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Item C1 CI BOARD OF COUNTY COMMISSIONERS COUNTY of MONROE i Mayor Holly Merrill Raschein,District 5 The Florida Keys Mayor Pro Tern James K.Scholl,District 3 Craig Cates,District 1 Michelle Lincoln,District 2 ' David Rice,District 4 Budget Meeting Meeting September 4, 2024 Agenda Item Number: C 1 2023-2533 BULK ITEM: No DEPARTMENT: Land Authority Governing Board TIME APPROXIMATE: STAFF CONTACT: Christine Hurley AGENDA ITEM WORDING: A Public Hearing and approval of a Resolution of the Monroe County Comprehensive Plan Land Authority adopting a Tentative Budget for Fiscal Year 2025. ITEM BACKGROUND: Since review of the draft budget on July 16, 2024, one change has been made to the proposed tentative budget. The City of Key West adopted a third resolution requesting an additional $1,242,207 for The Lofts Affordable Housing Project on 8/8/24, bringing the total amount requested for that project to $6,170,457. Further, two other Key West affordable housing projects: Key West Housing Authority [KWHA] Poinciana Plaza project (45 or 54 new affordable units with a $10,000,000 request) and Key West Continuum of Care [KWCC] Poinciana Plaza Homeless Program project (permanent housing demolition and rebuild with additional bed spaces with a $2,800,000 request) have been approved by the Key West Commission, requesting funding. The Key West Continuum of Care project funding was requested for FY26; therefore, it is not included in the FY25 budget. The Key West Housing Authority [KWHA] Poinciana Plaza project has been included in the FY25 budget. The Landings at Sugarloaf project is also included at$2,240,000. This amount has not been reviewed by the third party reviewer we retained. The developer has not provided updated proformas with real construction costs yet. Finally, the budget includes funding for moving a County employee from the Planning Department to the Land Authority mid-year as the Volunteer Buyout Program is ending and that employee will transition to Senior Property Acquisition Specialist to purchase lands for conservation and affordable 7 housing. See attached resolution for the proposed tentative budget. Also attached is the budget memorandum from the July 16, 2024 budget meeting. PREVIOUS RELEVANT BOCC ACTION: July 16, 2024 - The Board reviewed the proposed budget. INSURANCE REQUIRED: No CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: Approval DOCUMENTATION: Budget2025-AgendaltemPacket7-16-24.pdf 2025 ResolTent.doc FINANCIAL IMPACT: N/A 8 D1 BOARD OF COUNTY COMMISSIONERS COUNTY of MONROE Mayor Holly Merrill Raschein,District 5 The Florida Keys Mayor Pro Tern James K.Scholl,District 3 Craig Cates,District 1 Michelle Lincoln,District 2 David Rice,District 4 Budget Meeting Meeting July 16, 2024 Agenda Item Number: D1 2023-2534 BULK ITEM: No DEPARTMENT: Land Authority Governing Board TIME APPROXIMATE: STAFF CONTACT: Christine Hurley AGENDA ITEM WORDING: Review of the Monroe County Comprehensive Plan Land Authority Fiscal Year 2025 Budget. ITEM BACKGROUND: See attached Memorandum. The Governing Board has not reviewed the three projects Key West has currently requested be funded in an amount of$17,728,500. Key West Commission are expected to request an additional $1 Million for one of those three project(The Lofts) at their August 8, 2024 meeting. Those three projects are expected to be reviewed at the September 11, 2024 Board meeting. Since adoption of the budget is also on September 11, 2024, there will be an opportunity to adjust the budget if needed before final adoption. The three projects are currently included in an amount of$17,728,500, which is expected to change for final budget adoption to $18,728,500. This would basically allocate all Land Authority funds for the Key West geographical area through September 30, 2025. PREVIOUS RELEVANT BOCC ACTION: N/A INSURANCE REQUIRED: No CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: Approval DOCUMENTATION: Proposed MCLA Budget FY2025 9 FINANCIAL IMPACT: N/A 10 0 • 824 MONROE COUNTY LAND AUTHORITY 1200 Truman Avenue, Suite 207, Key West, FL 33040 Phone: (305)295-5180 Fax: (305)295-5181 MEMORANDUM To: Land Authority Governing Board From: Christine Hurley, AICP, Executive Director Date: June 15, 2024 Subject: Proposed Budget for Fiscal Year 