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Item P13 BOARD OF COUNTY COMMISSIONERS AGRNDA T~RM SlWMARY 1~1eek.ug Date: Mi'3rc;h ?O. ?OO? Division: Boec Bulk Item: No x Department: Djstric;t Five AGENDA ITEM WORDING: Approval of a resolution to oppose the use of Sadowski Affordable Housing Funds for water reuse facilities. ITEM BACKGROUND: Monroe County has serious funding issues with affordable housing and land acquisition and use of the Sadowski funds and Florida Forever funds are not in our best interest. It is imperative that these sources of funding not be utilized for Everglades restoration and that a recurring, dedicated source of funding should be created for Everglades restoration and water reuse projects. PREVIOUS RELEVANT BOCC ACTION: CONTRACT/AGREEMENT CHANGES: STAFF RECOMMENDATION: TOTAL COST: BUDGETED: Yes No COST TO COUNTY: REVENUE PRODUCING: Yes No AMOUNT PER MONTH YEAR APPROVED BY: County Attorney OMB/Purchasing Risk Mgt. DIVISION DIRECTOR APPROVAL :>>tt..-L.-,rt_/'C-CA--?L. "C-/2c.-..t-a-<T'----- I~ MlJRRAY R NRLSON. Commj ssioner DOCUMENTATION: Included: X To Follow: Not Required: DISPOSITION: AGF.NDA T'J'F:M # ~ ? / -- -- ..'- ~.. ...... 1111... OJ_ ..., OJ ......~1I..... I........ ...."............. Co",missioner Murray Nelson RESOLUTION NO. - 2002 A RESOWTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY. FLORIDA SUPPORTING A DEDICATED, RECURRING FUNDING SOURCE TO FUND THE COMPREHENSIVE eVERGlADES RESTORATION PLAN. SUPPORTING BOND AS YOU GO LEGISLATION, SUPPORTING LEGISLATION THAT IS RECURRING, OPPOSING VTIUZIN6 "HE SADOW~ AFFORDABLE HOUSING TRUST FUND TO FUND THE COMPREHENsIVE eVERGlADES RESTORA-rION PLAN AND OPPOSING THe EXPANSION OF THE FLORIDA FOREVER AC1" TO INClUDE WATER REUSE FACIlITIES WHEREAS, the Florido Everglades i! (1 vital por't of Florida's heritage and is recognized nationally and internationally as one of the world's most significant but imperiled <<osystems; and WHEREAS, local governments, the State of Florida, the South Florida Water Management District, and the US Congress have undertakUl the Cornprehensive Everglades Restoration Plan to restore the Florida Everglades; and WHEREAS, the success of the Comprehensive Everglades Restoration Plan dependS on purchasing sufficient land to support Everglades Restoration cotnponents which improve capacity to store water and provide for wildlife habitat; and WHEREAS. according to the South Florida Water Management District, 104,987 acres will be needed over the next five years ot a cost of $943 rnillion: and WHEREAS. land n<<essory for Everglades Restoration is becomil'l9 increasingly scarce and expensive due to development pressures; and WHEREAS. the Florida Legislature is considering Bond As You Go legislation that will provide up to $125 million per year for land acquisition from docunu~ntQry stamp tax revenue; and WHEREAS. the proposed Bond As You Go I~islation will provide a long term recurring funding source that will not require yearly legislative approval; and WHEREAS. other funding proposals being considered include utilizing the Sadowski Affordable Housing Trust Fund. a progrom for low and very low income housing projects, to pay for the ComprehUlsive Everglades Restoration Plan; and WHEREAS. amendrnents have been approved that would expand the intent and purpose of Florida Forevu. a funding source that supports Everglades Restoration. to allow water management districts to utilize Trust Fund dollars for water reuse facilities; and WHEREAS, the Board of County Commissioners of Monroe County hos historically recognized tke economic and environmental value of Everglades Restoration and supports the Comprehensive Everglades Restoration Plan; now. therefore :: BE rr RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY. FLORIDA: See1ion 1. The SOCC considers the Everglades to be such 0 si9nifiCC1l'lt resource that a dedicated, recurring state funding source is needed to fund the Comprehensive Everglades Restoration Plan. Section 2. The BOCC supports Bond As You Go legiskztion that will utilize documentary stamp taxes to pay for klnd acquisition necessary for the Comprehensive Everglades Restoration Plan. Section 3. The eocc supports funding It.gislation that is recurring. Section 4. The 80CC opposes utilizing the Sadowski Affordable Housing Trust Fund to fund the Comprehensive Everglades Restoration Plan. Section 