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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.
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.