Item B4a"unding the Monroe County
Canal Restoration Project
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Outline of Presentation
• Funding Issues
• Funding Options
• Recommendations
• Action Items
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FUNDING ISSUES
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Short -Term Issue
• Funding O&M costs for Demonstration
Projects
- Approximately $1oo,00 per year
• Funding additional work effort for future
projects
- Approximately $1.o million for Fiscal Year
2017-1 8
Long Term Issues
• Funding capital costs for other 230 impaired
canals
- Approximately $300-$700 million
• Funding O&M costs for other 23o impaired
_ canals
- To be determined
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FUNDING OPTIONS
Funding Options
Available Tax Revenue Sources 4
• Ad Valorem Property Taxes
• Local Option Sales Taxes
Available Home Rule Revenue Sources
• Special Assessments
• Tax -increment Financing (TIF)
Other Revenue Sources
• Grants
• RESTORE Act
• Property Owner Funding
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Constitutional Constraints
- Millage Caps
- Uniformity
- Dual Tax Concerns
Municipal Service Taxing
Units ("MSTUs")
What is an MSTU?
• Municipal Services Taxing Unit
• Authorized by Chapter 125, Florida Statutes
• Available to counties to fund municipal
services
• Based on the value of the property
• Additional io mills available for municipal purposes
• Includes unincorporated area or portions of the
unincorporated area or can include cities (with cities'
consent)
• Must be created by January 1 (if it includes only a portion of
unincorporated area or July 1 (if includes all of
- --- unincorporated ar.Pa)
0
Local Government
Infrastructure Surtax
• Term: no statutory limit on duration of tax levy
• Uses:
- finance, plan and construct public
"infrastructure"
- acquire land for public recreation/conservation
• Ordinance by majority vote
• Referendum requirement
• Must share revenue with cities
• 1% cap on comb—ined surtax levies
What Is an MSBU?
• Municipal Service Benefit Unit
• Authorized by Chapter 125, Florida Statutes
• Available to counties to fund municipal services or
facilities through the imposition of special
assessments
• Includes unincorporated area or portions of the
unincorporated area or can include cities (with cities'
consent)
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Specia ssessments
Definition:
Special assessments are charges assessed against
the property of some particular locality because
that property derives some special bennn4it from the
expenditure of the money.
rase Law Requirements for Special
Assessments
• Special Benefit to Property
- Logical relationship to the use and enjoyment of properc)
- Do the services or improvements benefit property that will be included?
- Do the services or improvements provide benefits to property not included?
- Does all properties that pay the assessment benefit equally?
- Is the project to be completed within a reasonable time period?
• Fair and Reasonable Apportionment
- Logically and factually driven method of spreading the costs among benefitted
properties
Deesmetbod make sense in view of the service to provided?
Is every parcel of benefited property paying-nq Tore than its fair share?
any exemptions appropriate and justifiable?
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Apportionment Methods
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• Front Feet
• Lots/Parcels
• Land Area
• Improvement Area of Buil
• ERCs
• Land Use
• Trip Generation
• Value
Water Access (docks, slips, lifts)
'rocedures - Develop Program
• Identify Area
• Determine Improvements or Services
• Determine Level of Service
• Identify Methodology
• Develop Cost of Individual Services or Improvements
• Identify benefited properties
• Calculate Rates
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• Initial Assessment Resolution
• Notices
• Public Hearing
• Final Assessment Resolution
Certify Assessment Roll
• Collect on Tax Bill
11113 L—I CIII-31V 1rVV I[I I I C 111— O III I U-1y—II L aFJ uV"—uic
incremental increase in ad valorem taxes within a defined area to a specified
purpose.
• The increment —the increase in real property taxes based on the taxes
generated before and after the investment in real property —is used to fund a
portion of the costs for improvements.
• The value of real property is determined as of a fixed date with a frozen
base year assessed value.
• The taxing authorities continue to generate tax revenue dollars on these
properties based on the frozen base year assessed
value, which is available for general
government purposes.
• The tax increment revenues are calculated
thereafter froman increased value of the real
property within the TI F area over the frozen base_
t� year assessed value.
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`Types of Tax Increment Financing;
Statutory Authorization
- Community Redevelopment Agencies (CRAB) created
pursuant to Part III, Chapter 163, Florida Statutes: grants
local governments the power to set up redevelopment
agencies in their community and use TIF.
- Transportation Development Authorities (TDAs) created
pursuant to Section 163.3182, Florida Statutes: grants local
governments the power to set up transportation
authorities in their community and use TIF.
Home Rule TIF - no q)ecMc statute
Calculation of 1
• Establish Tax IncremE.
