Capital Improvements i

Transcription

1 CAPITAL IMPROVEMENTS TABLE OF CONTENTS I. INTRODUCTION...1 II. INVENTORY OF PUBLIC FACILITY NEEDS...1 A. Capital Needs Derived from Other Elements...1 B. Cost Estimates for Identified Capital Needs Existing Deficiencies Replacement New Growth Needs...3 C. Stormwater Drainage Improvements Level of Service Standards...3 D. Estimates for Identified Projects Impacting Operating Cost...3 III. INVENTORY OF PUBLIC HEALTH AND PUBLIC EDUCATION FACILITIES...3 A. Public Health System...4 B. Public Education System...4 IV. INVENTORY OF REVENUE SOURCES...4 A. Local Sources Ad Valorem Taxes (Property Taxes) Franchise Taxes/Fees Utility Tax Impact Fees Connection Fees Business Tax Receipt Fire Protection and Infrastructure Protection Fees Permits Special Assessments Interest Miscellaneous Fines, Forfeitures and Penalties Intergovernmental Revenues Appropriated Reserve Borrowing/Debt Management...12 a. General Obligation Bonds...13 b. Revenue Bonds...13 c. Industrial Revenue Bonds...14 B. Local Option Taxes for Counties/ Potentially Shared with Municipalities Tourist Development Tax Ninth Cent Fuel Tax (Fomerly County Voted Gas Tax) County Local Option Fuel Tax Alternative Fuel Decal Users Fee/Municipal Portion of County Share Metropolitan Transportation Authority Voted Gas Tax Local Option Sales Taxes...16 C. State Sources State Revenue Sharing...17 a. Total population and weighted by:...18 b. Sales Tax Collections (allocated by proportion of county population)...18 c. Relative Revenue Raising Capacity (per capita non-exempt valuation weighted by population) Half-Cent Sales Tax Disbursement Alcoholic Beverage License Tax Mobile Home License Tax Motor Fuel Tax Refunds for Municipalities Insurance Premium Tax Firefighters Supplemental Compensation Law Enforcement Trust Fund...21 D. County, Regional, State and Federal Grants...21 i

2 E. Areas for Potential Cost Savings - Privatization...22 V. INVENTORY OF LOCAL POLICIES AND PRACTICES...22 A. Background...22 B. Inventory Level of Service Standards Capital Budget Capital Improvement Program Adequate Facilities Ordinance Impact Fees Dedications and Infrastructure Construction Urban Service Areas Moratorium Enterprise Funds Tax Increment Financing...27 VI. ANALYSIS...27 A. Background...27 B. Accounting System Governmental Fund Types Proprietary Fund Types Fiduciary Fund Types Account Groups...28 C. Unreserved Fund Balance...28 D. Financial Assessment of Ability to Fund Identified Capital Needs Forecasting of Revenues and Expenditures Projection of Debt Service Obligations Projection of Ad Valorem Tax Data Projection of Other Tax Bases and Revenue Sources Projection of Operating Cost Considerations Projection of Debt Capacity...30 D. Summary of Findings...30 VII. GOALS, OBJECTIVES, AND POLICIES...30 A. Background...30 B. Non-applicable Items...31 C. Local Goals, Objectives, and Policies...32 VIII. CAPITAL IMPROVEMENTS IMPLEMENTATION...40 A. Background...41 B. Schedule of...41 C. Programs to be Adopted Concurrency Management System Requirements Concurrency Management System of the City of Oldsmar...42 IX. MONITORING AND EVALUATION...43 ii

3 I. INTRODUCTION In 1985, the Florida Legislature mandated that local governments plan for the availability of public facilities and services to support development concurrent with the impacts of such development. As specified in Rule 9J-5.016, F.A.C. CAPITAL IMPROVEMENTS ELEMENT: The purpose of the capital improvements element is to evaluate the need for public facilities as identified in the other comprehensive plan elements and as defined in the applicable definitions for each type of public facility, to estimate the cost of improvements for which the local government has fiscal responsibility, to analyze the fiscal capability of the local government to finance and construct improvements, to adopt financial policies to guide the funding of improvements and to schedule the funding and construction of improvements in a manner necessary to ensure that capital improvements are provided when required based on needs identified in the other comprehensive plan elements. The element shall also include the requirements to ensure that an adequate concurrency management system will be implemented by local governments pursuant to Rule 9J , F.A.C., of this chapter. This element includes: 1) an inventory of capital improvement needs, financial resources, and local policies and practices; 2) a fiscal assessment of revenues and expenditures; 3) a discussion of issues and recommendations; 4) a listing of goals, objectives and policies; 5) a section detailing implementation, including a five year schedule of capital improvements; 6) a section describing monitoring and evaluation strategies; and 7) a schedule of improvements that ensure the adopted level-of-service standards are achieved and maintained. II. INVENTORY OF PUBLIC FACILITY NEEDS The element shall be based on the public facility needs as identified in the other comprehensive plan elements and shall support the future land use element. Transportation facilities include facilities identified as existing or projected needs in any of the following elements: traffic circulation; mass transit; and port, aviation and related facilities. (Rule 9J-5.016(1)(a), F.A.C) The general fiscal implications of the existing deficiencies and future needs for each type of public facility. This analysis shall be based on the needed improvements, as identified in the other local government comprehensive plan elements, and shall address the relative priority of need among facility types, and shall support the future land use element; (Rule9J-5.016(2)(b) F.A.C.) A. Capital Needs Derived from Other Elements The analyses performed in the preceding Oldsmar Comprehensive Plan elements have identified capital improvements needed to meet the demands of existing and future development. This inventory sets forth physical assets which have been identified as an existing or projected need in the previous elements of the Comprehensive Plan. These physical assets are generally nonrecurring, large scale, and high cost. Multi-year financing may be required. A consistent theme echoed in all of the other elements of this Comprehensive Plan is the need for a scheduled approach to maintaining the current public facilities that are within the jurisdiction of and are the responsibility of the city. Routine maintenance and refurbishment of current capital assets 1

