HomeMy WebLinkAboutWorkshop Minutes 01-29-2009BOARD OF COUNTY COMMISSIONERS
ST. LUCIE COUNTY, FLORIDA
WORKSHOP ON GROWING ECONOMIC CRISIS
Date: Januazy 29, 2009 Convened: 10:00 a.m.
Adjourned: 12:00 p.m.
Commissioners Present: Chairperson, Paula A. Lewis, Chazles Grande, Chris Craft,
Chris Dzadovsky, Doug Cowazd
Others Present: Faye Outlaw, County Administrator, Lee Ann Lowery, Asst. County
Administrator, Dan McIntyre, County Attorney, Millie Delgado-Feliciano, Deputy Clerk
Opening remarks were made by the County Administrator.
Com. Coward opened the presentation regazding the current state of affairs. He
addressed the foreclosure rate in the State and in St. Lucie County. The unemployment
rate in St. Lucie County is presently at 10.5% reaching 40% in some sectors.
He stated the state economy is looking at a $6.4 million budget shortfall. This problem is
much bigger than just St. Lucie County. He believes the county has done a lot but he
believes they can do more to help with the unemployment issue and he would like to try
and "kick start" the local economy and get people working. He would like to focus on
local businesses. He believes they can do this if they focus on the capital side.
Com. Coward stated he is not proposing a social program and write checks and he is not
proposing a tax increase or a bail out. He would like to recommend using revenues
presently in various accounts within our budget that were set aside for future programs.
He would like to identify them and expedite the process. He would like for the Boazd to
re-prioritize existing dollazs and supplement stimulus dollazs.
Staff has put together some ideas as to where these monies may be found. He would also
like to concentrate specifically on hiring local firms for capital projects.
The County Administrator advised the Board the top five industries hit were:
Trades, Transportation & Utilities
Construction
Professional & Business Services i.e. Banking, Retail and Real Estate
Leisure and Hospitality
Manufacturing i.e. Pursuit Boats
The available funding options aze as follows:
Existing Impact Fee Revenue
$570,189 Pazk Impact Fees B (PSL)
$9,646,525 Road Impact Fees
Public Buildings Impact Fees is projected to have a deficit by year end.
Available Funding Options
Existing Revenue-Reserves
Contingency $1,000,000
Vehicle Replacement 310,480
Future Staff Needs 500,000
Jail Medical Wing 3,389,134
Community Services 784,035
The Sheriff addressed the Jail Medical Wing and stated they had received a bid of $2.4
million for the wing from the company who had constructed the new pods. They were to
look at the law enforcement impact fees to offset the cost also. They only have 12
medical cells and as the Public Defender stated there is a need to expand the medical
wing. They are now pushing at 1400 inmates.
Com. Coward stated the encouraging part is that it is considerably less and there are other
funds available and federal stimulus dollars which means they can utilize some of the
funds left for other priorities and still move forward with the project.
The County Administrator stated it would take approximately 90 days to get the RFQ for
design services out and the selection to be made.
Com. Craft stated he approved of what was being discussed, however he realizes that
they cannot look at this in a bubble. They need to take a regional approach with the
nearby counties and encourage and coordinate with them. There are some people who
live in St. Lucie County but work in Martin County. He recommended having interlocals
with the neighboring counties.
Com. Coward stated his concern was if they attempted to do the regional approach it may
slow down the process and the projects.
Community Services: $ 784,035
The County Administrator stated they have put those funds on hold and can now be
considered as part of the available funding.
Available Funding Options
Existing Revenue:
$450,000 in the North County Tourism Capital Fund
33% of the 5th cent tourist development tax revenue shall be allocated towards
Capital facilities that promote tourism located in the St. Lucie County Fairgrounds
and the area north of Midway Road.
These funds were previously budgeted for the renovation of the old post office. Since
this renovation will not take place, the funds car. also be utilized for other priorities.
Available Funding Options
Existing Revenue
Approximately $600,000 available for ESL capital projects. Some of these
projects can be contracted out since the projects in house are taking some time.
Com. Coward commented on the LeStrange property and recommended a boardwalk
which would enhance the facility at a minimal cost. He believes this is one place the
tourist dollars could help.
$30 million appropriated two years ago for Priority Transportation Projects
(BOCC approved up to $42 million)
There is $12 million available at this time from this bond. He believes there is $4.5
million of the $30 million that can be re-identified but would need to be replaced in the
future.
Existing Emergency/Fund Balance Reserve
There is currently $17.6 million in the emergency reserve account which has increased
from $3.5 million 10 years ago.
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Emergency Reserves $13,541,834
Fund Balance Policy $ 4,149,790
Emergency Reserves/Fund Balance Policy:
The Board will also maintain a designated Emergency Reserve of 5% of the total
operating budget. By majority vote, the Board may use all or a portion of this
Designated Emergency Reserve, however, the use is normally reserved for natural
or man made disasters.
The Board will also maintain a fund balance reserve in the general fund equal to
5% of the general fund operating budget. By a majority vote, the Board may use
all or a portion of this fund balance reserve to address unanticipated revenue
shortfalls or any unforeseen expenditures not necessarily resulting from a natural
disaster.