• Determine aggregate taxable value within the Tax
Increment Area for Base Year
• Calculate the total ad valorem tax imposed by the County
based on County's millage rate for the Base Year multiplied
by the aggregate taxable value (Base Year Tax Revenue)
• Tax Increment for each fiscal year calculated by deducting
the Base Year Tax Revenue from the amount computed by
multiplying the millage rate for the Base Year by the
---aggregate taxableyalue for each fiscal year
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;Procedures for Creating a TI F Program
1. Identify project to he funded-
2. Identify benefit area for TI F
3. Develop project costs
4. Develop Prof orma TIF projected
revenues
5. Adopt ordinance
6. Adopt implementing resolution(s)
• Sets amount of the TIF to be dedicated to the
— - -- canal restoration projects each year
7'6
rida Keys Stewardship Ac
Funds
2017 Stewardship Act Funds to Monroe County:
$5M
The Act directs the distribution to be in accordance with the
existing ILA, so Monroe County's share is:
$i.5M
Allowable Uses per the Act:
Construction of sewers, storm water collection and treatment, canal
restoration and muck remediation projects; water supply enhancement
projects, land acquisition.
"Sec "on I, ,the zm - fiscal year, the sum of $5 million in nonrecurring funds from the General Revenue Fund is appropriated to
th'e Department of EnvironmentaTPi8tectionto � distributed in accordance with the existing interlocal agreement among the Village of
Wamorada,the Key Largo Wastewater Treatment DlsfrTtt;HteLity of Marathon, the Monroe County/Florida Keys Aqueduct Authority, /
the City of Key West, and Key Colony Beach, for the purposes of m re ruct,, sewage collection, treatment, and disposal facilities;
unplementing stormwater collection and treatment systems; canal restoration arlrJmuckre[nediation projects; and projects thatpfoteSi---
and enhance water supply in the Florida Keys Area of Critical State Concern and the City of Key Wizzaaffritiral5tate-Cojxc'�rri; or,
for the purposes of land acquisition within the Florida Keys Area of Critical Concern as authorized pursuant to s. Z59.045.Ft nda."
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RESTORE Act Funds
$2oM
1.18M + $172K + $6.4M + $12.4M = $zoM
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Gulf Consortium Pot:
Uses: Complies with Restore Act statute, `'4WIp
Complies with Restore Act, Treasury
Treasury rules, federal grant regulations,
rules, federal grant regulations, Restoration
local environmental priorities, MYIP
Council priorities, Consortium priorities, State
•:• $m8M Transocean -Allocated
environmental priorities, local environmental
Paid in one-time, lump -sum payment
priorities
Allocated per MYIP on canal and coral
,storation projects.
$12.4 M (Transocean, Anadarko, BP)
$17 2K Anadarko -Not Allocated
• Paid out through the State Expenditure
Paid in one-time, lump -sum payment
Plan.
Not yet allocated.
Funding to the Consortium is also a 15
year payout period.
•: $6.4M BP -Not Allocated
Timing and sequencing of projects TBD
To be paid out annually overt ears:
by Consortium.
• Spring 2017: $41oK
• 2018: $22oK
Available beginning Fall 2018 (est'd)
_ ... . 2019-2031: $44oK-peryear
Total Available FY 17 : Total Available FY 18-31:
S »--iK + A1nK = S c82K t 44oK + 83oK = t1.27M (Ised
Recommended Options for Short Term
Issues
Option 1: Ad Valorem Taxes
Create MSTU within unincorporated area
• Fund O&M Demonstration Projects
• Fund additional work effort towards long term solutions
Option 2: Ad Valorem Taxes and Special Assessments
Create MSTU within unincorporated area
• Fund additional work effort towards longterm solutions
Create MSBU for properties abutting canal demonstration
projects
____. -.- -- •-- Fund0&M Demonstration Projects (all or portion of the costs)
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MSTU Property Owner Impact
(o.o982 mills)
All Property Categories
Property Type
Taxable Value
Impact on Average Property Owner
Canal
$395,864.75
$38.87
Non -Canal
$188.725.27
$18.53
Total
$292,295.01
$28.70
Single Family Only
Property Type
Taxable Value
Canal
$406,949.71
$39.96
Non -Canal
$293,200.39
$28.79
Total
$350,075.05
$34.38
Recommended Options for Long Ter
Issues
Pursue all available revenue sources:
• Ad Valorem Property Taxes
• Local Option Sales Taxes
• Special Assessments
• Tax -Increment Financing (TIF)
• RESTORE Act and Stewardship Act
• Grants
• Property Owner Funding
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ACTION ITEMS
1. Resolution directing staff to evaluate the creation of an MSTU to fund
canal restoration program management costs of — $1 MillionSyr
z. Resolution approving the expenditure of FY17 Stewardship funds for
canal restoration projects
3. Resolution to allocate Monroe County RESTORE funds for canal
restoration projects
4. Resolution directing staff to move forward with 6 additional water
quality restoration projects
ution to continue with development of an MSBU to fund the
costs for exisdn za+ as ter quality restoration projects
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