4 should be established on a cycle corresponding to the current condition and anticipated useful life of the improvement. Table 1A and Table 1B list the capital improvements identified from other elements of the Comprehensive Plan for the years 2007 through 2012 by fiscal years. This is consistent with the provision of Section 9J-5.016, F.A.C., which requires this element to address existing and future capital improvements needed for at least the first five fiscal years after the adoption of the comprehensive plan. Capital improvements needed for the latter part of the planning period will be evaluated during the required annual review of this element. Identified capital improvement projects are those necessary to maintain levels of service recommended in the other comprehensive plan elements. Table 1A provides a brief description of each of the capital improvement projects needed to correct existing deficiencies. Cost estimates and funding source are also listed. The column in Table 1A labeled Target Year indicates the year by which the Projects are to be completed in order to alleviate the existing deficiencies. Until the Target Year is reached a situation where conditions are currently below adopted service level standards will continue. Table 1B provides a brief description of each of the capital improvement projects needed in order to maintain the adopted level of service standards presented in the other comprehensive plan elements. Cost estimates, funding source and the fiscal year/years planned in which the project is to be complete; are also included in the Table 1B. The capital improvement projects listed in Table 1A and Table 1B are not inclusive of all anticipated capital expenditures by the municipality during this time period. The list of improvements derived from the preceding elements has been limited to components that the municipality is responsible for providing. Appendix B provides the reader with the information on all approved capital improvements occurring or scheduled to occur within the boundaries of the municipality at the time of adoption of this Element. Capital expenditures that have been identified by other governmental jurisdictions, such as the Metropolitan Planning Organization or the Pinellas County School Board, are included in this schedule when applicable. B. Cost Estimates for Identified Capital Needs (2)(c) The costs of needed capital improvements for mitigation of existing deficiencies, replacement and new growth needs pursuant to the future land use element and shall explain the basis of cost estimates; (Chapter 9J F.A.C.). 1. Existing Deficiencies Stormwater drainage improvements identified in Table 1A are addressed under C. Stormwater Drainage Improvements of this section. 2. Replacement The Transportation Element has identified a need to improve local roadways. Staff anticipates that this will be funded by Existing Revenue. Details on these roadways can be found in Table 12, Transportation Schedule of Improvements. 3. New Growth Needs The population increase that the City experienced over the prior planning period has particularly impacted the Recreation/Open Space Element. The City plans to construct a 2

5 Conference/Cultural Center in the downtown area, Community Center at Bicentennial Park and a Western Recreation Center. The estimated costs for Recreation and Open Space growth needs are separately identified in Table 1B Capital Needs necessary to maintain LOS Standards, and Appendix B City of Oldsmar Florida, Capital Improvement Budget, under Department Parks. The Infrastructure Element identified an Alternative Water Supply source as a new growth need to meet the future commercial and industrial growth as well as a water source that would relieve the Tampa Bay Regional system of the City s potable water demand. The SWFWMD Regional Water Supply Plan includes the City of Oldsmar Alternative Water Supply Plan under Water Supply Projects Under Development. The estimated cost for the Alternative Water Supply is separately identified in Table 1B Capital Needs necessary to maintain LOS Standards, and Appendix B City of Oldsmar Florida, Capital Improvement Budget, under Department Public Works Water. C. Stormwater Drainage Improvements The Infrastructure Element has identified a drainage deficiency in the older section of Oldsmar. This section of the city experiences severe flooding due to the storage loss associated with the development north of SR 584. The problem is aggravated by the natural drainage flow to Old Tampa Bay through this section of the city. The City continues to implement its Stormwater Management Master Plan The estimated costs for stormwater drainage improvements are separately identified in Table 1A Capital Needs for Existing Deficiencies, and Appendix B City of Oldsmar Florida, Capital Improvement Budget, under Department Stormwater Utility. The source of the funding is the Stormwater Utility Fund, an enterprise fund. 1. Level of Service Standards Table 1B lists the projects, the fiscal year which the funds are anticipated, the estimated costs, the funding source, and the project's priority; identified as necessary for the maintenance of the level of service standards defined in the various elements of the comprehensive plan, Infrastructure, Recreation/Open Space, and traffic circulation of the Transportation Element. D. Estimates for Identified Projects Impacting Operating Cost The estimates for the identified projects that have an impact on capital expenditures are included in Table 1A and Table 1B. Table 1B breaks down the capital improvement estimated cost by fiscal years. The impact of adopting policies that result in an increase in operating budgets must also be considered. No policies have been identified at this time in this Comprehensive Plan that will impact the operating budget. III. INVENTORY OF PUBLIC HEALTH AND PUBLIC EDUCATION FACILITIES (1)(b) The geographic service area and location of major system components for the public education and public health systems within the local government's jurisdiction shall be identified. (Chapter 9J-5, F.A.C.). (2)(d) The impact of new or improved public educational and public health care systems and facilities on the provision of infrastructure; (Chapter 9J-5, F.A.C.). Both public health and public education in Pinellas County are a function of the County. Public education is under the jurisdiction of the elected Pinellas County School Board, while the countywide 3