2025 Attached please find the Land Authority's proposed budget for fiscal year 2025. This memo provides an overview and discussion of the proposed budget, revenues, and trends. Total Budget Summary: The proposed budget for FY 2025 is $42,667,281, which corresponds to a $7,127,281 increase compared to the amended FY24 Budget of$35,540,000. The primary reason for this increase is the increase in revenue by selling land to the State of Florida, Florida Forever Program. This increases revenue and therefore, increases the amount of funds available for future buying. Revenue Summary: Of the total budget, anticipated revenues for FY 2025 is $42,667,281 are expected to be: • $7,581,183 from incoming tourist impact tax ($3,512,450 from Key West and $4,068,733 from the County/Other Cities, as well as Park Surcharge and administrative revenue ($439,623 + 447,857) • $15,361,697 Fund balance forward (Key West $15,361,697) • $5,176,688 Miscellaneous Revenue (Interest estimated at $500,000 + BOCC Reimbursement for Employees $195,688 + Sale of Land to the State of Florida *estimated $4,481,000) • Less a 5% reserve of(-$2,245,646) *As you know, the Land Authority has been working in partnership with the State of Florida Department of Environmental Protection (DEP) to pre-acquire lands in the Florida Forever boundary and then "resell" the conservation land to DEP to help them fulfill their$5 Million goal from the Florida Keys Stewardship Act. Appropriations Summary: Key Appropriations for FY 2025 land purchases or affordable housing (capital outlay) and reserves are: • $15,732,386 for use in the Florida Keys Area of Critical State Concern (Unincorporated County and incorporated Cities, except Key West) • $2,240,000 for Construction Funding for Sugarloaf Landings 54 units of affordable housing • $3,293,248 for ROGO Reserve Account (used for Administrative Relief and lawsuit settlements) • $1,145,647 for use in Key West Area of Critical State Concern • $10,000,000 for Construction Funding for Key West Housing Authority (KWHA) Poinciana Plaza 56 units of affordable housing • $2,800,000 for Construction Funding for Key West Continuum of Care at Poinciana Plaza 16 units total with 4 new units Page 1 of 7 11 • $1,000,000 for Reserves (Contingency and End of Year Cash) • $1,517,500 for Salaries and General Operating Expenses Overview of Revenues The Land Authority receives no property tax revenue and therefore the Board does not need to adopt a millage rate for this budget. The Land Authority's two primary sources of recurring revenue are collected at rates previously fixed by the Florida Legislature and by local ordinance. These revenues consist of: 1) Park Surcharge: a surcharge on admissions and camping at the State parks in unincorporated Monroe County and 2) Tourist Impact Tax: half of the one-penny tourist impact tax charged on lodging in the Keys. By statute, the other half of the tourist impact tax goes to the County general fund as a payment in lieu of taxes (since purchasing land by government removes the value from the tax roll) and therefore does not appear in the Land Authority budget. Additionally, over the years the Land Authority has also received various other revenues such as grants, proceeds from the sale of land, mortgage loan repayments, and interest income. The amount of park surcharge revenue and tourist impact tax revenue that can be spent on administrative expenses is limited to 10% and 5%, respectively, and is therefore supplemented with other available revenue and unassigned fund balance to fund operating expenses and maintain existing staffing levels. Key West Tourist Impact Tax Within the City of Key West, the Tourist Impact Tax revenue collected from lodging establishments is dedicated to be spent in Key West. This chart demonstrates the revenue since the creation of the Land Authority. As you can see, 2023 started a downturn after the record breaking year, 2022, following COVID. KW TAMP Revenue $4,500,000 $4,000,000 $3,500,000 $1,500,000 $1,000,000 $500,000 $0 ra ra ra ra ra ra ra ra ra ra ra ra cs� cs� cs� cs� cs� cs� ca ca ca ca ca ca ca ca ca ca ca ca ar cD cD cD cD ea ea ea ea r r W v r) T, sus co ca ra Cs co ca r ap s7s as v r� Page 2 of 7 12 The Florida Keys Tourist Impact Tax Within the unincorporated County and Cities, excluding the City of