HomeMy WebLinkAboutItem B1 B1
BOARD OF COUNTY COMMISSIONERS
COUNTY of MONROE Mayor James K.Scholl,District 3
The Florida Keys Mayor Pro Tern Michelle Lincoln,District 2
Craig Cates,District 1
David Rice,District 4
Holly Merrill Raschein,District 5
Budget Meeting Meeting
July 15, 2025
Agenda Item Number: B1
2023-4241
BULK ITEM: No DEPARTMENT: Land Authority Governing Board
TIME APPROXIMATE: STAFF CONTACT: Cynthia Guerra
AGENDA ITEM WORDING: Review of the Monroe County Comprehensive Plan Land Authority
Fiscal Year 2026 Budget.
ITEM BACKGROUND:
See attached Memorandum. The Land Authority proposed budget for FY 2026 is $34,628,012, which is
$8,039,268 less than the adopted FY25 Budget of$42,667,280. The budget decrease is due to a reduction in
projected revenues, including the suspension of the Florida Forever program in Monroe County in FY 2026, and
large expenditures for affordable housing projects still anticipated in the current fiscal year.
PREVIOUS RELEVANT BOCC ACTION:
N/A
INSURANCE REQUIRED:
No
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATION: Approval
DOCUMENTATION:
Budget2026JuneCoverMe oFINAL.pdf
FINANCIAL IMPACT:
N/A
4
e
• 8 ° 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: Cynthia Guerra, MPA, Executive Director
Date: June 27, 2025
Subject: Proposed Budget for Fiscal Year 2026
Attached please find the Land Authority's proposed budget for fiscal year 2026. This memo provides an
overview and discussion of the proposed budget, revenues, and trends.
Total Budget Summary:
The proposed budget for FY 2026 is $34,628,012, which is $8,039,268 less than the adopted FY 2025 Budget
of$42,667,280. The budget decrease is due to a reduction in projected revenues, including the suspension of
the Florida Forever program in Monroe County in FY 2026, and large expenditures for affordable housing
projects still anticipated in the current fiscal year.
Revenue Summary:
Of the total budget, projected revenue for FY 2026 is $34,628,012:
• $7,087,291 from Tourist Impact Tax for acquisitions in Key West and the Florida Keys
• $373,267 from Park Surcharge for acquisitions in the Florida Keys
• $414,490 from Tourist Impact Tax and Park Surcharge for administration
• $9,176,065 Fund balance forward for Key West
• $715,917 in Miscellaneous Revenue like interest and BOCC reimbursements for personnel
• $0 from sale of land to the State of Florida in FY 2026 (see page 4)
There is a 5% deduction from projected revenue in the amount of $1,822,527 to ensure a conservative
revenue forecast.
Appropriations Summary:
Key Appropriations for FY 2026 land purchases or affordable housing (capital outlay) and reserves are:
• $12,741,198 for general use in the Florida Keys Area of Critical State Concern (Unincorporated County
and incorporated Cities, except Key West)
• $1,775,066 for general use in Key West Area of Critical State Concern
• $3,360,000 for Construction Funding for Sugarloaf Landings 56 units of affordable housing (there will
be an additional allocation of$3,360,000 in FY 2027)
• $8,000,000 for Construction Funding for Key West Housing Authority (KWHA) Poinciana Plaza 45-54
units of affordable housing (allocated in FY 2025 but is now projected to be spent in FY 2026)
• $2,800,000 for Construction Funding for Key West Continuum of Care at Poinciana Plaza 16 units total
with 4 new units that was approved in FY 2025 for use in FY 2026
• $3,293,248 for ROGO Reserve Account available for Administrative Relief
• $1,000,000 for Reserves (Contingency and End of Year Cash)
• $1,648,500 for Salaries and General Operating Expenses
Page 1 of 7
5
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 TIM'P Revenue
$4,500,000
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
Page 2 of 7
6
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 TI M P Revenue
5,000,00
4,500,00
4,000,00
3,500,00
3,000,00
2,500,00
2,000,00
1,500,00
1,000,00
500,00
$0 4 , , "
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
$650,000
$600,000
$550,000
$500,000
$450,000 r7
$400,000
$350,000
$300,000
$250,000
na ns ns ns ns ns ns ns ns ns ns ns O D D cn C,
C C C CD CD ca ca ca ca ca ca ca ca ca ca ca ca v
CO ca ra a) cxp ca ra a) cxp ca ra � a1 CO ca ra �
Page 3 of 7
7
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 $0 $2,338,813 $2,338,813
2025 YTD $1,045,998 $2,937,553 $3,983,551
TOTAL $5,966,518 $8,808,545 $14,775,063
*Includes soft costs such as Appraisals,surveying,etc.
