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Community Redevelopment Agency Recommended Changes <br /> `�ocal governments in the State of Florida have the authority to set up Community Redevelopment Agencies <br /> (CRA's), in accordance with Chapter 163, Florida Statutes. The intent of the CRA's is to provide a funding <br /> mechanism to improve blighted areas. Once a CRA is created, the taxable value is "locked in" at the base <br /> year amount. If the taxable value within a CRA increases, ad valorem proceeds from those increases are <br /> diverted to the CRA. Municipalities typically utilize the funds from the CRA to make improvements within <br /> the CRA boundaries. When a city within a home rule county develops a CRA, then the county must divert <br /> the proceeds it receives from General Fund ad valorem taxes within the CRA boundaries on taxable values <br /> exceeding the base year amount to the city's CRA. These taxes would otherwise be available to provide <br /> services for new development within the CRA, and the county as a whole. Therefore, the County must <br /> provide additional services without a revenue source to fund those services. This results in the taxpayers <br /> for the remainder of the county subsidizing those within the CRA. Please note, CRA's do not create <br /> additional money. They simply shift taxes from one location to another. CRA's receive greater funds when <br /> real estate prices are rising. However, counties are expected to reduce rates to account for such <br /> appreciation by lowering the millage to the rolled back rate (and the State has imposed millage caps to <br /> reflect this principle). The use of such funds by CRA's precludes this effort. CRA's have the unintended <br /> effect of increasing taxes when property values rise, which is antithetical to conservative taxing principles <br /> and current State law regarding the rolled back rate. <br /> than River County (IRC) provides several services with General Fund ad valorem taxes including; the <br /> Sheriff's Department (Corrections, Judicial), transportation operations, libraries, parks, etc. These services <br /> must be provided to the new CRA taxpayers without a revenue source moving forward. In recognition of <br /> this fact, IRC is requesting a 50% reduction in required payments to CRA's (the current reduction is as little <br /> as 5%). This would share the proceeds from property values evenly between the CRA and the County. <br /> Additionally, CRA's may stay in existence for 30 years after the last time the boundary is changed. A <br /> municipality could theoretically keep a CRA in existence in perpetuity by amending the boundaries once <br /> every 20-30 years. This loophole should be eliminated to place a final limit on the duration of a CRA from <br /> inception (perhaps 40 years). <br /> 225 <br />