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479-2004 RDA Reso RESOLUTION NO. 479-2004 A RESOLUTION OF THE MIAMI BEACH REDEVELOPMENT AGENCY, APPROPRIATING $592,809 IN SOUTH POINTE TRUST FUND REVENUES AND $572,876 IN CITY CENTER TRUST FUND REVENUES, TO BE REMITTED TO THE CHILDREN'S TRUST, AN INDEPENDENT SPECIAL TAXING DISTRICT, FOR THE PURPOSE OF ESTABLISHING THE USE OF TAX INCREMENT REVENUES TO BE DERIVED FROM THE IMPOSITION OF A NOT TO EXCEED ONE-HALF (1/2) MILL TAX LEVY BY THE TRUST AGAINST REAL PROPERTY LOCATED WITHIN THE SOUTH POINTE REDEVELOPMENT AREA AND THE CITY CENTER/HISTORIC CONVENTION VILLAGE REDEVELOPMENT AND REVITALIZATION AREA, RESPECTIVELY, IN ACCORDANCE WITH THE PROVISIONS SET FORTH IN THE INTERLOCAL AGREEMENT, DATED AUGUST 16, 2004, BY AND BETWEEN THE CITY OF MIAMI BEACH, THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA), MIAMI-DADE COUNTY, FLORIDA AND THE CHILDREN'S TRUST; SAID APPROPRIATION TO BE UTILIZED BY THE CHILDREN'S TRUST SOLELY FOR PROGRAMS AND SERVICES FOR CHILDREN AND FAMILIES WITHIN THE CITY OF MIAMI BEACH, AS SET FORTH IN THE INTERLOCAL AGREEMENT. WHEREAS, The Children's Trust ("The Trust"), an independent special taxing district, was established as a result of a County-wide referendum in which the electors of the County approved the creation of The Trust and its imposition of a not to exceed one- half (%) mill ad valorem tax levy, for the purpose of funding improvements to children's health, development and safety and promoting parental and community responsibility; and WHEREAS, the Board of County Commissioners enacted Ordinance No. 03-210 (the "County Ordinance"), with an effective date of October 17,2003, whereby any future requests by municipalities and/or community redevelopment agencies relating to community redevelopment plans, including, but not limited to, approval of annual budgets, would require all community redevelopment agencies, in their sole discretion, to exempt The Children's Trust ad valorem % mill tax levy from collection into the Redevelopment Trust Fund; and WHEREAS, application of the County Ordinance to the RDA would potentially have the impact of depriving the City's respective community redevelopment districts, the South Pointe Redevelopment Area ("South Pointe") and City Center/Historic Convention Village Redevelopment and Revitalization Area ("City Center") from receipt and use of tax increment revenues generated by The Trust's tax levy, as the intent of the Ordinance is that all such revenues generated by the tax levy would be deemed The Trust Revenues; and WHEREAS, the RDA has various series of community redevelopment bonds currently outstanding (the "Bonds"), issued under certain bond resolutions (the "Bond Resolutions"), to which the RDA has pledged all current and future tax increment revenues the RDA is entitled to receive pursuant to Chapter 163, Part III, Florida Statutes (also known as the Community Redevelopment Act of 1969), from all non-exempt taxing authorities, including tax increment revenues from any additional tax levies created subsequent to the issuance of the Bonds, such as The Trust Revenues; and WHEREAS, at the September 16, 2003 meeting of the City's Finance and Citywide Projects Committee, the City's bond counsel informed the Committee that an agreement would have to be negotiated which would allow the RDA to comply with the intent of the County Ordinance, while also allowing it to remain in compliance with its obligations under the applicable Bond Resolutions; and WHEREAS, the agreement would provide that the RDA would be permitted to use The Trust Revenues for debt service on the Bonds, but only after all tax increment revenues had been exhausted and, on the last day of the RDA's fiscal year, remit to The Trust, such Trust Revenues that would not be needed for debt service; and WHEREAS, the City's Finance and Citywide Projects Committee further directed the Administration to enter into discussions with The Trust to dedicate that portion of The Trust Revenues generated within South Pointe and City Center toward eligible children and families programs planned and/or operating within the City of Miami Beach; and WHEREAS, subsequent to discussions between The Trust, Miami-Dade County and the City/RDA Administration, the parties negotiated an Interlocal Agreement (the "Interlocal") between the City of Miami Beach, the Miami Beach Redevelopment Agency, Miami Dade County and The Trust, for the purpose of establishing the use oftax increment revenues to be derived from the imposition of a not to exceed one-half mill tax levy by The Trust against real property located within the South Pointe and City Center redevelopment areas ("The Trust Revenues"); said Interlocal Agreement satisfactorily addresses bond counsel's concerns, but also incorporates the Finance and Citywide Projects Committee's directives with regard to the use of The Trust Revenues collected in South Pointe and City Center toward programs and services for children and families within the City of Miami Beach; and WHEREAS, on January 14, 2004, the City Commission and the RDA Board adopted separate resolutions, authorizing the execution of the Interlocal; and WHEREAS, the Interlocal was approved by the Miami-Dade County Board of Commissioners on July 27,2004 and fully executed by all parties on August 16, 2004. WHEREAS, in exchange for the City's and the RDA's cooperation, the Children's Trust will make funds available solely for programs and services for children