HB 1521CS

CHAMBER ACTION



1The Finance & Tax Committee recommends the following:
2
3     Council/Committee Substitute
4     Remove the entire bill and insert:
5
A bill to be entitled
6An act relating to community redevelopment agencies;
7amending s. 163.387, F.S.; revising provisions relating to
8the funding of redevelopment trust funds applicable to
9certain community redevelopment agencies; authorizing
10alternative tax increment financing arrangements by
11interlocal agreement between certain municipalities and
12counties; amending s. 163.415, F.S.; exempting counties
13without home rule charters from tax increment financing
14contribution requirements without an interlocal agreement
15between the municipality creating the community
16redevelopment agency and the county; providing
17restrictions on certain community redevelopment agencies
18without an interlocal agreement; authorizing alternative
19tax increment funding arrangements; providing an effective
20date.
21
22Be It Enacted by the Legislature of the State of Florida:
23
24     Section 1.  Section 163.387, Florida Statutes, is amended
25to read:
26     163.387  Redevelopment trust fund.--
27     (1)(a)  After approval of a community redevelopment plan,
28there shall be established for each community redevelopment
29agency created under s. 163.356 a redevelopment trust fund.
30Funds allocated to and deposited into this fund shall be used by
31the agency to finance or refinance any community redevelopment
32it undertakes pursuant to the approved community redevelopment
33plan. No community redevelopment agency may receive or spend any
34increment revenues pursuant to this section unless and until the
35governing body has, by ordinance, provided for the funding of
36the redevelopment trust fund for the duration of a community
37redevelopment plan. Such ordinance may be adopted only after the
38governing body has approved a community redevelopment plan. The
39annual funding of the redevelopment trust fund shall be in an
40amount not less than that increment in the income, proceeds,
41revenues, and funds of each taxing authority derived from or
42held in connection with the undertaking and carrying out of
43community redevelopment under this part. Such increment shall be
44determined annually and shall be that amount equal to 95 percent
45of the difference between:
46     1.(a)  The amount of ad valorem taxes levied each year by
47each taxing authority, exclusive of any amount from any debt
48service millage, on taxable real property contained within the
49geographic boundaries of a community redevelopment area; and
50     2.(b)  The amount of ad valorem taxes which would have been
51produced by the rate upon which the tax is levied each year by
52or for each taxing authority, exclusive of any debt service
53millage, upon the total of the assessed value of the taxable
54real property in the community redevelopment area as shown upon
55the most recent assessment roll used in connection with the
56taxation of such property by each taxing authority prior to the
57effective date of the ordinance providing for the funding of the
58trust fund.
59
60However, the governing body of any county as defined in s.
61125.011(1) may, in the ordinance providing for the funding of a
62trust fund established with respect to any community
63redevelopment area created on or after July 1, 1994, determine
64that the amount to be funded by each taxing authority annually
65shall be less than 95 percent of the difference between
66subparagraphs 1. and 2. paragraphs (a) and (b), but in no event
67shall such amount be less than 50 percent of such difference.