6 public health system is under the jurisdiction of the elected Pinellas County Board of County Commissioners. The geographic service areas and locations were identified for public education and public health system components within the municipality's jurisdiction. It was determined that any such existing systems and facilities were adequately served by roadways, sanitary sewer, solid waste, drainage, potable water and recreation facilities. Based upon information supplied by the staff of the Pinellas County School Board and the Pinellas County Board of County Commissioners, it was found that no additional public facilities will be needed beyond those already planned in order to adequately satisfy the projected demand and maintain adopted level of service standards, as proposed in the other elements of this comprehensive plan. A. Public Health System The Pinellas County Public Health Department provided information concerning the public health facilities for Oldsmar residents. To receive public health services a resident may choose to go to any of the public health facilities located in Pinellas County. Pinellas County health services are offered at the following locations within the county: Clearwater 310 North Myrtle Ave St. Petersburg 205 Dr. Martin Luther King Jr St N Pinellas Park Tarpon Springs th Ave North 301 South Disston Ave Largo th Ave N The infrastructure to support the current facilities is adequate and no additions are planned at this time. B. Public Education System The Pinellas County School Board affirmed the infrastructure in the city is adequate to support its current facilities. The Oldsmar Elementary School is located at 400 Chestnut Street and an elementary school has been built at Cypress Lakes. The public school system in Pinellas County is based on a countywide district, encompassing all municipalities within the County and the unincorporated area. The School District notifies the City for needs pertaining to on site or off site improvements to support new, proposed expansion or redevelopment of existing schools within the jurisdiction of the City. The Public School Facility Element of this Plan further describes the roles and responsibilities of the City, County, other municipalities and the Pinellas County School Board. IV. INVENTORY OF REVENUE SOURCES (1) (c) Existing revenue sources and funding mechanisms available for capital improvement financing, such as ad valorem taxes, bonds, state funds, federal funds, gas taxes and impact fees shall be inventoried (Chapter 9J-5, F.A.C.). Relatively few revenue sources are available to local governments to pay for growth. Florida's Constitution preempts to the state all revenue sources not specifically provided by law except for the ad valorem (property) tax; but, it also limits the millage rates applied to the property tax to ten mills for municipal purposes. A collection of other limited revenue sources are available to local governments including the following: 4

7 Municipal utility taxes that are limited to ten percent and are also limited in other ways depending upon the type utility being taxed. Business tax receipts which can be levied by cities. Local option motor fuel taxes of up to six cents which can be levied without voter referendum and must be earmarked for transportation. Voted gas tax of one cent levied only after referendum. Tourist development taxes earmarked for tourism promotion, convention facilities and beach restoration, which can be levied by all counties with voter approval at one percent or two percent. After the tax has been imposed for three years, the tax may be raised by extraordinary vote of the Commission or by voter referendum. Local Option Infrastructure Sales Tax (Penny for Pinellas), additional one cent surtax on sales pursuant to Section (2), Florida Statutes. Also available on a limited basis are revenue sharing, franchise fees, various special assessments, donations, interest on investments and user fees. A. Local Sources Table 2 presents a summary of the status of all local financing resources available to the municipality. The table specifies the financing resource, list yes or no for whether resource is utilized by the municipality and further specifies if that financing source is utilized to maximum allowed. The text concerning the revenue resource should be referenced, in order to ascertain the basis or to determine if the municipality has any control over the resource. 1. Ad Valorem Taxes (Property Taxes) An ad valorem tax, also known as the property tax, is a tax levied in proportion to the assessed value of taxable property (taxable land, improvements thereon and tangible personal property). Property taxes are based on a millage rate (one mill is the equivalent of $1 per $1,000 of assessed value or 0.1 percent) which is applied to the total taxable value of all real and tangible personal property. State constitutional provisions exist for raising the millage rate above the ten mill cap by local referendum for debt service. A minimum property tax (equivalent of three mills based on taxable values in 1973 or year of incorporation if after 1972) is one of four criteria a local government may choose to meet, to be eligible for participation in state revenue sharing. The Florida Statutes in Chapter specifies the limit on ad valorem taxes that a municipality may levy. Pursuant to s.9, Art. VII of the State Constitution, a municipality is hereby authorized, in a manner not inconsistent with general law, to levy ad valorem taxes on real and tangible personal property within the municipality in an amount not to exceed 10 mills, exclusive of taxes levied for the payment of bonds and taxes levied for periods of not longer than 2 years and approved by a vote of the electors. Revenue from ad valorem taxes may be used to fund both operating costs and capital projects. Current Status: The city of Oldsmar seeks to raise a total of $5,048,000 through property taxes for FY The City previously maintained a millage rate of 4.65 from 1997 to 2005 and 4.60 in The millage rate, a result of Legislative initiative on property tax reform, in 2007 is The City adopted an additional City property tax exemption of $25,000 in 2006 and increased it to $50,000 in 2007 for qualifying seniors. 5

