1. SALES TAX/CAPITAL REVENUE DISCUSSION July 2, 2012

2. OVERVIEW

3. Local Option Sales Tax (Surtaxes)  Regional Transportation 31- 2 Users  Emergency Fire/Rescue Services 65 - 0 Users  Infrastructure Next Page  Small County Next Page  Indigent Care /Trauma Center 65 - 1 Users  County Public Hospital (Only 1 County)  Voter Approved Indigent Care 60 - 4 Users

4. Statewide Use of Surtaxes  67 Counties Eligible  51 Counties Use these Surtaxes (76%)  Infrastructure Eligible 67 Counties Use 20 Counties  Small County Eligible 31 Counties Use 28 Counties  Other Surtaxes3 Counties  No Surtaxes16 Counties

5. Counties w/Infrastructure Surtax or Small County Surtaxes  48 Counties 20 Infrastructure 28 Small County  44 Counties at 1%  Only 3 of 44 Counties at 1% also have ½% School Surtax  4 Counties at ½%  2 of those Counties also have ½% School Surtax

6. Interlocal Agreements for Sales Taxes  17 Counties or 35% have Interlocals  31 Counties or 65% have no Interlocal  Of 17 - 5 Interlocals give to schools  1% Counties 4 - 50 % to 1 - 25 %  Of 17 - 7 Cities get none.  Of 17 - 2 Cities get less  Of 17 - 2 Cities get more * Flagler significant  Of 17 – 1 10% City/County 80% jointly

7. Counties without Sales Taxes  Collier County - High Impact Fees  Volusia County - Hospital Taxing District  Lee County - Use Special Taxing Districts Many are larger/Charter and have other revenue methods

8. Sales Tax Information  Local Sales tax in effect since 1990 at 1% - 22yrs  To avoid break must certify to DOR by Nov. 16 th  Can pass by referendum for Infrastructure Surtax or by referendum or super majority by BOCC for Small County Surtax  Deadline August 3. November general election is last time for referendum.  Must take effect only in January 1 of year.  For two main sales taxes only in ½ cent increments  No expiration required.

9. History  Began in December 1, 1990 with County for 15 year maximum term  Was a 1% sales tax with no Interlocal  Passed for Jail Construction and Sheriffs Office  Repealed in December 31, 2002 early  Jan 1, 2003 ½ cent via interlocal; School ½ cent adopted.  When ½ cent passed County was at 32.7% now we at 28.7% per interlocal formulas

10. Countywide/Unincorporated Responsibilities  E911 System  800 MHZ System  Court Facilities  Senior Services/Facilities  Public Transportation County has Countywide Responsibilities  Jail Facilities  Health Department  Sheriff Office Space  Helicopter  Library  Emergency Management County has Unincorporated Responsibilities

11. Funding Countywide Responsibilities 20102011/12 Taxable EntityCensusPercentValuePercent Town of Beverly Beach3370.35% $ 51,601,6620.79% City of Bunnell2,7002.80% 155,272,6982.36% City of Flagler Beach4,4444.62% 480,439,0857.32% Town of Marineland160.02% 4,888,7290.07% City of Palm Coast75,61778.57% 3,893,483,15059.32% Unincorporated Areas13,12713.64% 1,978,247,54730.14% Total Countywide96,241100.00% $6,563,932,871100.00%

12. Capital Project Needs

13.  Sheriff’s Office $5.0 million  Jail Expansion 150-200 beds$20 million  Library Expansion$2.5 million  Stormwater/Environ. Imp.$6.5 million*  Road Resurfacing/Improve$6.0 million* Total $40 million * Projects shown could easily be 5-10 million dollars in total today. Note: A Jail expansion may be necessary every decade to catch up.

14. Other Capital Project Needs  Westside Fire Station - CR 305 $2.0 million  Emergency Equipment $1.5 million  County owned 800 Mhz towers $1.5 million  Beach Restoration Const. Match$ ? ? ? ?  FB Pier Concrete Hardening$.25 million Total $10-15 million  Upgrade 800 Mhz not included???  Senior Center???

15. Sales Tax Revenues

16. Local GovernmentFlorida Statutes Default Dist. % Estimated Distribution Current Interlocal Agreement % Estimated Distribution Flagler BOCC45.197588$1,840,923 28.7181$1,169,704 Beverly Beach 0.224160$9,130.5129$ 20,891 Bunnell 1.774708$72,285 2.3385$ 95,248 Flagler Beach 2.933972$119,502 4.7938$ 195,254 Marineland 0.010611$432.0053$ 216 Palm Coast49.8589$2,030,781 63.6314$2,591,743 Total Countywide100.000$4,073,056100.0000$4,073,056 Source: 2010 Local Government Financial Information Handbook

