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Home My WebLink AboutCRA-R-24-0055 MemorandumSEOPW Board of Commissioners Meeting September 7, 2024 SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM To: Board Chair Christine King Date: September 9, 2024 and Members of the CRA Board File: 16572 From: James McQueen Executive Director Subject: SEOPW CRA General Operating and Tax Increment Fund Budget. Enclosures: File # 16572 - Exhibit A File # 16572 - Exhibit B BACKGROUND: 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 proposed general operating and tax increment fund ("TIF") budget of the SEOPW CRA ("Budget"), attached and incorporated as Exhibit "A", in the amount of One Hundred Million Four Hundred Sixty -Six Thousand Two Hundred Seventy -Eight Dollars and Zero Cents ($100,466,278.00) ("Funds"), for the fiscal year commencing October 1, 2024, and ending September 30, 2025, and directing the Executive Director to transmit copies of the Budget to the City of Miami ("City) and Miami -Dade County ("County"). The Board of Commissioners of the SEOPW CRA hereby approves the de -allocation of funds in the amount of One Million One Hundred One Thousand Three Hundred Five Dollars and Zero Cents ($1,101,305.00), attached and incorporated as Exhibit "B." JUSTIFICATION: Pursuant to Section 163.387, Florida Statutes, the SEOPW CRA is bound to annually prepare and transmit a proposed budget to the City and County, attached and incorporated herein as Exhibit "A." The Board of Commissioners of the SEOPW CRA finds that the attached Resolution would fulfill that requirement and approves the Budget, and hereby authorizes the de -allocation of funds in the amount of $1,101,305.00, attached and incorporated as Exhibit "B." BUDGET SUMMARY The 2025 Budget amounted to $100,466,278.00. The Budget included the following revenue sources: $19,709,668.00 — Miami Dade County TIF $30,694,090.00 — City of Miami TIF $4,833,515.00 — Non-TIF Revenue fund $2,017,387.00 — Children's Trust Contribution $43,211,618.00 — 2024's carryover fund balance Administrative expenses total $5,216,607.00, include employee salaries and fringes, and which represents ten percent (10%) of total budgeted expenditures, satisfying the twenty percent (20%) cap for administrative costs allowed by the Interlocal Agreement, and Section 163.387, Florida Statutes. This allocation of funds contemplates a six percent (6%) salary increase in the Executive Director's compensation, effective October 1, 2024. Operating expenses total $95,249,671.00 and include: $63,943,605.00 for Grants and Aid, including: • Affordable/Workforce housing projects ($19,017,660.00) • MWC and Avanti economic incentive payments ($6,351,320.00) • A reserve for Eligible Activities under Chapter 163 ($17,969,075.00) • Other grants and projects such as arts, culture, infrastructure, job creation and quality of life ($20,605,550.00) $15,967,569.00 for Interfund Transfer, including: • Refund to the County for the Global Agreement ($4,500,000.00) • Grant to City for Construction of Gibson Park debt service ($850,182.00) • Disbursement to the Children's Trust ($2,017,387.00) • Enhanced Policing Services ($600,000.00) • Contribution to the Tri-Rail project ($8,000,000.00) $4,502,500.00 for Debt Service payment/reserves $2,000,000.00 for Purchase of Land $2,513,709.00 for Professional and Contractual Services $1,641,657.00 for Construction in Progress $4,680,631.00 for Revenue Shortfall Reserve for future years. The Budget was prepared by taking into consideration the following eligible activities below, as specified under Section 163.387(6(c)) and (7), Florida Statutes, respectively. s. 163.387, Florida Statutes: 6(c) The annual budget of a community redevelopment agency may provide for payment of the following expenses: 1. Administrative and overhead expenses directly or indirectly necessary to implement a community redevelopment plan adopted by the agency. 2. Expenses of redevelopment planning, surveys, and financial analysis, including the reimbursement of the governing body or the community redevelopment agency for such expenses incurred before the redevelopment plan was approved and adopted. Page 2 of 6 3. The acquisition of real property in the redevelopment area. 4. The clearance and preparation of any redevelopment area for redevelopment and relocation of site occupants within or outside the community redevelopment area as provided in s.163.370. 5. The repayment of principal and interest or any redemption premium for loans, advances, bonds, bond anticipation notes, and any other form of indebtedness. 6. All expenses incidental to or connected with the issuance, sale, redemption, retirement, or purchase of bonds, bond anticipation notes, or other form of indebtedness, including funding of any reserve, redemption, or other fund or account provided for in the ordinance or resolution authorizing such bonds, notes, or other form of indebtedness. 7. The development of affordable housing within the community redevelopment area. 8. The development of community policing innovations. 