March 27, 2012 City Council Workshop

1. March 27, 2012 City Council Workshop

2. Goals & Prosperity 2021

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

4. Road Resurfacing Program

5. Road Resurfacing: Original Issue • Roads in Disrepair

6. Road Resurfacing: Solution • Resurface 50 Miles Per Year

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

8. Road Resurfacing: Funding • Interlocal Agreement between County & Cities (11/18/2002) • Distribution of ½¢ Sales Tax Levy • ½ State Default Formula • ½ Local Population Based Formula

9. Road Resurfacing: Funding

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

11. Current Infrastructure Needs

12. Current Stormwater Infrastructure : • 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.

13. Current Infrastructure Needs: Stormwater • Canal Control Structures • Estimated Cost: $500k Per

14. Current Infrastructure Needs: Stormwater • Major Roadway Crossings • Estimated Cost: $400k Per (Emergency +50-60%)

16. Current Infrastructure Needs: Bridges • Estimated Cost: $1-2M Per • 22 Bridges

17. Bridge Map

18. Current Infrastructure Needs: Roads 2 3

19. Current Infrastructure Needs: Paths Seminole Woods Parkway Iroquois Canal Crossing @ Seminole Woods Parkway

20. 10 Year Sample Capital Plan

21. Possible Funding Sources

22. Possible Funding Sources 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)

23. Continuing ½¢ Sales Tax: Background • Placing Measure on Ballot • Either City of Palm Coast or County • Must be submitted by Noon on June 8th • Distribution of ½¢ Sales Tax Levy • Default Formula (State Statute) • Interlocal Agreement (Both City and County Must Approve)

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

25. Continuing ½¢ Sales Tax: Background State Default Formula – Fair Distribution? Palm Coast/Flagler County Reality Remainder of Flagler County Remainder of Flagler County Palm Coast Based on BEBR and DOR Data

26. Continuing ½¢ Sales Tax: Background State Default Formula – Fair Distribution? Sources: Census, BEBR, and Flagler County

27. Continuing ½¢ Sales Tax: Distribution • 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

28. Revenue Diversification

29. Public Service (Utility) Tax • 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

30. Public Service Tax • Public Service Tax – Which Municipalities? • Flagler: Bunnell, Flagler Beach • Putnam: All Except Welaka • St. Johns: All • Volusia: All (including Volusia County=Charter County)

31. Public Service Tax • 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

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

33. Franchise Fee • 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

34. Compare Funding Sources

35. An Additional Option • Substitute Franchise Fee and Public Service Tax for Stormwater Fee to Address Stormwater Maintenance Needs

36. Next Steps • City Council Options • ½¢ Sales Tax • Interlocal Agreement Prior to Resolution for Ballot • City Resolution for Ballot by June 5th, 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.