Economic Growth Initiatives November 14, 2014
Key Concepts Creating Jobs Increased Revenue (type of jobs) Reduced Cost (location) Productive vs. New Revenues A Plan Land Use / Regulations / Finance / Services
Job Market Improves Wage Growth Remains Flat Wall Street Journal Eric Morath 11/9/14 Job Growth Best streak since 1995 200k each month since February Wage Growth 2% year over Year Inflation 1.7% Some economic indicators about to change 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Unemployment rates for those out of work 27 weeks or more and those out for 26 weeks or fewer Long Term Short Term Long Term Short Term Source: Labor Dept. WSJ.com
1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Goal: Increase Employment 0.70 Employment/Population Ratio 0.60 0.50 0.40 0.30 0.20 0.10 0.00 Collier Hillsborough Pasco Florida
1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Goal: Employment with High Wages $60,000 Wage per Job $50,000 $40,000 $30,000 $20,000 $10,000 $0 Collier Hillsborough Pasco Florida
Wages vs. Income (Florida) 700.0% 600.0% Florida (Cumulative Growth) 500.0% 400.0% Income per Capita 300.0% 200.0% Wage per Job 100.0% 0.0% -100.0% % Income/ Capita % Wage/ Job
Wages vs. Income (Pasco County) 800.0% 700.0% Pasco County (Cumulative Growth) 600.0% 500.0% 400.0% Income per Capita 300.0% 200.0% Wage per Job 100.0% 0.0% -100.0% % Income/ Capita % Wage/ Job
Wages vs. Income (Collier County) 900.0% 800.0% Collier County (Cumulative Growth) 700.0% 600.0% 500.0% Income per Capita 400.0% 300.0% 200.0% Wage per Job 100.0% 0.0% -100.0% % Income/ Capita % Wage/ Job
Presentation Overview 1 Productive Revenues 2 Case Study Examples 3 Summary & Conclusions
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 Annual Growth Rate Population Growth (10-yr Avg) Florida Population Growth Trends 4.50% 350,000 Annual Growth Rate 4.00% Absolute Change Growth (10-yr Avg) 300,000 3.50% 250,000 3.00% 2.50% -33% 200,000 2.00% 150,000 1.50% 100,000 1.00% 0.50% Percent Change Growth -81% 50,000 0.00% 0
Productive Revenues Primary Revenue Sources Available: Property Tax Sales Tax Gas Tax Which Revenue Sources Are Enhanced with Local Government Initiatives?
Which Revenues are Enhanced? Revenue Source Enhanced Not Enhanced Property Tax Sales Tax X X Gas Tax X
Property Taxes Property Taxes Enhanced with Destination, Diversity, Design, and Density Enhanced Over Time
City of Sarasota: Property Tax Value per Capita -- Above the State $200,000 $190K $180,000 $160,000 Per Capita Municipal Taxable Value 2000-2012 City of Sarasota Sarasota County (less City of Sarasota) State of Florida Projected $140,000 $120,000 $100,000 $80,000 $60,000 $40K $40,000 $20,000 $0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2000 2012
City of Sarasota Property Tax Value Single Use District Legend $0 - $200,000 $200,000.01 - $500,000 $500,000.01 - $750,000 $750,000.01 - $1,000,000 Greater than $1,000,000
Before and After: City of Sarasota Citrus Square Before After 2004 Three parcels, combined taxable value of $411,800/acre 2012 Taxable value $8,081,280 /acre
Before and After: City of Sarasota Broadway Promenade Before After 2004 Multiple parcels, combined taxable value = $142,660/acre 2011 Multiple parcels, combined taxable value = $5,081,070/acre
City of Bartow: Property Tax Value per Capita -- Below the State $100,000 $90K $90,000 $80,000 Per Capita Municipal Taxable Value 2000-2012 City of Bartow Polk County (less City of Bartow) State of Florida Projected $70,000 $60,000 $50,000 $40,000 $30,000 $25K $20,000 $10,000 $0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2000 2012
City of Bartow Property Tax Value Annex Area Legend $0 - $10,000 $10,001 - $50,000 $50,001 - $100,000 $100,001-1$50,000 Greater than $150,000
