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HomeMy WebLinkAboutCRA-R-22-0037 MemorandumSEOPW Board of Commissioners Meeting September 22, 2022 SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM To: Board Chair Christine King Date: September 15, 2022 and Members of the CRA Board File: 12599 From: James McQueen Executive Director Subject: SEOPW CRA General Operating and Tax Increment Fund Budget. Enclosures: File # 12599 Exhibit A BACKGROUND: The attached resolution of the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency ("SEOPW CRA") approve the attached proposed SEOPW CRA General Operating and Tax Increment Fund Budget ("Budget"), in the amount of $92,443,744, for the fiscal year commencing October 1, 2022, and ending September 30, 2023, and directing the Executive Director to transmit copies of the Budget to the City of Miami and Miami -Dade County. JUSTIFICATION: The SEOPW CRA is required to annually prepare a proposed budget and transmit the budget to the City of Miami and Miami -Dade County. See attached Exhibit "A". The attached Resolution fulfills that requirement. BUDGET SUMMARY The 2023's budget amounted to $92,443,744. The budget included the following revenue sources: $16,262,379 - County TIF $26,583,954 - City TIF $47,957,143 — 2022's carryover funds $1,640,268 - Children's Trust contribution TIF revenues increased in the amount of $7,699,747 in comparison to FY 2022 due to the following reasons: 1) Folio # 01-0106-030-1015 (5 Plaza LLC) added to the Tax Roll — Preliminary assessed taxable value $249,300,000 (represent $3,035,003 m TIF revenue roughly) 2) MWC and Global (2007) projects increased in the amount of $1,365,940 and $2,781,767 in preliminary assessed taxable value respectively. The Agency's administrative expenditures of $3,013,715 includes employee salaries and fringe and represents seven percent (7%) of total budgeted expenditures, which is less than the 20 percent cap for administrative costs allowed by the Interlocal. Additionally, this proposed budget represents an increase of 9% in the salary of the executive director. This increase addresses inflation, the cost of living, and merit. Operating expenses total $89,430,029 and include: $42,675,178 for Grants and Aid including: • Affordable/Workforce housing projects ($13,711,476) • MWC and Soleste economic incentive payments ($5,194,387) • Job creation and economic development projects and grants ($5,603,032) • A reserve for grants and aid/affordable housing ($15,956,123) • Other grants and projects such as arts, culture, infrastructure, and quality of life ($2,210,161) $24,707,971 for interfund transfer including: • Refund to the County and City for the Global Agreement ($9,712,775) • Debt service payment/reserves ($4,510,625) • Contribution to the Tri-Rail project ($8,000,000) • Grant to City for Construction of Gibson Park debt service ($844,303) • Disbursement to the Children's Trust ($1,640,268) $14,000,000 for purchase of land $2,762,313 for Professional and Contractual Services $1,376,842 for Construction in Progress $3,907,725 for revenue shortfall reserve for future years Page 2 of 5 AGENDA ITEM FINANCIAL INFORMATION FORM SEOPW CRA CRA Board Meeting Date: September 22, 2022 CRA Section: Approved by: Approval: 1 Executive Director 9/15/2022 Miguel A Valentin, :,lance Off;cer 9/15/2022 Page 3 of 5 Southeast Overtown/Park West Community Redevelopment Agency File Type: CRA Resolution Enactment Number: CRA-R-22-0037 File Number: 12599 Final Action Date:9/22/2022 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("SEOPW CRA") WITH ATTACHMENT(S), APPROVING AND ADOPTING THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY'S ("SEOPW CRA") PROPOSED GENERAL OPERATING AND TAX INCREMENT FUND BUDGET, ATTACHED AND INCORPORATED AS EXHIBIT "A" IN THE AMOUNT OF $92,443,744, FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2022, AND ENDING SEPTEMBER 30, 2023; PROVIDING FOR INCORPORATION OF RECITALS AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Southeast Overtown/Park West Community Redevelopment Agency ("SEOPW CRA") is responsible for carrying out community redevelopment activities and projects within its Redevelopment Area in accordance with the 2009 Southeast Overtown/Park West Redevelopment Plan (the "Plan"); and WHEREAS, as a prerequisite to carrying out redevelopment activities for the fiscal year commencing October 1, 2022, and ending September 30, 2023 ("FY 2022-2023"), it is required that the SEOPW CRA's Board of Commissioners approve and adopt the annual General Operating and Tax Increment Fund Budget ("Budget"), attached and incorporated as Exhibit "A"; and WHEREAS, pursuant to Interlocal Agreements, a copy of the SEOPW CRA's budget is required to be transmitted to the City of Miami and Miami -Dade County; and WHEREAS, all the expenses included in the Budget are in accordance with state law, Interlocal Agreements, and the Plan; and WHEREAS, the Board of Commissioners wish to approve and adopt the SEOPW CRA's Budget for FY 2022-2023 as set forth in Exhibit "A", in the amount of $92,443,744; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated herein as if fully set forth in this Section. Section 2. The Southeast Overtown/Park West Community Redevelopment Agency's General Operating and Tax Increment Fund Budget, in the amount of $92,443,744, for the fiscal Page 4 of 5 year commencing October 1, 2022, and ending September 30, 2023, as set forth in Exhibit "A", is hereby approved and adopted. Section 3. The Executive Director is directed to transmit a copy of said budget to the City of Miami and Miami -Dade County. Section 4. The Board of Commissioners of the SEOPW CRA hereby ratifies and adopts the current compensation of the Executive Director earned since November 18, 2021. Section 5. The Board of Commissioners of the SEOPW CRA hereby authorizes a merit, inflation, and a cost -of -living increase of 9% in the compensation of the Executive Director effective on October 1st, 2022. Section 6. This Resolution shall become effective immediately upon its adoption and signature of the Mayor. APPROVED AS TO FORM AND LEGAL SUFFICIENCY: Br Counsel 9/15/2022 Page 5 of 5