps were installed to attract larger vessels who bypassed the Marina because of long fuel wait times. The drawings for the Harbor Master Building were 90% complete and the project was ready for permitting and to be finaled. The building was limited to 1,500 square feet. The Marina handled over a million dollars in fuel sales a year, depending on the season and weather. Memorial Day had the highest fuel sales. The Marina was a good 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 22, 2012 enterprise and the improvements were significant to the marine industry. Going forward, staff would like to see more drawbridges to allow larger vessels access at the inlet. Last year, MSCW highlighted the first phase of the Boynton Marina project, which included the slip renovations in their marketing materials used at the FRA. It was hoped they would do so again this year. Additionally, staff was trying to solicit individuals for the Marina signage on Boynton Beach Boulevard. Mr. Simon reviewed the Ocean Breeze West Infrastructure project. This included installation of the sewer system, streets and new homes on the site. This occurred in conjunction with the Seacrest Boulevard project funded through federal stimulus dollars. The project was completed and there were two homes under construction. A third home on the corner of 6th was under construction and five more lots were being transferred for a total number of eight homes. He noted this was a significant project in that area. Vice Chair McCray inquired about Florida Power & Light as there were issues concerning temporary and permanent power. Mr. Simon had not heard any more negatives about the. matter. Habitat for Humanity has an excellent working relationship with FP&L and he was not contacted regarding anything that was holding them up. Theresa Utterback, Administrative Services Manager, reviewed grants. This year the Board approved 30 grants totaling $357,000 or more. There were nine interior build outs, grant subsidies, 11 commercial facades and two signage grants. This year, staff retained businesses in the district, kept 20 employees, and revamped a building. Another upcoming business was Biergarten which would occupy a 6,100 square foot space in Las Ventanas. They were investing $1.5 million for the interior renovations. Hurricane Alley was assisted as were other smaller businesses. Even a law firm was helped as the attorney does all his shopping in the district and eats lunch in Boynton Beach even though he lives in Boca Raton. Various before and after photos was reviewed of Cuthills, Rustic Retreat, and Subway Regional offices. The commercial facade and signage grants had a private match of about $297,000 to the CRA's $90,800. The ratio was 3 to 1. This season would be even better as there were projects that were not yet completed that were not reflected. Interior renovation photos were also reviewed. Ms. Utterback explained these grants had a 4 to 1 match ratio. 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 22, 2012 IV. Budget Discussion Items 1. Marina Slip Rents Ms. Brooks sought direction regarding Marina Slip Rents. Mr. Simon reviewed the agenda item as contained in the meeting backup. Since 2006, staff had assessed the rates. The slip rates were inconsistent so a rate of $14 per linear foot was established. Staff proposed to charge $16 per linear foot which was still lower than other marinas. Motion Mr. Karageorge moved to approve the increase in the Marina Slip rent from $14 to $16 per linear foot effective at the beginning of the fiscal year. Mr. Buchanan seconded the motion. Mr. Simon explained the tenants were aware the Board was contemplating an increase and it was advertised in their newsletter. The decision being made was in association with a preliminary budget hearing and the item would be back on the agenda as a formal matter. At that time, the tenants would be notified. The motion passed 5-1 (Mr. Holzman dissenting.) 2. Maintenance of Boynton Beach Boulevard Extension/Promenade Walkway Ms. Brooks sought direction regarding an Interlocal Agreement between the City and CRA. In 2005, the City requested the CRA purchase property at the end of Boynton Beach Boulevard called the Hall property. The CRA did so and spent $1 million. Then staff embarked on creating Promenade Park, which was a $10 million project. A bond was floated and the Agency was carrying and paying the debt service on it each year. The lnterlocal Agreement specified the CRA pays for the maintenance of that property which included trimming the bushes, the electric, and water. She also pointed out the CRA had previously turned the property over to the City In Ms. Brook's opinion, paying for the maintenance was not consistent with State Statute. She consulted with Attorney Cherof who recommended the independent auditor be contacted. The auditor's opinion was general expenses for maintenance was not an allowable use of the funds although repairs may be. Staff budgeted $50,000 per year. She requested the Interlocal Agreement be rescinded. Attorney Cherof explained to do so, the CRA should notify the City they were rescinding the agreement. Motion Mr. Holzman so moved. Mr. Karageorge seconded the motion. 