Mark Taylor, CMPA Board member
The dust has settled on the budget year 2013 (October 1, 2012 – Sept 30, 2013) and the results are phenomenal for the most hotly debated public project in Northwest Florida, the Community Maritime Park. Many who read the PNJ have read articles about budget deficits as well as other reader’s comments and posts about “millions” of dollars draining our city coffers.
The real truth is the CMPA realized only a $170,000 deficit in its second year of operations! With over 350,000 guests attending over 100 diverse and multi-cultural events, I’d say a 48 cent per head deficit isn’t too bad! Even if you factor in the CRA’s bond payments on the development, you are still under a combined $8.50 per event attendee subsidy that undeniably has increased our quality of life and has helped spur on further development in our community!
Don’t worry though, the Community Maritime Park Board of Trustee’s is working tirelessly to increase revenue and to decrease and eventually eliminate any public subsidy of the Community Maritime Park!
The City of Pensacola set aside $320,000 to offset the CMPA’s operating budget and nearly half was returned to the City unused! In addition to the returned money, the CMPA was able to raise and set aside $212,000 in its Capital Maintenance Fund to continually prepare for the upcoming expenses that will be required to keep Pensacola’s Award Winning Waterfront Stadium in pristine condition. At this rate, the CMPA should be in the black with no City subsidy for operations by fiscal year 2016!
Exciting developments that are forthcoming at the CMP include 1) UWF Argonaut football starting in 2016, 2) the erection of the Maritime Place (Studer Properties) four story office building, and 3) the soon to be constructed Beck office and mixed use building. We have 6 remaining parcels still open for private development.
As each private parcel is leased out and built upon, not only will the City receive lease payments, but the property taxes that these multi-million dollar improvements bring in will increase the Community Redevelopment Agency budget. The CRA is responsible for the bond repayment on the park. 57.82% of the taxes collected will go to the CRA, 40% will go to the School District, and the remaining to Water Management and the Libraries.
To continue making the Community Maritime Park great, WE NEED YOUR HELP! Please consider being involved in the CMP in one of the following ways.
1)Use the amphitheatre, festival grounds, or ballpark for your next private event. The venues are a great value and can be rented through the City of Pensacola Neighborhood Services (850-436-5670).
2)Join and volunteer as a “Friend of the Community Maritime Park”. The public portion of the park is not complete, plans for a daytime marina as well as a children’s park are still in the works. With volunteer help from Nina Fritz we are launching a merchandise line in the coming months where all proceeds will benefit the public amenities at the park. We need volunteers to help us sell this merchandise and to promote the CMP around our community! Email Ed Spears at ESpears@CityOfPensacola.com for more information.
3)Attend events at the CMP! These exciting activities with the best waterfront view in Pensacola are on the calendar at www.PlayPensacola.com!
Post Published: 21 November 2013
Author: Rick Outzen
Found in section: Baseball, Pensacola
Tags: CMPA, COMMUNITY MARITIME PARK, mark taylor, Pensacola
Mik says:
November 23, 2013 at 8:27 am
“The real truth is the CMPA realized only a $170,000 deficit in its second year of operations”!
“…I’d say a 48 cent per head deficit isn’t too bad!
” With over 350,000 guests attending over 100 diverse and multi-cultural events, I’d say a 48 cent per head deficit isn’t too bad!”"
I know! Every time we get a piece of terrible financial news, let’s put an exclamation point at the end of the sentence! That way, the public will believe it’s wonderful instead! Maybe we should try putting two exclamation points after The Upward Side of Florida to make it even more upward!!
Great job leaving us in the red after so many promises!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
joe says:
November 22, 2013 at 2:54 pm
I am glad to read Mr. Taylor’s synopsis, appreciate his enthusiasm and although Dr. Elebash may be able to poke holes in some of the details (elebash is a financial wizard), Mr. Taylor has been critically straightforward of other local projects on this blog so he is not merely drinking the kool aid.
Bad decisions made in the past on the CMPA doesn’t change the fact that we all need it to be successful and periodic updates and pep rallys is not a bad idea.
