Rick's Blog

CRA can reduce annual payments to ECUA

Under Section 4.5 of the Interlocal Agreement, CRA can reduce the annual payments to the ECUA if the Florida Constitution is amended or the state legislature pays a bill that reduces the amount of TIF received by the CRA.

So the CRA can change its payment schedule to the ECUA if there is a shortfall in the CRA funds. The total $19.5 million still has to be paid, but the CRA can delay payments until the are sufficient funds to make the payments.

In April, 2007, Dick Barker estimated the CRA revenues would be:
2010 $7.978M 2011 $8.776M 2012 $9.653M 2013 $10.619M

On March 23, 2009, Barker adjusted his CRA revenues to:
2010 $4.42M 2011 $4.42M 2012 $4.641M 2013 $4.873M

Based on the March 23 presentation that Barker gave the City Council and this clause of the interlocal agreement, the City will not have to pay ECUA until 2017.

Barker had projected – in the March 23 presentation- that the ECUA payments from 2011 to 2016 would create a $11,276,663 deficit. Delaying the payments until 2016 – as per the interlocal agreement – will leave a shortfall of only $26,662 over the entire six years – which could be handled by reducing CRA operating costs.

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