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 22,2012 Mr. Karageorge explained this was not the only instance where the CRA was doing things that the City should be responsible for. While the CRA had three years of clean audits, they have not gone through the Florida Auditor General's review. If they did, they would be flagged. He wanted it on record that he wanted the City to know the CRA did not want to violate Statute. Ms. Brooks explained this was discussed with the Interim City Manager and she informed her she was bringing the matter to the Community Redevelopment Agency Board. There was also an Executive Order from the Governor that applied to all Special Districts and their expenditures. While they would not audit everyone, Boynton Beach could be randomly chosen. She commented the City of Daytona Beach had to retroactively pay for items that were not an allowable use of CRA funds all the way back to 2005. When queried how much was spent this year, Ms. Harris explained of the $50,000 budgeted, year to-date, staff spent $8,200 for one item and $10,000 of $13,000 in landscaping costs that were under contract for this project. Ms. Harris had previously provided a chart to the Finance Director listing said expenditures. Chair Hay also commented that Attorney Cherof served as both City and CRA Counsel, which was difficult if conflicting issues arose. Attorney Cherof referred to page 3 of his memo. When the issue was first considered, the CRA was an appointed group and his law firm represented the City. Options were to hire counsel, or ask the Florida Auditor General to evaluate the situation. Vice Chair McCray inquired if his dual role as counsel to two entities was a conflict. Attorney Cherof responded it was an example of how there could be a conflict of interest in the way it was handled. This was the first occasion he could recall of any potential conflicts, but the potential for conflicts was present. He suggested handling the matter as outlined in his memo. The motion unanimously passed. The worst case scenario would be, if audited and the City had to repay the Community Redevelopment Agency for those expenses, the amount would be about $275,000, to date. Susan Harris, Finance Director, explained that the use of tax increment revenues and expenditures has to be closely monitored in accordance with State statute. A recent example of inappropriate use of tax increment revenue was in Broward County. The City of Lauderdale Lakes, transferred money out of the CRA account into their general fund to pay for operating expenses of the City of Lauderdale Lakes, which was clearly against State Statute. Ms. Brooks added it was not uncommon for many city managers to consider community redevelopment agency monies as a slush fund. 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 22, 2012 3. Potential Refunding of 2004 Bond Ms. Harris discussed the potential re-financing of a 2004 Bond and portions of a 2005 Bond. She and Ms. Brooks discussed this with the City's Finance Director, the CRA Financial Advisor and Bond counsel. Staff's Financial Advisor issued an RFP and the responses were due the next day so Ms. Harris could not speculate whether the responses would be favorable or not. The terms would be the same, but it would have lower interest rates, lower closing costs and may reduce the annual debt service. No action was needed at this time. Should the results be favorable, the item would come back to the Board and then the City Commission because the City guaranteed the CRA's debt. It was the City's guarantee that made the RFP credible. 4. DIFA Agreements - Recommended Policy Changes Ms. Brooks requested direction on their Direct Incentive Finance Agreements (DIFAs). She commented the Agency has several of them and they have provided the Agency with a good reputation. Each time, staff included a public purpose in the agreement. With the economy and development beginning to resume, she thought they should focus their energy and money in the direction they want to go. She recommended they include goals and objectives in the agreements. One recommendation was to create permanent public parking in order for the downtown area to become a Transit Oriented Development, (TOD). The area was defined in the Downtown Master Plan and included the Old High School, creation of jobs in the biomedical, technology, healthcare, green energy fields, and/or construction of a corporate headquarters. Two future projects in the downtown were a 10,000 square foot specialty food