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<br />Community Redevelopment Agency <br />June 9, 2006 <br />Page 3 of 7 <br /> <br />A brief discussion ensued regarding the findings outlined in the Interim City Manager's memo. <br /> <br />Mr. Fall stated that there is a reasonable solution to solve the discrepancy but didn't feel the <br /> <br />Interlocal Agreement was the solution. He said more time was needed to review the information. Mr. Fall <br /> <br />said it seems to him that the City is trying to use the property value of the loan that the City "forgave" the <br /> <br />CRA any financial obligation against the past TIF funding. Mr. Fall stated the City CRA Board is the only <br /> <br />Board that has authority to set any TIF differences than what is statutorily required, which is stated in the <br /> <br />Resolution how the trust money is being funded. He said the City and County could change the amount of <br /> <br />the increment paid to the CRA; however, they cannot net that increment without the CRA's approval. He <br /> <br />was not aware of the CRA approving reducing the TIF payment in order to fund a land acquisition. <br /> <br />Mr. Fall referred to Mr. Wells' memo dated January 12, 2004 to Mr. Jeffrey Dreier regarding the debt <br /> <br />settlement/land swap and requested an explanation. <br /> <br />The motion passed unanimously by voice vote. <br /> <br />Mr. Fall requested the Finance Director to explain the differences between the calculated TIF and <br /> <br />the funds deposited into the CRA funds. Mr. Jeffrey Dreier, Finance Director, explained that when the City <br /> <br />realized that there was a discrepancy in the money paid to the TIF, all CRA transactions dating back to 1995 <br /> <br />were reviewed. He said that in 2004 there was a land swap to help reduce the CRA's debt. Mr. Dreier said <br /> <br />the external auditors reviewed the financial report and noticed an economical gain to the CRA and that is <br /> <br />the reason it was used as an offset to the monies the City should have contributed to the CRA. <br /> <br />Mr. Fall said the land swap was to free up tax increment revenue to allow the CRA to proceed with <br /> <br />other projects and now the CRA is paying the revenue gain back to the City. Mr. Fall said he would not be <br /> <br />convinced to use the land swap as collateral against the TIF payment. <br /> <br />Mr. Fall said the increment has been funded erroneous since 2001. Mr. Dreier explained that it was <br /> <br />an accounting error and it should have been matched up. <br /> <br />Mr. Fall referred to City of Casselberry Exhibit A and asked if there was any formal document <br /> <br />approved by the CRA and the City Commission that the $501,768 was a cash advance and Mr. Dreier said <br /> <br />no. <br />