17. Sales Tax Revenues over 10 years Local Government DOR % Default Distrib. Estimated 10 Yr Revenues Current % Interlocal Agreement Estimated 10 Yr Revenues Difference over a decade Flagler BOCC45.197588$ 18,409,230 28.7181 $11,697,040$6,712,190 Beverly Beach 0.224160$91,300.5129$ 208,910 -$117,610 Bunnell 1.774708$722,850 2.3385$ 952,480 -$229,630 Flagler Beach 2.933972$1,195,020 4.7938$ 1,952,540 -$757,520 Marineland 0.010611$4,320.0053$ 2,160 Palm Coast49.8589$20,307,810 63.6314$25,917,430 -$5,609620 Total Countywide 100.000$40,730,560100.0000$4,073,056----------------- Note: Based on ½ Cent Sales Tax

18. Formulas

19. Florida Statutes Formula  County’s share = Unincorporated population + 2/3 of Cities’ population Total County population + 2/3 of Cities’ population  Each City’s share = Population of City Total County Population +2/3 of Cities’ populations

20. Interlocal Formula  Fifty percent of Based on Florida Statues Formula  The other fifty percent are distributed as follows: Each jurisdictions’ share = Population of Jurisdiction Total County population

21. Phased In Scenarios

22. Sales Tax Revenues 5 Year Phase In Year 1Year 2Year 3Year 4Year 5Year 6 $1,169,704 $1,303,948$1,438,192$1,572,435$1,706,679 $1,840,923 $20,891 $18,539$16,187$13,834$11,482 $9,130 $95,248 $90,655$86,063$81,470$76,878 $72,285 $195,254 $180,104$164,953$149,803$134,652 $119,502 $216 $259$302$346$389 $432 $2,591,743 $2,479,551$2,367,358$2,255,166$2,142,973 $2,030,781 $4,073,056 20 years $34,804,803 $217,883 $1,514,589 $2,617,296 $7,992 $42,298,506 $81,461,120

23. Sales Tax Revenues 8-Year Phase In Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9 $1,169,704 $1,253,606$1,337,509$1,421,411$1,505,314$1,589,216$1,673,118$1,757,021 $1,840,923 $20,891 $19,421$17,951$16,481$15,011$13,540$12,070$10,600 $9,130 $95,248 $92,378$89,507$86,637$83,767$80,896$78,026$75,155 $72,285 $195,254 $185,785$176,316$166,847$157,378$147,909$138,440$128,971 $119,502 $216 $243$270$297$324$351$378$405 $432 $2,591,743 $2,521,623$2,451,503$2,381,382$2,311,262$2,241,142$2,171,022$2,100,901 $2,030,781 $4,073,056 20 years $33,797,975 $235,525 $1,549,034 $2,730,924 $7,668 $43,139,949 $81,461,120

24. Sales Tax Revenues 10-Year Phase In Year 1Year 2Year 3Year 4 Year 5Year 6Year7Year 8 $1,169,704 $1,236,826$1,303,948$1,371,070 $1,438,192$1,505,314$1,572,435$1,639,557 $20,891 $19,715$18,539$17,363 $16,187$15,011$13,834$12,658 $95,248 $92,952$90,655$88,359 $86,063$83,767$81,470$79,174 $195,254 $187,679$180,104$172,528 $164,953$157,378$149,803$142,228 $216 $238$259$281 $302$324$346$367 $2,591,743 $2,535,647$2,479,551$2,423,454 $2,367,358$2,311,262$2,255,166$2,199,070 $4,073,056 Default Formula Year 9Year 10Year 11 20 years $1,706,679$1,773,801 $1,840,923 $33,126,756 $11,482$10,306 $9,130 $247,286 $76,878$74,581 $72,285 $1,571,997 $134,652$127,077 $119,502 $2,806,676 $389$410 $432 $7,452 $2,142,973$2,086,877 $2,030,781 $43,700,911 $4,073,056 $81,461,120

25. Some of the Commissioners have expressed concern about receiving public input. Since you have some critical issues to fund rather than pick a solution it may behoove the Board to offer the voters a choice of what funding method they prefer. Potential Straw Ballot

26. NON-BINDING STRAW BALLOT QUESTION WHETHER TO CONTINUE OR INCREASE THE ONE-HALF CENT SALES SURTAX (14 words) In order to pay for needed infrastructure improvements within Flagler County, would continuing or increasing the one-half cent sales tax paid by residents and visitors be a more fair and cost-effective use of tax dollars than increasing Ad Valorem Taxes on Flagler County property owners? (45 words)  YES _______  No ________

27. Potential Straw Ballot

28. Summary  Approximately 30-40 million dollars of Capital Needs in next 10 years. 20 million more critical.  More Capital Projects long-term  No good alternative for Revenues/Future Restrictions.  Revenues from Sales taxes estimated at: 11.7 Million - Using Same Interlocal 18.4 Million - Using Florida Statues Formula  Accepting Interlocal will give County 38% less revenue to fund capital project and would not meet County’s responsibilities.

29. Not Using Sales Tax  May place more burden on property owners/ local taxpayers no outside payers.  May negatively affect other Cities without alternative revenue opportunities.  County will still have capital needs on top of anything Palm Coast does unilaterally  Alternatives may further hurt economy.  Other Revenues ad valorem may be needed for Operational Costs - Example Jail