Canal Restoration, Funding Alternatives Ad valorem taxes (with or without MSTU or MSBU) Non-ad valorem taxes (special assessments) Infrastructure surtaxes Grants User Fees Funding can be mixture of any or all of the methods. The only legal limitation is that the property must meet legal test for each of the funding mechanisms.

Canal Restoration, Funding Alternatives Ad valorem taxes F.S. 125.01: “The legislative and governing body of a county shall have the power to carry on county government. To the extent not inconsistent with general or special law, this power includes, but it not restricted to, the power to: (q) Establish, municipal service taxing or benefit units, . . . Within which may be provided . . . Water; . . . Drainage; . . . And other essential facilities;

Canal Restoration, Funding Alternatives (Ad Valorem Taxes) No cost to collect other than staff time Short lead time (regular budget process) Revenues cannot be used as a pledge for other financing without a referendum Counts against millage cap

Canal Restoration, Funding Alternatives Non-ad valorem taxes (“special assessments”): Legal test: Property assessed must derive special benefit from the service provided; and Amt. of assessment must be fairly and reasonably apportioned Sarasota County v. Sarasota Church of Christ, 667 So. 2d 180 (Fla. 1995) Not based on property value (“ad valorem”), but rather, on proportional benefit to property Possible to impose in two steps if the County can show two different levels of special benefit (e.g., one to all property owners, another to canal-front properties) Morris v. City of Cape Coral, 163 So. 3d 1174 (Fla. 2015) Morris was fire rescue caase. Breezeswept Estate, assessment for culvert

Canal Restoration, Funding Alternatives (special assessments) Costs imposed against specific properties benefited Revenue stream can be used as pledge for other financing Assessments do not count against 10-mill cap Difficult to define geographic areas when different technologies are used Timeline to set up program: about 12 months from “notice of intent” resolution Fees

Canal Restoration, Funding Alternatives Infrastructure surtax (304 Fund) Fairly clear that 304 funds can be used for initial capital construction Less clear that they can be used for items that do not meet definition of “capital improvements”, and maintenance

2002, Breezeswept Estates, one time special assessment

St. Johns County: MSBU + Special Assessment for Canal Dredging MSBU was set up in 1991 Total amount of dredging program: approx. $3 million 15 year program, starting 2013 Annual assessment: $700 per lot per year Limited to one technology (dredging) Covers approx. 155 properties Ordinance says that the assessments are being used to rehabiliate an area that was worked on in 1991, but then degraded. Government purchased all of the canals from the owners of the development corporation in 1990s in order to perform the work. Ordinance says that > 50% property owners presented petitions asking for work. Contiguous areas.

Canal Restoration, Funding Alternatives Grants and Loans

Canal Restoration, Funding Alternatives Stormwater Utility User Fees: F.S. 403.0893 authorizes cities and counties to create one or more stormwater utilities and adopt utility fees to “plan, construct, operate and maintain” stormwater systems.