8 2. Franchise Taxes/Fees A franchise tax or fee is a charge levied against a corporation or individual by a local government in return for granting a privilege, sanctioning a monopoly or permitting the use of public property. Florida Statutes, Chapter , specifies that a:...municipality may grant to said private company or corporation the privilege or franchise of exercising its corporate powers for such terms of years and upon such conditions and limitations as may be deemed expedient and for the best interest of said municipality for the accomplishment of the purposes set forth in this chapter; said franchise, however, to be for a period of not longer than 30 years;. Current Status: The city of Oldsmar levies the following franchise fees: Utility Method of Calculating Fee $ Received FY Electricity 6% of bills $1,267,464 Gas* 6% of bills 59,964 Solid Waste 10% of bills 554,947 Cable 22,000 Total Franchise Revenue Received $1,904,375 *The city of Clearwater was granted a thirty-year franchise to provide gas to the residents of Oldsmar. Franchise fees are set at four percent for the first ten years, four and one half percent for the second ten years and five percent for the third ten years. Total franchise revenues anticipated in FY is $1,290,000 and can be found in the recently adopted budget. During the FY budget year, franchise fees were no longer collected on Solid Waste and Cable revenue is now addressed under the Communications Services Tax identified below. Periodic audits are conducted to ensure proper collection. Communications Service Tax Florida Statues, Chapter , Authorization to impose local communications services tax specifies that: (1) The governing authority of each county and municipality may, by ordinance, levy a discretionary communications services tax. (2)(a) Charter counties and municipalities may levy the tax authorized by subsection (1) at a rate of up to 5.1 percent for municipalities and charter counties that have not chosen to levy permit fees, and at a rate of up to 4.98 percent for municipalities and charter counties that have chosen to levy permit fees. 2(c) The maximum rates authorized by paragraphs (a) and (b) do not include the add-ons of up to 0.12 percent for municipalities and charter counties or of up to 0.24 percent for noncharter counties authorized pursuant to s , nor do they supersede conversion or emergency rates authorized by s which are in excess of these maximum rates. 6

9 Current Status: The city of Oldsmar received $922,359 in revenues from the current Communications Service Tax of 6.420% in FY and anticipates $1,100,000 in revenues for FY Utility Tax A utility tax is a tax levied by a local government on the consumers of various utilities such as electricity, telephone, gas, etc. Florida Statutes Chapter specifies which utilities a municipality may tax and the limit of that tax. (1)(a) A municipality may levy a tax on the purchase of electricity, metered natural gas, liquefied petroleum gas either metered or bottled, manufactured gas either metered or bottled, and water service. Except for those municipalities in which paragraph (c) applies, the tax shall be levied only upon purchases within the municipality and shall not exceed 10 percent of the payments received by the seller of the taxable item from the purchaser for the purchase of such service. Municipalities imposing a tax on the purchase of cable television service as of May 4, 1977, may continue to levy such tax to the extent necessary to meet all obligations to or for the benefit of holders of bonds or certificates which were issued prior to May 4, Purchase of electricity means the purchase of electric power by a person who will consume it within the municipality. Current Status: The city of Oldsmar levies the following utility taxes. Utility Method of Calculating Fee $ Received FY Electricity 9% of bills $1,069,993 Propane 3.6 cents/gallon 29,201 Gas 9% of bills 45,165 Total Utility Service Taxes $1,144,359 Total utility service taxes anticipated in FY is $1,178,000 and can be found in the recently adopted budget. Periodic audits are conducted to ensure proper collection. 4. Impact Fees Impact fees are charges assessed against new developments in an attempt to cover the cost of providing capital facilities (infrastructure) needed to serve the development. Their use is promoted as a way for growth to pay its own way by charging at the beginning for infrastructure needed by new development. Impact fees provide one way to help ensure that existing residents will not bear the entire cost of new facilities necessitated by new growth and development. The fair share philosophy underlying impact fee usage is the impact fee's most fundamental principle. It is this principle which prohibits use of the fees for any purpose other than that of providing new facilities necessary to accommodate the new development. Impact fees cannot be used to correct existing infrastructure deficiencies. Florida Statute (16)(a) requires: By December 1, 2006, each local government shall adopt by ordinance a methodology for assessing proportionate fair-share mitigation options. The City of Oldsmar adopted a County wide methodology that conformed to this statue. 7

