Okaloosa County BOCC — November 16, 2013 — reading text

220323 $23,000 ROAD DEPT - 2003 FORD F250 3/4 TON CREW CAB in CTTF 188051 $28,000 1999 ALAMO 6640 BOOM AXE ROAD DEPT 5565 hrs $110,000 1994 JOHN DEERE 644G LOADER 170 HP 3YD ROAD DEPT 13984 hrs $195,000 2003 JOHN DEERE 724-J LOADER 205 HP 4.75 YD ROAD DEPT 10572 hrs $225,000 2000 KUBOTA M8200DTC TRACTOR 73 PTO HP ROAD DEPT 5955 hrs $40,000 2002 ALAMO ST 15 BATWING MOWER 15 PTO ROAD DEPT N/A $15,000 1991 LINKBELT CRANE ROAD DEPT 11473 hrs $ 600,000 CTTF $102,000 LOGT $1,531,000 Packet Pg. 27 Packet Pg. 28 Packet Pg. 29 Packet Pg. 30 TALKING PAPER ON 5-Cent vs. 3-Cent SECOND LOCAL OPTION GAS TAX 1. Each 1-cent of local option gas tax is projected to bring in $950,048 of new revenue for a 12-month period. Based on a County/Cities split of 64%/36%, each 1-cent would provide $608,030 to the County. For FY2014, the gas taxes would not be increased until Jan. 1, 2015, thus only 9-months of new revenue or $456,023 per cent in FY2014. Projected new revenues to the County would be: 1-cent = $ 608,030/year FY2014 @ ¾ year = $ 456,023 2-cent = $1,216,060/year “ “ = $ 912,046 3-cent = $1,824,090/year “ “ = $1,368,069 4-cent = $2,432,120/year “ “ = $1,824,092 5-cent = $3,040,150/year “ “ = $2,280,115 2. In the recent past, the Board has had some discussion of forming a TIF (Tax Increment Funding) for a yet to be defined area of north Okaloosa County. It would probably take a period of 6 to 10 years for the TIF to accumulate an appreciable level of revenues to apply to road projects or to apply to bonding/borrowing for road projects. One method to move this program forward almost immediately is to use a portion of the proposed increase in optional gas taxes to pledge as support for either bonding or a bank loan. 3. Using figures provided by the County’s Bond Counsel, Mr. Mark Galvin, in May 2013, the chart below shows a few examples of annual debt service and bonding/borrowing (project amounts) that could be done beginning January 2013: Debt Service 15-year Bank Loan 15-yr Payment Total 20-year Bond 20-yr Payment Total A. $1,750,000 $19,945,000 $26,250,000 $21,516,000 $35,000,000 B. $1,250,000 $14,300,000 $18,750,000 $15,500,000 $25,000,000 C. $1,000,000 $11,410,000 $15,000,000 $12,322,000 $20,000,000 Line A would require using 96% of 3-cents of gas tax for debt service. Line B would require using 2-cents of gas tax for debt service. Line C would require using 82% of 2-cents of gas tax for debt service. In all cases shown above, the most economical options are a 15-year bank loan when considering interest and loan/bond costs. 4. Through bonding or borrowing, amounts of $11 Million or more, the Road Dept. would be able to move a number of badly needed projects forward and get them done in the short-term rather than using a “cash- accrual” basis. Any borrowing funds from the gas tax can be used throughout the County for road projects. Funding received via a TIF could only be spent on projects within the TIF boundaries. However, the combination of using gas taxes for debt service combined with a future TIF can be a powerful leveraging factor. 5. If the Board opts to only go for a 3-cent gas tax, most (all?) of the first year proceeds will be used to purchase the critically needed equipment and vehicles that our Road Dept. needs to do the work we expect Packet Pg. 31 of them. By doing a 5-cent gas tax, the Road Dept. will be able to replace their worn-out critical equipment and still have a flow of funds to do multiple projects via debt service. 6. Other Considerations: A. Gas taxes are the most appropriate method to pay for road projects. It can be considered a “user fee”: those who buy the most gas usually put more miles on the roads. Whereas property taxes are paid only by property owners. B. Conservative estimates show that 35-40% of gasoline sales are paid by tourists, other visitors, or those just passing through. C. As vehicles generally are getting more efficient gas mileage, they put more road-use miles per gallon. D. The “2nd Optional Gas Taxes” do not apply to diesel fuel, thus not negatively impacting the trucking industry with diesel trucks or heavy equipment using diesel engines (or diesel boats). E. Heaven knows Okaloosa County has millions of dollars of backlogged work that needs to be done to improve and maintain our County roads and road-related stormwater projects. Dave Parisot Commissioner, Dist. 2 Packet Pg. 32  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: September 3, 2013 TO: Honorable Chairman and Members of the Board FROM: Daniel O'Byrne SUBJECT: Public Hearing - Beach Restoration MSBU Final Assessment Resolution DEPARTMENT: Tourist Development Department BCC DISTRICT: ALL STATEMENT OF ISSUE: Pursuant to the ordinance creating the Municipal Service Benefit Unit for Beach Restoration, an initial