BRADENTON BEACH – A question from Robert Talham, the Community Redevelopment Agency’s (CRA) newest board member, prompted a lengthy discussion about whether increased commercial activity on Bridge Street during tourist season translates into more revenue for the city.
The CRA district extends from the south side of Cortez Road to the southernmost property lines along Fifth Street South. The city receives a portion of the incremental property taxes collected on the residential and commercial properties in the CRA district. The CRA agency is comprised of the mayor and the four sitting city commissioners.
The funding discussion began during the Oct. 15 CRA meeting, after the board approved a $55,354 invoice for holiday tree trimming and decorating as a consent agenda item. The funds come from a CRA holiday line item.
Talham asked whether the merchants on Bridge Street would help cover the holiday decorating costs.
“Are the merchants going to kick in?” he asked.
That led to his second question.
“For every dollar spent in town, what does this town get for that?” Talham asked. “When we spend all this money on our merchants, what comes back to us as a town?”
He noted the businesses along Bridge Street do well during tourist season.
Referring to a different revenue source, City Treasurer Shayne Thompson mentioned Manatee County’s 6% tourist development tax that is levied on resort, hotel, motel and vacation rental stays of less than six months.
“We may get little bits here and there through the TDC (Tourist Development Council) when we ask for things from the TDC, but largely the resort taxes do not come to the city,” Thompson said.
Mayor John Chappie said the tourist development tax can be spent anywhere in the city if the TDC board and the city commission approve the city’s funding request.
“The resort tax, which is tourist development tax dollars, they can be spent anywhere in the city if it’s an approved item,” Chappie said, adding that the Manatee County Commission controls those funds. “They pay for a number of things (in Bradenton Beach), the pier, the floating dock, the pergola and repairs to the dinghy docks.”
Chappie said the city now receives more than $900,000 a year in CRA tax revenues.
Talham asked whether the city would still receive the $900,000 if nobody spent money in the CRA district.
Public Works Director John Cosby said CRA revenues are generated by property taxes, not commerce.
“Everything in the CRA district that’s taxed through property tax, that money comes back to the city. So, the county doesn’t get to keep that money,” Cosby said. “When you look at your tax bill, if you live here and see the portion that’s going to the county, that comes back to the city, to the CRA district, but only in the CRA district, and it can only be spent in the CRA district.”
“So, there is an advantage to giving the merchants whatever they ask for, because something comes back to us through the county?” Talham asked.
CRA Chair Scott Bear said the CRA funds must be used for improvements in the CRA district.
Talham said he understood how the money must be spent, but he asked whether it depended on business activity.
“It’s based on the value of the property and the property tax,” Cosby said. “The actual physical purchasing of an item has nothing to do with it.”
Cosby noted that the city’s CRA funding could be at risk if Florida voter adopte the Amendment 3 property tax exemption increase.
Talham asked whether the CRA board should want more visitors to spend money in town.
“Should I want more people in this town? Do we want that?” Talham asked. “Do we want our town overloaded and overrun with people to spend dollars because it benefits us or it makes no difference? That’s the question I have.”
When discussing the tourist development tax again, Cosby said, “The state sets the parameters of what that money can be spent on. They have expanded a little bit.”
Cosby said tourist development tax revenues are now being used to help fund the lifeguards at the county beaches.
Cosby said the Florida Police Chiefs Association continues to lobby the state Legislature to allow tourist development tax revenues for law enforcement agencies that are affected by tourism.
“It is strictly for enhancements to attract tourism,” Cosby said. “As far as do we want more people here or not? I would personally I would say no, but the thing is when the people come and stay and the area becomes more sought after, obviously the property value comes up and that’s where your money comes back to you.”
TAX DISTRIBUTION
CRA member Ralph Cole said he’s long argued that Bradenton Beach does not receive its fair share of the county’s tax revenues. He said those tax revenues are diverted to projects elsewhere in Manatee County.
“They want to do a big sports complex, say in Ellenton or anywhere in Manatee County,” Cole said. “What happens is our tax dollars get diverted out to there.”
Cole said that if the county returned a larger share of what visitors generate, the city might not need a CRA.
“The money that comes out of here should be going back into here,” Cole said.
Talham summarized what he took from the discussion.
“So, our (CRA) money comes from property taxes – the higher the values, the more we get,” Talham said.
Cosby said Bradenton Beach still fares well compared with other cities that size.
“I will tell you that for a city our size per capita, with the amount of residents – not businesses, not party houses – this city gets a very nice sum of money over the years with the CRA.”
Cosby added that the CRA will expire in 2047, as mandated by the state.