9. Expenses that are necessary to exercise the powers granted under s. 163.370, as delegated under s. 163.358. (7) On the last day of the fiscal year of the community redevelopment agency, any money which remains in the trust fund after the payment of expenses pursuant to subsection (6) for such year shall be: (a) Returned to each taxing authority which paid the increment in the proportion that the amount of the payment of such taxing authority bears to the total amount paid into the trust fund by all taxing authorities for that year; (b) Used to reduce the amount of any indebtedness to which increment revenues are pledged; (c) Deposited into an escrow account for the purpose of later reducing any indebtedness to which increment revenues are pledged; or (d) Appropriated to a specific redevelopment project pursuant to an approved community redevelopment plan. The funds appropriated for such project may not be changed unless the project is amended, redesigned, or delayed, in which case the funds must be reappropriated pursuant to the next annual budget adopted by the board of commissioners of the community redevelopment agency. Any redevelopment project apart from the activities mentioned above will be funded from non -tax increment funding (Non-TIF) sources. Page 3 of 6 AGENDA ITEM FINANCIAL INFORMATION FORM SEOPW CRA CRA Board Meeting Date: September 7, 2024 CRA Section: Approved by: Approval: 1 Executive Director 8/27/2024 Miguel A Valentin, :,lance Officer 8/27/2024 Page 4 of 6 Southeast Overtown/Park West Community Redevelopment Agency File Type: CRA Resolution Enactment Number: CRA-R-24-0055 File Number: 16572 Final Action Date:9/7/2024 A RESOLUTION OF THE BOARD OF COMMISSIONERS ("BOARD") OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("SEOPW CRA"), WITH ATTACHMENTS, APPROVING AND ADOPTING THE PROPOSED GENERAL OPERATING AND TAX INCREMENT FUND BUDGET ("BUDGET") OF THE SEOPW CRA, ATTACHED AND INCORPORATED HEREIN AS EXHIBIT "A," IN THE AMOUNT OF ONE HUNDRED MILLION FOUR HUNDRED SIXTY-SIX THOUSAND TWO HUNDRED SEVENTY-EIGHT DOLLARS AND ZERO CENTS ($100,466,278.00) ("FUNDS"), FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2024 AND ENDING SEPTEMBER 30, 2025 ("FY 2024 - 2025"); FURTHER AUTHORIZING THE DE -ALLOCATION OF FUNDS IN THE AMOUNT OF ONE MILLION ONE HUNDRED ONE THOUSAND THREE HUNDRED FIVE DOLLARS AND ZERO CENTS ($1,101,305.00), ATTACHED AND INCORPORATED HEREIN AS EXHIBIT "B"; FURTHER AUTHORIZING THE COMPENSATION OF THE EXECUTIVE DIRECTOR FOR FY 2024 - 2025 AND DIRECTING THE EXECUTIVE DIRECTOR TO TRANSMIT A COPY OF SAID BUDGET TO THE CITY OF MIAMI AND MIAMI-DADE COUNTY; 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 2018 Southeast Overtown/Park West Redevelopment Plan Update (the "Plan"); and WHEREAS, as a prerequisite to carrying out redevelopment activities for the fiscal year commencing October 1, 2024 and ending September 30, 2025 ("FY 2024 - 2025"), it is required that the SEOPW CRA's Board of Commissioners ("Board") approve and adopt the annual General Operating and Tax Increment Fund Budget ("Budget"), attached and incorporated herein 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 local and state law, Interlocal Agreements, and the Plan; and WHEREAS, the Board finds that authorizing this Resolution would further the SEOPW CRA's redevelopment goals and objectives; and WHEREAS, the Board wishes to approve and adopt the SEOPW CRA's Budget for FY 2024 - 2025, as set forth in Exhibit "A," in the amount of One Hundred Million Four Hundred Sixty -Six Thousand Two Hundred Seventy -Eight Dollars and Zero Cents ($100,466,278.00) ("Funds"); Page 5 of 6 WHEREAS, the Board wishes to de -allocate funds in the amount of One Million One Hundred One Thousand Three Hundred Five Dollars and Zero Cents ($1,101,305.00), as set forth in Exhibit `B' WHEREAS, the Board wishes to approve the Executive Director's compensation, effective in FY 2024 - 2025. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY 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 SEOPW CRA's Budget, in the amount of One Hundred Million Four Hundred Sixty -Six Thousand Two Hundred Seventy -Eight Dollars and Zero Cents ($100,466,278.00), for FY 2024 - 2025, as set forth in Exhibit "A", is hereby approved and adopted. Section 3. The Board hereby approves the de -allocation of funds in the amount of One Million One Hundred One Thousand Three Hundred Five Dollars and Zero Cents ($1,101,305.00), as set forth in Exhibit "B." Section 4. The Board further approves the compensation of the Executive Director, effective in FY 2024 - 2025. Section 5. Sections of this Resolution may be re -numbered or re -lettered, and corrections of typographical errors which do not affect the intent may be authorized by the Executive Director, or the Executive Director's designee, without need of public hearing, by filing a corrected copy of same with the City of Miami City Clerk. Section 6. The Executive Director is directed to transmit a copy of said Budget to the City of Miami and Miami -Dade County, including any and all necessary documents, and all -in forms acceptable to the Counsel. Section 7. This Resolution shall become effective immediately upon its adoption and signature by the City Mayor. APPROVED AS TO FORM AND LEGAL SUFFICIENCY: ounsel 8/27/2024 Page 6 of 6