5. The BOCC opposes any amendments that expand the purpose and intent of the Florida Forever Act to provide for the water management districts to utilize the Florida Forever Trust Fund to pay for water reuse transmission facilities. Section 6. A certified copy of this resolution shall be sent to the Governor, the President of the Senate, the Speaker of the Florida House of Repr.."sentotives. the Chair of the Monroe County L.egislative Delegation. the Choir of the South Floridc Water McIl,09ement District. PASSED AND ADOPTED by the Boord of County Commissioners of Monroe County. Florida, at Q regular meeting of said Board held on the 20th day of March. 2002. Mayor Charles McCoy Mayor Pro T em Dixie Spehar Commissioner Murray Nelson Commissioner George Neugent Commissioner Nora Williams (SEAL) Attest: DANNY L.KOlHAGE. Clerk BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY. FLORIDA By By Deputy Clerk Mayor/Chairperson ~ dl'aEvel'glad&502 Mar U~ U~ Ul:~~p Ulstrlct fwo l~:::J-tJ ~2~-~~'W2 p.:::J Support Everglades Funding Through Bonding Approach-- Oppose Taking Funding From Sadowski Affordable Housing Funds II The cleanup of the Everglades is long overdue. Florida is committed to paying its fair share of restoration oflhis natural treasun:. SB 684 by the Committt.:e on Natural Resources, SB 930 by Senat.or King, and H.R & 13 by Representative Dockery and olhers all offer a prudent and responsible method for funding this dlol1. All oflhese bills recognize that bonding of the Everglades restoration is the only way to insun: proper funding-funding that will not be debated over and over again during the next 8 years. The bills recognize that the proper ~ource for paying debt service on the Everglades bonds is the unallocated ponion of documentary tax revenues. This ensures that the critical housing and C1'lvironmental activities that are currently funded from docume::nlary taxes are not raided. ..H;,u;kgro"ud Over the years, environmental groups and the real estale industry have joined logether to support incre::ilses in the documentary tax LO fund both housing and environmental prognuns. To enahle public acquisition ofenvironm~ntally-scnsitive lands, legislation known as Preservation 2000 (or P-2000) inc.reased the doc stamp by 17 cents beginning in 1990. However, some of'trus revenue was nOf placed in dedicated trost funds, but instead was part of the unallocarcd doc stamp revenues that could be lransferred to General Rewnuc. As a result, over the years, revenue intended for the environment have been siphoned away [0 pay for other activities. With cooperation between the Florida Home Builders Association (FHBA) and environmental groups, in 1992 the Legislature passed the Sadowski Affordable Housing Act. This included a J- cent increase in doc stamps to help defray the environmental funds that had been siphoned away, and also e5tablished the State Housing Trust fund and Local Goverrunenl Housing Trust Fund, allocating a IO-cent increase in doc l:tamps to provide affordahle housing. In subsequent years, however, the Legislature bas continued to siphon funds intended for land acquisirion and protection for other unrelated uscs. Governor Bush's Proposal Unfortunately, Governor Bush now proposes taking dedicated State Housing Trust Fund dollars, generated by Sadowski Act documentary tax rt.:venucs, to fund Everglades activities This is an ill- conceived plan that combines both poor economic and bad soci:!l policy. Taking doIJar5 from afiordable housing production will strongly harm our already weak economy, and prevent production of much needed shelter for florida's most needy citizens. Impacts on Arrordahl~ Housing The State Housing TnJst Fund focuses on the hou!';ing needs of our most needy resident 5- very low and low incomt.: families, seniors, farmworkcrs, and the homeless. Unlike the local ....",..,.\ i.'.fl'.'.."...,....:..,'..,I;...,..... -- -- --~""'-f" &j..... -"....., .........,..... I......-,J ,--..... . ~ ......-..... ..................... government State Housing Initiatives Program (SHIP) funds, which are utili~ed for it mil( of residents up to moderate income, all of the State Housing monies are utilized for the groups that can least afford a reduction in housing services- very low and low income homebuyers and renters. Everglades restoration would be ucomplillbed by taking funds from very low and low income families. According to the Governor's press release. the money taken from the Housing Trust Fund will total $145.5 million. The State Housing Trust Fund. which receives only 4.8 percent of documentary tax revenues, would shoulder over J 8 pt:recnt of the cost of Everglades activitie!i There are not enough housing fund!