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Home My WebLink AboutCBC0416Minutes (2)CITIZENS' BUDGET COMMITTEE Meeting Date April 15, 2016 Conference Room 3 MEMBERS PRESENT: Dan Kurek Richard Pancoast William Donovan Patrick Campion Ed Lounds Craig Mundt Steven Weaver John Culverhouse Carl Hensley Ron Knaggs MEMBERS ABSENT: James Clasby Jay L. McBee Barry Mucklow Jerry Buechler Gwen Morris OTHERS PRESENT CALL TO ORDER Howard Tipton Asheley Hepburn Jennifer Hill Ed Matthews Beth Ryder George Landry Madeline Yaroma Mark Satterlee Ben Balcer Ron Parrish Don West Laurie Waldie Leslie Olson Bob Adolphe Mr. Kurek called the meeting to order when a quorum was established, at 7:38 a.m. PUBLIC COMMENT No member of the public spoke. APPROVAL OF FEBRUARY 19, 2016 MINUTES After a motion and a second, the minutes were unanimously approved. INFRASTRUCTURE SALES TAX PRESENTATION Mr. Kurek reported that he had attended a meeting with the City, Mr. Tipton, and others. Mr. Tipton presented the attached PowerPoint. This presentation will be given to the Cities and the Board of County Commission. He asked for feedback from the members. Citizens' Budget Committee April 15, 2016 Page 2 Mr. Hensley started discussion on road projects. Mr. West provided information. Mr. Donahue asked about water issues. Mr. Lounds' question about priorities of projects started more conversation on roads. To answer a question from Mr. Tipton, Ms. Waldie informed the group that there were 37,000 septic systems in St. Lucie County. Alternatives and solutions were discussed. The focus has gone from water quantity to quality. Mr. Weaver asked for clarification on dates. Options to increase revenue for projects and how it would be split between the County and the Cities were discussed. Mr. Lounds started discussion on taxes that benefit other agencies. Mr. Hensley asked about Port St. Lucie roads. Mr. Mundt asked about matching funds. Ms. Olson gave information from the Transportation Planning Organization (TPO) perspective. Mr. Knaggs expressed his opinion on homeowners paying for septic systems and increased taxes, which started a conversation on the subject. Mr. Hensley mentioned that a septic system would increase the value of a home. Mr. Lounds asked about new developments and impact fees. Mr. Knaggs asked if it would free up other money if the sales tax passed. Mr. Lounds steered the conversation back to gas tax. Mr. Mundt asked about jobs. Mr. Tipton asked for a consensus from the group. Mr. Lounds asked about the '/2 cent verses full cent. The survey, flexibility, accountability, timing and education were discussed. Mr. Knaggs made a motion to urge Mr. Tipton to move forward in reviewing the tax with the County Commission. It was seconded. Mr. Kurek reviewed the wording and added that the presentation be made to the Cities. Mr. Culverhouse suggested educating the taxpayers on the amount of taxes that are used for services, such as road paving. The motion was unanimously approved. Mr. Lounds asked about sunset. It will be discussed with the Cities. Mr. Campion asked about repealing the tax. Mr. Knaggs asked if there was another meeting before June 7. Input from the County Commission and Cities will be reported at the May meeting. It was decided to discuss future plans then. Mr. Tipton asked Ms. Olson to give a summary of the presentation she made a few days earlier. She had good news about growth. Mr. Lounds asked about commercial Citizens' Budget Committee April 15, 2016 Page 3 construction. Mr. Satterlee added information regarding the assistance from County staff. Mr. Kurek