Osceola County: Property Tax Base Distribution Osceola County - Tax Base Distribution 100% 90% 80% 27% 27% 26% 25% 20% 16% 14% 15% 19% 20% 19% 70% 19% 18% Other 60% Agricultural Institutional 50% 40% 30% 49% 50% 52% 52% 47% 48% 57% 53% 55% 53% 49% 46% 47% Industrial Commerical Vacant Non-Residential Vacant Residential Single Family Multi Family 20% 10% 22% 23% 23% 8% 7% 8% 8% 7% 7% 8% 8% 10% 12% 0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1999 2011 Source: Florida Property Valuations and Tax Databook
Marion County: Property Tax Base Distribution 100% Marion County - Tax Base Distribution 90% 80% 70% 60% 15% 15% 15% 9% 9% 8% 15% 8% 11% 10% 14% 14% 13% 12% 14% 14% 15% 8% 8% 9% 15% 17% 13% 8% 7% 6% Other Agricultural Institutional 50% Industrial Commerical 40% 30% 49% 50% 51% 55% 57% 59% 59% 55% 55% 56% 57% 58% 58% Vacant Non-Residential Vacant Residential Single Family Multi Family 20% 10% 0% 6% 6% 6% 5% 5% 5% 5% 4% 4% 5% 6% 6% 6% 1999 2011 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: Florida Property Valuations and Tax Databook
Property Taxes Property Taxes Taxable Value of New Homes Are Higher Larger Structures More Valuable Structures Generate More Tax Revenues Statewide Per Capita Property Tax Increased by 3.5% Annually Past 15 years
Home Values Example Community Average Value of All Homes vs. New Homes Sale Year All Homes New Homes 2009 $117k $178k 2010 $107k $165k 2011 $98k $182k The average square footage of a new single-family home (National Data) 2006 1950 1970 1990 2004 983 sq.ft. 1,500 sq.ft. 2,080 sq.ft. 2,349 sq.ft. Source: National Association of Home Builders (Housing Facts, Figures and Trends for March 2006)
Property Taxes -- Taxable Value per Capita $200,000 67 Counties (Population Group: 75,000+) $180,000 Collier $160,000 $140,000 $120,000 $100,000 $80,000 Sarasota Lee Palm Beach $60,000 $40,000 $20,000 $0 75,000 575,000 1,075,000 1,575,000 2,075,000
Taxable Value per Capita Property Taxes -- Taxable Value per Capita vs Median Income per Capita $120K $120,000 67 Counties (Population Group: 75,000+) $110,000 $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30K $30,000 $20,000 $20,000 $25,000 25K $30,000 $35,000 $40,000 $45,000 $50,000 $55,000 $60,000 60K $65,000 Income per Capita
Sales Taxes Sales Taxes Related to Income Levels Enhanced with Density Per Capita Increase Over Time
Sales Tax Revenue per Capita $1400 $1,400 67 Counties (Population Group: 75,000+) $1,200 $1,000 $800 $600 $400 $200 $200 75,000 575,000 1,075,000 1,575,000 2,075,000 75K 2.5M
Sales Tax Revenue per Capita Sales Tax per Capita vs Median Income per Capita $1200 $1,200 67 Counties (Population Group: 75,000+) $1,100 $1,000 Osceola $900 $800 $700 $600 $500 $400 $400 $20,000 $25,000 25K $30,000 $35,000 $40,000 $45,000 $50,000 $55,000 $60,000 60K $65,000 Income per Capita
Median Income per Capita 67 Counties (Population Group: 75,000+) $65,000 60K $60,000 Martin Collier $55,000 Indian River Sarasota Palm Beach $50,000 $45,000 $40,000 $35,000 $30,000 25K $25,000 75K 2.5M $20,000 75,000 575,000 1,075,000 1,575,000 2,075,000
Gas Taxes Gas Taxes Related to Travel (per Gallon Charge) Reduced with Density Per Capita Decrease Over Time with Fuel Efficiency
County Fuel Tax per Capita $9.00 6.00 67 Counties (Population Group: 75,000+) $8.00 $7.00 Highlands Sumter $6.00 $5.00 $4.00 $3.00 3.00 Pinellas $2.00 $1.00 75K 2.5M $0.00 75,000 575,000 1,075,000 1,575,000 2,075,000
Pennies Fuel Tax Revenues 1.20 Decrease in Value of 1 of Fuel Tax 1.00 0.80-30% 0.60 Fuel Efficiency 0.40-90% 0.20 Fuel Efficiency & Inflation 0.00
Presentation Overview 1 Productive Revenues 2 Case Study Examples 3 Summary & Conclusions
Case Studies Impact Fee Programs as a Tool for Economic Development Need to be supported by other initiatives
Transportation Impact Fees: Status * * Avg. Annual Population Growth 1980-2007 2007-2013 = Fee in Place (29) 2.3% 0.7% = Suspended/Moratorium (13) 2.7% 0.6% = No Transp. Impact Fee (23) 2.1% 0.8% *Information was unavailable (2)
Case Studies Orlando/Orange County AMA Pasco County Indian River County
Orlando/Orange County AMA Reason for change Wanted flexibility to spend funds across alternative modes and incentives for mixed-use and transit-oriented development.