After adoption of the Act, the real estate market in the Keys rapidly increased, especially after Covid. While
that rapid rate of increase seems to be abating, DEP has traditionally found it difficult to purchase land quickly
and to meet the sales price expectations of sellers. The Land Authority is able to quickly acquire land, so DEP
has allowed the Land Authority to pre-acquire land and then purchase the land from the Land Authority at a
price that meets their appraisal standards.
Between the adoption of the Act in 2016 through June 25, 2025, the Land Authority resold $8,808,545 of land
to the State of Florida, with DEP spending a total of$14,775,063. Unfortunately, DEP is now in the process of
discontinuing this pre-acquisition system due to a state budget reduction. DEP's legislative appropriation for
Florida Forever acquisitions was reduced from $100 million in Fiscal Year 2025 to $18 million in Fiscal Year
2026. On June 24, 2025, DEP notified MCLA that all Florida Forever funding is now obligated and there will be
no funding available for the State to purchase pre-acquired land from MCLA until the Legislature appropriates
additional funds. The Land Authority will continue to make purchases within Florida Forever areas and will
pursue reinstating the partnership as soon as additional State funding is made available.
Current Issues
The most important activity the Land Authority performs is the purchase of land for environmental protection
and retirement of development rights. On June 26, 2025, the Governor signed, Senate Bill 180 (2025) which
will grant the Florida Keys 900 additional permit allocations to be distributed over a period of at least 10 years.
The legislation requires all permit allocations be issued for vacant, buildable parcels, of which only one may be
awarded for any individual parcel, and the distribution of which must prioritize allocations for owner-occupied
residences, affordable housing, and workforce housing. Of the 900 proposed permit allocations, approximately
588 would be made available for unincorporated Monroe County, with the remainder being allocated to the
Marathon, Islamorada and Key West.
Page 4 of 7
8
In 2024, the Planning Department refined their estimate of the number of private vacant parcels that could
potentially be buildable, as presented to the Board of County Commissioners in October 2024. According to
their data (shown below), 1,618 parcels contain uplands and have zoning or land use that allow at least 1 TDR.
October 16,2024 BOCC
Unincorporated (Estimate:
Vacant Parcels: 1,618 parcels
Started with Privately ly owned Vacant Parcels �. .��. .
By Tier
Buillclability., 320
II
Removed (Restricted Habitat III 1
52
Removed Insufficient Density(loss,than 1 unit allowed) III I- , 68
Removed those with Dieed Restrictions (no d nsity) Ill l 10,78
Total 1,619
Liability(Risk:
Subtracted threes exempt from R G (per vious house) lay l OG01' Subarea
Subtracted those with, issuedlexpired ROGO permits Ullpper Keys 6344
Subtracted thoa Zoned for alternative Commerciall Use Lower Keys 612
Big Pine Key No Name Key 372
TOTAL 1,518
over Number of of total,
f years,„ araa aunt Vacant
private lots private late
5 Bars
10'Years,
„.li'Ii,,1in1foiG, a�drurrr� �
1
Marathon 21 4 g yaw,0 ����,��% !
... .....", ,.,.... ....", .. „„ ,..,,,,,_" .............. ,"
15
... .. . ..,.e.,.. . .., K .,.
. m,...,,,. . .
_w . _..... ...... ..e. „ ..., ... e . „. ..,,,.m.., . .... ...b
to�t ( Na is 4 90' 47 0.0%
1orirr,e aNr,w u,,vnty li ,t',.��irrr�tu, rJ toV�,rcair�,l i riv aate Ir�4.,w1 tt.. �.....,. ,
if, '.. �412 7
�"1 UrrEMak
Ktimrou;wCoj),.rrthyA+raa Mr ,Iefirar°d' IVa.rlir rll �, rrr a�r.r�ra rr�krrul.rr ,aliulr.°u'r .0 a
The 588 ROGO allocations pending for Monroe County represents only 35% of the potentially buildable private
vacant lots, leaving a balance of over 1,000 buildable private vacant lots.
