1. Fiscal Neutrality Methodology Development Public Information | January 16 th, 2015 Sarasota 2050 Resource Management Area (RMA) Policy

2. Fiscal Neutrality Methodology Development Sarasota 2050 RMA Policy This policy established six (6) unique Resource Management Areas that covered the whole county, each of which were intended to facilitate continued growth while improving the quality of life for all Sarasota County residents. 2

3. 3 2050 Resource Management Areas 1 2 3 4 5 6 Fiscal Neutrality Methodology Development

4. Sarasota 2050 RMA Policy This policy calls for the facilitation of continued growth east of the Urban Service Boundary (USB), while maintaining a healthy balance between economic development and the preservation / conservation of environmentally sensitive lands. 4 Fiscal Neutrality Methodology Development

5. 5 Improved form of continued growth 2050 policy calls for an improved form of growth based on 3 main principles: Fiscal Neutrality Methodology Development

6. Fiscal Neutrality: 1 of 3 main principles Fiscal Neutrality requires that each specific development proposal east of the USB include a financial analysis showing that any additional public cost attributable to a specific development will be balanced by the projected public revenue generated from that specific development. 6 Fiscal Neutrality Methodology Development

7. 7 roads water sewer library police emergency-fire medical schools real-estate taxes impact fees development agreement taxing district ?? sales tax Public Costs Public Revenue Fiscal Neutrality: Cost < Revenue The public costs must be balanced or outweighed by the public revenue. Fiscal Neutrality Methodology Development

8. What is the issue with Fiscal Neutrality? A major part of the issue has been with the lack of consistency in how each financial analysis has been prepared and its source accountability: How is public cost calculated? What public revenue is counted? How is public revenue calculated? 8 Fiscal Neutrality Methodology Development

9. How can this issue be addressed? Developing a methodology for how each financial analysis is prepared will establish consistency across all 2050 developments, which in turn will facilitate decisions that are more fully informed on potential fiscal impacts that may result from specific developments. 9 Fiscal Neutrality Methodology Development

10. 10 roads water sewer library police emergency-fire medical schools real-estate taxes impact fees development agreement taxing district ?? sales tax Public Costs Public Revenue What public costs should be looked at? Only those public costs attributable to a specific development are used in this determination. Fiscal Neutrality Methodology Development

11. Fiscal Neutrality remains a requirement Developments remain fully responsible for on-site facilities & services. Developments remain fully responsible for their proportionate share of off-site facilities & services. Public cost occurs when the operation / maintenance of facilities & services must be expanded to serve development. 11 Fiscal Neutrality Methodology Development

12. 12 On-site Cost None of this is paid for by the public. Fiscal Neutrality Methodology Development

13. Transportation Sanitary Treatment PARKSPARKS Schools & Library 13 Water Supply Stormwater Management Off-site Cost Development pays their proportionate share. Emergency Services Transportation Fiscal Neutrality Methodology Development

14. Transportation Sanitary Treatment PARKSPARKS Schools & Library 14 Water Supply Stormwater Management Proportionate Share of Public Cost Operation / maintenance of facilities & services. Emergency Services Transportation Fiscal Neutrality Methodology Development

15. What portion of public cost is attributable to a specific development? The portion of a public facility or service capacity that must be expanded to accommodate a specific development’s proportionate share. 15 Fiscal Neutrality Methodology Development

16. What is proportionate share? A specific development’s proportionate share of an expanded public facility or service is only that portion of the expanded capacity attributable to the specific development, with the balance of ‘extra capacity’ being provided due to practical considerations. 16 Fiscal Neutrality Methodology Development

17. What portion of the public cost for the ‘extra capacity’ is factored into a specific development’s Fiscal Neutrality? None. The ‘extra capacity’ is provided by the public for other future development, and it will be paid for by other future development when it takes place. 17 Fiscal Neutrality Methodology Development

18. Therefore, Fiscal Neutrality is determined by comparing a specific development’s proportionate share of public cost to its anticipated public revenue. There may be instances where early stages of a specific development result in higher public cost. These must be balanced by public revenue generated from the development’s later stages. 18 Fiscal Neutrality Methodology Development

19. 19 Occurs when public facility & service capacity is expanded for a specific development. $ Time PS Public Cost Development Build-out Illustrative Graph of Hypothetical Public Costs & Revenue over Time Early StageLater Stage Proportionate Share of Public Cost Fiscal Neutrality Methodology Development

20. 20 Occurs as development takes place in the form of impact fees, connection fees, taxes, etc. $ Time PS Public Cost Development Build-out Public Revenue Illustrative Graph of Hypothetical Public Costs & Revenue over Time Early StageLater Stage Public Revenue Fiscal Neutrality Methodology Development

21. 21 $ Time PS Public Cost Development Build-out Public Revenue Illustrative Graph of Hypothetical Public Costs & Revenue over Time Early StageLater Stage Fiscal Neutrality: Cost < Revenue Fiscal Neutrality Methodology Development

22. This effort seeks to provide a consistent methodology for developing these financial reports so that they: Identify expenses/revenues to be included; Present how those expenses/revenues are to be calculated; and Establish if those expenses/revenues are to be indexed to standardized sources (for example, to lines in the county budget, to inflation, etc.). 22 Fiscal Neutrality Methodology Development

23. This effort also seeks to establish a structure for these financial reports so that they are presented with an informational ‘dashboard’: That includes all critical assumptions and results in an easy-to-read table format as part of an executive summary; and Conveys the information in a way that is more clearly understandable for the public and reviewers. 23 Fiscal Neutrality Methodology Development

24. Thank You ! Fiscal Neutrality Methodology Development Public Information | January 16 th, 2015