Title
FY2009 Budget Resolution (B)
Explanation
Every September, the CRA Board adopts a budget for the next Fiscal Year. In preparation for budget adoption, each Advisory Board reviews a proposed budget and provides a recommendation to the CRA Executive Director that is then recommended to the CRA Board. The four Advisory Boards (FAPS, Downtown, Eastside, and CPUH) have approved their respective budgets.
The budget is divided into five (5) general sections: 1) Revenues 2) Personal Services 3) Operating Expenses 4) Non-Operating Expenses and 5) Project Funding. Below are highlights from each section of the proposed FY2009 Budget for each Redevelopment Area:
1) Revenues
For FY2009, Tax Increment funding for the CRA (four combined Redevelopment Areas) is estimated to be $5,133,699, an increase of 14.2% from FY2008. Additionally, there are unappropriated fund balances of $720,348 across the four Redevelopment Trust funds that are primarily attributed to interest income on fund balance. The total FY09 revenue for the CRA is $5,854,047.
2) Personal Services Expenses
CRA staff provides shared-support across all CRA redevelopment areas in the functional areas of planning, project management, engineering, development finance, and budgeting. A portion of each staff person's salary and benefits (i.e. Personal Services) is allocated to CPUH. For FY09, 55% of Personal Services will be allocated to CPUH, with the exception of the two Project Coordinators. The salaries for Project Coordinator - Eastside/FAPS and Project Coordinator - Neighborhood Planning are allocated at 5% and 40% respectively because of the specific support provided by these positions.
CRA staff is currently working on more than 70 projects across the four Redevelopment areas. A Master Project List, with a high-level timeline is included as back-up (Attachment B). In order to increase productivity and focus, ten full-time employees are proposed for FY09, an increase of two positions. One of the two incremental positions (Title-TBD) would focus exclusively on CPUH projects and be funded 100% by CPUH. CPUH has experienced significant growth in Tax Increment and the complexity, size, and number of planned projects has increased as well. The other proposed position (Title-TBD) will help with the overall number of CRA projects and focus on more development, both real estate and economic.
Personal Services expense for CRA staff is $700,288.
Additionally, the CRA is supported by two City of Gainesville attorneys that each spends 30%-35% of their time directly supporting CRA projects. The total CPUH allocation for City Attorney support is $85,180.
The total Personal Services expense for CRA is $785,468.
3) Operating Expenses
The total proposed FY09 operating expense is $265,895. Operating expenses cover general overhead expenses that are required to operate the CRA, including but not limited to travel, training, rent, telephone, office supplies, and an overhead allocation from City for shared support (HR, Payroll, Accounting, etc.).
The total Payroll and Operating Expenses to Tax Increment ratio is 20.48%, which is a measure of how much Tax Increment funding is used for overhead, is below the self-imposed 25% threshold. Additionally, each Redevelopment area meets threshold requirements individually: Eastside 21.79%, FAPS 24.31%, CPUH 20.45%, and Downtown 18.75%.
4) Non-Operating Expenses (Debt Service, Obligations to City of Gainesville and Tax Increment Financing)
Obligations to the City for payments on loans include West Univ Ave Lofts ($34,074) and SW 2nd Ave ($58,196)
Eastside District Note - Tacklebox Bond ($21,825), Arlington Square Note ($6,100), and FAPS Model Block Note ($50,018) and transfers to the General Government fund in the amounts of $10,690 and $2,651for the Other Post Employment Benefit Bond (OPEB) and Pension Obligation Bond (POB) respectively. The total for non-operating expenses is $183,554. The regularly scheduled loan payment to the City for the Courthouse Parking Garage Note ($112,086) will be deferred this year as part of the funding strategy for the one-year FY08 Hampton Inn deal.
TIF incentive payments for the Campus View ($105,547), Heritage Oaks ($19,960), Stratford Court ($21,111), and Woodbury Row ($20,634) Union Street ($220,983), Commerce Building ($71,340) are also budgeted. Assuming that an agreement is signed, $30,000 is budgeted for TIF incentive for University House.
The total for CRA TIF Development Agreements is $418,235.
5) Project Funding
After payroll, operating expenses, and debt service, and incentive payments there is $4,200,895 available to appropriate for projects. See back-up (Attachment A) for funding by project and a description of project.
Fiscal Note
CRA staff will prepare a Budget Transaction Form to be executed by the City's Budget and Finance Department.
Recommendation
CRA Executive Director to the CRA: Recommend the CRA adopt Resolution #080372 thus approving the budget for FY2009 as described above, including the addition of two incremental full-time positions.