Title
Approval of the CRA 04-05 Operating/ Project Budget Resolution (B)
Explanation
The City of Gainesville follows a two-year budget cycle and over the past several months the Advisory Boards have been asked to review and recommend operating/project budgets to the CRA for Fiscal Years 04-05 and 05-06. While for planning purposes a two-year budget is projected, it should be noted that by Florida Statute the CRA is required "to adopt a budget by resolution each fiscal year."
Each year's budget is based on a conservative estimate of the increment for that year. During this budget cycle the increment is projected at a 5% increase each year. When the actual increment figure is received in December of each year the CRA moves through an amendatory process to allocate any additional funds received.
The Advisory Boards are recommending that more personnel time be budgeted in the CRA districts, and that a reallocation of existing CRA staff time be created that allows for better use of resources. The CPUH Board is recommending a full time project coordinator position be added to handle projects within their district. Over the past several years the increment in CPUH has reached nearly $800,000 annually and the potential for projects has greatly increased. At the same time DRAB is asking that a half time project coordinator be added to handle projects within their district. With the addition of staff to focus on CPUH and DRAB the boards are recommending that more of the CRA Manager time be allocated to the FAPS and Eastside District. At present the CRA has a full time CRA Manager, 2 part time project coordinators, a full time staff assistant and over the course of the past year has used interns from UF and externs for the Law School to build capacity within the division.
Several years ago the CRA discussed the possibility of the CRA offices moving out of the Thomas Center into a larger space. As the CRA has added paid staff and begun using interns from the University, the space at the Thomas Center has become increasingly tight and there are no opportunities for expansion at the current location. It is not feasible for the CRA to increase staffing by one full time and one part time paid staff and remain in the current office space at the Thomas Center. Based on the projected increase in paid staff and the continued use of interns it appears that the CRA will need to move within the next year. Over the past several weeks staff has tried to estimate the costs associated with a move and included them within the budget. These figures will be more clearly defined as a location is selected.
Because the overall percentage split between the four districts is based on the percentage of staff time for each district, the overall percentage split will move to 48% College Park University Heights, 35% Downtown, 10% Fifth Avenue Pleasant Street and 7% Eastside. This formula is reflected in the indirect costs, copier expense, and pension debt service figures.
The CRA budget guidelines set forth in the Administrative Policy & Procedures Financial, Budget & Debt Policies calls for a 25% cap on the operating budget, with the remaining funds to be assigned to projects budgets. In both Fiscal Year 04-05 and Fiscal Year 05-06 budgets the FAPS operating budget appears to be above the 25% guideline. The $425,000 bond funding for the Model Block program and the $300,000 line of credit from the National Trust are not reflected in the FAPS revenue budget. These funds are project specific and do not allow for administrative cost. If they were added to the revenue the total FAPS budget would be $897,288. In both years the attached chart shows that the district's operating budget will exceed the 25% increment guidelines ($10,651 in FY 04-05 and $16,902 in FY 05-06), however using the adjusted revenue figure of $897,288 the operating expenses would fall well below the $224,322 operating guidelines.
In both years the Eastside Budget is slightly higher than the 25% guideline. This situation has been created by the addition of rent and utilities to the budget and increased Travel and Training in 05-06 to allow additional Board members to attend the Florida Redevelopment Association (FRA) conference. While the need for additional staff in the larger districts has pushed the issue of larger office space the ERAB believes that the ability to continue using interns to staff projects on the Eastside compensates for the slight increase over the guidelines. Because the Eastside District is the newest CRA district the Advisory Board feels that the quality of training received at the FRA conference offsets the additional expense.
The remaining funds each year are allocated to projects within the district. Each district has its own redevelopment plan and its own projects. These Board recommendations are itemized in the recommendations below. There are, however, several items on which the Boards do not agree.
In the current budget cycles the CRA has expressed interest in a CRA wide project that would include a visual master plan to showcase projects underway, map opportunity sites for redevelopment and market the CRA districts to potential developers. This project will include the development of a CRA wide website. Staff recommended to the Advisory Boards that $75,000 be budgeted for this project in the 04-05 budget cycle. Using the new percentage split the breakdown would be as follows: CPUH $36,000 (48%); DRAB $26,250 (35%); FAPS $7,500 (10%) and Eastside $5,250 (7%). In the 05-06 budget cycle the funding would be reduced to $25,000 CRA wide to allow for ongoing maintenance of the website and changes to the print materials.
Both DRAB and FAPS declined to recommend funding for the CRA wide master planning. DRAB declined because it believes that the project will not attract outside developers and that the fund would be better spent advertising within the community. FAPS declined because it felt that its fund were limited and could be better spent on physical improvements within the district. FAPS has also declined to recommend funds for rent and utilities. The FAPS Board felt that they were being forced by the larger boards to incur expenses that were beyond their means. In the Executive Director recommendation spreadsheet attached those items that vary from the Advisory Board recommendation are highlighted.
Fiscal Note
As presented in the attached spreadsheet.
Recommendation
College Park University Heights Redevelopment Advisory Board to the CRA: Approve the FY 04-05 and 05-06 budgets as presented by staff.
Downtown Redevelopment Advisory Board to the CRA: Approve the budget as presented by staff with the following changes: 1) do not budget for CRA Wide Marketing/visioning/website, 2) budget $10,000 for marketing and 3) budget $35,555 for Residential projects.
Eastside Redevelopment Advisory Board to the CRA: Approve the FY 04-05 and 05-06 budgets as presented by staff.
Fifth Avenue Pleasant Street Advisory Board to the CRA: Approve the budget as presented by staff with the following changes: 1) do not budget for rent and utilities, 2) do not budget for CRA Wide marketing/visioning /website, 3) place those funds instead in the Northwest 5th Avenue Streetscape account.
Executive Director: Recommend the CRA adopt Resolution 040075, thus approving a budget for FY04-05 as described above, fully funding the CRA wide marketing/visioning/web site and CRA rent and utilities.