and families within the City of Miami Beach in the amount of the Trust Fund Revenues annually upon conditions set forth in the Interlocal. NOW, THEREFORE, BE IT DULY RESOLVED BYTHE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that the Chairman and Secretary hereby appropriate $592,809 in South Pointe Trust Fund Revenues and $572,816 in city Center Trust Fund Revenues, to be remitted to the Children's Trust, an independent special taxing district, for the purpose of establishing the use of tax increment revenues to be derived from the imposition of a not to exceed one-half (1/2) mill tax levy by The Trust against real property located within the South Pointe Redevelopment Area and the City Center/Historic Convention Village Redevelopment and Revitalization Area, respectively, in accordance with the provisions ser forth in the Interlocal Agreement, dated August 16, 2004, by and between the Miami beach Redevelopment Agency, Miami-Dade County, Florida and the Children's Trust; said appropriation to be utilized by the Children's Trust solely for programs and services for children and families within the City of Miami Beach, as set forth in the Interlocal Agreement. 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'" 0. ~ () ~ CllY OF MIAMI BEACH REDEVELOPI\ENT AGENCY ITEM SUMMARY ~ Condensed Title: A Resolution appropriating $592,809 in South Pointe Trust Fund Revenues and $572,876 in City Center Trust Fund Revenues, to be remitted to the Children's Trust, pursuant to the Interlocal Agreement by and between the City of Miami Beach, the RDA, Miami-Dade County and the Children's Trust, an independent special taxing district for the purpose of establishing the use of tax increment revenues to be derived from the imposition of a not to exceed one-half (Y2) mill tax Ie b the Trust a ainst real ro e located within the South Pointe and Ci Center redevelo ment areas. Issue: Should the Redevelopment Agency appropriate the funds? Item Summary/Recommendation: On October 17, 2003, the Board of County Commissioners enacted Ordinance No. 03-210, whereby any future requests by municipalities and/or community redevelopment agencies relating to community redevelopment plans, including, but not limited to, approval of annual budgets, would require all Community Redevelopment Agencies, in their sole discretion, to exempt the Children's Trust Ad Valorem Y2 mill tax levy from collection into the Redevelopment Trust Fund. Due to the fact that the existing bond covenants pledge all current and future increment for the repayment of outstanding bond obligations, the RDA can only remit revenues generated by the Y2 mill tax levy at the end of the Fiscal Year, provided that the debt service and other obligations relating to the bonds have been met. The RDA budgets were subsequently modified to include a reserve expenditure line item for the Children's Trust. Pursuant to the direction of the City's Finance and Citywide Projects Committee, the Administration worked with the Children's Trust, to draft an lnterlocal Agreement that not only satisfies the provisions of the bond covenants as required by Counsel, but also provides that in exchange for the City and CRA's cooperation, the Trust will make available funds in the amount of Trust Fund Revenues generated from the CRA districts, for eligible service providers and children's programs within the City of Miami Beach, without limiting the ability to access other Children's Trust programs. On January 14, 2004, the City Commission and the RDA Board adopted separate resolutions, authorizing the execution of the Interlocal Agreement between the City of Miami Beach, the RDA, Miami-Dade County and the Children's Trust, which serves to document the terms by which the Trust receives its share of revenues generated by the Y2 mil tax levy. The Interlocal Agreement was submitted to the County's Economic Development and Human Services Committee for approval and recommendation to the Board of County Commissioners. The Committee approved the lnterlocal Agreement as did the Board of County Commissioners, at it meeting on July 27,2004. It is therefore recommended that the RDA appropriate $592,809 from South Pointe and $572,876 from City Center, to be remitted to the Children's Trust. rove the lnterlocal A reement. Financial Information: Finance Dept. Source of Funds: See Across Ci Clerk's Office Le islative Trackin Christina M. Cuervo/Kent O. Bonde T:\AGENDA \2004\SepOB04IRDAIChildren's Trust _Appropriate _ Sum.doc DATE CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.ci.miami-beach.fl.us To: From: Subject: REDEVELOPMENT AGENCY MEMORANDUM Date: September 8, 2004 Chairman and Members of the Miami Beach Redevelopment Agency Jorge M. Gonzalez ~. A ~ Executive Director \Y - 0 A RESOLUTION 0 THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY APPROPRIATING $592,809 IN SOUTH POINTE TRUST FUND REVENUES AND $572,876 IN CITY CENTER TRUST FUND REVENUES, TO BE REMITTED TO THE CHILDREN'S TRUST, AN INDEPENDENT SPECIAL TAXING DISTRICT, FOR THE PURPOSE OF ESTABLISHING THE USE OF TAX INCREMENT REVENUES TO BE DERIVED FROM THE IMPOSITION OF A NOT TO EXCEED ONE-HALF (1/2) MILL TAX LEVY BY THE TRUST AGAINST REAL PROPERTY LOCATED WITHIN THE SOUTH POINTE REDEVELOPMENT AREA AND THE CITY CENTER/HISTORIC CONVENTION VILLAGE REDEVELOPMENT AND REVITALIZATION AREA, RESPECTIVELY, IN ACCORDANCE WITH THE PROVISIONS SET FORTH IN THE INTERLOCAL AGREEMENT, DATED AUGUST 12, 2004, BY AND BETWEEN THE CITY OF MIAMI