News Blog

You've likely heard about Community Redevelopment Agencies (CRAs) in the news of late. In Pompano Beach, we have two CRA districts, the East CRA and the Northwest CRA. The mission of CRAs is to redevelop areas that have experienced decline and initiate improvements that attract new development and create a positive new vibe. CRAs are purpose-built to focus exclusively on revitalizing underperforming areas, using self-sustaining funding that grows with the success of redevelopment. This creates a direct connection between economic growth and local reinvestment, which is not typically found in standard city financing models.

CRA’s get their funding through a process called Tax Increment Financing (TIF) which uses future growth in tax revenue to fund today’s improvements — without raising taxes.

Think of the remarkable transformation of the beach area near the Family Fisher Pier – that's the direct result of the CRA's work. Or look at Old Town, with its acclaimed new restaurants, the popular Backyard, and significant residential growth – again, that's thanks to the CRA.

Currently, this vital work continues in both the East and Northwest CRA districts, with the next exciting focus being the revitalization of our Downtown, poised to become a major economic driver for our city.
The revitalization of these areas benefits the entire City, and how these transformations are paid for is a key benefit of why City’s utilize CRAs.

TIF will not appear as a new line item on your tax bill like a General Obligation Bond (G.O. Bond) would. TIF does not reduce or divert current funding from schools, safety services, or other essential city services. Additionally, there is no significant upfront cost like traditional city capital projects that must rely on upfront allocations from general tax-payer funds. TIF projects are typically paid for over time using additional tax revenue generated from the development. Instead of waiting until funds are fully saved or imposing a tax increase, the CRA can begin projects sooner, using the anticipated growth in tax revenues as the funding source.

Here’s how TIF works:

• Pick a starting year: Let’s say it’s 2025. The city figures out how much property tax is currently coming from that area, prior to any new development. This is called the "base value."
• Invest and improve: The CRA works on improving the area based on an adopted CRA plan, focusing on projects that increase property values and attract new businesses and investment to the area.
• Capture New Revenue as Property Values Increase from the New Investments: As property values increase, a portion of the new tax revenues go into a special CRA account and can only be used for redevelopment in the targeted area.
• Invest Back into the Area: The tax increment is captured each year to fund more improvements, making the area more attractive, bringing in new businesses, and creating a cycle of healthy growth!

The Key Takeaway:
CRAs make it possible to invest in areas that need revitalization without raising taxes today.

As the area grows and prospers, the increased property values generate the funds needed to repay that investment. Tax Increment Financing (TIF) is a powerful tool for building thriving communities — and Pompano Beach is a shining example of its success