HB 1521

1
A bill to be entitled
2An act relating to community redevelopment agencies;
3amending s. 163.387, F.S.; revising provisions relating to
4the funding of redevelopment trust funds applicable to
5certain community redevelopment agencies; authorizing
6alternative tax increment financing arrangements by
7interlocal agreement between certain municipalities and
8counties; amending s. 163.415, F.S.; exempting counties
9without home rule charters from tax increment financing
10contribution requirements without an interlocal agreement
11between the municipality creating the community
12redevelopment agency and the county; providing
13restrictions on certain community redevelopment agencies
14without an interlocal agreement; authorizing alternative
15tax increment funding arrangements; providing an effective
16date.
17
18Be It Enacted by the Legislature of the State of Florida:
19
20     Section 1.  Section 163.387, Florida Statutes, is amended
21to read:
22     163.387  Redevelopment trust fund.--
23     (1)(a)  After approval of a community redevelopment plan,
24there shall be established for each community redevelopment
25agency created under s. 163.356 a redevelopment trust fund.
26Funds allocated to and deposited into this fund shall be used by
27the agency to finance or refinance any community redevelopment
28it undertakes pursuant to the approved community redevelopment
29plan. No community redevelopment agency may receive or spend any
30increment revenues pursuant to this section unless and until the
31governing body has, by ordinance, provided for the funding of
32the redevelopment trust fund for the duration of a community
33redevelopment plan. Such ordinance may be adopted only after the
34governing body has approved a community redevelopment plan. The
35annual funding of the redevelopment trust fund shall be in an
36amount not less than that increment in the income, proceeds,
37revenues, and funds of each taxing authority derived from or
38held in connection with the undertaking and carrying out of
39community redevelopment under this part. Such increment shall be
40determined annually and shall be that amount equal to 95 percent
41of the difference between:
42     1.(a)  The amount of ad valorem taxes levied each year by
43each taxing authority, exclusive of any amount from any debt
44service millage, on taxable real property contained within the
45geographic boundaries of a community redevelopment area; and
46     2.(b)  The amount of ad valorem taxes which would have been
47produced by the rate upon which the tax is levied each year by
48or for each taxing authority, exclusive of any debt service
49millage, upon the total of the assessed value of the taxable
50real property in the community redevelopment area as shown upon
51the most recent assessment roll used in connection with the
52taxation of such property by each taxing authority prior to the
53effective date of the ordinance providing for the funding of the
54trust fund.
55
56However, the governing body of any county as defined in s.
57125.011(1) may, in the ordinance providing for the funding of a
58trust fund established with respect to any community
59redevelopment area created on or after July 1, 1994, determine
60that the amount to be funded by each taxing authority annually
61shall be less than 95 percent of the difference between
62subparagraphs 1. and 2. paragraphs (a) and (b), but in no event
63shall such amount be less than 50 percent of such difference.
64     (b)  For those community redevelopment agencies that were
65not created under delegation authority of counties with home
66rule authority as specified in s. 163.410 or do not operate
67subject to an interlocal agreement as specified under subsection
68(4), the amount of tax increment shall be as specified in
69paragraph (a) until one of the following events occurs:
70     1.  The 20th year of the agency's existence;
71     2.  The amount of ad valorem taxes levied each year by each
72taxing authority, exclusive of any amount from any debt service
73millage, on taxable real property contained within the
74geographic boundaries of a community redevelopment area equals
75twice the amount of ad valorem taxes which would have been
76produced by the rate upon which the tax is levied each year by
77or for each taxing authority, exclusive of any debt service
78millage, upon the total of the assessed value of the taxable
79real property in the community redevelopment area as shown upon
80the most recent assessment roll used in connection with the
81taxation of such property by each taxing authority prior to the
82effective date of the ordinance providing for the funding of the
83trust fund; or
84     3.  The county holds a countywide referendum that asks if
85the county should continue to contribute an increasing amount to
86the community redevelopment agency each year. If a majority of
87electors of the county vote to continue increasing county
88contributions, the increment shall continue to be calculated as
89specified in paragraph (a). If a majority of electors of the
90county vote that the county contributions should not continue to
91increase, the tax increment shall be subject to the interlocal
92agreement requirements of this paragraph. For future years, the
93tax increment shall be as specified in an interlocal agreement
94as provided in subsection (4) but not less than the amount
95contributed by the county to the redevelopment trust fund prior
96to any of the events specified in this paragraph.
97
98For future years, the tax increment shall be as specified in an
99interlocal agreement as provided in subsection (4) but not less
100than the amount contributed by the county to the redevelopment
101trust fund prior to any of the events specified in this
102paragraph.
103     (2)(a)  Except for the purpose of funding the trust fund
104pursuant to subsection (3), upon the adoption of an ordinance
105providing for funding of the redevelopment trust fund as
106provided in this section, each taxing authority shall, by
107January 1 of each year, appropriate to the trust fund for so
108long as any indebtedness pledging increment revenues to the
109payment thereof is outstanding (but not to exceed 30 years) a
110sum that is no less than the increment as defined and determined
111in subsection (1) or subsection (4) accruing to such taxing
112authority. If the community redevelopment plan is amended or
113modified pursuant to s. 163.361(1), each such taxing authority
114shall make the annual appropriation for a period not to exceed
11530 years after the date the governing body amends the plan.
