march 27, 2012 city council workshop

KEEP PALM COAST M O V I N GMarch 27, 2012 City Council Workshop

Goals & Prosperity 2021

• Road Resurfacing Program– Original Issue & Solution– Funding– Accomplishments

• Current Infrastructure Needs• Possible Funding Sources• Next Steps

Overview

Road Resurfacing Program

• Roads in Disrepair

Road Resurfacing: Original Issue

• Resurface 50 Miles Per Year

Road Resurfacing: Solution

• City Council Added Ballot Initiate to Levy ½¢ Sales Tax for Infrastructure (6/4/2002)

Road Resurfacing: Funding

62%38% 9/10/2002

• Interlocal Agreement between County & Cities (11/18/2002)

• Distribution of ½¢ Sales Tax Levy–½ State Default Formula–½ Local Population Based Formula



10 Years Ending Dec. 31, 2012 (2012 Projected)

Total Collected from ½ Cent Sales Tax $23,400,000

Road Resurfacing Program Expenses by Funding Source

½ Cent Sales Tax Expended $23,400,000

Other Revenue Sources Expended $2,500,000

Total Expended on Road Resurfacing Program $25,900,000

Kept the 50 Mile Promise to Voters Resurfaced 550+ Miles Over 10 Years

Road Resurfacing: Accomplishments

BeforeAfter

Current Infrastructure Needs

• 19 Major Canal Control Structures• 12 Minor Canal Control Structures• 72 Major Roadway Crossing Culverts• 1,555 Minor Roadway Crossing Culverts• 145 Culverts Leading into Saltwater Canals• 369 Valley Gutters Crossing Roadways• 1,100+ Miles of Roadside Swales• 154 Miles of Drainage Ditches• 58 Miles of Freshwater Canals• 26 Miles of Saltwater Canals• Drainage Inlets, Spillways, Catch Basins, etc.

Current Stormwater Infrastructure :

• Canal Control Structures– Estimated Cost: $500k Per

Current Infrastructure Needs: Stormwater

Total Rating

# of Structures

Worse10+

2

9 8

8 4

7 6

6 4

5 or less 7

Total 31

• Major Roadway Crossings– Estimated Cost: $400k Per (Emergency

+50-60%)

Current Infrastructure Needs: Stormwater

Rating Condition # ofCrossings

6 – Failure, non-functioning 05 – Needs replacement/ repair

0

4 – Functioning /Deteriorating 133 – Functioning / Minor Deterioration

42

2 – Replaced 91 – Recent replacement 8Total 72

• Estimated Cost: $1-2M Per• 22 Bridges

Current Infrastructure Needs: Bridges

Grade Salt Water FreshwaterA 2 9B 0 3C 1 4D 2 1

5 17

Bridge Map

Current Infrastructure Needs: Roads

2012 RATING MILES1 - Worst .132 103 - Moderate 265.784 204.195 – Newly Overlaid 70 Total Miles 550.10

2

3

Current Infrastructure Needs: Paths

MAJOR SEGMENT LENGTH

Seminole Woods Parkway 5.0 miles

Sesame Blvd./Citation Parkway 3.3 miles

Lakeview Blvd. 1.3 miles

Graham Swamp – Phase 2 5.0 miles

Seminole Woods Parkway

Iroquois Canal Crossing @ Seminole Woods Parkway

10 Year Sample Capital Plan

Stormwater $ 7,250,000•9 Control Structures•5 Major CrossingsRoad & Bridges $ 16,250,000•5 Bridges•100 Miles of Road Resurfacing

Multi-Purpose Paths $ 2,500,000•8.2 Miles of Paths

Possible Funding Sources

Requiring City Council Approval• Ad Valorem• Public Service (Utility) Tax • Utility Franchise Fee

Requiring Voter Approval• Ad Valorem for Debt Service• ½¢ Sales Tax (County-wide)

Possible Funding Sources

• Placing Measure on Ballot– Either City of Palm Coast or County–Must be submitted by Noon on June 8th

• Distribution of ½¢ Sales Tax Levy– Default Formula (State Statute)– Interlocal Agreement (Both City and

County Must Approve)

Continuing ½¢ Sales Tax: Background

State Default Formula – Fair Distribution?


