Approval of Resolution No. R26-02 Adopting the CRA Budget for Fiscal Year 2026-2027

This item presents the CRA's Fiscal Year 2026-2027 Budget for Board approval and adoption. The purpose is to approve the General Fund, Debt Service Fund, and Project Fund budgets, including the Project Fund allocations for capital projects, programs, and funding requests set forth in Attachment I.

The Boynton Beach CRA is a quasi-governmental, Special District operating under Title XI, Chapter 163, Part III of the Florida Statutes. The agency's annual financial operations run on a fiscal calendar beginning on October 1st and ending on September 30th of each year. The CRA does not obtain its revenue from charging an additional tax. The CRA receives its annual funding based on a percentage share of the existing ad-valorem property taxes paid to the City of Boynton Beach and Palm Beach County.

The CRA's annual budget is comprised of three accounting funds:

• The General Fund, which contains the administrative, general operation, insurances, property maintenance and CRA/CRAB and marina related items;
• The Debt Service Fund, which contains the CRA's financial debt obligations and encumbrances such as bond repayments and developer's tax increment funding agreements. The CRA's outstanding bond debt (Series 2012 and Series 2015) will be paid in full as of the close of FY 2025-2026; accordingly, no Debt Service Fund transfer or expense is budgeted for FY 2026-2027; and,
• The Project Fund, which contains all of the capital projects, development projects or initiatives, property acquisitions, local business grant programs or promotional events, as well as eligible innovative policing activities such as the Neighborhood Officer Program.

Total revenues are budgeted at $30,367,228, an 11% increase over the FY 2025-2026 adopted budget. Tax Increment Revenue of $26,559,228 accounts for the majority, reflecting a 3.9% rise in assessed values within the CRA area to $2,677,773,123. The County millage remains unchanged at 4.5000, while the City millage decreases from 7.7500 to 7.4257. Despite the City's millage reduction, growth in assessed values yields a net increase in Tax Increment Revenue of $492,262, or 1.9%, over the prior year. The balance of revenues consists of marina rents and fuel sales ($1,900,000), interest ($1,300,000), and lease and property sale revenue ($608,000), the latter two of which had not previously been budgeted.

The General Fund operating expenses total $5,301,935, a 12% decrease from the prior year, reflecting reallocations among the Executive, Finance, and Marketing budgets into Professional Services and Business Development. After operations, $25,065,293 is transferred to the Project Fund. No transfer to the Debt Service Fund is required, as the CRA's bond obligations are retired in FY 2025-2026.

The Project Fund resources total $32,918,168, consisting of the General Fund transfer of $25,065,293, projected rollover of $15,379,584, and a $1,300,000 marina grant, less $8,826,709 in commitments for TIRFA and development related obligations. Proposed allocations balance exactly to available funding, with no remaining allocation balance.

The largest allocations are $15,000,000 for targeted property acquisition and P3 collaboration, $4,800,000 for the Marina seawall and related capital improvements, and $4,500,000 for Pence Park design, permitting and construction. Additional funding supports the Neighborhood Officer Program in its seventh year ($1,278,214), West Boynton Beach Blvd demolitions and FPL relocations ($1,000,000), adaptive reuse of historic properties ($800,000), economic development grant programs ($1,016,954 across commercial, residential and business relocation grants), and streetscape and design work along Federal Highway, MLK Jr. Blvd, 4th Street, and in the Cottage District. Business development, promotions, marketing and ride share programs total $993,000.

Upon approval by the CRA Board, the Fiscal Year 2026-2027 Budget will be forwarded to the Boynton Beach City Commission for ratification and adoption, anticipated to occur at their September 16, 2026 meeting.

Adoption of the CRA's Fiscal Year 2026-2027 Budget

2016 Boynton Beach Community Redevelopment Plan

Approve Resolution No. R26-02 adopting the approved Boynton Beach Community Redevelopment Agency's Fiscal Year 2026-2027 Budget, subject to ratification by the Boynton Beach City Commission at their meeting to be held on September 16, 2026.