68     (b)  Beginning July 1, 2008, for those community
69redevelopment agencies that do not operate subject to an
70interlocal agreement as specified under subsection (4), the
71amount of tax increment shall be as specified in paragraph (a)
72until one of the following events occurs:
73     1.  The 20th year in the life of the community
74redevelopment agency or, if the 20th year has already been
75reached, July 1, 2008;
76     2.  The amount of ad valorem taxes levied each year by the
77county, exclusive of any amount from any debt service millage,
78on taxable real property contained within the geographic
79boundaries of a community redevelopment area equals twice the
80amount of ad valorem taxes which would have been produced by the
81rate upon which the tax is levied each year by the county,
82exclusive of any debt service millage, upon the total of the
83assessed value of the taxable real property in the community
84redevelopment area as shown upon the most recent assessment roll
85used in connection with the taxation of such property by the
86county prior to the effective date of the ordinance providing
87for the funding of the trust fund. If the provisions of this
88paragraph have been met on July 1, 2008, then the event shall be
89considered to occur on July 1, 2008; or
90     3.  The county holds a countywide referendum that asks the
91following question: "Should the county continue to contribute an
92increasing amount to the community redevelopment agency each
93year?" If a majority of electors of the county vote to continue
94increasing county contributions, the increment shall continue to
95be calculated as specified in paragraph (a). If a majority of
96electors of the county vote that the county contributions should
97not continue to increase, the tax increment shall be subject to
98the interlocal agreement requirements of this paragraph. Any
99such referendum shall not be held earlier than the fifth year in
100the life of the community redevelopment agency. For future
101years, the tax increment shall be as specified in an interlocal
102agreement as provided in subsection (4) but not less than the
103amount contributed by the county to the redevelopment trust fund
104prior to any of the events specified in this paragraph. In the
105absence of an interlocal agreement, the amount contributed by a
106county to the redevelopment trust fund shall be no less than the
107amount contributed prior to any of the events specified in this
108paragraph.
109     (c)  Nothing in subsection (b) shall apply to a community
110redevelopment agency that was created under delegation authority
111of counties with home rule authority as specified in s. 163.410.
112     (2)(a)  Except for the purpose of funding the trust fund
113pursuant to subsection (3), upon the adoption of an ordinance
114providing for funding of the redevelopment trust fund as
115provided in this section, each taxing authority shall, by
116January 1 of each year, appropriate to the trust fund for so
117long as any indebtedness pledging increment revenues to the
118payment thereof is outstanding (but not to exceed 30 years) a
119sum that is no less than the increment as defined and determined
120in subsection (1) or subsection (4) accruing to such taxing
121authority. If the community redevelopment plan is amended or
122modified pursuant to s. 163.361(1), each such taxing authority
123shall make the annual appropriation for a period not to exceed
12430 years after the date the governing body amends the plan.
125However, for any agency created on or after July 1, 2002, each
126taxing authority shall make the annual appropriation for a
127period not to exceed 40 years after the fiscal year in which the
128initial community redevelopment plan is approved or adopted.
129     (b)  Any taxing authority that does not pay the increment
130to the trust fund by January 1 shall pay to the trust fund an
131amount equal to 5 percent of the amount of the increment and
132shall pay interest on the amount of the increment equal to 1
133percent for each month the increment is outstanding.
134     (c)  The following public bodies or taxing authorities are
135exempt from paragraph (a):
136     1.  A special district that levies ad valorem taxes on
137taxable real property in more than one county.
138     2.  A special district for which the sole available source
139of revenue the district has the authority to levy is ad valorem
140taxes at the time an ordinance is adopted under this section.
141However, revenues or aid that may be dispensed or appropriated
142to a district as defined in s. 388.011 at the discretion of an
143entity other than such district shall not be deemed available.
144     3.  A library district, except a library district in a
145jurisdiction where the community redevelopment agency had
146validated bonds as of April 30, 1984.
147     4.  A neighborhood improvement district created under the
148Safe Neighborhoods Act.
149     5.  A metropolitan transportation authority.
150     6.  A water management district created under s. 373.069.
151     (d)1.  A local governing body that creates a community
152redevelopment agency under s. 163.356 may exempt from paragraph
153(a) a special district that levies ad valorem taxes within that
154community redevelopment area. The local governing body may grant
155the exemption either in its sole discretion or in response to
156the request of the special district. The local governing body
157must establish procedures by which a special district may submit
158a written request to be exempted from paragraph (a).
159     2.  In deciding whether to deny or grant a special
160district's request for exemption from paragraph (a), the local
161governing body must consider:
162     a.  Any additional revenue sources of the community
163redevelopment agency which could be used in lieu of the special
164district's tax increment.
165     b.  The fiscal and operational impact on the community
166redevelopment agency.
167     c.  The fiscal and operational impact on the special
168district.
169     d.  The benefit to the specific purpose for which the
170special district was created. The benefit to the special
171district must be based on specific projects contained in the
172approved community redevelopment plan for the designated
173community redevelopment area.