Key West, the Tourist Impact Tax revenue collected from lodging establishments is dedicated to be spent in these areas. This chart demonstrates the revenue since the creation of the Land Authority. Florida Keys TIMP saw the same dip as Key West. FL Keys TIMP Revenue $4,500,00 $3,500,00 $3,000,00 $1,500,00 $1,000,00 $500,000 $0 CO � � � � C) C) C) Park Surcharge The State parks located within unincorporated Monroe County send the park surcharge revenue to the Land Authority. The State parks located within a municipality send the park surcharge revenue directly to that municipality and therefore, these funds are not available for the Land Authority programs. Park Revenue $6 50,000 $6 00,000 $5 50,000 141 rma $5 00,000 $450,Goo $350,000 $300,000 CO � � � � C) C) C) Page 3 of 7 13 State of Florida Department of Environmental Protection (DEP) Stewardship Act The 2016 Stewardship Act documented the State and County partnership and outlined the urgency in purchasing land in the Florida Keys to retire development rights, as well as protect the natural environment. The goal within the Act is for the State to spend $5 million per year on land acquisition in the Florida Forever Boundary. The table below demonstrates the annual expenditures by DEP, since passage of the Florida Keys Stewardship Bill: STATE FISCAL STATE PURCHASES STATE PURCHASES OF TOTAL STATE YEAR FROM PRIVATE PRE-ACQUIRED LAND PURCHASES* SELLERS* FROM MCLA* 2017 $0 $0 $0 2018 $709,246 $0 $709,246 2019 $2,037,381 $0 $2,037,381 2020 $1,177,841 $0 $1,177,841 2021 $695,492 $0 $695,492 2022 $89,732 $607,323 $697,055 2023 $210,828 $2,924,856 $3,135,684 2024 YTD $0 $1,604,583 $1,604,583 TOTAL $4,920,520 $5,136,763 $10,057,282 *Includes soft costs such as Appraisals,surveying,etc. The real estate market in the Keys has been rapidly increasing since adoption of the Act. DEP has found it difficult to purchase land quickly and to meet the sales price expectations of sellers. Decades ago, DEP would allow the Land Authority to pre-acquire land and then purchase the land from the Land Authority at the price they can using their appraisal standards. During 2022, Land Authority staff worked with DEP to renew this model and during 2023 this effort increased. As of May 8, 2024, the Land Authority resold $5,136,763 of land to the State of Florida, since 2016, with DEP spending a total of $10,057,282. This is expected to increase for 2024 with the addition of another buyer (consultant) on the Land Authority staff. Page 4 of 7 14 Current Issues The most important activity the Land Authority performs is the purchase of land for environmental protection and retirement of development rights. The following table, prepared by the State Commerce show the results of the recent Department of Economic Opportunity Hurricane Evacation Model Clearance Times scenarios in Summary form. The next two tables, prepared by the Monroe County Planning Department, show those lots within the cities of Key West, Marathon, Layton, Key Colony Beach, and Islamorada. The third table shows those privately owned vacant lots within unincorporated Monroe by Tier designation. The MCLA will be reviewing that data and will begin prioritizing purchases, first of those in the Florida Forever boundary, since the State of Florida is willing to purchase those lots after pre-acquisition from the MCLA. The BOCC will be working with DEO during 2024 to determine the appropriate number of ROGO allocations to be issued by the State of Florida, since DEO ran a new Hurricane Evacuation Model and created scenarios of possible ROGO allocation issuance options. Clearance i rr"Il i m5SLAmmary Florida Keys, Florida Keys Includlingd Key Walt Excludin K r meet l7elilver ble 5:Baseline Modeling Plhasos Mobile Homes NthlleHo Isdcba;B -I�nrrne� ch�G:�rai� . in Phase 2 in Phase 1 in Phase 2 in Phase 1 dnaurs uhcurs hcnurel tlaaurs Bas�lnrres Modeling Sh aw,s baseline-does rural umclude Phase 2 26,0 24,01 adds icm prespe 5t e allcratioras Phase 11 5,5 15.5 15,0 15.0 D oliverabla 6.Prospective M adlelin frlr Future Alll c t rara i 27,5 15 155Ns -ute on countylrunlcnpality Phase 1 Aliocatuons population size, Phasa 1 15.5 15,E T15 U 150 3'5to Uistnbule based percentage at nacardt ..,.,. Plrasa.�. .. 8. 5.5 "... w........ �........ . ......1.. � ........ ..