KEEP PALM COAST March 27, 2012 City Council Workshop

Goals & Prosperity 2021

Road Resurfacing Program –Original Issue & Solution –Funding –Accomplishments Current Infrastructure Needs Possible Funding Sources Next Steps Overview

Road Resurfacing Program

Roads in Disrepair Road Resurfacing: Original Issue

Resurface 50 Miles Per Year Road Resurfacing: Solution

City Council Added Ballot Initiate to Levy ½¢ Sales Tax for Infrastructure (6/4/2002) Road Resurfacing: Funding 62% 38% 9/10/2002

Interlocal Agreement between County & Cities (11/18/2002) Distribution of ½¢ Sales Tax Levy –½ State Default Formula –½ Local Population Based Formula Road Resurfacing: Funding

10 Years Ending Dec. 31, 2012 (2012 Projected) Total Collected from ½ Cent Sales Tax$23,400,000 Road Resurfacing Program Expenses by Funding Source ½ Cent Sales Tax Expended$23,400,000 Other Revenue Sources Expended$2,500,000 Total Expended on Road Resurfacing Program$25,900,000

Kept the 50 Mile Promise to Voters Resurfaced 550+ Miles Over 10 Years Road Resurfacing: Accomplishments Before After

Current Infrastructure Needs

19 Major Canal Control Structures 12 Minor Canal Control Structures 72 Major Roadway Crossing Culverts 1,555 Minor Roadway Crossing Culverts 145 Culverts Leading into Saltwater Canals 369 Valley Gutters Crossing Roadways 1,100+ Miles of Roadside Swales 154 Miles of Drainage Ditches 58 Miles of Freshwater Canals 26 Miles of Saltwater Canals Drainage Inlets, Spillways, Catch Basins, etc. Current Stormwater Infrastructure :

Canal Control Structures –Estimated Cost : $ 500 k Per Current Infrastructure Needs: Stormwater Total Rating# of Structures Worse or less7 Total31

Major Roadway Crossings –Estimated Cost : $ 400 k Per ( Emergency %) Current Infrastructure Needs: Stormwater Rating Condition# of Crossings 6 – Failure, non-functioning0 5 – Needs replacement/ repair0 4 – Functioning /Deteriorating13 3 – Functioning / Minor Deterioration 42 2 – Replaced9 1 – Recent replacement8 Total72

Estimated Cost : $ 1-2 M Per 22 Bridges Current Infrastructure Needs: Bridges GradeSalt WaterFreshwater A29 B03 C14 D21 517

Bridge Map

Current Infrastructure Needs: Roads 2012 RATINGMILES 1 - Worst Moderate – Newly Overlaid70 Total Miles

Current Infrastructure Needs: Paths MAJOR SEGMENTLENGTH Seminole Woods Parkway5.0 miles Sesame Blvd./Citation Parkway3.3 miles Lakeview Blvd.1.3 miles Graham Swamp – Phase 25.0 miles Seminole Woods Parkway Iroquois Canal Seminole Woods Parkway

10 Year Sample Capital Plan Stormwater $ 7,250,000 9 Control Structures 5 Major Crossings Road & Bridges $ 16,250,000 5 Bridges 100 Miles of Road Resurfacing Multi-Purpose Paths $ 2,500, Miles of Paths

Possible Funding Sources

Requiring City Council Approval Ad Valorem Public Service ( Utility ) Tax Utility Franchise Fee Requiring Voter Approval Ad Valorem for Debt Service ½¢ Sales Tax ( County - wide ) Possible Funding Sources

Placing Measure on Ballot –Either City of Palm Coast or County –Must be submitted by Noon on June 8 th Distribution of ½¢ Sales Tax Levy –Default Formula ( State Statute ) –Interlocal Agreement ( Both City and County Must Approve ) Continuing ½¢ Sales Tax: Background

State Default Formula – Fair Distribution ? Continuing ½¢ Sales Tax: Background Based on Two Key Assumptions Cities Unincorporated County Cities

State Default Formula – Fair Distribution ? Continuing ½¢ Sales Tax: Background Palm Coast/Flagler County Reality Based on BEBR and DOR Data Palm Coast Remainder of Flagler County

State Default Formula – Fair Distribution ? Continuing ½¢ Sales Tax: Background Palm Coast Unincorporated Flagler County Total County Population (2002) 38,22310,69157,432 Population (2011) 75,61713,12796,241 Change (%)  37,394 (98%)  2,436 (23%)  38,809 (68%) Lane Miles (2002) 1, , Lane Miles (2011) 1, , Change (%)  (14%)  11.61(3%)  (9%) Sources: Census, BEBR, and Flagler County

Interlocal Agreement Projected Distribution –$ 2.6 Million Per Year –$ 26 Million Over 10 Years Typical Cost to Residential household of ½ Cent Sales Tax * –$ 48- $ 54 per year * Based on Median Household Income in City and IRS Tables Continuing ½¢ Sales Tax: Distribution

Revenue Diversification

Public Service ( Utility ) Tax –General Revenue, Unrestricted –Tax on Usage Portion of Utilities ( Electricity, Natural Gas, Fuel Oil, Bottled Gas, and / or Water Service ) –Up to 10% Tax –Approved by City Council Ordinance Public Service (Utility) Tax

Public Service Tax – Which Municipalities ? –Flagler : Bunnell, Flagler Beach –Putnam : All Except Welaka –St. Johns : All –Volusia : All ( including Volusia County = Charter County ) Public Service Tax

Public Service Tax on Electric Usage * – 10% Tax would Generate $ 3.9 Million Annually –Typical Residential Bill ( Total Bill ) $ Usage Portion (62%) = $ % Tax = $ 6.58 – 74% Residential, 26% Commercial * Based on FPL Data Public Service Tax

Franchise Fee –General Revenue, Unrestricted –Charged on Entire Electric Utility Bill –Typically set at 6% –Approved by City Council Ordinance Franchise Fee

Franchise Fee on Electric Utility – 6% would Generate $ 3.9 Million Annually –Typical Residential Bill ( Total Bill ) $ % = $ 6.37 – 74% Residential, 26% Commercial * Based on FPL Data Franchise Fee

Compare Funding Sources ½ Cent Sales TaxPublic Service TaxFranchise Fee Rate0.5%6.5%4.0% Estimated Revenue$2,600,000 (Current ILA) $2,600,000 Cost to Typical Residential household (per month) $4-4.50$4.25 Cost to Typical Residential household (per year) $48-54$51.00

Substitute Franchise Fee and Public Service Tax for Stormwater Fee to Address Stormwater Maintenance Needs An Additional Option ½ Cent Sales + Stormwater Fee Public Service Tax + Franchise Fee Rate0.5% + $8/month10% + 6% Estimated Revenue$7,500,000$8,000,000 Residential Portion80-85% of Stormwater Fees74% Cost to Residential household (month) $ $13.76 Cost to Residential household (year) $ $165

City Council Options –½¢ Sales Tax Interlocal Agreement Prior to Resolution for Ballot City Resolution for Ballot by June 5 th, 2012 –Public Service Tax A tax levy must be adopted by ordinance, and the effective date of every levy or repeal thereof must be a subsequent January 1, April 1, July 1, or October 1 Ordinance Adopted by August 31, 2012 to implement by January 1, –Utility Franchise Fee Franchise Agreement Required Franchise fees are generally negotiated at 6% City Ordinance by August 31, 2012 to implement by January 1, Next Steps