50%50%

Population Distribution

50%50%

Business Distribution

Based on Two Key Assumptions

Cities

Unincorporated County Unincorporated

County

Cities



21%

79%

2011 Population

24%

76%

2010 Sales Tax Collection

Palm Coast

Palm Coast/Flagler County Reality

Based on BEBR and DOR Data

Palm Coast

Remainder of Flagler County Remainder of

Flagler County



Palm Coast Unincorporated Flagler County

TotalCounty

Population (2002) 38,223 (66%) 10,691 (19%) 57,432Population (2011) 75,617 (79%) 13,127 (14%) 96,241Change (%) 37,394 (98%) 2,436 (23%) 38,809 (68%)Lane Miles (2002) 1,021.61 446.86 1,576.35Lane Miles (2011) 1,169.43 435.25 1,712.56Change (%) 147.82 (14%) 11.61(3%) 136.21 (9%)

Sources: Census, BEBR, and Flagler County

• Interlocal Agreement Projected Distribution– $2.6 Million Per Year– $26 Million Over 10 Years

• Typical Cost to Residential household of ½ Cent Sales Tax*– $48-$54 per year*Based on Median Household Income in City and IRS Tables

Continuing ½¢ Sales Tax: Distribution

Revenue Diversification

• Public Service (Utility) Tax– General Revenue, Unrestricted– Tax on Usage Portion of Utilities

(Electricity, Natural Gas, Fuel Oil, Bottled Gas, and/or Water Service)

– Up to 10% Tax– Approved by City Council Ordinance

Public Service (Utility) Tax

• Public Service Tax – Which Municipalities?– Flagler: Bunnell, Flagler Beach– Putnam: All Except Welaka– St. Johns: All– Volusia: All (including Volusia

County=Charter County)

Public Service Tax

• Public Service Tax on Electric Usage*– 10% Tax would Generate $3.9 Million

Annually– Typical Residential Bill (Total Bill) $106.12• Usage Portion (62%) = $65.79• 10% Tax = $6.58

– 74% Residential, 26% Commercial

* Based on FPL Data

Public Service Tax

• Franchise Fee– General Revenue, Unrestricted– Charged on Entire Electric Utility Bill– Typically set at 6% – Approved by City Council Ordinance

Franchise Fee

• Franchise Fee on Electric Utility– 6% would Generate $3.9 Million

Annually– Typical Residential Bill (Total Bill)

$106.126% = $6.37

– 74% Residential, 26% Commercial

* Based on FPL Data

Franchise Fee

Compare Funding Sources½ Cent Sales Tax Public Service Tax Franchise Fee

Rate 0.5% 6.5% 4.0%

Estimated Revenue $2,600,000 $2,600,000 $2,600,000

Cost to Typical Residential household (per month)

$4-4.50 $4.25 $4.25

Cost to Typical Residential household (per year)

$48-54 $51.00 $51.00

City Revenue-Generated and Received ½ Cent Sales Tax ILA

1/2 Cent Sales Tax$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$3.1 mil-lion

$2.6 mil-lion

What You Pay!What You Get!

Millions

• Substitute Franchise Fee and Public Service Tax for Stormwater Fee to Address Stormwater Maintenance Needs

An Additional Option

½ Cent Sales + Stormwater Fee

Public Service Tax + Franchise Fee

Rate 0.5% + $8/month 10% + 6%

Estimated Revenue $7,500,000 $8,000,000

Residential Portion 80-85% of Stormwater Fees 74%

Cost to Residential household (month)

$12-12.50 $13.76

Cost to Residential household (year)

$144-150 $165

• City Council Options– ½¢ Sales Tax

• Interlocal Agreement Prior to Resolution for Ballot• City Resolution for Ballot by June 5th, 2012

– Public Service Tax• A tax levy must be adopted by ordinance, and the effective date of

every levy or repeal thereof must be a subsequent January 1, April 1, July 1, or October 1

• Ordinance Adopted by August 31, 2012 to implement by January 1, 2013.

– Utility Franchise Fee• Franchise Agreement Required • Franchise fees are generally negotiated at 6% • City Ordinance by August 31, 2012 to implement by January 1,

2013.

Next Steps

march 27, 2012 city council workshop

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