174     e.  The impact of the exemption on incurred debt and
175whether such exemption will impair any outstanding bonds that
176have pledged tax increment revenues to the repayment of the
177bonds.
178     f.  The benefit of the activities of the special district
179to the approved community redevelopment plan.
180     g.  The benefit of the activities of the special district
181to the area of operation of the local governing body that
182created the community redevelopment agency.
183     3.  The local governing body must hold a public hearing on
184a special district's request for exemption after public notice
185of the hearing is published in a newspaper having a general
186circulation in the county or municipality that created the
187community redevelopment area. The notice must describe the time,
188date, place, and purpose of the hearing and must identify
189generally the community redevelopment area covered by the plan
190and the impact of the plan on the special district that
191requested the exemption.
192     4.  If a local governing body grants an exemption to a
193special district under this paragraph, the local governing body
194and the special district must enter into an interlocal agreement
195that establishes the conditions of the exemption, including, but
196not limited to, the period of time for which the exemption is
197granted.
198     5.  If a local governing body denies a request for
199exemption by a special district, the local governing body shall
200provide the special district with a written analysis specifying
201the rationale for such denial. This written analysis must
202include, but is not limited to, the following information:
203     a.  A separate, detailed examination of each consideration
204listed in subparagraph 2.
205     b.  Specific examples of how the approved community
206redevelopment plan will benefit, and has already benefited, the
207purpose for which the special district was created.
208     6.  The decision to either deny or grant an exemption must
209be made by the local governing body within 120 days after the
210date the written request was submitted to the local governing
211body pursuant to the procedures established by such local
212governing body.
213     (3)  Notwithstanding the provisions of subsection (2), the
214obligation of the governing body which established the community
215redevelopment agency to fund the redevelopment trust fund
216annually shall continue until all loans, advances, and
217indebtedness, if any, and interest thereon, of a community
218redevelopment agency incurred as a result of redevelopment in a
219community redevelopment area have been paid.
220     (4)  Notwithstanding the provisions of subsections (1) and
221(2), alternative tax increment financing arrangements,
222including, but not limited to, different tax increment
223contributions than those specified in subsection (1), may be
224enacted by interlocal agreements between the municipality that
225creates the community redevelopment agency and the county. Such
226interlocal agreements must include provisions for the tax
227increment financing method and the contribution requirements to
228the redevelopment trust fund of the municipality and the county.
229     (5)(4)  The revenue bonds and notes of every issue under
230this part are payable solely out of revenues pledged to and
231received by a community redevelopment agency and deposited to
232its redevelopment trust fund. The lien created by such bonds or
233notes shall not attach until the revenues referred to herein are
234deposited in the redevelopment trust fund at the times, and to
235the extent that, such revenues accrue. The holders of such bonds
236or notes have no right to require the imposition of any tax or
237the establishment of any rate of taxation in order to obtain the
238amounts necessary to pay and retire such bonds or notes.
239     (6)(5)  Revenue bonds issued under the provisions of this
240part shall not be deemed to constitute a debt, liability, or
241obligation of the local governing body or the state or any
242political subdivision thereof, or a pledge of the faith and
243credit of the local governing body or the state or any political
244subdivision thereof, but shall be payable solely from the
245revenues provided therefor. All such revenue bonds shall contain
246on the face thereof a statement to the effect that the agency
247shall not be obligated to pay the same or the interest thereon
248except from the revenues of the community redevelopment agency
249held for that purpose and that neither the faith and credit nor
250the taxing power of the local governing body or of the state or
251of any political subdivision thereof is pledged to the payment
252of the principal of, or the interest on, such bonds.
253     (7)(6)  Moneys in the redevelopment trust fund may be
254expended from time to time for undertakings of a community
255redevelopment agency which are directly related to financing or
256refinancing of redevelopment in a community redevelopment area
257pursuant to an approved community redevelopment plan for the
258following purposes, including, but not limited to:
259     (a)  Administrative and overhead expenses necessary or
260incidental to the implementation of a community redevelopment
261plan adopted by the agency.
