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1. How were the boundaries of the CRA created by the Town?

The Town conducted a study known as the “Findings of Necessity” to determine if there were areas that exhibit elements of slum and blight. Based on these findings, the Town gave approval to create the CRA and allow for increment revenues to be reinvested within this area.

2. How does the CRA get funded?

The Redevelopment Trust Fund comes from six taxing authorities within Broward County.  The six taxing authorities are Broward County, the Town of Davie, Children Services Council of Broward County, South Broward Hospital District, North Broward Hospital District and the Central Broward Water Control District.  

The Davie CRA is funded by property tax dollars dedicated to the redevelopment of our community.  Once an area is designated to be within the CRA’s boundaries, the CRA allocates the amount of taxes generated from the first year as the “base revenue” and appropriates any increases above the base (“increment revenues”) to be used towards reinvestments within  that area for the duration of the CRA. This funding is referred to as “tax increment financing” (TIF) which becomes the primary funding source of the Redevelopment Trust Fund and the CRA altogether.

How Tax Increment Financing Works:

3. How much money is taken from the taxes for the Redevelopment Trust Fund?

The amount collected from each of these entities is determined by the increment which is the difference between the current year total valuation and the base year valuation of property within the CRA area.  This value is taken times the millage (tax) rate of the individual bodies and this value is taken times 95%.  This power of the CRA to establish such fund is found in Florida Statute Section 163.353.  and in Section 163.387(1).

4. How does the CRA know where and how to expend its funds?

The guiding tool the CRA uses to determine how and when to expend funds is the Redevelopment Plan. This Plan identifies funding sources, establishes priorities, discusses problems and solutions, and provides goals and policies to indicate benchmarks and measure success. All funds, projects, and initiatives done by the CRA must comply with the Plan. The Plan can be updated to reflect current information and be revised, as necessary.

5. Can the CRA give grants to new businesses?

Per the Florida Statue, the CRA can only expend funds on physical improvements and cannot provide monetary business assistance.