assessment resolution was adopted on August 6, 2013. The Initial Assessment Resolution established the proposed rates for the assessment, directed that notice be given for a public hearing to consider adopting a Final Assessment Resolution, and scheduled such a hearing. The purpose of this Final Assessment Resolution is to adopt the final assessment rates, confirm the method of apportionment established in the initial assessment resolution, certify the assessment roll, and re-impose the assessment for the Fiscal Year 2013- 2014. A public hearing on the Final Assessment Resolution has been scheduled for September 3, 2013 and will take place in Crestview. In order to facilitate public participation from residents who may be unable to attend the September 3rd hearing, the County scheduled a public hearing on August 20, 2013 in Fort Walton Beach to allow public comments on the Final Assessment Resolution. However, no formal action was taken. BACKGROUND: On December 4, 2007, the County adopted Ordinance 07-71 which created the Okaloosa County Beach Restoration Municipal Services Benefit Unit (MSBU). The purpose of the MSBU is to facilitate the imposition of special assessments to partially fund the Beach Restoration Project within the Destin Sub-Assessment Area of the MSBU. As a result of prior action of the Board, the assessment within the Okaloosa Island Subarea has been eliminated and refunds paid. Therefore, this assessment will only be within the Destin Subarea. Further, the property of Oceania Condominium was previously excluded from the Destin Project in 2010 and therefore they have been excluded from the assessments since that time and refunds paid. On August 6, 2013, the Board adopted the Initial Assessment Resolution, which set the preliminary assessment rates, outlined the apportionment method, set the September 3rd public hearing and provided for the required statutory notice. Pursuant to Ordinance 07-71, the Board is required to confirm or repeal the Initial Assessment Resolution, with such amendments the Board deems appropriate, after hearing comments and objections of all interested parties at the September 3, 2013 public hearing to be held in Crestview. RECOMMENDATIONS: Accept public comments on the final assessment resolution for the Okaloosa County Beach Restoration Project Municipal Service Benefit Unit for the assessment imposed for Fiscal Year 2013-2014 and approve the final assessment resolution. Packet Pg. 33 RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 34 ______________________________________________________________________ OKALOOSA COUNTY, FLORIDA _____________________________________________ FINAL ASSESSMENT RESOLUTION FOR FISCAL YEAR 2013-2014 FOR THE OKALOOSA COUNTY BEACH RESTORATION PROJECT MUNICIPAL SERVICES BENEFIT UNIT _____________________________________________ ADOPTED ____________________ ______________________________________________________________________ Packet Pg. 35  TABLE OF CONTENTS Page SECTION 1. AUTHORITY ..................................................................................2 SECTION 2. DEFINITIONS................................................................................3 SECTION 3. CONFIRMATION OF ASSESSMENTS ....................................3 SECTION 4. APPROVAL OF ASSESSMENT ROLL.....................................3 SECTION 5. IMPOSITION OF ASSESSMENTS TO FUND THE BEACH RESTORATION .............................................................3 SECTION 6. ASSESSMENT LIENS .................................................................4 SECTION 7. COLLECTION OF ASSESSMENTS..........................................4 SECTION 8. EFFECT OF RESOLUTION........................................................5 SECTION 9. ASSESSMENT NOTICE..............................................................5 SECTION 10. SEVERABILITY.............................................................................5 SECTION 11. EFFECTIVE DATE .......................................................................5 APPENDICES: APPENDIX A: PROOF OF PUBLICATION APPENDIX B: ASSESSMENT ROLL APPENDIX C: FORM OF CERTIFICATE TO NON-AD VALOREM ASSESSMENT ROLL i Packet Pg. 36  RESOLUTION 13-__________ A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF OKALOOSA COUNTY, FLORIDA, RELATING TO THE CONSTRUCTION AND FUNDING OF BEACH RESTORATION WITHIN THE DESTIN SUB-ASSESSMENT AREA OF THE BEACH RESTORATION MUNICIPAL SERVICE BENEFIT UNIT; PROVIDING RECITALS, AUTHORITY AND DEFINITIONS; CONFIRMING THE ASSESSMENTS; APPROVING THE ASSESSMENT ROLL; PROVIDING FOR COLLECTION OF THE ASSESSMENTS PURSUANT TO THE UNIFORM ASSESSMENT COLLECTION ACT; PROVIDING FOR THE EFFECT OF THIS RESOLUTION; PROVIDING SEVERABILITY AND AN EFFECTIVE DATE. WHEREAS, the Board of County Commissioners of Okaloosa County, Florida (the “County”) adopted Ordinance 07-71