262     (b)  Expenses of redevelopment planning, surveys, and
263financial analysis, including the reimbursement of the governing
264body or the community redevelopment agency for such expenses
265incurred before the redevelopment plan was approved and adopted.
266     (c)  The acquisition of real property in the redevelopment
267area.
268     (d)  The clearance and preparation of any redevelopment
269area for redevelopment and relocation of site occupants as
270provided in s. 163.370.
271     (e)  The repayment of principal and interest or any
272redemption premium for loans, advances, bonds, bond anticipation
273notes, and any other form of indebtedness.
274     (f)  All expenses incidental to or connected with the
275issuance, sale, redemption, retirement, or purchase of agency
276bonds, bond anticipation notes, or other form of indebtedness,
277including funding of any reserve, redemption, or other fund or
278account provided for in the ordinance or resolution authorizing
279such bonds, notes, or other form of indebtedness.
280     (g)  The development of affordable housing within the area.
281     (h)  The development of community policing innovations.
282     (8)(7)  On the last day of the fiscal year of the community
283redevelopment agency, any money which remains in the trust fund
284after the payment of expenses pursuant to subsection (7)(6) for
285such year shall be:
286     (a)  Returned to each taxing authority which paid the
287increment in the proportion that the amount of the payment of
288such taxing authority bears to the total amount paid into the
289trust fund by all taxing authorities within the redevelopment
290area for that year;
291     (b)  Used to reduce the amount of any indebtedness to which
292increment revenues are pledged;
293     (c)  Deposited into an escrow account for the purpose of
294later reducing any indebtedness to which increment revenues are
295pledged; or
296     (d)  Appropriated to a specific redevelopment project
297pursuant to an approved community redevelopment plan which
298project will be completed within 3 years from the date of such
299appropriation.
300     (9)(8)  Each community redevelopment agency shall provide
301for an independent financial audit of the trust fund each fiscal
302year and a report of such audit. Such report shall describe the
303amount and source of deposits into, and the amount and purpose
304of withdrawals from, the trust fund during such fiscal year and
305the amount of principal and interest paid during such year on
306any indebtedness to which is pledged increment revenues and the
307remaining amount of such indebtedness. The agency shall provide
308a copy of the report to each taxing authority.
309     Section 2.  Section 163.415, Florida Statutes, is amended
310to read:
311     163.415  Exercise of powers in counties without home rule
312charters.--
313     (1)  The powers conferred by this part upon counties not
314having adopted a home rule charter shall not be exercised within
315the boundaries of a municipality within said county unless the
316governing body of the municipality expresses its consent by
317resolution. Such a resolution consenting to the exercise of the
318powers conferred upon counties by this part shall specifically
319enumerate the powers to be exercised by the county within the
320boundaries of the municipality. Any power not specifically
321enumerated in such a resolution of consent shall be exercised
322exclusively by the municipality within its boundaries.
323     (2)  Beginning July 1, 2005, counties without home rule
324charters shall not be required to contribute to tax increment
325financing without an interlocal agreement between the county and
326the municipality creating the community redevelopment agency
327that governs the operations and financing of the community
328redevelopment agency for community redevelopment agencies
329created after July 1, 2005. The interlocal agreement may
330establish tax increment financing arrangements that differ from
331the specific requirements of s. 163.387.
332     (3)  For community redevelopment agencies created prior to
333July 1, 2005, in a county that did not have a home rule charter
334at the time the community redevelopment agency was created, no
335action to expand boundaries, modify a redevelopment plan, or
336modify existing debt service or other financing arrangements
337involving tax increment financing may be done without an
338interlocal agreement between the county and the municipality
339that created the community redevelopment agency. The interlocal
340agreement may establish the authority to expand or modify the
341community redevelopment agency, including tax increment
342financing arrangements that differ from the specific
343requirements of s. 163.387.
344     Section 3.  This act shall take effect July 1, 2005.


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