Funding Source
The major funding source for the Port St . Lucie CRAs is tax increment revenue . Tax increment revenue is a mechanism available to cities and counties to re-invest new property tax dollars within a targeted redevelopment area . When a CRA is created , the current assessed values of the property as determined by the Property Appraiser are designated as the base year value . Taxing authorities that contribute to the tax increment continue to receive ad valorem ( property tax ) revenue based on the base year value . Ad valorem revenues from increases in real property value above the base year amount (“ increment ”) are deposited in a redevelopment trust fund and dedicated to the community redevelopment area . Since the tax increment is used to finance and / or fund redevelopment , the term tax increment is commonly referred to as tax increment financing , tax increment funding , or TIF .
Tax increment revenue is calculated separately for each of the four ( 4 ) CRA Districts . The tax increment revenue generated by the Original CRA , East Lake Village , and the CRA Expansion Area is used to fund public improvements in the eastern portion of the CRA . The tax increment revenue generated by Southern Grove is be used to fund improvements within Southern Grove .
Jurisdictions remitting tax increment revenue to the Port St . Lucie CRA include the City of Port St . Lucie and St . Lucie County ( General Fund and Fine & Forfeiture Fund ). Pursuant to an Interlocal Agreement between the City and St . Lucie County Fire District , the Fire District originally remitted tax increment revenue , but ceased participation in FY 2007-08 .
In both the Original CRA and East Lake Village , the participating taxing authorities levying property taxes within these areas are required to deposit an amount equal to 95 % of the incremental property tax revenues they receive annually from properties within those corresponding areas . In the CRA Expansion Area , the participating taxing authorities are required to annually deposit an amount equal to 95 % of the incremental property tax revenues they receive from properties within the CRA Expansion Area ; however , this requirement is subject to the following major exception set forth by Section 163.387 ( 1 )( b )( 1 )( a ), Florida Statutes :
If a taxing authority imposes a millage rate that exceeds the millage rate imposed by the governing body that created the trust fund , the amount of tax increment to be contributed by the taxing authority imposing the higher millage rate shall be calculated using the millage rate imposed by the governing body that created the trust fund .
Based upon this exception , if the County ’ s millage rate is higher than the City ’ s , which it has been historically , the County shall calculate its tax increment payment for the CRA Expansion Area only by using the City ’ s millage rate instead of its own higher rate .
The Southern Grove CRA was established in 2012 and is subject to the same exception noted above . In addition , Ordinance 12-30 set the tax increment at 50 % of the difference between the current valuation of all levied properties within the Southern Grove CRA boundary compared to the base year valuation of the same properties .
The following pages will provide an overview of the individual CRAs in the City of Port St . Lucie , as well as provide an update from the current reporting year .
2024 ANNUAL REPORT COMMUNITY REDEVELOPMENT AGENCY Page 7