How is the CRA funded
One of the greatest attributes of the Lake Clarke Shores CRA is that it is essentially self-funded. Because the CRA is a separate government entity from the town itself, it is not funded by the town's general fund. Instead, its funding is generated as a result of its own success, and the value of the properties within the district.
Frozen Snapshot
When the CRA was created in 2016, a snapshot of the value of the properties within the district was created. That snapshot included how much each property was paying that year in property taxes to the various government agencies that collect them (the town, the county, various taxing districts, etc). When the CRA was created, the amount each of those government agencies received from each property in the CRA was frozen at those 2016 amounts. They do not receive any additional dollars, even when the value of the property increases. In other words, the amount of property tax dollars the town receives from a property in the CRA has not changed since 2016.
Where do the dollars go?
Wait! You may be asking: Does that mean a property owner in the CRA pays less property taxes than those outside the CRA? The answer is: No. A property owner in the CRA pays the same amount of property taxes as one outside the CRA. So, if the amount the town receives never goes up, where do the additional dollars paid by the property owner go?
They go to the CRA.
Success feeds success
We all know we pay more in property taxes when the value of our property rises. Of course, so do the property owners in the CRA district. The difference, however, is that any additional property tax dollars paid by CRA properties that are above the frozen 2016 amounts go right to the CRA. That's how the CRA gets its funding. The more property values rise above that frozen 2016 value, the more funding goes to the CRA. The more successful the CRA is at increasing the value of the properties, the more funding it receives.
No cost to other residents
Finally, since the CRA's funds come from properties within the CRA district, the law requires those funds only be spent on projects or programs that improve areas and properties within the CRA. This separation not only ensures the CRA dollars are used to improve the CRA, but it also ensures general fund dollars paid by other property owners in Lake Clarke Shores do not foot the bill for those improvements.