10 Although local governments are required to adopt proportionate fair share provisions in their land development code, the implementation of these provisions is optional to the developer. Local governments must offer this option to developers only when all of the following conditions apply: 1) the project is impacting a roadway operating below the adopted level of service standard; 2) the affected roadway(s) has a mitigating improvement scheduled for construction; and 3) the start of construction on the mitigating project is scheduled to occur after the first three years of the schedule of projects published in the capital improvements element. According to Florida Statue (3), an impact fee adopted by ordinance of a county or municipality or by resolution of a special district must, at minimum: (a) Require that the calculation of the impact fee be based on the most recent and localized data. (b) Provide for accounting and reporting of impact fee collections and expenditures. If a local governmental entity imposes an impact fee to address its infrastructure needs, the entity shall account for the revenues and expenditures of such impact fee in a separate accounting fund. (c) Limit administrative charges for the collection of impact fees to actual costs. (d) Require that notice be provided no less than 90 days before the effective date of an ordinance or resolution imposing a new or amended impact fee. Current Status: The city of Oldsmar levies the following impact fees: Transportation The city of Oldsmar levies an impact fee for transportation based on Pinellas County Ordinance as amended. As specified in an agreement with the county, 50 percent of funds collected from developers for the transportation impact fee, minus an administration charge of four percent, are returned to the county. The city of Oldsmar received $216,484 in revenues from the transportation impact fee in FY and anticipates $175,000 in revenues for FY The Pinellas County Transportation Fee Ordinance establishes fixed impact fees for all of Pinellas County. The following formula is utilized to calculate the impact fee assessed: Where: TGR x %NT x TL x CST (RF) CAP x 2 TGR = Trip Generation Rate per fee schedule %NT = Percent new trips CAP = The capacity of one lane mile of roadway (6,900 vehicles per lane per day) CST = The cost to construct one-lane mile of roadway ($2,216,000) TL = Average trip length (varies by land use) 8

11 2 = Allocation of one-half the impact to the origin and one-half to the destination. RF = Reduction factor (.268) To encourage the use of fixed fees rather than independent analyses, Pinellas County provides optional fee schedules. At the option of the fee payer, the amount of the transportation impact fee may be determined by fee schedules. The General Fee Schedule(A) contains the impact fee rates for uses outside of designated downtown/redevelopment areas; The Downtown Redevelopment Fee Schedule(B) contains rates for downtown/redevelopment areas, which includes the City of Oldsmar Redevelopment District Pinellas County has created twelve impact fee districts and corresponding trust accounts in Pinellas County that are roughly equivalent to the following metropolitan areas: Greater Tarpon Springs, East Lake Tarpon/City of Oldsmar Downtown Area, Palm Harbor, Dunedin, Greater Safety Harbor/Oldsmar, Clearwater, Largo, Highpoint Area, Seminole, Pinellas Park, St. Petersburg, and the St Petersburg Beach/South Pasadena Area. Pinellas County has also created five impact fee downtown areas and three no fee transportation zones There are 24 municipalities within Pinellas County that must share the funds with the impact fee districts. To ensure the equitable distribution of funds, the ordinance calls for the developer to pay the fee to the presiding jurisdiction where the development occurs. These monies will be held until the end of the fiscal year. On October 1, half of the fees collected (less four percent for administrative costs) will be forwarded to the Board of County Commissioners and placed in the district trust account. The other half is held in the presiding district's own impact fee trust fund. The monies held in the district trust fund must be spent within the district; monies held by a municipality must be spent within the municipality. The current capital improvements budget does not include any projects that would be subject to proportionate fair-share mitigation options. Water and Sewer The city also utilizes sewer and water impact fees. The purpose of these fees is to provide alternative funding for the expansion of the city's water supply system and waste water treatment system by imposing a user charge which is reasonably commensurate with the burden currently imposed or reasonably anticipated to be imposed on those systems. These fees are required at the time of the first water permit, sewer permit or building permit issuance. The sewer and water impact fees are assessed on residential, nonresidential, commercial and industrial use structures and buildings. Single family residences are assessed a $984 water impact fee and a $1,390 sewer and effluent impact fees. The assessment rates for nonresidential structures are based on a schedule of impact fees for nonresidential, commercial and industrial uses as adopted by resolution. Changes in use which increase the amount of water consumption subsequent to the payment of the original impact fee are subject to an additional impact fee computed in accordance with the then existing criteria. Current Status: The city collected $397,409 in water and sewer impact fees for FY Estimated revenues from water and sewer impact fees for FY are $275,000. 9

