Escambia Children’s Trust approves settlement offer in CRA tax dispute
By Christina Andrews
July 2, 2025 at 4:20 PM CDT
The Escambia Children’s Trust board has agreed to send a proposed settlement to Escambia County to resolve a dispute over $1.13 million in past tax payments, but not without questions about how the County spent money it already received.
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At the heart of the issue is how tax dollars are distributed inside Community Redevelopment Areas (CRAs). These are neighborhoods targeted for revitalization. Escambia County uses a funding method called Tax Increment Financing (TIF) to support CRAs. In Escambia county, both the city and county have CRA districts that collect these funds.
The law behind the tax dispute
Under Florida law, all taxing authorities, including special districts like the Escambia Children’s Trust, must contribute to a CRA’s tax increment funding unless they are formally exempted.
That’s because CRAs rely on rising property values to fund revitalization projects, and the tax “increment” is collected from all entities that levy property taxes within CRA boundaries. Without an exemption, the Trust is legally obligated to turn over a share of its tax revenue, even if it wasn’t billed on time or disagrees with how the money is used.
The county says the Trust still owes TIF contributions for 2021, 2022, and 2024. The Trust, which collects property taxes specifically to fund youth services, argued that the bills for 2021 and 2022 came too late. While the Trust had already paid its 2023 bill (about $443,000), it maintains that it was not billed on time for the earlier years and shouldn’t be held responsible for back payments.
At last week’s meeting, Trust board members debated whether to fight the county’s demand or move forward with a deal that would define how the funds are used. The majority chose to move forward.
“We can either challenge the county and say this money isn’t owed, or we can try to resolve it by agreeing on how the money will be spent,” said Dr. Rex Northup, board chair.
How was the money spent?
Some board members were uneasy about past payments. Treasurer Tori Woods pointed out that the CRA money the Trust paid in 2023 was used by the county for things like street paving, sidewalks, and security cameras, not youth programs.
“If we hand over all this money, and then they go and pay for more streets and sidewalks, that’s not what I initially thought it was because I thought we were talking about programming,” Woods said.
Northup emphasized that an updated version of the agreement would require County CRA funds to be spent on youth programs, not general infrastructure.
“Rather than simply writing them a check and saying ‘do as you will,’ we will be writing them a check and defining how those funds will be expended,” Northup said.
Trust attorney Meredith Bush said the agreement does not include a “clawback” provision, which means if the county spends the money on something not covered, there’s no automatic way for the Trust to get the money back. Citizens could sue, but the Trust couldn’t.
“So if we give them the money, and they spend it wrong, there’s nothing we can do?” Woods asked. “Then what’s the point of having an agreement?”
In response, board members added stricter language about what programs the funds must support. Still, a majority agreed to trust that the county would follow through.
“I want to get this behind us and move forward,” said Vice Chair Stephanie White. “It’s for the kids.”
The board approved a revised interlocal agreement, which:
What happens next
The Trust voted to send the agreement to the Escambia County Commission, which is expected to consider it by July 10.
Meanwhile, the Trust also received a formal letter from the City of Pensacola requesting back TIF payments for fiscal years 2021 through 2025. The City asked for $1.86 million in principal, plus interest and late fees totaling $2.4 million.
Trust Executive Director Lindsey Cannon said that the city appears open to collaboration. The board plans to handle the city’s request separately and hopes to negotiate a similar interlocal agreement focused on early childhood education and childcare.
How much is involved?
Support Local Stories. Support Public Media.
At the heart of the issue is how tax dollars are distributed inside Community Redevelopment Areas (CRAs). These are neighborhoods targeted for revitalization. Escambia County uses a funding method called Tax Increment Financing (TIF) to support CRAs. In Escambia county, both the city and county have CRA districts that collect these funds.
The law behind the tax dispute
Under Florida law, all taxing authorities, including special districts like the Escambia Children’s Trust, must contribute to a CRA’s tax increment funding unless they are formally exempted.
That’s because CRAs rely on rising property values to fund revitalization projects, and the tax “increment” is collected from all entities that levy property taxes within CRA boundaries. Without an exemption, the Trust is legally obligated to turn over a share of its tax revenue, even if it wasn’t billed on time or disagrees with how the money is used.
The county says the Trust still owes TIF contributions for 2021, 2022, and 2024. The Trust, which collects property taxes specifically to fund youth services, argued that the bills for 2021 and 2022 came too late. While the Trust had already paid its 2023 bill (about $443,000), it maintains that it was not billed on time for the earlier years and shouldn’t be held responsible for back payments.
At last week’s meeting, Trust board members debated whether to fight the county’s demand or move forward with a deal that would define how the funds are used. The majority chose to move forward.
“We can either challenge the county and say this money isn’t owed, or we can try to resolve it by agreeing on how the money will be spent,” said Dr. Rex Northup, board chair.
How was the money spent?
Some board members were uneasy about past payments. Treasurer Tori Woods pointed out that the CRA money the Trust paid in 2023 was used by the county for things like street paving, sidewalks, and security cameras, not youth programs.
“If we hand over all this money, and then they go and pay for more streets and sidewalks, that’s not what I initially thought it was because I thought we were talking about programming,” Woods said.
Northup emphasized that an updated version of the agreement would require County CRA funds to be spent on youth programs, not general infrastructure.
“Rather than simply writing them a check and saying ‘do as you will,’ we will be writing them a check and defining how those funds will be expended,” Northup said.
Trust attorney Meredith Bush said the agreement does not include a “clawback” provision, which means if the county spends the money on something not covered, there’s no automatic way for the Trust to get the money back. Citizens could sue, but the Trust couldn’t.
“So if we give them the money, and they spend it wrong, there’s nothing we can do?” Woods asked. “Then what’s the point of having an agreement?”
In response, board members added stricter language about what programs the funds must support. Still, a majority agreed to trust that the county would follow through.
“I want to get this behind us and move forward,” said Vice Chair Stephanie White. “It’s for the kids.”
The board approved a revised interlocal agreement, which:
- Requires all CRA payments (covering fiscal years 2021, 2022, 2024, and 2025) to fund “county youth programs.”
- Adjusts terminology by replacing “services” with “programs” to clarify intent.
What happens next
The Trust voted to send the agreement to the Escambia County Commission, which is expected to consider it by July 10.
Meanwhile, the Trust also received a formal letter from the City of Pensacola requesting back TIF payments for fiscal years 2021 through 2025. The City asked for $1.86 million in principal, plus interest and late fees totaling $2.4 million.
Trust Executive Director Lindsey Cannon said that the city appears open to collaboration. The board plans to handle the city’s request separately and hopes to negotiate a similar interlocal agreement focused on early childhood education and childcare.
How much is involved?
- The County billed the Trust $1,134,025 total, including:
- $327,974 for 2021
- $362,710 for 2022
- $443,341 for 2023 (already paid)
- The Trust withheld 2021 and 2022 payments because the County didn’t invoice those years on time.
- The 2024 CRA payment is being billed now and is part of the new agreement.