Okaloosa County BOCC — August 24, 2013 — Action Item Printout — reading text

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: August 20, 2013 TO: Honorable Chairman and Members of the Board FROM: John Hofstad SUBJECT: Public Hearing Regarding Amending MSTU Ordinance 84-19 DEPARTMENT: Public Works BCC DISTRICT: All STATEMENT OF ISSUE: Amendments to and expansion of the unincorporated area Municipal Service Taxing Unit (MSTU) Ordinance to include provisions related to funding the management and control of stormwater and authorizing the use of proceeds of the MSTU for such other essential facilities and municipal services as authorized under law. BACKGROUND: Currently, the County has in place a MSTU (Ord. #84-19) to provide funding for unincorporated parks located throughout all five districts within the County. The Ordinance was enacted as part of a Stipulation and Agreement to resolve various disputes with certain municipalities over funding law enforcement activities and specific infrastructure. Over time, law enforcement and roads were eliminated from the Stipulation and Agreement; however, funding for unincorporated County parks remains. The County separated out stormwater related functions from the Road Division budget in 2010 resulting in a stand-alone Stormwater Division of the Public Works Department. Funding was initially set up for this division from a combination of General Fund revenue ($500K) and cash carry-forward from completed and under budget projects (• $2M). Staff informed the Board at the time that the proposed funding was not a sustainable revenue source to support the operational and capital needs of the division. Since this time, revenues have been depleted and sufficient revenue is not available for FY 2013/14 to fund the minimal operating needs of approximately $835,000. For the upcoming budget year, staff estimates a substantial reserve of approximately $4.9M will be available in the unincorporated parks MSTU. Together with the revenue generated annually from the MSTU (• $1.1M), sufficient funding exists to support the ongoing needs of the Parks Division for the foreseeable future. As a result, staff suggested and a majority of the Board concurred that a portion of the funding from the unincorporated MSTU could be diverted to aid in the establishment of a Stormwater Utility. Based on further direction from the Board, staff would suggest an annual allocation from the MSTU in the range of $400-$450K to support the Stormwater Utility. Combined with the current General Fund allocation of $400K, this revenue would be sufficient to cover the operational expenses of the Division. In addition, revenues will continue to be utilized from gas taxes to support annual capital improvement initiatives. The proposed ordinance revisions were drafted and approved by the County Attorney and outside legal counsel. OPTIONS: Approve/Disapprove amending of Ordinance 84-19 with a subsequent Ordinance expanding the County’s unincorporated Municipal Service Taxing Unit to include stormwater funding and other unincorporated area parks. RECOMMENDATIONS: Approve amending Ordinance 84-19 with a subsequent Ordinance to expand the unincorporated area Municipal Service Taxing Unit to include stormwater funding and other unincorporated area parks. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator