Loading...
HomeMy WebLinkAboutcocc_cra_fy18-19_annual_report_20200330City of Cape Canaveral CV, Or CAPE CANAVERAL March 30, 2020 Brevard County Property Appraiser City of Cape Canaveral City Council Brevard County Manager RE: City of Cape Canaveral Community Redevelopment Agency (CRA) Annual Report—FY2018-2019 Ladies and Gentlemen, Please find enclosed the City of Cape Canaveral Community Redevelopment Agency Annual Financial Report for FY2018-2019. Chapter 163.387 (8), Florida Statute, requires that the City file an annual report of its financial activities with the taxing authorities each year for the preceding fiscal year. Furthermore, the City and Brevard County entered into an Interlocal Agreement, recorded in July of 2018, which establishes additional reporting obligations of the City. This report has been prepared to meet these obligations and is filed for fiscal year 2018/19 ending September 30, 2019. This report sets forth: (1) the organization and membership of the Community Redevelopment Agency, its Board members and administration, (2) an introduction to the CRA, its mission and history, (3) the CRA boundary, (4) financial reports, statement of liabilities, income/operating expenses and certain other performance information, and (5) an overview of public and private construction projects within the CRA. Should you have any questions, please contact me at (321) 868-1220. (over) THE SPACE 100 Polk Avenue — P.O. Box 326 • Cape Canaveral, FL 32920 BETWEEN (321) 868-1220 • Fax (321) 868-1248 Visit us at www.cityofcapecariaveraLorg • info@cityofcapecanavera1.org • #TheSpaceBetween FY2018/2019 CRA Annual Report March 30, 2020 Page 2 Sincerely, M David Dickey, Community Redevelopment Agency Director Attachment cc: Todd Morley, Interim City Manager/CRA Registered Agent Anthony Garganese, City/CRA Attorney Mia Goforth, City/CRA Clerk THE SPACE 100 Polk Avenue — PO. Box 326 • Cape Canaveral, FL 32920 BETWEEN (321) 868-1220 • Fax (321) 868-1248 Visit us at www.cityofcapecanaveral,org • info@cityofcapecanaveral.org • #TheSpaceBetween City of Cape Canaveral Community Redevelopment Agency (CRA) FY 18/19 Annual Report MARCH 2020 City of Cape Canaveral Community Redevelopment Agency 100 Polk Avenue Cape Canaveral FL 32920 (321) 868-1220 2 Table of Contents Community Redevelopment Agency Officials 3 Introduction, Mission & History 4 City of Cape Canaveral CRA Boundary Map (Figure 1) 5 Financial Statements, Taxable Value & Balance Sheet 6 Statement of Revenues, Expenditures & Changes in Fund Balances —Budget to Actual 7 Projects Overview & Accomplishments (Current Yea r/FY18-19) 8 Performance Information 19 Summary 20 Attachment 1 Annual Audit Report (FY18-19) 3 Community Redevelopment Agency Officials City Staff Todd Morley Interim City Manager/CRA Registered Agent/Primary Contact for the District (321) 868-1220 t.morley©cityofcapecanaveral.org Dave Dickey CRA Director (321) 868-1220 d.d ickey©cityofca peca navera I.org Mia Goforth CRA Clerk/Recording Secretary (321) 868-1220 m.goforth@cityofcapecanaveral.org Governing Board Members Bob Hoog, Chairperson b.hoog@cityofcapecanaveral.org Mike Brown, Vice -Chair m.brown©cityofcapecanaveral.org Angela Raymond a.raymond@cityofcapecanaveral.org Mickie Kellum m. ke l l u m @c i tyofca p eca n ave ra l.o rg Wes Morrison w.morrison@cityofcapecanaveral.org Image 1. Governing Board Members (left to right): Bob Hoog; Mike Brown; Angela Raymond; Mickie Kellum; and Wes Morrison. 4 Introduction, Mission & History Chapter163.387 (8), Florida Statute, requires that the City file an annual report of its financial activities with the taxing authorities each year for the preceding fiscal year. Furthermore, the City and Brevard County entered into an Interlocal Agreement, recorded in July of 2018, which establishes additional reporting obligations of the City. This report has been prepared to meet these obligations and is filed for fiscal year 2018/19 ending September 30, 2019. This report sets forth: (1) the organization and membership of the Community Redevelopment Agency, its Board members and administration, (2) an introduction to the CRA, its mission and history, (3) the CRA boundary, (4) financial reports, statement of liabilities, income/operating expenses and certain other performance information, and (5) an overview of public and private construction projects within the CRA. In 2009, the City initiated the "Envision Cape Canaveral" effort, which set the stage for a series of redevelopment activities. One