� A lrrcabons land per coural 1n�u nicePals r p r 5 0 15lstriibutc based on current allacaticnvs Phase 2 2&0 26,01 15,.5 15.5 1 3,550 01,P7tt-P onirae 351t1•IMadarathon,"2 0 ...,.,.,. Altacatucns islardrarada 91O-Key West, 0-Laylon, 54 ttel lluarr peachy Phase 11 15 5; 15 15,t0 15.0 phase 2 265 24 P 15,5 1 5 t7laimin nal tlustributes Ot4o nr¢ County(51)m dears yP�4p)'......... $4 Afllrxatiuns('11 Maialhorr(2)„Ilslavioiadad ) Key Phase 2B,(2 2 .5 240 1.15 ro 155 allac;ationstyr) West�2—affordable onllly) Years"r�� ......... ......... ......... ......... ......... ......... ......... ......... Phase 11 155 155 150 150 3 One P ha^sa 311.5 285 17,0 1615 5 Um t"Vacant Lot ISniskrVtautes 7 P5�1�,n is � , � Phase 11 1,a5 15„aC 1,a.5 15.5 Page 5 of 7 15 2020 Census:" Hurricane Evacuation Modeling Update FL Commerce's reference,to 7,954 units,was based on the number of privately-owned 'vacant parcels within the Florida Keys (unincorporated MC, Illslarnorada, Layton, Key Colony Beach, Marathon, (Key,West)., Ftirther,ainMysis kicficaties that a sginMcant poirflon of those parc0s rnay lye already riestiftted klq pirlotecteld habttat andlor ex sting zoning clensky standards, Key West 94 Key West n/a—a I ready reserve dl Uniln,corporated Monroe 6,06 Unmncorperated Monroe 2,220 County County marathor 764 plllu„ Marathor, SS6 hla-norada 971 Isla norada 221, Key C ol on y Beach 39 Key Colony Be,ach InA nfill—a hnea,dy. Lay:o n 110 Lay= rtnerved ......... 54 Monroe Comity lunlhncorponntedl Illrlivate Vacara 11-and Monroe County(unincorporated) Private Vacant Land 'IR(jinnoved Sulhnn(�.,rged,Mar,giove,and ProtecJed Wetlands Data Sent to DEO for Hurricane Modeling Oct 2023: 'Rernaved FDan.'rels Mai,kass rhani I jnit of densh�ll)er Zordrg/R LJ M Not limited by habitat/Policy 102, Tier AND has 1 or more density rights, ....................................................... 3023 Tier 1 398 i............................ ........... ............... 111 223 Tier ill 165 ........................................................................................... 25,51 1 1..� 1.5�5..3 UI-A 122 Tier III-A 96 ................ ........... ..............................--................................ ................. Military 3 No Tier 8 .. . ................................................................................................................ No Tier 164 Military 0 Total 6,086 ITOTAL C 2,2,20 Rwm�. Page 6 of 7 16 Fortunately, revenues have been up since COVID ended, which has given the Land Authority the ability to purchase more land than usual, and the flexibility to leverage DEP funds through resales. ROGO Reserves In accordance with Policy 101.7.2 of the County Comprehensive Plan, funding is reserved for the administrative relief provisions of the rate of growth ordinance (ROGO). Although this policy recommends an annual set aside of 35% of the Florida Keys ACSC acquisition revenue, there have been very few expenditures from this reserve over the last five years. For this reason, the ROGO Reserve that would result from a 35% set aside has been reduced to the current year level of $3,293,248 and the difference has been allocated for general use in the Florida Keys ACSC. The budget also includes general reserves of$500,000 for contingency and $500,000 for end of year cash. All funding not otherwise committed is budgeted in the general appropriation for property in the Florida Keys ACSC. With respect to administrative expenses, the implementation of merit or COLA salary increases, if any, will be limited to the amount and policy the Board approves for all County employees. The property acquisition policies established by the budget are very general in nature. The Land Authority's annual Acquisition List and the Board's approval of purchase contracts provide more detailed direction about the specific properties to be acquired. M❑NR❑E C❑UNTY LAND AAUTH❑RITY FY 2025 BUDGET Proposed Amended Amended Budget InCrease� Budget Budget Actual FY 2025 (Decrease) %Change FY 2024 FY 2023 FY 2023 Revenues: Intergovernmental Tourist Impact Tax-Restricted-Key West 3,512,450 550,295 18.6% 2,962,155 2,634,201 3,398,447 Tourist Impact Tax-Restricted-FL Keys 4,068,733 788,305 24.0% 3,280,428 2,718,805 3,902,168 Park Surcharge-Restricted 439,623 60,786 16.0% 378,837 407,290 462,177 Tourist Impact Tax&Park Surcharge