1. KEEP PALM COAST March 27, 2012 City Council Workshop

2. Goals & Prosperity 2021

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

4. Road Resurfacing Program

5. Roads in Disrepair Road Resurfacing: Original Issue

6. Resurface 50 Miles Per Year Road Resurfacing: Solution

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

8. 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

9. 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

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

11. Current Infrastructure Needs

12. 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 :

13. Canal Control Structures –Estimated Cost : $ 500 k Per Current Infrastructure Needs: Stormwater Total Rating# of Structures Worse 10+ 2 98 84 76 64 5 or less7 Total31

14. Major Roadway Crossings –Estimated Cost : $ 400 k Per ( Emergency +50- 60%) 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

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

17. Bridge Map

18. Current Infrastructure Needs: Roads 2012 RATINGMILES 1 - Worst.13 210 3 - Moderate265.78 4204.19 5 – Newly Overlaid70 Total Miles550.10 2 3

19. 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 Crossing @ Seminole Woods Parkway

20. 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 $ 2,500,000 8.2 Miles of Paths

21. Possible Funding Sources

22. 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

23. 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

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

25. 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

26. 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) 1,021.61446.861,576.35 Lane Miles (2011) 1,169.43435.251,712.56 Change (%)  147.82 (14%)  11.61(3%)  136.21 (9%) Sources: Census, BEBR, and Flagler County

27. 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

28. Revenue Diversification

29. 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

30. 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

31. Public Service Tax on Electric Usage * – 10% Tax would Generate $ 3.9 Million Annually –Typical Residential Bill ( Total Bill ) $ 106.12 Usage Portion (62%) = $ 65.79 10% Tax = $ 6.58 – 74% Residential, 26% Commercial * Based on FPL Data Public Service Tax

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

33. Franchise Fee on Electric Utility – 6% would Generate $ 3.9 Million Annually –Typical Residential Bill ( Total Bill ) $ 106.12 6% = $ 6.37 – 74% Residential, 26% Commercial * Based on FPL Data Franchise Fee

34. 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

35. 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) $12-12.50$13.76 Cost to Residential household (year) $144-150$165

36. 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, 2013. –Utility Franchise Fee Franchise Agreement Required Franchise fees are generally negotiated at 6% City Ordinance by August 31, 2012 to implement by January 1, 2013. Next Steps