Emergency Reserves:
2004 Hurricanes Frances and Jeanne
St. Lucie County sustained damages of: $107.4 million
FEMA and other reimbursements are estimated to be $92.5 million
St. Lucie County's liability is estimated to equal: $14.9 million
Factors which may negatively impact the County in future storms:
For 2004 storms, FEMA and the State provided a 95% reimbursement of damage
expenses. For Tropical Storm Fay, this hus been reduced to 87.5% (75%FEMA,
12.5% from the state.) reimbursement. If an 87.5% reimbursement had been
applied to the 2004 storms St. Lucie County's liability would have been $18.9
million.
The Grants Manager stated if the county does have another major storm
He believes the state will not be contributing at all which makes our liability
even greater.
FEMA has recently established a policy that structures damage in prior storms
may only receive limited reimbursement of storm damages. This will reduce St.
Lucie County's ability to recover damages for storm damaged buildings.
Staff is investigating increasing insurance coverage to compensate for potential
reduction of FEMA reimbursement. Cost of increased insurance may be
prohibitive.
Due to the current economic downturn, departmental reserves are down.
Departments therefore have a reduced ability to pay for storm damages from
their budgets. Departments are currently more dependent on County
emergency reserves.
Emergency Fund Balance Reserves
Current Emergency Reserves= $17,691,624
Anticipated Damages From Tropical Storm Fay = ( 8,700,000)
Anticipated FEMA and other Reimbursements
for Tropical Storm Fay = $ 6,525,000
Remaining Emergency Reserve Balance = $15,516,624
It should additionally be noted that FEMA initiated aclose-out audit of the County's
2004 and 2005 storm projects. This audit is expected to last one year. If certain storm
expenses are found to be ineligible, this could further reduce the Emergency Reserve
Balance.
Potential New Revenue
New investment revenue can be used as a local match to obtain grants and outside
funding assistance (e.g. solar energy grants on public buildings)
Partner with municipalities and private sector
Aggressively target state and federal stimulus dollars
Specific Projects Examples
Turn-dirt ready-to-go projects
Ex:
DOWNTOWN JUDICIAL COMPLEX. $2,616,143
Three courtroom expansion
Expanded holding cells
Judges Chambers
Airport West Commerce Park Sanitary Sewer Approx. $800,000
NEAR TERM, READY WITHIN 12 MONTHS
Walton Road (US # 1 to Village Green) which is inside PSL's redevelopment
area approx. $7.1 million.
The Public Works Director advised the Board of a federally funded portion of
Walton Road. These two projects could run consecutively.
Research Park (Phase 1)
The Public Works Director commented on the improvements needed to provide
traffic access to the park. It would be prudent to start with design. There is a lot
of permitting involved. There is a road extension within the park itself and it
could be constructed as a separate project and fast track it.
The funds have not been identified but there could be some re-programming.
Com. Dzadovsky stated there are developers wanting to build along the corridor
however; they do not want to spend $8,000,000 because their projects are no
longer financially feasible. If they do not have to come up with the $8 million
they may be ready to start their projects.
Com. Craft stated the problem is this is a $300 million project and the land
acquisition is the tough part. He is not saying he would not waive their fair share
portion, but their standards would need to be extremely high.
Com. Coward stated there is a provision in place for targeted industries to be
eligible for a waiver of impact fees. He believes they need to sit down at the
higher level and ask for assistance.
CONCURRENT EFFORTS
Economic Development Council (EDC) should hire new staff with increased
allocation to further expand local businesses and recruit new targeted industries
Pursue expansion of Wal-Mart Distribution site to include frozen foods (new
markets)
Aggressively implement partnership with the Bahamas to promote tourism
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May need professional services to oversee initiative
Sports-Tourism Project (Nation's Baseball) 30,000 room nights per year
Increase advertising dollars
Fast track permitting for economic development projects
Establish an economic development task force (Board)
The County Attorney stated the county has its own regulations and has flexibility.
It can suspend the RFP process however it does not mean they would not be
competitive.
Com. Grande asked how they could make sure the local jobs are going to local
residents.
The County Attorney stated anything over $200,000 has to be competitively bid,
however he believes they have the ability to declare an emergency and explained
how this could be done. He would like to propose some legal methods; however
he is not sure if this had been done previously.
The County Administrator requested direction from the Board.
Com. Coward stated he would like to give direction for a list of turn dirt projects
to be brought back to the Board and begin discussion with the municipalities as to
what projects they are looking at that may fit into what the Board is proposing and
the monies could assist in moving forward as a partnership. He would like to
send this message without micromanaging.
Com. Lewis stated she would like to review the funds available in the
jurisdictions and the projects before making a decision.
Com. Craft commented on the fact he will be going to DC next month with the
people from Geo Plasma to meet with the Department of Energy. There are
opportunities if they can get this project going.
Com. Coward commented on having a full time recruiting person at the Economic
Development level and having a task force and bringing in expertise on various
areas.
Com. Grande stated he believed they should have senior staff obtain the answers
before coming to the meetings so that it does not tie up other staff time.
The County Administrator stated she believes the Board would trust her to
determine what staff should be present she does not wish to have her hands tied.
The meeting was adjourned.
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