116However, for any agency created on or after July 1, 2002, each
117taxing authority shall make the annual appropriation for a
118period not to exceed 40 years after the fiscal year in which the
119initial community redevelopment plan is approved or adopted.
120     (b)  Any taxing authority that does not pay the increment
121to the trust fund by January 1 shall pay to the trust fund an
122amount equal to 5 percent of the amount of the increment and
123shall pay interest on the amount of the increment equal to 1
124percent for each month the increment is outstanding.
125     (c)  The following public bodies or taxing authorities are
126exempt from paragraph (a):
127     1.  A special district that levies ad valorem taxes on
128taxable real property in more than one county.
129     2.  A special district for which the sole available source
130of revenue the district has the authority to levy is ad valorem
131taxes at the time an ordinance is adopted under this section.
132However, revenues or aid that may be dispensed or appropriated
133to a district as defined in s. 388.011 at the discretion of an
134entity other than such district shall not be deemed available.
135     3.  A library district, except a library district in a
136jurisdiction where the community redevelopment agency had
137validated bonds as of April 30, 1984.
138     4.  A neighborhood improvement district created under the
139Safe Neighborhoods Act.
140     5.  A metropolitan transportation authority.
141     6.  A water management district created under s. 373.069.
142     (d)1.  A local governing body that creates a community
143redevelopment agency under s. 163.356 may exempt from paragraph
144(a) a special district that levies ad valorem taxes within that
145community redevelopment area. The local governing body may grant
146the exemption either in its sole discretion or in response to
147the request of the special district. The local governing body
148must establish procedures by which a special district may submit
149a written request to be exempted from paragraph (a).
150     2.  In deciding whether to deny or grant a special
151district's request for exemption from paragraph (a), the local
152governing body must consider:
153     a.  Any additional revenue sources of the community
154redevelopment agency which could be used in lieu of the special
155district's tax increment.
156     b.  The fiscal and operational impact on the community
157redevelopment agency.
158     c.  The fiscal and operational impact on the special
159district.
160     d.  The benefit to the specific purpose for which the
161special district was created. The benefit to the special
162district must be based on specific projects contained in the
163approved community redevelopment plan for the designated
164community redevelopment area.
165     e.  The impact of the exemption on incurred debt and
166whether such exemption will impair any outstanding bonds that
167have pledged tax increment revenues to the repayment of the
168bonds.
169     f.  The benefit of the activities of the special district
170to the approved community redevelopment plan.
171     g.  The benefit of the activities of the special district
172to the area of operation of the local governing body that
173created the community redevelopment agency.
174     3.  The local governing body must hold a public hearing on
175a special district's request for exemption after public notice
176of the hearing is published in a newspaper having a general
177circulation in the county or municipality that created the
178community redevelopment area. The notice must describe the time,
179date, place, and purpose of the hearing and must identify
180generally the community redevelopment area covered by the plan
181and the impact of the plan on the special district that
182requested the exemption.
183     4.  If a local governing body grants an exemption to a
184special district under this paragraph, the local governing body
185and the special district must enter into an interlocal agreement
186that establishes the conditions of the exemption, including, but
187not limited to, the period of time for which the exemption is
188granted.
189     5.  If a local governing body denies a request for
190exemption by a special district, the local governing body shall
191provide the special district with a written analysis specifying
192the rationale for such denial. This written analysis must
193include, but is not limited to, the following information:
194     a.  A separate, detailed examination of each consideration
195listed in subparagraph 2.
196     b.  Specific examples of how the approved community
197redevelopment plan will benefit, and has already benefited, the
198purpose for which the special district was created.
199     6.  The decision to either deny or grant an exemption must
200be made by the local governing body within 120 days after the
201date the written request was submitted to the local governing
202body pursuant to the procedures established by such local
203governing body.
204     (3)  Notwithstanding the provisions of subsection (2), the
205obligation of the governing body which established the community
206redevelopment agency to fund the redevelopment trust fund
207annually shall continue until all loans, advances, and
208indebtedness, if any, and interest thereon, of a community
209redevelopment agency incurred as a result of redevelopment in a
210community redevelopment area have been paid.
211     (4)  Notwithstanding the provisions of subsection (2),
212alternative tax increment financing arrangements, including, but
213not limited to, different tax increment contributions other than
214those specified in subsection (1), may be enacted by interlocal
215agreements between the municipality that creates the community
216redevelopment agency and the county. Such interlocal agreements
217must include provisions for the tax increment financing method
218and the contribution requirements to the redevelopment trust
219fund of the municipality and the county.
220     (5)(4)  The revenue bonds and notes of every issue under
221this part are payable solely out of revenues pledged to and
222received by a community redevelopment agency and deposited to
223its redevelopment trust fund. The lien created by such bonds or
224notes shall not attach until the revenues referred to herein are
225deposited in the redevelopment trust fund at the times, and to
226the extent that, such revenues accrue. The holders of such bonds
227or notes have no right to require the imposition of any tax or
228the establishment of any rate of taxation in order to obtain the
229amounts necessary to pay and retire such bonds or notes.