asked for an update on inmate medical. Mr. Landry gave a report and answered questions. Mr. Pancoast told about an article in the paper reporting Palm Beach County being built out. He expects things to come this way. He informed the group about people taking their horses on vacation. He suggested the County build a campground near areas with horse trails. Mr. Balcer reported on available areas and future plans were discussed. INFORMAL BOCC MEETING UPDATE The presentation they saw is what will be presented in the Informal BOCC meeting. OTHERISSUES No other issues were mentioned. ADJOURNMENT Mr. Kurek adjourned the meeting at 8:57 a.m. Respectfully submitted by: Brenda Marlin The next CBC meeting will be held on Friday, May 20, 2016, at 7:30 a.m., in Conference Room 3, of the St. Lucie County Roger Poitras Administration Annex. 4/19/2016 St. Lucie County Bridging the Gap Citizen's Budget Committee Friday, April 15, 2oi6 American Society of Civil Engineers Scorecards • National Infrastructure Challenges (2013) • D+ over 16 sectors • $3.6 trillion needed by 2020 • Florida Infrastructure Challenges (2012) • C- over a sectors • $36 billion needed in water/waste water upgrades by 2032 According to the Federal Reserve Bank of St. Louis, overall government spending on US Public infrastructure has fallen to a 20-year low of i.7% of GDP" Testimony of Jay Dhru, Senior Managing Director, Standard & Poors Rating Service, before the US Senate Committee on Finance (2014) 1 4/19/2016 Florida TaxWatch 2016 Report: How Florida Compares • Florida ranks 49th in per capita state revenue collections, lowest ranking since TaxWatch has been monitoring "Florida's local governments (tax) rankings are generally much higher than the state government rankings due to the fact that Florida relies more heavily on local governments to fund public services than almost all other states." Why Are We Here Today? During the 2015/2oi6 budget cycle, the County's Citizen Budget Committee made a recommendation to the BOCC to explore a possible sales tax initiative to address the shortfall in infrastructure funding. The Board accepted this recommendation and directed staff to evaluate. And, we're not alone.... • Florida Counties & Cities around the state are looking at the sales tax option • Broward County has placed a i-cent sales tax on the ballot • Palm Beach has placed a i-cent sales tax on the ballot • Marion County voters have already approved an increase • Alachua, Manatee, Sarasota and Bay Counties are exploring the option 4 N 4/19/2016 Problem Statement • The County has experienced a 22.4% decline in Ad Valorem revenue since FY 2007, attributable to the recession of 2oo8 • Since 2oo8 the County has steadily reduced and in some cases eliminated planned capital investment as a result of the decline revenues • St. Lucie County's Population is anticipated to increase by 70,902 by 2025 • There is a backlog of approximately $boo million of capital needs throughout the County The Challenges • Current revenues put County roads on 75-year repaving schedule • Many needed road and sidewalk projects have little prospect of completion in the 204o LRTP timeframe • Public Safety - Sheriff vehicle/equipment replacement, 9ii infrastructure upgrades/800 MHz radio system • Water quality in the rivers, canals, St. Lucie River and the Indian River Lagoon is at crisis level • Neighborhood storm water and drainage retrofits are grossly underfunded 6 3 4/19/2016 Challenges, con't • 204o LRTP cost feasible project list is very short.... • 5 Projects consume 72% of projected funds 2021-2040 • Kings Highway • Port St Lucie Boulevard • Midway Road • US i Retrofit • Jenkins Road • For water quality, focus on the basin we control • C-23, C-24 • Accelerate the Indian River Lagoon South project • Improve St. Lucie River water quality • io-mile creels • Moore's Creek 7 County Priority Roads/Infrastructure Projects PROJECT/DESCRIPTION Roadway widening Projects= TOTAL COST CURRENT FUNDING UNFUNDED AMOUNT Kings Hwy & Indrio Rd. Intersection 17,425,625 8,470,224 8,955,401 Midway Road (Selvitz to Glades Cutoff) 27,550,000 3t500,000 24,050,000 Jenkins Road (Midway to St. Lucie Blvd) 123,600,000 123,600,000 Airport Connector (Turnpike to Kings) 16,800,000 16,800,000 Glades Cutoff Road (Commerce to Selvitz) 73,100,000 73,100,000 Selvitz Road (Glaes Cutoff to Edwards) 9,300,000 9,300,000 Total Roadway widening Projects 267,775,625 11,970,224 255,805,401 8 4 4/19/2016 Major Service Level Impacts ROAD AND BRIDGE 75 Year Road Maintenance Cycle 30 25 r 225 Reconstruction of 20 miles of N roads will cost over $7 Million Q0 per year due to deferred maintenance r. 15 - Er R 00 19 5 5 ear esu ac0ng c Blue ■ Proposed Miles to be Resurfaced 9 County Priori y er Quality/Stormwater Projects PROJECT/DESCRIPTION Stormwater/Neighborhood Drainaa TOTAL COST CURRENT FUNDING UNFUNDED AMOUNT San Lucie Drainage Im rov-Phase II 2,124,915 24,915 2,100,000 Harmony Heights Phase I-B 2,631,969 56,969 2,575,000 Paradise Park Phase 4 FINAL PHASE 2,400,000 200,000 2,200,000 Melville Rd Stormwater Master Plan 1,364,242 114,242 1,250,000 St Lucie Estuary/Indian River Lagoon Natural Storage Initiative -TMDL 9,500,000 9,500,000 San Lucie Stormwater Master Plan Land Acquisition 556,865 281,865 275,000 Wet Detention Pond Retrofit Program - TMDL 2,500,000 2,500,000 Harmony Heights Drainage lmpvmts (Ph 2-5) 7,000,000 - 7,000,000 Melville Rd Ph 1-5 Design and Construction 11,000,000 11,000,000 San Lucie Ph1,3,4,5 (Design and Construction) 7,000,000 7,000,000 Sunland Gardens Neighborhood Improvement Project 25,000,000 25,000,000 White City - Canals F and G 11,000,000 11,000,000 Total Stormwater Neighborhood Drainage 84,224,240 2,724,240 81,500,000 10 4/19/2016 County -wide Septic to Sewer Upgrade/Replacements • High densities of on -site septic tanks are adjacent to the St. Lucie River and Indian River Lagoon - an estimated 3,500 properties • Data indicates that groundwater seepage and nutrient loading are factors producing stress in these in vital natural gems • Estimated cost to convert 3,500 septic tanks to sewer is $40,000,000 - $50,000,000 County Priority Projects IN�MNRNEfl Na.tk �a..y r,«e,aas St. Lucie County manalake zeano� T o i z a Priority Water Quality Projects C-25 san lxe Praaa Haar<na {j' BFvn.FD Da.a.a Pow ,. ra.x �Y uc vRcsERv¢s seeker {r u<sMPHw/.RR axeeaweee P-p-423/24 Reeery Petivvlce Praurte _.f�_. SNi7 C-24 Cltrvs Xummcek rt Rl_ver Eafales �^Hammoek Reserve Preserve .ai. a e. 7 MPJtIiN u 4/19/2016 '11 •: " Priority Capital Projects 11fJ6' {� • `j Opportunities • If we agree that the projects are needed and there is a funding gap • Do we begin to address the needs today before 16o,000 new residents move here by 2040? • How do we bridge the gap? FA 4/19/2016 What Are Our Options? • Cut services • Shift resources • Increase taxes • Reduce reserves (further) • New revenue source • Do nothing Florida Counties with Infrastructure Sales Tax County Amount Enacted Date Charlotte 0.01 1/1/2015 12/31/2020 Clay 0.01 22/1/2200 122/ 1/201 Escambia 0.01 1/1/2o18 122/ 1/2028 Glades 0.01 22/1/2007 122/ 1/2021 Highlands 0.01 1/1/201 12/31/2033 Indian River 0.01 6/1/2004 12/31/2019 Lake 0.01 1/1/2o18 