Page 5 of 7
9
Without enough permits available, some private property owners could file takings and Bert Harris suits against
both the State and Monroe County. Even in the unlikely event that the County were to successfully defend
each claim, the cost of defending against such claims will be significant. To help mitigate the anticipated
liability, Monroe County, working with the Monroe County Land Authority and DEP, has implemented a long-
term acquisition strategy in the Florida Keys aimed at reducing the total inventory of privately owned vacant
land and to retire development rights from property owners.
ROGO Reserve
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.
Other Considerations
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 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.
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.
Page 6 of 7
10
Proposed FY 2026 Budget
M,0,NR0E00,UNTY LANDAUTHORI[TY
FY 2026 BUDGET
Proposed Aclb,ptecl Aniencled
Bud,g,et Increases" Budget Actuual Budgget
FY 2026 (Decrease(, %Change FY25 FY24 FY 2024
Revenues
Intergovernmental
Tocurist Impact Tax-Restricted-Key West 3'a99'001 11:5,449) -3.2% 3,512,450 a,4Y,906 2,962,155
Tourist Impact Tax-Restricted-FL Keys 3,66,8,290 (M,0,443� -9.4% 4,06&,73C 3,H1,226 3,2SX,42S,
Park Surcharge-Restricted 373,267 (ss'?56'i -15.1% 4M,62, 412,794 ?78,8?7
Tourist Impact Tax&Park Surcharge Administration 414,490 (33,367) -7.S% 447,557 430,,010 C70,65A
Fund Balance Forward
Tourist Impact Tax-Restricted-Key West 9,176,0165 (e,1 85,6rz �-403% 15,361,697 12,200,492 12,H,7,90,3
Tourist Impact Tax-Restricted-FL Keys a a NO 0 4 9,LQ&24 a
Park Surcharge-Restricted a a NO 0 a a
Assigned and Unassigned 18'e'&3'5G9 2,777,651 17.5% 1 5,RG5,979 14,944,045 12,671,293
Miscellaneous
Interest Income W00'000 0 01.01% W00'000 1,SG 7,2,4 250,00,0
BOCC Reimbursement for MCLA Employee 215,917 20,,2219, 103% 1 95'6sz 76,794 126,270
Sale of Land a (4,451,000) -100.04 4,491,000 2,654,800 4,4S1,000
Donation a a NO 01 a 0
Tax Collector Excess Fees a a NO 0 297,809 0
I'Jortgage Receiwable, a a NO a a 0
Less 5% (1,S22,527) (2,245,646� 0 (1,970,526)
Total Revenues, N,629,012 (8,039,2691 -19.8% 42,667,2M SD,972,SN 35,540,000
Appropriations:
Salaries and Benefits 1,2'77,�AO 81,0,00 6.9% 927,991 996,500
General Operating Expenses 3,71,0,00 50,0,00 1 b.6% 321,0,00, 225,424 'M8,000
Special Operating Expenses:
Operating FIL KffysACSC-Forgivable Mortgages a a NO a a 0
Operating,FL Key&ACSC-Construction Funding, 3,360,000 1,120,,0,00 5 1.0% 2,24 0,0,0 0, 0 a
Operating,Key West ACSC-Forgivable,114ortgages a a NO 01 a 0
0 perating Key West ACSC-Construction Funding 10,so 0,0,0 0 (7,92S,500 �-423% 18,72 S,500 a 0
Capital C utla Y
Office,Equipment 10,0,00 0 01.01% 10,000 0 10,00,0
FIL Keys Area of Critical State Concern 12,741,1 DO, (2,991,1 N) -19.01% 195,7 C2,3 95 5,844,796 14,0,&2,194
RCM O Reserve 3,2-9�a,248, a 0.0% 3,2-93,249 129,625 3,29G,24S,
Key WestArea of Critical State,Concern 1,775,0168 1,629,419 1119.7% 145,F47 a 15,950,05191
Reserves
Contingency W00'000 0 01.01% W00'000 0 SAO'000
End of Year Cash boo"Goo a 01.0% b00,000 a 500,000
Tota I A.ppro pria tic n s a4,629,012 (8,039,26°9,k -19.8% 42,867.,251 7j27.jE36 35 540 00,0
Page 7 of 7