Dale Parker says:
November 22, 2013 at 1:52 pm
Mark,
Thank you for your well thought out response. Below I am including the text from the 2012 Budget Summary where the CRA both predicts its default and the shifting of over 322,000 dollars to the City General Fund which by all practical purposes IS a subsidy. We are now subsidizing the CRA in order to afford its obligations since it cannot.
Furthermore, you fail to mention the loss of $92,000,000+ dollars in capital investment over 30 years through the CRA which is tied up by the CMP alone. In short, this park castrated the CRA as a funding source for the CRA District.
So yes, your financial picture for the CMPA is improving, however the financial impact to the city still remains a huge question.
Below is the text from the CRA Budget Summary I referenced.
CRA Budget Summary
FISCAL YEAR 2013
Property tax revenues fell 4.45% from FY12 to FY13 (-$175,500)
The Community Policing Interlocal Agreement ($150,000 value) was eliminated in FY13 due to lack of funding
$158,200 was cut from the Landscape Maintenance Interlocal Agreement with Public Works due to lack of funding. $141,800 remains in the Interlocal from the original $300,000 value, and will essentially cover the utility payments for the CRA’s parks, streetscapes, and public spaces. The labor, repairs, materials, and equipment used to maintain these assets will be covered by the General Fund through Public Works staff and contract for services.
No funding is allocated to projects or new capital expenditures in FY13.
Overhead reduced due to lack of funding (-$77,000)
It is unlikely that CMPA will be able to pay CRA the $500,000 line of credit provided for the back of the house at the stadium. The one-year term expires in January, but the $500,000 has not been projected as a source of revenue.
In addition to the beginning budget amounts provided, the following is being carried forward from FY12 to FY13
FISCAL YEAR 2014
Property tax revenues projected to remain at 2013 level. However, the new library MSTU dedicated millage will result in $322,000 in lost TIF revenue. In FY14, interest payments for CMPA bonds also begin to accumulate, totaling a required FY14 reduction of $507,700
The remaining $141,800 in the Landscape Maintenance Interlocal Agreement will be eliminated, and the General Fund will absorb all utility expenses associated with CRA parks, streetscapes, and public spaces. Public Works and Facilities has anticipated this expense.
Overhead reduced due to lack of funding (-$43,900)
CRA’s 50% share of Karen Montgomery’s salary/benefits is eliminated, and KM becomes a 100% City employee (-$30,000)
An additional $292,000 must be eliminated from the budget. Reductions could be made from several sources including Overhead ($131,700 remains), RWL’s salary/benefits ($78,900), the estimated $161,000 that the CRA will return to the DIB in TIF revenue from the DIB’s millage, or the $75,000 the CRA will contribute to the DIB in FY14 to fund the Pelican Drop (2011 Interlocal Agreement).
FISCAL YEARS 2015-2018
Conservatively positive projected property tax revenue growth of 1% for FY15-18. Expenditures are reduced each year as interest accrues on CMPA bonds.
In FY2015, depending on FY14 reductions, Overhead is eliminated if it is not already cut in FY14. Also dependent upon FY14 reductions, all CRA Personal Services are now totally subsidized by General Fund if not already in the prior budget year. If not eliminated in FY14, the revenue returned to the DIB and $50,000 FY15 payment for the Pelican Drop may be cut.
In FY 2016, the only CRA expenditures are CMPA bond payments and ECUA WWTP bond payments. Staffing and operational expenses are either eliminated or subsidized by the General Fund.
From FY17-18, it is unknown if CRA can account for the CMPA bonds and ECUA WWTP bond payments. If property tax revenues do not increase, the General Fund may need to absorb a portion of these payments.
MISC
From FY15-17, Finance has proposed establishing a CRA reserve fund to assist with bond payments in FY18. It is unknown if CRA can continue to pay the CMPA/ECUA bonds in FY18, so the reserve will be used to cover FY18. If a reserve is not established, the $400,000 a year that would be transferred into the fund beginning in FY15 could be used to continue CRA operations.
TIF revenue peaked in 2007. If property tax revenues continue to drop, the reductions mentioned above will happen sooner. Additionally, the proposed Library MSTU will reduce the CRA’s budget beginning in FY14 by an estimated $322,000. The 1% growth rate projected for FY15-18 is conservative, but revenue could increase or decrease given many unknown variables.
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