\ tD meet florida's c;urrent need, de!;pite increases in federal tax code programs. There is no "surplus"ofhousing fund!'; instead, there is a huge shortfall compared to existing need. The Governor's Affordable Housing Study Commission detailed this shortage of funding aI1d unmet need in its 200 I report, wherein it demonstrated that over $62 billion of public outlays are nceded in this decade to meel fo"Iorida's goal of safe, decent. and affordable housing for all citizens by 2010. As noted. the Sadowski Affordablt: Housing Act funded both housin~ and environmental programs through separate documentary tax increases. Republicans in the legislature supported the Sadowski Act because the industries that would be paying the taxes supported the tax.~s. The legislature, builders, and reaL estate professionals realized that expanding homeownership Oppol1unities and building apartments for the working poor was good business for both the industries and Florida. This proposed raid breaks the good-faith commitments relaled to that tax increase that have withstood the test of time. Our Position We firmly oppose the proposed raid on the State Housing Trust Fund to pay for Everglades n:storation. IMtead, we support lI!iillg tho>: lItullllocated doc stamp revenu~s for the purpose for which they were intended-protecting the environment. Theretore, the Ev~rgll\des restoration should be funded through bonding, with d~bl sClVice paid from unalloc;a.ted documentary tax revenues intended for environmental protection, and the State Housing Trust Fund should pay tor affordable housing, as intended. It<.l' U....J U_ ...,.... -..J....,.~ "-"4 'J"'. ............ I wV ......,.......,) OJL-"",,, _"""'V_ I ~.. I Comparison of Everglades Funding Proposals Sen;tle BiJJ 684 by Natural Resources Committee Hou,;e Bill RJ3 by Dockery Guvernor's Proposal 2Dd others Bond as rOIl Go $75 million plus (retains $25 million Florida Forever enrmMk). Need and opporlLUuty driven approach to iim.U1Cing J::vcrglade~ restoratioll. Uses documentary stamp tax revenue to pay principle and interest on bonds. Rt:quires legislative approval of initial debt servicl:. Bonds $75 million a year tor eight yeMs or more if South Florida Water Management District's plan required more. Rl;venuc impact would be approxinmteJy $6 million per year for every $75 million in bonds issued. T mmediate revenu~ impact would be negligible. No funds would sit Wlllsed in reserved accounts. Biggest risk claimed by DEP is lhal long-term cO~t5 ofbond~ might impede future budg~!..~ccisions. Bond as Ynu Bu,-._ hh $125 million (reIeasl.:s $25 million Florida Forever earmark). Need and opportunity driven appronch to financing Everglades restoration. Uses docwnentary stamp tax rl:Venue lu pay principle and mlcn::st On bonds. Requires legislative approval of initial debt st:rVlce Bonds $125 million per year fur eighl years and fi"ccs current Florida Forever funds now dedicated solely to Everglades ($25 million/yeM). Revenue impact would be approximalely $10 million JX:r year for every $125 nullioD in bonds issued. 1.1ll1llcdinte revenue impact would be negligible. No funds would sit unused in reserved accounts. Riggesr risk claimed by DEP is that long-term costs ofbondsnrightimpede futur~ budg~l decisions. Pa 45 You Go $75 million only (retains $25 million Plorida Forever eamlark). Budget drivcn approach to fmancing Everglades restoration. Eannnrks documentary stamp taxes from general revenue and state housing trust fund. Requires full legislative appropriation each ye.lI. No new proposed bond authority Impnct of up to $62.5 million on general revenue and additional impact on olher trust funds and rest=TVt:S. Immediale revenue impact up 10 $75 millioo_ Once appropriated, funds sit witil spent. Bigg~slr~k:~ecessary land is lost. te) development or becomes too e"])eJ1sive. F.... morc information conlact; t;;ric UNpcr - ^",IIlb.'1f . 224-7H/;. K~lhcrinc Andrews. The NllUrc COn$CIVDnL'Y Z22~I""U or Knthy I\.~II!-h"'an and :'iccphanlc Culp- 'HilS'! for I'1Iblic l.and 222-7911