Okaloosa County BOCC — July 19, 2016 — Public Hearing - Adoption of an Ordinance Consolidation of the Various — agenda request — reading text

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: July 19, 2016 TO: Honorable Chairman and Members of the Board FROM: Roland Sims Jr. SUBJECT: Public Hearing - Adoption of an Ordinance Consolidation of the Various Street Lighting MSTU DEPARTMENT: County Administrator BCC DISTRICT: All STATEMENT OF ISSUE: Previously staff was directed to review the Code of Okaloosa County and attempt to update its provisions. One area that staff has been working to simplify is the municipal service benefit units that have been created. Previously, Board has created various municipal service benefit units (“MSBU”) for a variety of purposes. Forty-eight (48) separate MSBU’s have been created just for the provision of street lighting services. The multitude of units has created several problems in the administration and tracking of these various units. Staff from the County and the Clerk’s office, have been working toward a consolidation of forty-seven (47) of these units into a single unit which when fully implemented will result in a uniform rate for all properties that are provided street lighting services. The only units that currently provide for the funding of street lighting with an assessment collected on the utility bill, which are not being consolidated at this time is the Okaloosa Island Municipal Service Benefit Unit (“Island Lights”). This MSBU has certain distinct issues that should be addressed separately. Further, though the Bluewater Bay Municipal Services Benefit Unit funds street lighting, it is not included as it funds the service from an annual assessment on the tax bill along with several other services. BACKGROUND AND ANALYSIS: Previously staff was directed to review the Code of Okaloosa County and attempt to update its provisions. One area that staff has been working to simplify is the municipal service benefit units that have been created. Previously, Board has created various municipal service benefit units (“MSBU”) for a variety of purposes. Forty-eight (48) separate MSBU’s have been created just for the provision of street lighting services. The multitude of units has created several problems in the administration and tracking of these various units. Staff from the County and the Clerk’s office, have been working toward a consolidation of forty-seven (47) of these units into a single unit which when fully implemented will result in a uniform rate for all properties that are provided street lighting services. The only units that currently provide for the funding of street lighting with an assessment collected on the utility bill, which are not being consolidated at this time is the Okaloosa Island Municipal Service Benefit Unit (“Island Lights”). This MSBU has certain distinct issues that should be addressed separately. Further, though the Bluewater Bay Municipal Services Benefit Unit funds street lighting, it is not included as it funds the service from an annual assessment on the tax bill along with several other services. Several issues have resulted from the proliferation of the numerous MSBU’s for street lighting services. First is the administrative time and effort that is required to monitor and track the funding is substantial. Second, though many of the MSBUs have advisory boards, most of these boards have been inactive and a more effective process is proposed to oversee the provision of street lighting services, perhaps through a single advisory board that governs a variety of areas. Third, and most importantly, there has not been an effective system to address the establishment of annual rates in each of these units and as a result, some units have accumulated significant surpluses while others have resulted in deficiencies. As a result, under the consolidated program, rates for the MSBU would be established annually prior to the beginning of the fiscal year. A single rate would apply to all properties within the boundaries of the Unit that are provided street lighting services. Those Units that have a deficiency in payments from past years would be charged a higher monthly rate to off-set the deficiency and once that is eliminated, they will then begin paying the same amount of any other properties within the Consolidated Unit. Properties which are within those Units that have accumulated a surplus with also pay the same rate but they will be given either a credit or a refund from their surplus. The advantage of the Consolidated Unit will allow consistency in rates and no longer be subject to the fluctuations in payment totals that result from units being vacant within the existing smaller units. It will also allow other areas to join the Consolidated Unit in an easier manner with a clear understanding of the cost for that service. OPTIONS: Approve/Disapprove. RECOMMENDATION: Approve the adoption of an Ordinance for the Consolidation of the Various Street Lighting Municipal Service Benefits Units. RECOMMENDED BY: APPROVED BY: John Hofstad, County Administrator