Orlando/Orange County AMA OC AMA OC AMA City of Orlando Core OC AMA OC AMA County Targeted Flexibility and Regional Mobility Need
Economic Growth Application Economic Growth Application A2 A3 C3 C2 A1 Legend Mixed Use/TOD
Economic Growth Application Property Tax Revenue per Acre Activity Centers & Corridors 3% of land 48% of tax rev
TAC Recommendations Adopt the fee at 50% $0 for Qualifying TODs in Downtown Core Continue with Exemption of Change of Use
Pasco County Mobility Fee Reason for change Did not want to continue to a be a bedroom community for Hillsborough and Pinellas counties
Pasco County Mobility Fee County Objectives: Vary fees geographically Incentives for job creating land uses Flexibility to spend fees across modes Other revenues subsidize incentives
Pasco County Mobility Fee Vary Rate Schedules Geographically Rural Urban Suburban
Pasco County Mobility Fee Vary Land Use Rate by Geographic Area Traditional Old Fee = $3,703 Office Fee Per 1000 SF $2,000 $1,000 $0
Pasco County Mobility Fee Vary Land Use Rate by Geographic Area TND Office Per 1000 SF $0 Old Fee = $3,703 Economics $2,000 $500 Land Use Incentives $ Time/Complexity $1,000 $250 and Predictability
Pasco County Mobility Fee No Fee for TOD in Targeted Overlay Areas TOD All Uses Per 1000 SF Old Fee = N/A Regional Mobility N/A and Urban Development Goals N/A $0
Pasco County Mobility Fee Summary: Implement comprehensive plan Economic development incentive tool New jobs in Pasco County Right development form, right place, right time Updated the Land Development Code Incentives Match Goals Implemented Adopted Continued Enhancements
Pasco County Mobility Fee The whole point of the new fees is to do two things: create jobs and redirect growth in a way that s healthier for the County.. The idea is to keep the growth in the urban areas, keeping rural areas rural John Hagen, President and CEO of the Pasco Economic Development Council
Indian River County Implemented impact fees in 9 service areas Last update of fees in 2005 2007 Study not adopted 2014 Study Goals: Update fees Provide incentives for non-residential land uses
Indian River County (cont d) Policy Decisions: Identified capital needs Fee suspension for correctional facilities, libraries and solid waste Full fee for fire/ems and law enforcement Discounts for only non-residential land uses for transportation Discounts for all land uses: Public Buildings, Parks and Schools Study Results: Maintain/some increase in residential fees Countywide discount to all non-residential fees
Collier County Economic Development Incentives
Presentation Overview 1 Productive Revenues 2 Case Study Examples 3 Summary & Conclusions
Key Concepts Creating Jobs Increased Revenue (type of jobs) Reduced Cost (location) Productive vs. New Revenues A Plan Land Use / Regulations / Finance / Services
Summary -- Key Concepts Cont. Market New Demographics/New Market Sell Your Plan Develop A Plan Graphically Show Your Plan Aggressively Sell Your Plan
Questions / Answers
Impact Fee Rate / Percentage Economic Growth Strategy 125% $9,000 100% $8,000 $7,000 New Growth Credit/Future Tax Revenues Capacity Level-of-Service 75% $6,000 $5,000 $4,000 Revenues from Existing Residents (for capacity) - Facility Needs - Economic Needs - Land Use Needs 50% $3,000 25% $2,000 Total Cost 0% $1,000 $- Projected Annual Growth Rate Maximum Impact Fee Roadway Capacity LOS 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% Avg. Annual Growth Rate
Impact Fee Rate / Percentage Economic Growth Strategy $9,000 125% $8,000 $7,000 New Growth Credit/Future Tax Revenues 100% $6,000 75% 50% 25% 0% $5,000 $4,000 $3,000 $2,000 $1,000 $- Revenues from Existing Residents (for capacity) Projected Annual Growth Rate Capacity Level-of-Service - Facility Needs - Economic Needs - Land Use Needs Total Cost Maximum Impact Fee Roadway Capacity LOS 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% Avg. Annual Growth Rate
A Problem For Home Sale Entry Level Weakness 42% down to 33% First Time Buyer: 31 years Old Repeat Buyer: 53 years Old First time ownership 60% 50% 40% 30% 20% Share of First-Time Home Buyers (primary residence buyers only) 42% 40% 40% 40% 36% 39% 41% 47% 50% 37% 39% 38% 33% Was Six years in 2007 10% Now 10 years in 2014 0% Source: National Association of Realtors WSJ.com
Economic Development 5D s (Ewing & Cervero) Destination Accessibility Design Diversity Distance to Transit Density Economics Enhanced Revenues Reduce Costs and Environmental Impacts