12 Public Safety The city also utilizes a public safety impact fee. The fee is imposed on all new construction in the city prior to the issuance of any permits. The proceeds are designated only for the purchase of fire suppression capital improvements limited to facilities, vehicles and equipment for fire fighting and fire protection services. For residential developments, this fee is $275 per unit. Commercial and industrial developments are assessed at a rate of $275 per unit or.20 per square foot, whichever is greater. Current Status: The city collected $63,060 in public safety impact fees for FY Estimated revenues for FY are $50, Connection Fees Connection fees are fees charged individuals/businesses to connect to current infrastructure. Connection fees are used to allay capital cost of infrastructure necessary to support an additional user. Connection fees are often assessed for water, sewer, or gas hook-ups. Current Status: The city of Oldsmar has sewer and water connection fees. The city collected $51,238 and $12,375 for water and reclaimed water connection and reconnection fees, respectively in FY and $10,792 for waste water or sewer connection fees. Estimated water, sewer and reclaimed water connection and reconnection fee revenues for FY are $50,000, $5,000 and $20,000 respectively. 6. Business Receipt Tax A municipality may levy a business receipt tax for the privilege of engaging in or managing any business, profession, or occupation within its jurisdiction. Municipalities may also receive a share of business receipt taxes collected at the county level. Current Status: The city of Oldsmar collects monies for business receipt taxes based on an adopted fee schedule. The amount of monies collected varies as it is dependent on the mix of business, profession or occupations within the City. The city collected $164,447 of business tax receipts in FY Estimated fee revenues for FY are $145, Fire Protection and Infrastructure Inspection Fees The city of Oldsmar collects monies for connecting to the water distribution system based on a fixed fee multiplied by projected number of square feet of business space with sprinkler systems. Current Status: The city collected $41,887 of fire protection service and inspection fees in FY Estimated fee revenues for FY are $42, Permits/building code fees Permits are issued to individuals/businesses granting permission for some action. Fees for issuing permits can be assessed to generate excess revenues or set to cover cost. Permits allow a municipality to be aware of activities going on within their jurisdiction and to regulate them for the public safety and interest. For example, building permits are required to ensure that buildings within a municipality meet the building codes the municipality has adopted. Pursuant to Florida statue, , the governing body of a municipality may provide a 10

13 schedule of reasonable inspection fees in order to defer the costs of inspection and enforcement of the provisions of its building code. Current Status: The city of Oldsmar issues building, electrical, plumbing, mechanical, and landscape and other permits. Total revenue collected in connection with these permits in FY was $161,400. The city has budgeted $175,500 in anticipated revenue from permits for FY Special Assessments 10. Interest Special assessments are compulsory contributions collected from the owners of property benefited by specific public improvements (street resurfacing, sidewalks, etc.) to defray the costs of such improvements. Costs are apportioned according to the presumed relative benefits to the property and revenues accrue to a special account. Generally this is a matching technique that is used in combination with city funds or work by city personnel. The rationale of special assessments is that the property owner directly benefiting from the improvement should pay part or all of the cost. Current Status: The Special Assessment Fund was established for drainage improvements in the Sellers Industrial Park area which was authorized by Council. This project, with a fund of $750,000 will include water, drainage improvements and sewer line construction Interest is monies earned on investment of municipal revenues/ surpluses. Aggressive money management has become an increasingly important source of revenue for municipalities. Municipalities may place monies in the Local Government Surplus Funds Trust or may choose to keep all or a portion in financial institutions. Many municipalities put the investment of surplus monies up for competitive bids by financial institutions to guarantee the highest return possible. Chapter 280 of the Florida Statutes, Security for Public Deposits, specifies that any financial institution utilized by a municipality must qualify as a public depository with the Chief Financial Officer of the state of Florida and meet all of the requirements for same. A list of the financial institutions qualified as a public depository is published in the Florida Administrative Weekly or is available from the Chief Financial Officer s office. Current Status: Interest earnings as revenue for the General Fund for FY , as reported, is $215,232. Anticipated interest earnings for FY are $220,000 and can be found in the budget adopted by the city. 11. Miscellaneous Miscellaneous revenues are revenues generated through a variety of sources, including sale of municipal services, rental of municipal property, library fines, planning and redevelopment fees, donations, and violations of local ordinances, etc. The City also charges fees for Recreational programs, camps, cultural programs and special events Current Status: Other miscellaneous revenues received by the city in FY totaled $114,282 and $116,250 for FY Revenue from Recreation and Cultural Program fees in FY totaled $182,980. Anticipated 11

14 12. Fines, Forfeitures and Penalties Recreation and Cultural Program revenue for FY are $191,000 and can be found in the budget adopted by the city. Fines, forfeitures and penalties are monies collected locally (e.g. parking tickets) or collected at the county level (e.g. court fines) and distributed back to the municipality by Clerk of the Circuit Court as specified in the Florida Statutes. Municipalities receive 50.8 percent of fines levied for traffic infractions resulting in civil penalties after court cost, statutory contributions and $1 contribution each, to the Juvenile Justice Training Trust Fund and the Child Welfare Training Trust Fund is deducted. If the municipality has passed a resolution establishing a Law Enforcement Education/School Crossing Guard Fund, an additional charge of two dollars is levied and transferred to the municipality for those purposes. Current Status: Fines, forfeitures and penalties revenue for FY was $165,287. Budgeted for FY under fines, forfeitures and penalties are revenues of $120, Intergovernmental Revenues Intergovernmental revenues are monies received by the municipality from other levels of government for a service the city performs for its citizens or others that may normally be provided by a different level of government or a special funding source that may be established to pay for a particular service. Examples would include an ad valorem fire district tax for a designated geographical area or a charge levied on phone service to fund a countywide emergency medical service. Current Status: Oldsmar received $265,250 in FY from Pinellas County to cover costs incurred for the city's EMS (Emergency Medical Service) Unit which serves Pinellas County residents. Oldsmar received $210,626 to cover costs incurred for the Pinellas Public Library Cooperative. Anticipated revenue for FY is $362,000 and $229,830 for EMS and Pinellas Public Library Cooperative respectively. 14. Appropriated Reserve Appropriated Reserve is a transfer of monies remaining from previous fiscal year's budget. The money brought forward is used to balance the city's budget. Florida municipalities are not allowed by statute to budget more expenditures than income. Municipalities may not operate at a deficit; they must have a balanced budget. Current Status: The city of Oldsmar did not use appropriated reserves in FY Oldsmar anticipates using $1,500,000 from Appropriated Reserve to balance its FY budget. 15. Borrowing/Debt Management Policy The City of Oldsmar takes a planned and programmed approach to the management of its outstanding debt, with a view toward funding from internally generated capital, where appropriate, and financing, where appropriate. The high cost of many capital improvements requires local governments to utilize borrowing, either through short-term or long-term financing. Short-term financing is one option available to raise required revenue for short periods generally ranging from one to five years. The more customary method, however, is 12