of these, the establishment of a City Vision Statement, ultimately led to the creation of the City's CRA. Between the years of 2007 and 2011, property valuation data, collected by the Brevard County Property Appraiser's Office, indicated an average decline of 41 percent in commercial and industrial areas and 47 percent in residential areas within the Community Redevelopment Area. Pursuant to Resolution No. 2012-10, the City CRA was established in 2012 with the signing of an Interlocal Agreement between the City and Brevard County. The CRA includes 766 acres or 56 percent of the City's land area (Figure 1). THE SPAC[ BETWEEN® 5 City of Cape Canaveral CRA Boundary Figure 1. City of Cape Canaveral CRA Boundary. 6 Financial Statements & Taxable Value CPA Valuation ($Millions) CRA Valuation($Millions) 450 400 395 362 950 329 300 294 266 248 250 238 Li-;200 150 100 50 0 Ill Buse Year 2013 2014 2016 2016 2017 2018 2019 Figure 2.CPA Valuation($Millions) a - ' � �• ia .. . 'S.� ti yy 4 i . . 1 a a#,s i a6 f R ••i. •w �'a f' ' .' {` .P `S * - , ate, e r ,„wow.,.r . 41, 1,. 1 'lir rar•41; Y T i• e r 0 , -Jodi/ , iii. 4�►, r y' C .40titr''.:10...- IV.: a , _ 7 Statement of Revenues, Expenditures & Changes in Fund Balances Budget to Actual Budgeted Amounts Variance Original Final Actual Positive (Negative) Revenues Taxes Intergovernmental 937,598 937,598 937,598 - Total Revenues 937,598 938,108 938,108 - Expenditures Current: Community Development 4,866,299 350,309 343,366 6,943 Total Expenditures 4,866,299 350,309 343,366 6,943 Excess(deficiency) of (3,928,701) 587,799 594,742 6,943 revenues over expenditures Other financing sources Transfers in 4,600,000 83,500 83,500 - Transfers out (737,958) (737,958) (685,634) 52,324 Total other financing sources 3,862,042 (654,458) (602,134) 52,324 Net change in fund balances (66,659) (66,659) (7,392) 59,267 Fund balances, beginning 51,524 51,524 51,524 of year Fund balances,end of year $(15,135) $(15,135) $44,132 $59,267 Source: City of Cape Canaveral Comprehensive Annual Financial Report CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY FUND FOR THE YEAR ENDED SEPTEMBER 30,2019 r s :)141"'I" } � �3 • y _ ih;;;,7-744: y�a }� . 1 k / � ��'n — KX * k5° PIliMr Projects Overview & Accomplishments (FY18-19) The City CRA is in its 8th year of operation and has increased in value approximately $165 million since its creation in 2012. The resulting Tax Increment Revenue allows for the continued expansion of public infrastructure and other p programs that directly affects our City. The City continues to fund public improvements through available dollars including the general fund and CRA funds. Some of the notable projects —both public and private —are indicated in the following pages. Public Projects Overview & Accomplishments (FY18-19) Electric Vehicle (EV) Charging Stations In 2019, the City at a cost of $6,490, installed new EV charging stations with two additional chargers located at City Hall. This public project was funded by the General Fund and is in line with the City's Community Redevelopment plans which include public enhancements that improve transportation services and facilities. Wayfinding Signage In 2019, the City at a cost of $16,076, obtained wayfinding signage to add decorative and uniform signage to direct residents and visitors to local amenities and attractions. The signage, paid for from the General and CPA Funds, aims to improve connectivity and enhance existing/future pedestrian and bicycle mobilitywhile also aiding vehicular travelers. This is a public project. 0 City Hall Plaza 0 Canaveral Fire Rescue ta,C) Public Beach Parking Wagner Pocket Park In 2019, the City at a cost of $70,000, constructed Wagner Pocket Park along N. Atlantic Avenue. This public project was funded by the General Fund and is in line with the City's Vision and Community Redevelopment plans which include parks, recreation, open space and beautification opportunities. Amenities include stormwater management via vegetative plantings, pervious pathways and bicycle/pedestrian facilities for the Community. Multi -Generational Facility (MGF) 7920 Orange Avenue This City facility, budgeted at $5 million, will be a catalyst for community health and engagement. Desired community amenities expressed include: indoor basketball/volleyball, indoor walking path, and specific areas for fitness, youth/teens, and banquet/gathering. The MGF will be utilized by all demographics and will serve as the host site for the City's