230     (6)(5)  Revenue bonds issued under the provisions of this
231part shall not be deemed to constitute a debt, liability, or
232obligation of the local governing body or the state or any
233political subdivision thereof, or a pledge of the faith and
234credit of the local governing body or the state or any political
235subdivision thereof, but shall be payable solely from the
236revenues provided therefor. All such revenue bonds shall contain
237on the face thereof a statement to the effect that the agency
238shall not be obligated to pay the same or the interest thereon
239except from the revenues of the community redevelopment agency
240held for that purpose and that neither the faith and credit nor
241the taxing power of the local governing body or of the state or
242of any political subdivision thereof is pledged to the payment
243of the principal of, or the interest on, such bonds.
244     (7)(6)  Moneys in the redevelopment trust fund may be
245expended from time to time for undertakings of a community
246redevelopment agency which are directly related to financing or
247refinancing of redevelopment in a community redevelopment area
248pursuant to an approved community redevelopment plan for the
249following purposes, including, but not limited to:
250     (a)  Administrative and overhead expenses necessary or
251incidental to the implementation of a community redevelopment
252plan adopted by the agency.
253     (b)  Expenses of redevelopment planning, surveys, and
254financial analysis, including the reimbursement of the governing
255body or the community redevelopment agency for such expenses
256incurred before the redevelopment plan was approved and adopted.
257     (c)  The acquisition of real property in the redevelopment
258area.
259     (d)  The clearance and preparation of any redevelopment
260area for redevelopment and relocation of site occupants as
261provided in s. 163.370.
262     (e)  The repayment of principal and interest or any
263redemption premium for loans, advances, bonds, bond anticipation
264notes, and any other form of indebtedness.
265     (f)  All expenses incidental to or connected with the
266issuance, sale, redemption, retirement, or purchase of agency
267bonds, bond anticipation notes, or other form of indebtedness,
268including funding of any reserve, redemption, or other fund or
269account provided for in the ordinance or resolution authorizing
270such bonds, notes, or other form of indebtedness.
271     (g)  The development of affordable housing within the area.
272     (h)  The development of community policing innovations.
273     (8)(7)  On the last day of the fiscal year of the community
274redevelopment agency, any money which remains in the trust fund
275after the payment of expenses pursuant to subsection (7)(6) for
276such year shall be:
277     (a)  Returned to each taxing authority which paid the
278increment in the proportion that the amount of the payment of
279such taxing authority bears to the total amount paid into the
280trust fund by all taxing authorities within the redevelopment
281area for that year;
282     (b)  Used to reduce the amount of any indebtedness to which
283increment revenues are pledged;
284     (c)  Deposited into an escrow account for the purpose of
285later reducing any indebtedness to which increment revenues are
286pledged; or
287     (d)  Appropriated to a specific redevelopment project
288pursuant to an approved community redevelopment plan which
289project will be completed within 3 years from the date of such
290appropriation.
291     (9)(8)  Each community redevelopment agency shall provide
292for an independent financial audit of the trust fund each fiscal
293year and a report of such audit. Such report shall describe the
294amount and source of deposits into, and the amount and purpose
295of withdrawals from, the trust fund during such fiscal year and
296the amount of principal and interest paid during such year on
297any indebtedness to which is pledged increment revenues and the
298remaining amount of such indebtedness. The agency shall provide
299a copy of the report to each taxing authority.
300     Section 2.  Section 163.415, Florida Statutes, is amended
301to read:
302     163.415  Exercise of powers in counties without home rule
303charters.--
304     (1)  The powers conferred by this part upon counties not
305having adopted a home rule charter shall not be exercised within
306the boundaries of a municipality within said county unless the
307governing body of the municipality expresses its consent by
308resolution. Such a resolution consenting to the exercise of the
309powers conferred upon counties by this part shall specifically
310enumerate the powers to be exercised by the county within the
311boundaries of the municipality. Any power not specifically
312enumerated in such a resolution of consent shall be exercised
313exclusively by the municipality within its boundaries.
314     (2)  Beginning July 1, 2005, counties without home rule
315charters shall not be required to contribute to tax increment
316financing without an interlocal agreement between the county and
317the municipality creating the community redevelopment agency
318that governs the operations and financing for community
319redevelopment agencies created after July 1, 2005. The
320interlocal agreement may establish tax increment financing
321arrangements that differ from the specific requirements of s.
322163.387.
323     (3)  For community redevelopment agencies created prior to
324July 1, 2005, in a county that did not have a home rule charter
325at the time the community redevelopment agency was created, no
326action to expand boundaries, modify a redevelopment plan, or
327modify existing debt service or other financing arrangements
328involving tax increment financing may be done without an
329interlocal agreement between the county and the municipality
330that created the community redevelopment agency. The interlocal
331agreement may establish the authority to expand or modify the
332community redevelopment agency, including tax increment
333financing arrangements that differ from the specific
334requirements of s. 163.387.
335     Section 3.  This act shall take effect July 1, 2005.


CODING: Words stricken are deletions; words underlined are additions.