Okaloosa County BOCC — April 7, 2015 — Okaloosa County Letter of Inquiry Revenue Diversion 4.1.15 — reading text

e U.S. Department Southern Region Airports Division of Transportation 1701 Columbia Ave. sl oy (404) 3056700 FAX: (404) 305-6730 April 1, 2015 Mr. Sunil Harman Airport Director Okaloosa County Airports 1701 State Road 85 North Eglin Air Base, FL. 32542 Letter of Inquiry Dear Mr. Harman: It has come to our attention that an article published on nwfdailynews.com, on March 27, 2015 suggests that at least one Okaloosa County Commissioner has proposed using airport revenue to “put a good dent’ in the county’s outstanding stormwater needs.” (see enclosed article). While we recognize that this is simply a media article and not the official position of the county, the suggestion raises serious concerns with the FAA. As a condition precedent to providing airport development assistance under the Airport Improvement Program (AIP), the Secretary of Transportation and, by extension, the FAA must receive certain assurances from the airport sponsor. Upon acceptance of an AIP grant, the assurances become a binding contractual obligation between the airport sponsor and the federal government. The assurances made by airport sponsors in AIP grant agreements are important factors in maintaining a viable national airport system. Title 49 U.S.C. § 47107(b) requires the FAA to receive the county’s written assurance that all revenue generated by the airport will be expended for the capital or operating costs of the airport, the local airport system, or other local facilities owned or operated by the airport owner or operator and directly and substantially related to the air transportation of passengers or property. The county has provided this assurance. This statutory requirement is reflected in Grant Assurance 25, Airport Revenues. To date, the FAA has provided in excess of $85 million in AIP funding to Okaloosa County’s airports. Okaloosa County is obligated to comply with its AIP grant assurances and the statutory requirements outlined at 49 U.S.C., § 47101, ef seq. The enclosed article describes a scenario which, if accurate, may be inconsistent with the county’s obligations. Use of airport revenue for purposes other than the capital or operating costs of the county’s airport system may be considered unlawful revenue diversion subject to sanctions for noncompliance. The FAA’s Policy and Procedures Concerning the Use of Airport Revenue (61 Fed. Reg. 7696; 7722 (February 16, 1999)) requires the FAA to review this matter. As such, we request that the county respond to the substance of the article confirming that, in fact, the county does not intend to use airport revenue for non-airport purposes or, in the alternative, provide a legal opinion as to why the county believes that doing so would be consistent with its federal obligations. We ask that you respond within 10 days of receipt of this letter. Thank you for your attention to this matter. If I can be of any assistance or answer any questions that you might have, please don’t hesitate to contact me at (404) 305-6739. Sincerely, x@ww«% e Deandra Brooks Airport Compliance Specialist Encl. cc: Ms. Winsome Lenfert, Manager, Airports Division, Southern Region Mr. Bart Vernace, Manager, Orlando Airports District Office Office of Airport Compliance Print - Local Page 1 of 3 nwidailynews.com news & information for the emerald coast This copy is 101 your personal, NONCONNNEIcial use only County officials sound off on budget priorities By KARI C. BARLOW | Daily News Published: Friday, March 27, 2015 at 16:33 PM. Okaloosa County’s 2015-16 budget deliberations won'’t begin until mid-summer, but officials are already prioritizing funding needs. @ A majority of the commission has already said it will not support higher taxes — property or otherwise — in the coming year. [ ] 4 “We can live within our means,” said County | W Commissioner Carolyn Ketchel. “People do not have an appetite for increased taxes or user fees or whatever you want to call it.” County Commission Chairman Nathan Boyles offered a hopeful outlook, predicting a slight increase in property evaluations. “The goal will be to take that increase and spread it as far as we can,” he said. “... Every budget year is challenging. Last year was better than the year before, and I'm optimistic this year will be better than last year.” Here are five issues that are shaping up to be top priorities: PUBLIC SAFETY Okaloosa County Administrator John Hofstad said commissioners have made it clear that public safety must remain a top funding priority. “The sheriff is going to want to see an increase in his manpower, so he’s going to ask for more sworn officer positions,” Hofstad said. “There’s a significant cost to that.” Ketchel said public safety will be her No. 1 priority as she looks at allocating tax dollars. “The sheriff will want increases and he needs increases,” she said. Commissioner Trey Goodwin said he will renew his efforts to find ways to use bed- tax money to offset the county’s public safety costs. COURTHOUSE Okaloosa County’s courthouse in Crestview has served citizens since 1953 and is in dire need of renovation. Commissioners have budgeted about $12 million for the project but also have asked the state Legislature for an additional $5 million appropriation. “It’s a safety issue right now for the public,” Ketchel said, noting that prisoners and the public often are forced to occupy the same spaces. “ ... That's our county seat. We have to make that a building everyone's proud of and that works functionally.” hltp://www.nwfdailynews.com/local/county-officials-sound-off-on-budget-priorities—1 4570... 4/1/2015 Print - Local Page 2 of 3 Boyles said the restoration and expansion of the courthouse will be “a topic of Copyright © 2015 http://www.nwidailynews.com — All substantial discussion” during budget deliberations, particularly if the Legislature rights reserved. Restricted use only. rejects the county’s funding request. INFRASTRUCTURE Boyles predicts that the 2015-16 budget “will start and end with infrastructure.” “It includes stormwater. It includes roads,” he said. “ ... Frankly, it includes the jail. I think Okaloosa is poised for growth. It's coming, and we need to be prepared for that.” Yet without a new stream of revenue, the county would be hard pressed to increase the number of stormwater projects it’s tackling each year. Commissioner Trey Goodwin suggests dipping into the county airports’ $35 million reserve fund. “Not only do I think it's worth exploring, I think we've got to explore it,” he said. “... People have been waiting a long time. Nobody wants their home or church or yard or business flooded.” The airport is an enterprise fund and is operated by user fees instead of property tax dollars. Goodwin said he’s researched the issue and has found that such a use would not be impermissible under the law. He added that airport dollars also could “put a good dent” in the county’s outstanding stormwater needs. Hofstad said the use of airport reserves would require significant research and the opinion of the county’s legal counsel. TRANSIT In July 2014, commissioners agreed to keep local fixed-route buses running for one more year. After the 2014-15 fiscal year, the board said, local cities must chip in on the cost or the service will be cut. Now the county and the cities are considering forming a cooperative to fund future fixed-route bus service. “Iam willing to fund transit in Okaloosa County, but I want to fund a system that is effective for the folks who need it,” Boyles said. “And that probably looks something different from what we have right now.” Goodwin said he has concerns about using property taxes to fund a service that has steadily lost money over the past several years. “If fixed route service is viable, then it will be self-sustaining,” he said. “I think we need to scale back the support.” ECONOMIC DEVELOPMENT Boyles said he intends to raise the issue of how to better hone the county’s approach to economic development. The county must make its business climate more competitive, he said. http://www.nwfdailynews.com/local/county-officials-sound-off-on-budget-prioritics— 1.4570... 4/1/2015 Print - Local Page 3 of 3 “That may well have a cost to it,” Boyles added. “We may need to invest in a position to help herd those resources in the same direction.” Contact Daily News Staff Writer Kari C. Barlow at 850-315-4438 or kbarlow@nwfdailynews.com. Follow her on Twitter @KariBnwfdn. http://www.nwfdailynews.com/ local/county-officials-sound-off-on-budget-priorities-1.4570... 4/1/2015