15 to authorize long-term bond issues, normally for five to 40 years. One of the rationales for borrowing in a city that is experiencing tremendous growth is that the residents who are enjoying the benefits of the capital improvements in the future are responsible for paying part of the cost. Furthermore, that all cost is not borne by those residents currently residing in a municipality but cost is spread out over the life of the particular improvement. Ideally there should be a direct correlation between the term of the bond and the expected life of the capital improvement. The City uses financing, lease purchases (capital leases) and cash payments to pay for its capital acquisitions. a. General Obligation Bonds General obligation bonds are bonds backed by the full faith and credit of the local government, and are required to be approved by voter referendum due to the implied or expressed pledge of ad valorem taxes. General obligation bonds offer lower interest rates than other bonds, as they are, in effect, secured by the taxing power of the government. The bond rating assigned to a municipality by financial rating agencies is a measure of the financial health of a municipality and affects the attractiveness of their bond issue to investors. Revenues collected from the ad valorem taxes on real estate and other sources of general revenue are used to service the government's debt. Capital improvements financed through general obligation bonds should benefit the municipality as a whole rather than particular areas or groups. Current Status: The city of Oldsmar has no outstanding general obligation bonds. b. Revenue Bonds Revenue bonds are bonds financed by those directly benefiting from the capital improvement. Revenue obtained from the issuance of revenue bonds is generally used to finance publicly owned facilities such as parking garages. Charges collected from the users of these facilities are used, in turn, to retire the bond obligations. In this respect, the capital project is self-supporting. Interest rates tend to be higher than for general obligation bonds, and issuance of the bonds may be approved by the City Council without voter referendum. The City Council may also approve issuance of a revenue bond pledging a particular source of funding to repay the bond. For example, parking meter revenues or a designated portion of them may be pledged to retire a bond issue to construct a parking garage. Current Status: The city of Oldsmar has issued revenue bonds. The following is a summary of notes and bonds payable transactions by the city for the year ended September 30, 2007: ISSUE BONDS: Capital Improvement Revenue Bonds 1989 FINAL MATURITY ORIGINAL AMOUNT PRINCIPLE OUTSTANDING AT /08 BUDGETED DEBT SERVICE 2009 $1,848,770 $89,763 $169,065 13

16 Water & Sewer System Refunding Bonds 1990 FMLC Revenue Bonds Series 2002C LOANS: State Revolving Loan, Improvements to Wastewater Treatment Plant State Revolving Loan, Water Booster Station ,136,143 1,307, , ,562,032 2,085, , ,115, , , ,372,426 1,957, ,405 c. Industrial Revenue Bonds Industrial revenue bonds are issued by a local government, but are actually assumed by companies or industries that use the revenue for construction of plants or facilities. The attractiveness of these bonds to industry is that they carry comparatively low interest rates due to their tax-exempt status. The advantage to the local government is that the private sector is responsible for retirement of the debt. Industrial revenue bonds are most appropriately used to meet some goal the community supports, such as low-income housing or businesses that will increase the economic health of the community and provide jobs for the municipality's citizens. Current Status: The city of Oldsmar has issued no industrial revenue bonds. B. Local Option Taxes for Counties/ Potentially Shared with Municipalities Currently, all possible sources of revenue for the county under this category are generated locally, but the funds are collected by the Florida Department of Revenue. 1. Tourist Development Tax The tourist development tax must be approved by local referendum, and is designed to raise revenue for tourist-related facilities and projects. The tax is levied against short-term rentals of hotels, motels, condominiums and apartments. Funds disbursed to the county must be placed in a local tourist development trust fund to be used for the following: development of specific, tourist-related projects; advertise/promote tourism, fund convention/tourist bureaus, build stadiums/convention centers, or to finance beach improvements or inland waters where there is public access. The tax may be levied at a one or two percent rate initially by voter referendum, and may be raised if approved by local referendum or by an extraordinary vote of the Board of County Commissioners. Current Status: Pinellas County residents passed a tourist development tax referendum for two percent on the October 1978 tax ballot. The referendum stated: Shall Pinellas County Ordinance No be approved? This ordinance levies and imposes a countywide two (2%) percent tourist development tax on each whole or major fraction of each dollar of the total rental charge for the lease or rental of any tourist accommodations or living quarters for a term of six (6) months or less. Such tax shall be used to promote and develop the tourist industry in Pinellas County. The tax revenues collected from the tourist development tax are under the jurisdiction of the Pinellas County Board of County Commissioners which receives recommendations for its use from the Tourist Development 14

17 Council (TDC), an advisory board established by the County Commission in December On December 20, 1983, the Pinellas County Board of County Commissioners entered into an interlocal agreement with the city of St. Petersburg, pledging part of the tourist development tax revenues as security for debt service payments on bonds issued to build a stadium in St. Petersburg. Payment of the debt service has priority over the tourist development activities. The county has pledged $53 million to the stadium over a thirty-year period, from 1985 to An additional $34.6 million has been pledged over the same period of time on an as needed basis. Pinellas County tourist development tax dollars were limited to two purposes: security for debt service payments on bonds issued to construct the stadium and tourist development activities. Revenues collected from the tourist development tax have increased from $2,288,983 collected in 1979 to over twenty million in The TDC made a proposal to the county in 1987 that the tourist tax be raised to three percent, with 50 percent reserved for tourism promotion and the remaining 50 percent used to fund beach renourishment projects. The proposal was adopted by the Pinellas County Board of County Commissioners on May 11, 1988 to raise the tourist tax to three percent effective July 1, The extra one percent is expected to raise an additional 2.2 million annually which will be spent on tourism advertising and beach restoration and renourishment. The proposal is that part of the tourist development tax monies will fund the local match (12.5 percent) required for beach renourishment projects to be eligible for federal and state funds. In January 1996, an additional 1% was levied to provide additional funds for promotional activities, beach renourishment, and to service debt on the County's obligation to the City of St. Petersburg's Excise Tax Revenue Refunding Bonds, An additional 1% has been levied for a total tax of 5%, exclusively to promote and advertise tourism in the State of Florida, nationally and internationally. 2. Ninth Cent Fuel Tax (Formerly the County Voted Gas Tax) A one-cent per gallon tax can be levied at the county level by referendum. Revenues raised must be deposited in a voted gas tax trust fund, and must be used for transportation purposes only. The tax may only be levied for a specified number of years, as stipulated in the referendum. Current Status: The ninth-cent fuel tax of $.01 has been levied by Pinellas County effective January 1, 2007 for a period of 20 years, through December 31, County Local Option Fuel Tax The county local option fuel tax may be levied at a one through six cent per gallon rate by a majority vote of the Board of County Commissioners or by referendum. Counties, such as Pinellas County, with a population in excess of 50,000 must use these funds for transportation purposes. Current Status: The state of Florida empowers counties to levy up to six (6) cents per gallon of motor fuel sold. Pinellas County presently levies the full six (6) cents for transportation expenditures as defined in Section (7), Florida 15

18 Statutes effective through August 31, Pursuant to an interlocal agreement, 75 percent for the funding generated from this gas tax is allocated to the County. The remaining 25 percent is divided between the cities for local transportation projects with the municipalities and the unincorporated county. A new interlocal agreement was approved which extends the six (6) cents local option gas tax through December 31, Under the agreement the municipalities within Pinellas County will receive 40 percent of the proceeds from the local option gas tax. 4. Alternative Fuel Decal Users Fee/Municipal Portion of County Share Alternative fuel decal user fees are revenues from an annual state decal on motor vehicles that are powered by alternative fuels. After administrative costs are deducted, 50 percent goes to the State Board of Administration, 25 percent to municipal revenue sharing, and 25 percent the remaining 25 percent shall be distributed using the formula contained in s (1).. County share of revenues are then distributed according to the interlocal agreement used to distribute monies collected under the local option gas tax. Current Status: Pinellas County has a six cent local option gas tax which uses population figures as part of its distribution formula. 5. Metropolitan Transportation Authority Voted Gas Tax Counties within a metropolitan transportation authority district may levy, by voter referendum, an additional gas tax of up to four cents, if the county has levied at least four cents under the county local option gas tax. Current Status: The metropolitan transportation authority voted gas tax is not being utilized within Pinellas County or within any other county in Florida at this time. 6. Local Option Sales Taxes In addition to local option gas taxes, motorists pay 9.9 cents per gallon in state gas taxes, of which four cents are distributed back to local governments, plus 4.3 cents per gallon in federal excise taxes. This will be discussed more fully under the state revenue sharing section of this report. The 1987 Florida Legislature passed the Local Government Infrastructure Act that expands local government revenue generating capacity by authorizing each county to levy a local government infrastructure sales surtax. The discretionary sales surtax of one-half of one percent or one percent is subject to approval by a majority of the electorate of the county. Referenda on this may be held until November 30, 1992, but none are permitted to be held between March 9 and December 31, The surtax may be levied for up to 15 years after being implemented and its proceeds must be expended within the county and its municipalities to finance, plan and construct infrastructure. Infrastructure is defined in the bill to mean:...any fixed capital expenditure or fixed capital costs associated with the construction, reconstruction, or improvement of public facilities which have a life expectancy of 5 or more years and any land, acquisition, land improvement, design and engineering costs related thereto. (Chapter (3), FS) 16