store as part of a mixed-use project and the development of a flagship hotel. Ms. Brooks noted money was starting to flow and staff was starting to receive inquiries. Motion Mr. Holzman moved to approve all those policies as stated by the Executive Director. The motion was duly seconded for discussion. Mr. Karageorge commented on the Preserve and that the CRA was recognized by the State as using a best practice with the project, but going forward, multi-family projects would not be included. He cautioned there would be groups approaching the CRA requesting DIFAs for these types of projects. But when the requests were made, it should be explained that the policy precluded those types of projects. The motion unanimously passed. 5. Economic Development Program - Recommended Policy Changes Mr. Simon reviewed the Economic Development Program and requested direction. He explained staff was recommending changes to the Commercial Interior Build-Out 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 22, 2012 Assistance program to require the applicant to provide a 50% match. Presently there is no match. Other changes included the applicant must obtain a building permit prior to applying for funding, only one 90-day administrative extension would be permitted, and the geography of the business and business type would determine the level of funding. Three tiers were proposed, which Mr. Simon reviewed. The amount of funding one would receive was contingent on the tier of the business. Motion Mr. Holzman moved to approve all of the policy directions. Vice Chair McCray seconded the motion. Mr. Karageorge agreed with the recommendations but noted the City has several non- profits and the provision would hurt them when they sought to expand. He requested the motion be amended to include non-profits. Ms. Brooks explained there were a multitude of non-profits in blighted areas, most of which were one-person shops, and the Agency would be inundated with applications. This year, staff was administratively doing away with the business plans and would use credit checks instead which would also be problematic for non-profits. She pointed out the Board had to make a decision if they would assist commercial businesses or non- profits and noted there were many grants for non-profits and very few for businesses. Mr. Holzman agreed non-profits were great but there was no tax dollar return. Additionally, the City funded many non-profits through the Community Development Block Grant program. There was consensus to not include non-profit organizations and the motion passed unanimously. 6. Magnuson House - 211 E. Ocean Avenue - Policy Direction Ms. Brooks requested direction and explained now that the Little House was open for business, they were receiving many inquiries about the Magnuson House. One issue that surfaced was potential tenants did not want to invest a lot of money to convert a house to a restaurant without owning it and another was parking. The Agency acknowledged the historical significance of the house. Staff recommended issuing an RFP and leaving it on the street for six months, and see what comes back. There would be deed restrictions imposed on the property, the Agency would provide $185,000 of the $337,000 in the line item to help offset the cost of the conversion, and the tenant would make an offer on the property. Ms. Brooks would order an appraisal prior to the RFP being issued, and allow the respondent to apply for additional grants as a Tier One business. 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 22, 2012 Ms. Brooks sought Board approval because staff was requesting to take $150,000 from the $337,000 and roll it into the project fund. The $185,000 would also be available for incentives. It was pointed out Mr. Simon had shown the property a number of times. Motion Mr. Holzman moved to approve. Vice Chair McCray seconded the motion. There was further discussion about the deed restrictions. The property could not be used for any other purpose, torn down or the street fa~ade altered significantly without permission from the Community Redevelopment Agency. Mr. Buchanan also requested any agreements be set up so that if someone purchased it and decided to sell it, the Community Redevelopment Agency had the first right of refusal. Mr. Buchanan offered his suggestion as an amendment to the motion. Vice Chair McCray agreed with the amendment and the motion was unanimously passed. 7. Marina - Policy Direction Mr. Simon explained staff sought direction for budget purposes for the Marina. Currently the CRA expended $15,855 for the Marina's redevelopment. Staff proposed to roll $484,145 over into FY 2012-2013 and add an additional $15,855 to bring the total amount to $500,000 in the new budget year for this phase of the redevelopment. He explained the funds would be for Phase 1-Bm which encompassed improvements to the Harbor Master building and surrounding area. Motion Mr. Holzman so moved. Ms. Ross seconded the motion that unanimously passed. 