Proposed Interlocal kills Pensacola's Promise

After endless hours of effort by Promise supporters,UWF staff, PJC staff and many community members, on Monday, City staff has proposed the elimination of the primary & ongoing funding source of Pensacola's Promise. The proposed interlocal agreement will back door the funding source and reallocate the funds, that would be available in 2013, to a revision of the ECUA wastewater plant relocation agreement. The current interlocal agreement is between the CRA and ECUA not the City.

In 2007, the CRA entered into an agreement with ECUA to provide $19.5 million over a number of years to fund the portion of the wastewater treatment plant within the CRA. In his memo to Council, then City Manager Tom Bonfield expressly stated that under the agreement the City had no obligation to pay any amounts toward this agreement. The 2007 agreement stated that if CRA TIF funds were insufficient to cover the annual ECUA obligation (AFTER PAYMENT OF THE MARITIME PARK BONDS) then the amount due in that year would merely roll over to a year that additional TIF funds were available. Due to Amendment 1 passing subsequent to the ECUA agreement, TIF revenues in the CRA were dramatically reduced and the potential exists that TIF revenues would not cover both the CMPA bonds and the ECUA agreement.

Staff is presenting in Monday's Finance committee meeting a new interlocal agreement with ECUA. The new agreement with ECUA expressly states:

• the effect of this agreement is intended to fully release the CRA and any
  claim upon the Tax Increment Revenues Under Chapter 163, Florida Statutes from any
  obligation to make payments to the ECUA
• the intent of the parties is to effect a novation and full replacement of the
  City in the place of the CRA on all obligations that CRA may have to ECUA under the 2007 Agreement

Staff proposes using the funds currently appropriated to repay a debt issue of the City that is paid off in 2013 to cover any TIF shortfalls in the CRA agreement with ECUA.

First, why should the City assume an obligation to ECUA for funds legally deferrable under the current CRA interlocal agreement?

Second, the debt relief that the staff proposes be used to pay the CRA's obligation are the same funds necessary and identified to fund Pensacola's Promise.

On Monday, I will be asking that the proposed ECUA interlocal agreements be tabled or returned to staff pending the Councils goal setting session later this month. The Pensacola Promise deserves a chance to be presented formally to Council before being buried with hasty decisions.

There is no rush on the ECUA agreements. Under the current agreement, they are secondary to the CMPA position for TIF revenues and no payments are due for over a year at best.

I hope that the potential of guaranteeing every child in Pensacola a chance to go to college can be given an opportunity before we commit to giving our citizen's money away to another governmental entity that is neither required under existing agreements nor really needed as news articles report the project is under budget.

During our CMP Bond workshop I already expressed my concerns based on historical data for CRA growth that the CRA revenue projections are too low and create a problem. Mr. Barker assumes a lower than normal growth rate for a conservative estimate thus creating a shortage in funding.