Youth Center, summer camp, PAL and youth basketball programs. The facility will be open to the general public. This project will be publically funded with monies from: the CPA, grants, General Fund and use of SPIA moneys. Private Projects Overview & Accomplishments (FY18-19) Oceanside Distillery 240 W. Central Avenue This project, started in 2016, includes the redevelopment of an industrial site into the City's first micro -distillery. The distillery will be housed in a new 7,000 square foot building (valued at $431,000) that includes a tasting room, where educational tours will be provided, as well as a sales area where visitors can purchase spirits. Ingredients used in making the spirits will be locally -sourced, organic and once the distilling process is over, will be sold to local farmers for feed. This project is privately funded. Springhill Suites 655 W. Central Avenue This project includes a 150-room, Springhill Suites hotel on a 3.12-acre parcel. The development is currently nearing completion, with a projected opening in Spring 2020. It is anticipated that the project will go on the tax rolls for approximately $11 million, generating $175,000 in total annual ad valorem revenue. This project is privately funded. Dual Brand Hotel 9004 Astronaut Boulevard This project includes a 224-room, dual brand (Home2 and Hampton Inn & Suites) hotel on a 6.9-acre parcel. The building is just over 154,000 square feet, and is nearing completion with a projected opening in Spring 2020. It is anticipated that the project will go on the tax rolls for approximately $18 million, generating $250,000 in total annual ad valorem revenue. This project is privately funded. TownePlace Suites 605 W. Central Avenue This project includes a 154-room TownePlace Suites hotel on a 3.32-acre parcel. The building will begin construction in early 2020 with a projected opening in early2021. It is anticipated that the project will go on the tax rolls for approximately $11 million, generating $175,000 in total annual ad valorem revenue. This project is privately funded. Performance Information The following information is provided consistent with the Interlocal Agreement recorded in July 2018, between the City and Brevard County. In addition, Attachment1 to this report includes the CRA audit report prepared by an independent auditor which certifies that TIF revenues have been lawfully expended consistent with Florida Statutes. Total Projects* Started 1* Completed 0 Jobs Created Sector Construction Hospitality Total Temporary 75 50 125 Full-time 0 25 25 Jobs Retained n/a n/a Assessed Property Value CRA Enactment $230M Current $395M Affordable Housing 0 *TownePlace Suites Summary The CRA continues to build forward momentum through the 2018-19 fiscal year as evidenced by a nine percent increase in its assessed value from the prior tax year. The CRA is a tool for the City and property owners to help improve property values, business revenues and economic growth within the City of Cape Canaveral. The CRA strives to provide comprehensive support for the community, property owners and businesses. For more information, visit the CRA's webpage at www.cityofcapecanaveral.org. You can learn about: • Attending upcoming Board meetings; • Minutes and agendas from prior meetings; • Financial information for the CRA; and • Contact information on how the CRA can help you. All CRA Board meetings are open to the public and are held on a quarterly basis —unless cancelled due to no new business —in the Council Chambers at City Hall, 100 Polk Avenue. Please check the City Calendar at www.cityofcapecanaveral.org for meeting dates. We encourage you to attend! Attachment 1 CITY OF CAPE CANAVERAL, FLORIDA CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY SCHEDULE OF EXPENDITURES SEPTEMBER 30, 2019 Jll fames Moore Certified Public Accountants and Consultants INDEPENDENT ACCOUNTANTS' REPORT To the Honorable Mayor and City Council Members, City of Cape Canaveral, Florida: We have examined the City of Cape Canaveral, Florida's (the City) compliance pursuant to Section 163.387, Florida Statutes and the interlocal agreement between the City of Cape Canaveral, Florida (the City), the City of Cape Canaveral Community Redevelopment Agency (the CRA), and Brevard County, Florida (the County), as presented in the accompanying Cape Canaveral Community Redevelopment Agency schedule of expenditures (the Schedule), for the year ended September 30, 2019. Management of City of Cape Canaveral, Florida