Title
FY2012 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 Fifth Avenue/Pleasant Street, Downtown and College Park/University Heights Advisory Boards have approved their respective budgets. The Eastside Advisory Board did not have quorum and was unable to approve their budget; however, appropriations to projects were made according to their approved strategic plan.
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 FY2012 Budget for each Redevelopment Area:
1) Revenues
For FY2012, Tax Increment funding for the CRA (four combined Redevelopment Areas) is estimated to be $5,476,178, a decrease of 3.60% from FY2011.
2) Personal Services Expenses
Ten full-time employees and one temporary employee are included in FY2012. Most 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 each redevelopment area, with the exception of the CPUH Project Manager, which is allocated 100% to the CPUH redevelopment area. Personal Services expense for CRA staff is $825,828.
Additionally, the CRA is supported by a City of Gainesville attorney and the City Clerk. Both spend a portion of their time directly supporting the CRA.
The total Personal Services expense for CRA is $909,138.
3) Operating Expenses
The total proposed FY2012 operating expense is $316,033. Operating expenses cover general overhead expenses that are required to operate the CRA, including but not limited to travel, training, 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 22.37%, 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 24.67%, FAPS 21.86%, CPUH 24.41%, and Downtown 18.23%.
4) Non-Operating Expenses (Debt Service, Obligations to City of Gainesville and Tax Increment Reimbursements)
Obligations to the City for payments on loans include West University Avenue Lofts ($32,338) and SW 2nd Ave ($58,118), Eastside District Note - Tacklebox Bond ($21,794), Arlington Square Note ($6,100), FAPS Model Block Note ($52,161), Courthouse Parking Garage Note ($111,852), the 5th Ave Commercial Building Retail Note ($26,015) and the Commerce Building Note ($72,679).
Transfers to the General Government fund in the amounts of $22,027 and $11,939 for the Other Post Employment Benefit Bond (OPEB) and Pension Obligation Bond (POB) respectively is also included.
The total for non-operating expenses is $415,024.
2010 TIF incentive payments were paid out in fiscal year 2011 for the following Development Agreements: Campus View ($66,636), Stratford Court ($15,567), Camden Court ($13,371), Union Street ($177,007), Jefferson on 2nd ($169,770), The Palms ($78,479) and University House ($134,190). These amounts are carried over in the FY2012 budget as placeholders until the CRA receives updated "TIF District Liability Calculations" from the County in December. These totals will be adjusted during the FY2012 Amendatory Budget process.
The total for CRA TIF Development Agreements is $655,019.
5) Project Funding
After payroll, operating expenses, debt service and incentive payments there is $3,180,964 available to appropriate for projects. See presentation back-up for funding by project and a description of each project.
Fiscal Note
A Budget Transaction Form will be prepared to be executed by the City's Budget and Finance Department.
Recommendation
CRA Executive Director to the CRA: 1) Hear presentation by CRA staff and 2) Adopt Resolution #110318 approving the budget for FY2012.