The CRA’s primary revenue source is generated from Tax Increment Financing (TIF), as defined in section 163.387, Florida Statutes. In addition, the Agency has the authority to pursue public funding through grants and loans, and private revenue through loans, contributions, disposal of any real property, mortgages, hypothecation, bond anticipation notes, and bond issues backed primarily by TIF.
incremental financing is new or additional tax revenue generated from increased property values and new development after a “base year” is established.
The Riviera Beach Community Redevelopment Agency (RBCRA) receives money to pay for projects through tax increment financing, a tool used to fund economic development through the community redevelopment agencies (it’s authorized by Chapter 163, Part III of the Florida Statutes). Tax increment funds are paid to the RBCRA by the City and the County based on the growth in property values for that district. The increment comes from property taxes paid by each property owner within the redevelopment district. The property owners do not incur any additional taxes by being located in a redevelopment district, they are assessed the same millage rates as a property owner located outside of a redevelopment district. The taxing authority (city, county) collects their share of the property taxes and then must turn around and “share” their portion of property taxes with the RBCRA.
Each redevelopment district generates its own tax increment funds to be used only in that specific district. Tax increment funds are not derived from increases in property taxes, but rather the growth or increased property values that occur in a redevelopment district over time. The property tax amount in the year the district is established becomes the base year value for the district throughout its lifespan. Tax increment funds are generated based on any increase in value a district sees over and above its base year value. The agency uses those tax increment dollars to put money back into the district, further increasing the property values. This cycle lasts through the lifespan of a district.
Tax increment funds can be used for operations, projects, capital improvements or development incentives within the district where they were generated.
1. Adopt the Finding of Necessity. This will formally identify the blight conditions within the targeted area and establish the area boundary.
2. Develop and adopt the Community Redevelopment Plan. The plan addresses the unique needs of the targeted area and includes the overall goals for redevelopment in the area, as well as identifying specific projects.
3. Create a Redevelopment Trust Fund. Establishment of the Trust Fund enables the Community Redevelopment Agency to direct the increase in real property tax revenues back into the targeted area.