is responsible for the City's compliance with the specified requirements. Our responsibility is to express an opinion on the City's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the City complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the City complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the City's compliance with specified requirements. In our opinion, the CRA's expenditures as presented in the Schedule complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2019. Daytona Beach, Florida February 11, 2020 1 121 Executive Circle 133 East Indiana Avenue Daytona Beach, FL 32T 14-1180 DeLand, FL 32724-4329 Telephone: 386-257-4100 Telephone: 386-738-3300 5931 NW 1st Place Gainesville, FL 32607-2063 Telephone: 352-378-1331 2477Tim Gamble Place, Suite 200 Tallahassee, FL 32308-4386 Telephone: 850-386-6184 Website: www.jmco.com I Email: info@jrnco.com Member of AGN International with offices in principal cities worldwide CITY OF CAPE CANAVERAL, FLORIDA CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY SCHEDULE OF EXPENDITURES FOR THE YEAR ENDED SEPTEMBER 30, 2019 Expenditures Operating: Legal tees $ 553 Administrative tees 15,706 Memberships and training 620 Capital outlay: Capital initiatives 326,487 Debt service transfers: Principal 569,358 Interest 116,276 Total expenditures $ 1,029,000 The accompanying notes to City of Cape Canaveral Community Redevelopment Agency Schedule of Expenditures are an integral part of this schedule. -2- CITY OF CAPE CANAVERAL, FLORIDA NOTES TO CITY OF CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY SCHEDULE OF EXPENDITURES SEPTEMBER 30, 2019 (1) Recoortina Entity and Basis of Accounting: The Cape Canaveral Community Redevelopment Agency (the Cape Canaveral CRA) was created by Ordinance No. 23-2013 to account for the receipt and expenditure of property tax revenues from the tax increment financing district to support redevelopment in the designated community redevelopment area within the City of Cape Canaveral, Florida. Although legally separate, the City Council declared itself to be the Cape Canaveral CRA. Since the City is financially accountable for the activities of the Cape Canaveral CRA, its governing board is the same, and its relationship to the City is significant, its financial activities are reported on a blended basis as if it were part of the primary government as a major special revenue fund. The Cape Canaveral CRA Schedule of Expenditures (the Schedule) is reported using the modified accrual basis of accounting and only represents the expenditures and transfers out of the CRA fund of the City and is not intended to present the financial position or activity of the City of Cape Canaveral, Florida, the financial position of the Cape Canaveral CRA, or any other fund in the City's financial statements. (2) Debt Service Transfers: The board approved the Cape Canaveral CRA assuming two debt instruments for projects within the district: a lift station originally paid by the Wastewater Fund and the Series 2017 Capital Improvement note for the Canaveral City Park and Cape Canaveral Cultural Arts Preservation Enrichment Center. The lift station project was fully paid by the Wastewater Fund while the Cape Canaveral CRA agreed to pay $470,000 back to the Wastewater Fund over the course of ten years. The CRA paid to convert the original intended lift station repair project in the City's previous CIP to a new "Regional Lift Station" for purposes of increasing the capacity of the lift station in order to support future major redevelopment projects serviced by that lift station in the north sector of the City on the eastern side of A1A. One new major hotel has already opened in the CRA as a result of this project, and two additional hotel projects have been permitted that are likely to be serviced by this lift station in the future. The General Fund is currently paying the debt service on the Series 2017 note while the Cape Canaveral CRA agreed to assume the full amount of the debt service and transfers the annual required amounts back to the general fund. The future Cape Canaveral CRA total debt service requirements are summarized as follows: Year Ending September 30, Principal Interest Total 2020 $ 634,596 $ 103,431 $ 738,027 2021 647,527 90,323 737,850 2022 661,478 76,939 738,417 2023 674,448 63,280 737,728 2024 688,436 49,345 737,781 2025 695,047 35,114 730,161 2026 665,000 20,736 685,736 2027 679,000 6,960 685,960 Totals $ 5,345,532 $ 446,128 $ 5,791,660 - 3 -