During this past fiscal year, the real estate market continued to grow resulting in increased taxable valuations within the CRA. Impacts by the pandemic to future increment revenue; if any, will not be seen until FY21-22 at the earliest.

Revenue:

Budget estimates suggest increment revenue will increase an additional 15%. With added interest earnings and miscellaneous revenue totals are projected at $6.53 million. Contributions to increment revenue from Orange County over $2 million are met with a 30% rebate and a 50% rebate of contributions over $3 million. The CRA will rebate $489,000 to the County as part of this agreement. Increment revenue contributions to the trust fund by the City exceed that of the County.

Expenses:

As of August 2020, actual expenditures of the CRA are expected to be in-line with budgeted estimates by fiscal year-end. As a result, staff has proposed a budget that maintains all debt service payments, supports operations, fulfills all contracts, provides funding for existing programs and includes capital improvement projects. For FY20-21, general operating and staffing costs are expected to each stay ten percent or below of total expenditures. Debt Service shows no significant change. The table below demonstrates budget expense categories consistent with the proforma for FY20-21.

Personnel & Indirect Costs: Identified as any cost related to salaries, wages, and benefits.

General Operating: Costs associated with operating supplies, memberships, books, periodicals, equipment, promotional activities, travel and training, and contractual services. The contractual services request totals $200,000 and accounts for 60% of this category.

Community Initiatives: Includes CRA resident and business programs such as housing rehabilitation and business facade. Also includes support funding for the Winter Park Community Center and other nonprofits.

Capital Maintenance: Funding for parking agreements within the CRA district.

Debt Service: Approved bonds through the CRA. Bonds are expected through the life of the CRA.

Misc. Capital Enhancements: Funding for smaller capital intensive projects such as sidewalk repair, or partnership opportunities through the upcoming year. Past projects have included weekend sunrail, the moonlight garden project, downtown sidewalk repair, and tree grates.

Capital Projects: Projects included as part of the capital improvement plan (e.g. FY20-21 Pro Forma). Funding items include a first of a two year allocation for property acquisition of the post office site and improvements to Shady Park.

Capital Improvement Plan

The proposed capital improvement plan estimates future increment revenue growth, project costs, and Agency direction into the remaining life of the CRA. At this time, no growth (0% increase in TIF) is presumed for FY21-22 with conservative estimates thereafter. The plan assumes a repurposing of existing funding for the 17-92 streetscape project to be reallocated later. Based on the existing timeline, design is not expected to be complete until the end of next year. FDOT funding is expected to be in place sometime after. By shifting existing resources, it provides the Agency an opportunity to invest in existing projects now while still planning for the future. 

Budget Highlights

The chart below represents highlights of new funding for the upcoming fiscal year divided by project, program, and social and event. Also included are costs of each item and budget category:

The table highlights over $5.5 million of investment by the CRA to the district in project, program, and social & event funding. Included for discussion is the Post Office purchase, Shady Park area improvements, affordable housing allocation, and Mt. Moriah parking lease extension.

Post Office acquisition

Conversations regarding the post office property, located at 300 N New York Avenue, have led to several meetings, resolutions, and plans for its inclusion into Central Park. Under section 4.4 titled ‘Business Element’ the 1994 CRA plan highlights the acquisition of the property.  The parcel itself is 1.98 acres according to the Orange County Property Appraiser and encompasses both retail and distribution space under its current operation from the United States Postal Service.

Estimated costs under the CRA CIP suggest a total contribution of $7.5 million over the next two years. Final costs would be determined based on negotiation with the post office.

Shady Park area improvements

In coordination with improvements to park space; Policy 7.3A of the 1994 CRA plan states the Agency shall enhance public spaces. In addition, Policy 8.6D states open spaces shall be coordinated to provide a cohesive neighborhood. Shady Park act as this in the Hannibal Square neighborhood. In its existing state, the splash pad located in Shady Park has limited functionality and has operated as such for some time. While additional due diligence would be required to determine a final cost, early estimates suggest an investment of $300,000 for redesign and construction.

Affordable housing allocation

There are several sections of the CRA Plan that identify the CRA assisting in affordable housing. Within that is a large emphasis on home ownership. Chapter 8, objective 2.1 states the CRA shall increase opportunities for all its citizens to purchase or rent affordable decent, safe, and sanitary housing. Direction by the Agency was to include $200,000 each year for the remaining years of the CRA. To date, the CRA has been successful through its partnership and rehabilitation programs accounting for almost $4 million in investment. Future investment in this category may require additional research or discussion at the Agency level for direction.

Mt. Moriah parking lease extension

 Beginning in 2010, the Mt. Moriah parking lease has offered an opportunity for additional surface public parking within the Hannibal Square community. The original agreement was for 40 spaces, but was amended in 2013 to count for an additional eight. The agreement was extended in 2015 for all 48 spaces at $30 per space per month for five years. This third extension presented to the Agency as part of the budget locks in the existing rate and spaces for the remaining seven years of the CRA. As a condition, Mt. Moriah has requested a onetime contribution of $20,000 for physical improvements to their property. This type of request would normally be considered under the business façade program, but nonprofits do not qualify under existing guidelines. Rather than submit as a separate nonprofit request, it is submitted as a condition of the agreement.