BEACH, THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA), MIAMI-DADE COUNTY, FLORIDA AND THE CHILDREN'S TRUST; SAID APPROPRIATION TO BE UTILIZED BY THE CHILDREN'S TRUST FOR PROGRAMS AND SERVICES FOR CHILDREN AND FAMILIES WITHIN THE CITY OF MIAMI BEACH AS SET FORTH IN THE INTERLOCAL AGREEMENT. ADMINISTRATION RECOMMENDATION: Adopt the Resolution. ANALYSIS On September 10,2002, the voters of Miami-Dade County voted to amend the Home-Rule Charter to rename the independent special taxing district "The Children's Trust" and to authorize the levy of an additional ad valorem tax not to exceed one-half (%) mill for the purpose of funding improvements to children's health, development and safety and promoting parental and community responsibility. On July 8, 2003, the Board of County Commissioners adopted on first reading an Ordinance whereby any future requests by municipalities and/or community redevelopment agencies relating to community redevelopment plans, including, but not limited to, approval of annual budgets, would require all Community Redevelopment Agencies, in their sole discretion, to exempt the Children's Trust Ad Valorem % mill Tax levy from collection into AGENDA ITEM DATE September 8, 2004 Redevelopment Agency Memorandum Children's Trust Interlocal Agreement Page 2 of 3 the redevelopment trust fund. In the case of the City Center, the amount ofthe contribution would be $572,876 and in the case of South Pointe, $592,809. Additionally, the County was seeking Resolutions from each of the affected municipalities exempting the Trust Fund. On August 4,2003 at the County Tax Increment Finance (TIF) Committee meeting, the County Attorney stated that there would be no formal request submitted to each Agency for the exemption from the Trust but that alternatively, the municipalities should exempt the special district in their sole discretion and based upon the Board of County Commissioners anticipated action on September 17, 2003 to adopt the aforementioned ordinance. On September 16, 2003, the City's Finance and Citywide Projects Committee discussed this issue. Luis Reiter, the City's Bond Counsel, informed the Committee that since existing bond covenants pledge all current and future increment and provide for no specific exclusions or exemptions for special districts, further research would be required to determine if a mechanism could be implemented to grant such exemption. The City Manager recommended initiating discussions with the Children's Trust to dedicate that portion of the Children's Trust revenues generated in the South Pointe and City Center Redevelopment Areas, toward eligible service providers and children programs planned and/or operating within the City's boundaries. The Committee recommended undertaking the necessary research and to pursue negotiations with County and the Children's Trust. Subsequent to the discussions between the Children's Trust and the City's Administration, the Children's Trust drafted an Interlocal Agreement between the City of Miami Beach, the Miami Beach Redevelopment Agency (RDA), Miami Dade County and the Children's Trust, for the purpose of establishing the use of tax increment revenues to be derived from the imposition of the half mill tax levy by the Trust against real property located within the jurisdictions of the City Center and South Pointe Redevelopment Areas. The Agreement not only satisfies the provisions of the bond covenants as required by Counsel, but also provides that in exchange for the City and RDA's cooperation, the Trust will make available funds in the amount of Trust Fund Revenues generated from the redevelopment areas, for programs and services for children and families within the City of Miami Beach, without limiting the ability to access other Children's Trust programs. On December 22, 2003, the City's Finance and Citywide Projects Committee recommended approval of the Interlocal Agreement to the full City Commission and RDA Board, for consideration at the January 14th Commission meeting and inserted some additional language in Section 3, as follows "The City and/or agency or organization is in no way restricted from participating in, and shall not be prejudiced by, any and all other competitive funding opportunities offered by the Trust". The Agreement was subsequently approved for execution by the City Commission and the RDA Board. On July 21, 2004, the Interlocal Agreement was submitted to the County's Economic Development and Human Services Committee for approval and recommendation to the Board of County Commissioners. The Committee approved the Interlocal Agreement as did the Board of County Commissioners, at it meeting on July 27,2004. September 8, 2004 Redevelopment Agency Memorandum Children's Trust Interlocal Agreement Page 3 of 3 CONCLUSION The Interlocal Agreement provides that the Trust Fund Revenues shall be used for debt service and other obligations relating to the Bonds under the applicable Bond Resolutions, only after all other tax increment revenues have been. exhausted for such purpose; and remit to the Children's Trust on the last day of the RDA's fiscal year, all the Trust Revenues that are not needed for debt service. Subsequently, the RDA budgets for FY 03/04 were modified to reflect the one half (1/2) mill tax levy on the revenue side with a corresponding reserve line item under expenditures. In South Pointe, this amounts to $592,809 and in City Center, $572,876. JMG:C~:PDW:KOB: T:\AGENDA\2004\Sep0804\RDA\Children's Trust Memo.doc