8. Special Events, Elimination of Non-Redevelopment Related Funding Ms. Brooks explained the Governor signed an Executive Order this year regarding investigations of special districts. Staff approached the Interim City Manager about an event that had nothing to do with redevelopment, which was the Fourth of July celebration. The CRA shared the cost of events and staff from 2005 to 2007 with the City. In 2007/2008, events were cut from the City's budget and the CRA held all the events. Ms. Brooks explained she did not see a nexus between redevelopment plans and fireworks, and she was not aware of any CRA that paid for fireworks. She thought it looked liked the City may have to pay the CRA back for all the years they paid for the event. This year she only requested the cost of the facility, use of the park and police and fire personnel costs so there would be some semblance it was a City event but that 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 22,2012 did not occur. She was bringing the matter forward as a policy issue that she did not feel was consistent. The cost of the event was $75,000. Discussion followed if one read the Governor's Directive, he was examining the annual budget of each special district to determine the appropriateness of the budgeted expenditure. The Downtown Master Plan covered events, but not the 4th of July because of its location outside the District. Staff looked for locations there but there was no place to launch the fireworks. At the current location, the City used the barge. Every City wanted to do July 4th but the matter should be brought to the City Commission. The CRA received much press and it was not always good. Motion Mr. Buchanan moved the CRA not fund the 4th of July at this location and that staff continue to look for locations. Mr. Karageorge seconded the motion. Mr. Simon pointed out the issue was who consistently paid for the event prior to the expenditure. At some point, it was a City event that crossed over to them. The motion unanimously passed. v. FY 2012-2013 Budget Overview Ms Brooks reviewed the CRA Revenues and noted TIF revenues dropped 6%. Ms. Harris pointed out this budget was based on the current City and County millage rates. There was a 1 % TIF true-up which meant the Agency would not get the final bill until everyone challenged their evaluations and paid their taxes. The Marina rents were flat. The Marina budget was down 9% because of the price of gas and this line item would fluctuate year to-year. The estimated revenues less debt service, operating and Marina expenses, the DIFA payments estimated at today's millage, and a brownfield payment to Walmart were reviewed. Ms. Brooks pointed out if the millage rate changed, staff would amend the numbers. New project revenue was $1,444,439. Projects funded through bonds totaled $29,611,676, and she pointed out the Agency was still paying on the Bonds. Project Fund Revenue and Potential Projects were reviewed. Staff moved $250K, which was the savings from the Ruth Jones interior renovations and $150K from the Magnuson House over to this budget bringing the total for new projects to $1,694,439, which was more than staff had to work with last year. The Special Events budget was reduced. Legal expenses were reduced based on work from the previous year. Realtor Training for Historic Preservation was funded this year, as was the development of Phase 1 Marina and the Harbor Master waterfront parcel in Phase 2. Funding for design, engineering, site work and demolition, economic development grants, and 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 22,2012 marketing for merchants were all reviewed. Ms. Brooks anticipated the CRA would sunset when the District was more developed and become a Downtown Development Authority to handle downtown events and cleaning. She thought policy-wise, that was where they should be headed as it was done in West Palm Beach and other areas. Ms. Brooks was looking to develop parking across from the Police Station where the Ruth Jones Cottage originally sat, and budgeted $200K for the project. Mr. Holzman left the meeting. Between the Old High School, Magnuson House, and Amphitheater, the area was already short on parking. She pointed out that was the part of the intent of buying the Ruth Jones Cottage. She explained what was presented was their slate of projects. She wanted to increase grants and parking if the millage rate was raised. Vice Chair McCray inquired if the Board was looking at everything as one scenario. Ms. Brooks commented these were the projects she was planning for this year. She expressed her belief the Magnuson House would be successful and parking was needed. If City Hall were addressed, it will be a