12/ 1/2A 2 Leon 0.01 12/1/2020 12/31/2039 Monroe 0.01 1/1/2201 12/31/2033 Osceola 0.01 /1/200 8/ 1/202 Pasco 0.01 1/1/201 122/ 1/202 16 jM 4/19/2016 Florida Counties with Infrastructure Sales Tax, Cont. County Amount Enacted Date Pinellas 0.01 2/1/1 0 12/ 1/201 Putnam 0.01 1/1/2o18 12/ 1/2A 2 Sarasota 0.01 /1/2200 122/ 1/2024 Seminole 0.01 1/1/2201 12/ 1/2202 Wakulla 0.01 1/1/200 12/ 1/2017 Duval 0.00 1/1/1989 Until Repealed Duval 0.00 1/1/2001 12/ 1/2A 0 Hillsborough 0.00 122/1/1 6 11/ 0/2026 Miami -Dade o.o0 1/1/1989 Until Repealed Local Government Infrastructure Surtax • Referendum: Two Methods • Enacted by a majority of County Commission and approved by voters via referendum. • Municipalities representing a majority of the county's population may initiate the surtax by adoption of resolutions calling for a countywide referendum and approved by the majority of the voters by referendum. • Length: • Surtax Referendums enacted after July 1, 1993 do not have a limit on the length of levy • Distribution: Two Methods • Local agreement to determine the distribution of the surtax • Formula provided in Florida Statute 218.62 (based on the Local Government Half -Cent Sales Tax formulas) • 49.95% -County • 50.05% - City i, 18 PJ 4/19/2016 Local Government Infrastructure Surtax Estimated Proceeds • $15,576,076 (based on the Local Government Half -Cent Sales Tax formulas) Bonds • May pledge the proceeds of the tax for the bonds • Counties and municipalities may join together for the issuance of bonds County Comparison • 18 Counties in the State of Florida levy the Infrastructure Surtax • Neighboring counties that levy the Infrastructure Surtax and effective date: • Okeechobee (Oct 1. 1995) — i%Small Cities Surtax • Indian River (Jun. 2004) 19 SURTAX BENEFITS TAX PAID BY EVERYONE # Is* AFSBUSINESS OWNERS VISITORS PROPERTY OWNERS • Easily bondable • All proceeds stay here 20 10 4/19/2016 Local Governor Infrastructure Surtax • Survey indicates support for water quality, sidewalk and road projects • Public safety is also supported • Currently 6.5% sales tax • i cent versus 0.5 cent - 0.5 has support • Estimated 80/20split - residents v tourists • Leverages other funding sources 21 Local Governm Infrastructure Surtax • Authorized under F.S. 212.055(2) • Applied to all taxable transactions but shall not apply on sales above $5,000 on an item of tangible personal property. • Over io years would generate approximately: Port St. Lucie $ 75,5i8,o62.37 Ft. Pierce $18,6o6,348.29 St. Lucie Village $ 260,493.45 St. Lucie County $ 94,207,240.19 22 11 4/19/2016 Local Govern Infrastructure Surtax (Cont.) • Over 20 years would generate approximately: Port St. Lucie Ft. Pierce St. Lucie Village St. Lucie County $173,164,932.78 $ 42,664,853.28 $ 597,3i8.44 $ z16,019,716.36 23 Next Steps • County workshop on April 19th to gauge level of interest in moving surtax discussion to a public hearing. • Public hearing would most likely be on June 7th for the item to be placed on November's ballot. • Build community awareness through education campaign. • If voter approved, a citizen committee established to monitor expenditures and project progress. 24 12 4/19/2016 In Summary • We have hundreds of millions $$$$ of unmet infrastructure needs for water quality improvement, stormwater, road and public safety • Existing funding doesn't come close to bridging the gap - the option of addressing the needs with an infrastructure is a good start • And one of the benefits is that it's paid for by everyone, residents, visitors and businesses - not just property tax Comments and Questions 25 26 13