“Local Funding Case Studies: Factors Leading to Framework ... - fsbpa

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“Local Funding Case Studies: Factors Leading to Framework ... - fsbpa

2012 FSBPA Annual Conference

“Local Funding Case Studies:

Factors Leading to

Framework, Implementation

and Success”

By

Jimmy Sellers, MBA and Dr. William Stronge


FSBPA Annual Conference

Local Funding Case Studies

Outline

Four Case Studies

Ad Valorem Property Taxes

Greater Boca Raton Beach and Park District

Non-Ad Valorem Benefits-based Assessments

St. Lucie County Special Assessment District

Transient Taxes

Lee County Visitors & Convention Bureau

Sales Taxes

City of Flagler Beach


FSBPA Annual Conference

Local Funding Case Studies

Ad Valorem Taxes - Boca Raton

Overview

Established in 1974

Approximately 130,000 residents within District

Generates ~ 50% of local share per project

Critical Factors

Joint management of beaches and parks

Large populous

Three Large public beaches


FSBPA Annual Conference

Local Funding Case Studies

Ad Valorem Taxes - Boca Raton

Joint Management sets up a benefit tradeoff:

– Storm Damage Reduction and recreational

benefits to oceanfront properties

– Improved parks benefit the inland community

– Adjustment to the Boundary

Large Populous

– Tax is widely distributed and relatively small


FSBPA Annual Conference

Local Funding Case Studies

Ad Valorem Taxes - Boca Raton

Three Large Public Beaches

– Red Reef Park

– Spanish River Park

– South Beach Park

Ad Valorem Taxes work with a large populous

and large public beaches = recreational access


FSBPA Annual Conference

Local Funding Case Studies

Non-Ad Valorem Assessments

St. Lucie County

Overview

Established in 2012

Approximately 6,000 properties within

District

Generates ~33% of project costs

Critical Factors

Oceanfront predominantly condominiums

Benefits analysis

Public beaches paid their fair share


FSBPA Annual Conference

Local Funding Case Studies

Non-Ad Valorem Assessments

St. Lucie County

Oceanfront Predominantly Condominiums

– 71% of Project frontage

– Presidents’ Council

Benefits Analysis

– Storm Damage Reduction – 66%

– Loss of Land – 15%

– Recreational – 19%

81% to

oceanfront

properties


FSBPA Annual Conference

Local Funding Case Studies

Non-Ad Valorem Assessments

St. Lucie County

Public beaches paid their fair share

– County-wide Ad Valorem tax paid for

recreational benefits (19%) plus SDR/LOL

on County beaches (5%) = 24%

Benefits-based Assessments work for

projects with distinct beneficiaries


FSBPA Annual Conference

Local Funding Case Studies

Transient Tax - Lee County

Overview

Established in 1982 – currently set at 5%

Approx. $23M in Taxes/year (5 yr. avg,)

26% of Funds to Beach and Shoreline Projects

Critical Factors

Tourism large component of Local Economy

Tourism strongly linked to beaches

Balanced Spending – advertising / beaches


FSBPA Annual Conference

Local Funding Case Studies

Transient Tax - Lee County

Tourism large component of Local Economy

– Approximately $3 Billion/year impact

– $23.1 Million in Transient Tax Revenues last

year

Tourism strongly linked to beaches

– 98% of Surveyed Tourists identified Beaches

as the Top Activity Enjoyed


FSBPA Annual Conference

Local Funding Case Studies

Transient Tax - Lee County

Balanced Spending – advertising/beaches

~ $9M/year towards advertising/promotions

~$7M/year towards beach/shoreline projects

Transient Taxes for Beaches work when

there’s s a strong link between Tourism

and Beaches coupled with a healthy

revenue stream


FSBPA Annual Conference

Local Funding Case Studies

Sales Tax - City of Flagler Beach

Overview

Initiated in 2012

Attorney General OK’s Flagler Beach’s

Plan to Spend Sales Tax Money on

Erosion Projects

FLAGLERLIVE | JUNE 7, 2012

May enable the financing of future revenue

Critical Factors

Fewer funds generated by Transient Tax

Beaches linked to critical infrastructure for the

local community


FSBPA Annual Conference

Local Funding Case Studies

Sales Tax - City of Flagler Beach

Fewer funds available from Transient

Tax

– Approximately $1 Million per year

– 11.25% is maximum to beach renourishment

Beaches viewed as infrastructure by local

community

– A1A is adjacent to the beach

– Main evacuation route


FSBPA Annual Conference

Local Funding Case Studies

New funding solutions must be explored when other

traditional funding sources are insufficient


FSBPA Annual Conference

Local Funding Case Studies

Conclusions

Factors To Consider

Economic Relationship of the Beach with the

Community

Population of the Community

Beneficiaries of the Beach Projects

Predominant Land Use of the Oceanfront


Thank You!

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