longer-term project. The Capital Improvement Plan was reviewed which reflected the various projects. Mr. Holzman returned to the meeting Proposed special events included more money for the Holiday Concert' and Boat Parade. Ms. Biscuiti explained at this point, the budget for the Holiday Extravaganza was the same as last year Staff slightly increased the budget for the Boat Parade. The Downtown Development Authority in Delray Beach was assisting by hosting the awards banquet for the Boat parade winners and staff was visiting various marinas to solicit boater participation. Mr. Holzman suggested awarding a larger prize and Mr. Karageorge agreed as the activity generated more activity at the Marina. Presently, the first to third place prizes were $300, $200, $100 respectively. The Movies on the Avenue budget would remain the same. The Concert Series would resume and the February concert was dedicated to the Heritage Fest. Ms. Biscuiti spoke with the Women's Club to continue the series indoors and they were amenable to doing so and would provide the catering. The Ocean Avenue Park Sunday concerts were new. Staff wanted to support the Little House and Hurricane Alley and would hold, during their Sunday Brunch, Music in the Park events from 12-3 p.m. The Boynton Beach Haunted Pirate event would be held October 27th and 28th and feature musical acts, stunts, sword fighting, and 50 to 75 pirates, all in character. Food and beverages would be available. Children's events 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 22, 2012 were planned and the Children's Schoolhouse Museum would become a haunted house. So far, 20 acts were booked The Community Farmer's Market would continue and they had a good turnout each week. Rave reviews were received regarding the quality of the produce. The Kinetic Art Symposium was approved last year to be funded in this year's budget and Ms. Biscuiti noted in reference to general event support, it may be better to hire security for the two day event. The overall increase was $31 K. The Tax Increment Finance (TIF) estimates under different millage rates were reviewed. Calculations were provided for the current and rolled-back rate. When the millage was finalized, staff would return with ideas for funding. The Fund Balance Analysis of the General Fund was reviewed. There was an outstanding allocation to the Luchey properties. Attorney Cherof explained Mr. Luchey was having difficulty with the bank. If the sale did not go through, those funds would be returned to the Unassigned Fund balance. By Statute, staff had to invest funds in the District and Ms. Brooks recommended maintaining the balance there. Ms. Harris explained the CRA did not maintain a reserve whereas the City, per Statute, did. Their role was to reinvest the money in the community. Staff does maintain a reserve for the debt service on their bonds, but any other amount to be held was at the Board's discretion. Attorney Cherof clarified there were four legal categories to roll over under the State Statute. There was a contingency fund in the budget, but they had to have four layers of fund balance. This was a new requirement imposed this fiscal year. There was a non-spendable fund balance, a restricted balance where the bond reserve was, committed funds that the Board approved but not yet paid, and assigned and unassigned funds. Only the general fund could have a fund balance. VI. Review of General Fund, Project Fund, Debt Service Ms. Brooks reviewed the General Fund. Revenues were $6,725,000. Expenses for the Board increased 1 % due to an increase in cell phones and all departments had an increase due to health care and retirement increases. General Fund expenses reflected an overall decrease of 4%. Personnel costs as a percentage of the General Fund were 12%. It was noted for a private sector company, 12% was vey low. Mr. Karageorge commented other Community Redevelopment Agency personnel costs were averaging about 20%. He also commented if the millage was increased, in addition to increasing the DIFA amount, he wanted to reward employees based on merit. He noted the Agency was eligible for five awards from the FRA and merit increases were appropriate, but not necessarily across the board. He suggested it be an agenda item for the October meeting. 13 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 22, 2012 Mr. Buchanan noted all expenses, except for the shifting of positions and insurance, went down or had small increases. Because of the pending litigation, the broker recommended Ms. Harris be conservative in general liability insurance this year. Ms. Harris explained the insurance broker was getting quotes. Chair Hay commended staff on an excellent job. VII. Adjournment There being no further business to discuss, the meeting was properly adjourned at 8:27 p.m. Catherine Cherry Recording Secretary 082812 14