Administration 447,857 77,207 20.8% 370,650 308,379 430,461 Fund Balance Forward Tourist Impact Tax-Restricted-Key West 15,361,697 2,473,794 19.2% 12,887,903 11,238,729 10,156,033 Tourist Impact Tax-Restricted-FL Keys 0 0 n�a 0 2,902,414 2,293,931 Park Surcharge-Restricted 0 0 n�a 0 0 0 Assigned and Unassigned 15,905,878 3,234,595 25.5% 12,671,283 8,903,722 9,521,418 Miscellaneous Interest Income 500,000 250,000 100.0% 250,000 25,000 1,087,455 BOCC Reimbursement for MCLA Employee 195,688 67,419 52.6% 128,270 Sale of Land 4,481,000 0 0.0% 4,481,000 4,481,000 5,071,658 Donation 0 0 n�a 0 0 4,490,558 Tax Collector Excess Fees 0 0 n�a 0 0 248,026 Mortgage Receivable 0 0 n�a 0 0 7,419,025 Less 5Y. (2,245,646) (1,870,526) (1,680,977) Total Revenues 42,667,281 7,127,281 20.1% 35,540,000 31,938,563 46,057,290 Appropriations: Salaries and Benefits 1,196,500 200,000 20.1% 996,500 807,100 740,900 General Operating Expenses 321,000 13,000 4.2% 308,000 221,100 156,199 Special Operating Expenses: Operating FL Keys ACSC-Forgivable Mortgages 0 0 n�a 0 0 0 Operating FL Keys ACSC-Construction Funding 2,240,000 2,240,000 n�a 0 1,353,989 0 Operating Key West ACSC-Forgivable Mortgages 0 0 n�a 0 0 0 Operating Key West ACSC-Construction Funding 17,728,500 17,728,500 n�a 0 0 0 Capital Outlay Office Equipment 10,000 0 0.0% 10,000 10,000 0 FL Keys Area of Critical State Concern 15,732,386 1,650,192 11.7% 14,082,194 11,380,196 6,262,235 ROGO Reserve 3,293,248 0 0.0% 3,293,248 3,293,248 0 Key West Area of Critical State Concern 1,145,647 (14,704,411) -92.8% 15,850,058 13,872,930 0 Reserves Contingency 500,000 0 0.0% 500,000 500,000 0 End of Year Cash 500,000 0 0.0% 500,000 500,000 0 Total Appropriations 42,667,281 7,127,281 20.1% 35,540,000 31,938,563 7,159,335 Page 7 of 7 17 RESOLUTION NO. A RESOLUTION OF THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY ADOPTING A TENTATIVE BUDGET FOR FISCAL YEAR 2025. WHEREAS, the Monroe County Comprehensive Plan Land Authority, a land authority pursuant to Section 380.0663, Florida Statutes, held a public hearing on September 4, 2024 after 5.00 PM at the Harvey Government Center in Key West, Monroe County, Florida to adopt a tentative Budget for Fiscal Year 2025; and WHEREAS, the public hearing participants were also provided the option of participating in said hearing via Communications Media Technology using a Zoom Webinar platform; NOW, THEREFORE, BE IT RESOLVED BY THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY that the Budget of $42,667,281 in Attachment A be adopted as the Tentative Budget for Fiscal Year 2025 and is hereby adopted. PASSED AND ADOPTED by the Monroe County Comprehensive Plan Land Authority at a meeting on this 4th day of September 2024. Commissioner Craig Cates Vice Chairwoman Michelle Lincoln Commission Holly Raschein Commissioner James Scholl Chairman David Rice (Seal) ATTEST: MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY Christine Hurley David P. Rice Executive Director Chairman Approved as to form and legality: Gregory Oropeza, Esquire 18 ATTACHMENT A MONROE COUNTY LAND AUTHORITY FY 2025 BUDGET Budget FY 2025 Revenues: Intergovernmental Tourist Impact Tax- Restricted - Key West $3,512,450 Tourist Impact Tax- Restricted - FL Keys $4,068,733 Park Surcharge - Restricted $439,623 Tourist Impact Tax& Park Surcharge -Administration $447,857 Fund Balance Forward Tourist Impact Tax- Restricted - Key West $15,361,697 Tourist Impact Tax- Restricted - FL Keys $0 Park Surcharge - Restricted $0 Assigned and Unassigned $15,905,878 Miscellaneous Interest Income $500,000 BOCC Reimbursement for MCLA Employee $195,688 Sale of Land $4,481,000 Less 5% -$2,245,646 Total Revenues $42,667,281 Appropriations: Salaries, Benefits, and General Operating Expenses $1,517,500 Operating FL Keys ACSC - Forgivable Mortgages $0 Operating FL Keys ACSC -Construction Funding $2,240,000 The Landings at Sugarloaf Operating Key West ACSC- Forgivable Mortgages $0 Operating Key West ACSC-Construction Funding $16,170,457 The Lofts- $6,170,457 KWHA Poinciana New Units-$10,000,000 Capital Outlay Office Equipment $10,000 FL Keys Area of Critical State Concern $15,732,386 ROGO Reserve $3,293,248 Key West Area of Critical State Concern $2,703,690 Reserves Contingency $500,000 End of Year Cash $500,000 Total Appropriations $42,667,281 19