Boca Raton CRA receives clean audit; staff says funds earmarked for downtown infrastructure

The Boca Raton Community Redevelopment Agency on Monday received an unmodified ("clean") audit for the fiscal year ended Sept. 30, 2024, and staff told the board the agency's improved fund position will support downtown infrastructure projects, including work tied to a planned downtown government campus.

Deputy Chief Financial Officer Carlisha Jenkins presented the CRA’s audited statements, reporting total assets of about $143,000,000, including $47,300,000 in capital assets, $575,000 in total liabilities and $58,500,000 in deferred inflows related to Meisner Park ground leases. Jenkins said the CRA’s net position increased by about $16,700,000 over the prior year and the agency collected roughly $21,400,000 in tax increment revenues and $4,600,000 in charges for services.

"This presentation is specifically for the CRA," Jenkins said, framing the statements required under Florida law. She walked the board through the management's discussion and analysis and noted a positive budget-to-actual variance of approximately $17,500,000.

The independent auditor, Harmus Garzone of CBIZ CPAs, told the board the audit produced an unmodified opinion. "In our opinion, the financial statements referred to above present fairly in all material respects the respective financial position ..." Garzone said, describing the result as "an unmodified opinion or a clean opinion." He also reported no internal control deficiencies and no compliance issues identified during the audit.

Board members pressed staff for details about an accounting change that places certain ground leases on the balance sheet. Zervas explained the change reflects recent pronouncements requiring lease assets and liabilities to be recognized so the reports are more transparent. "If the city has a lease liability or the agency has a lease liability, it would show up on the balance sheet," he said, describing how base rent is recognized now and participation (percentage) rent may vary year to year.

Jenkins and other staff said the year-over-year positive variance and the agency’s ending fund balance (discussed in the financial statements as about $35,200,000) largely reflect timing: some capital projects are still in planning and not yet spent. Staff said the funds are expected to be allocated toward infrastructure improvements necessary for the downtown redevelopment campus, including drainage, water and sewer capacity and street work.

The board received the presentation and asked follow-up questions; no formal action was taken on the statements during the meeting. The financials and related reports will also be reviewed at the city's workshop, staff said.

Next steps: staff will continue project planning and include these figures in upcoming budget and downtown redevelopment updates to the board.