The following was written by Robert Lott, president of the Southeast Volusia Chamber of Commerce.
During a conversation with a potential candidate for public office last week, the future politician complained about the money spent by the New Smyrna Beach CRA (Community Redevelopment Agency). The concern was over the city budget and the expenditure of “our tax dollars.”
The conversation escalated to include ECHO grants as well and it became evident that this individual had a very convoluted impression as to how these programs actually work.
Due to space requirements I will speak only to the mechanics of the CRA, more specifically, the NSB-CRA. Our NSB-CRA was formed by some very forward-thinking individuals back in 1984. The concept is simple: First you determine the boundaries of your CRA district. Keep in mind; the purpose of a CRA is to promote a viable, affluent, self-reliant and safe community by causing the resurgence of New Smyrna Beach’s physical, economic, and social development through dynamic growth achieved by commercial, industrial and residential progress.
The district should contain the core areas of your town as well as areas of future development. Our particular CRA Board is composed of seven members who reside in, work in, or own a business within the CRA district, which means owning a business, practicing a profession, performing a service for compensation, or serving as an officer or director of a corporation or other business entity so engaged.
The CRA members serve four-year terms. These members consider appropriate projects and make recommendations to the City Council for project approval. Once the boundaries are established, the property vales are recorded and used to determine the CRA funding from that point into the future.
The property is taxed exactly the same as all other property’s in the county. As property values increase the amount collected representing the difference between the 1984 value and current value is earmarked for use inside the CRA district. Currently that amounts to approximately $3 million per year.
This process provides our city the opportunity to control county tax dollars that would normally go into the general fund. Abolishing or disbanding a CRA WILL NOT REDUCE YOUR TAXES! It would merely shift that portion of the property owner’s tax dollar back into the general fund for use anywhere in the county (usually un-incorporated areas). Typically, any CRA had a finite life.
Charters have expiration dates and some have extension opportunities. It is important to maximize the opportunities to provide a good solid base for future natural development.
As business owners and citizens, it only makes good sense to support the efforts of your local CRA.
Lott Post Script:
“Taxes, after all, are dues that we pay for the privileges of membership in an organized society.” ~Franklin D. Roosevelt.
or
“The point to remember is that what the government gives it must first take away.” ~John S. Coleman, address, Detroit Chamber of Commerce, 1956.