Expanding Tax Value, Expanding Revenue
The Community Redevelopment Agency is primarily funded through tax increment financing.
Annual funding is calculated as follows:
Current assessed ad valorem tax value for property in the CRA district
LESS: the assessed ad valorem tax value for the CRA's district in 1985 (which was $245 million)
= Assessed value attributable to CRA activities
Since 1985, 95% of the increase in taxes collected annually, usually as a result of the redevelopment activity carried out by the CRA, has been applied to the tax increment trust fund. Funding comes from both the City of Delray Beach and Palm Beach County, each contributing based on their respective mill rates. In 2005, the taxable value for the redevelopment area had increased to $1.6 billion, resulting in tax increment revenues of $15,239,250 for the CRA. The City of Delray Beach will contribute $9,202,575 of this funding and Palm Beach County will contribute $6,036,675. Other sources of funding include grants, the sale or lease of property, and the issuance of taxable and nontaxable bonds.
Although funding in recent years has reached into the millions of dollars, it wasn't until 1999 that the CRA's total city and county funding finally broke the $1 million mark. For most of its history, the CRA has been in the habit of masterfully leveraging funds to insure steady improvement with meager dollars to contribute. In recent years, with the increase in Delray's property values translating into large increases in funding for the CRA, the CRA has responded by committing much of those funds back to City infrastructure improvements, such as funding for the beautification along West Atlantic Avenue, contributing over $1 million toward the NW/SW 5th Avenue beautification project, $1 million towards the construction of the library and its parking garage, and over $4 million towards the acquisition of property for the expansion of the Old School Square campus. In addition, the CRA provides several hundred thousand dollars annually in support of programs and services provided to the community by such important cultural icons as EPOCH's Spady Museum, the Delray Beach Center for the Arts at Old School Square, the Delray Public Library, and the Delray Beach Marketing Cooperative.
Download a copy of the CRA budget for FY 2008/09.
Audited Financial Statements