LEGISLATIVE ACTION ITEM
SPONSOR: Grover C. Robinson, IV, Mayor
SUBJECT:
title
RESOLUTION NO. 2019-54 - ELECTING TO USE THE UNIFORM METHOD OF COLLECTING NON-AD VALOREM SPECIAL ASSESSMENTS
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RECOMMENDATION:
recommendation
That City Council adopt Resolution No. 2019-54:
A RESOLUTION OF THE CITY OF PENSACOLA, FLORIDA ELECTING TO USE THE UNIFORM METHOD OF COLLECTING NON-AD VALOREM SPECIAL ASSESSMENTS LEVIED WITHIN THE INCORPORATED AREA OF THE CITY; STATING A NEED FOR SUCH LEVY; PROVIDING FOR THE MAILING OF THIS RESOLUTION; AND PROVIDING FOR AN EFFECTIVE DATE.
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HEARING REQUIRED: Public
SUMMARY:
In 1987, the City developed a Stormwater Master Plan to address the impact of stormwater throughout the City. In 2019, the City updated the plan to reflect current conditions and identify necessary infrastructure improvements. The plan identified 10 high priority stormwater improvement projects related to flooding with a projected total cost of over $58 million dollars. The City currently has no funding source for these improvements.
Since 2001, the primary funding source for stormwater improvements has been the annual stormwater assessment fee. The fee generates about $2.6 million for stormwater capital improvement projects per year. Although the fee is based on stormwater operational costs, by Council policy, those funds are not used to pay for operating expenses. Rather, the funds are used for capital infrastructure improvements, through a transfer from the General Fund to a Special Stormwater Fund. Most of the infrastructure improvements funded by the assessment fee to date have addressed water quality issues.
One funding alternative that Council may want to consider to help pay for the capital projects identified in the Stormwater Master Plan is a separate stormwater capital assessment fee. This fee is typically tied to planned improvements in specific watershed basins and can only be assessed against the properties located within the basin.
City staff requested that Government Services Group, Inc. (GSG) assist the City in creating a stormwater capital assessment program. Sandi Walker of GSG made a presentation to Council at the October 7, 2019 Agenda Conference to explain the process for creating a capital assessment program. The process will include the development of a rate model and analysis of different rate scenarios with projected revenues. A program report prepared by GSG will be presented to City Council in early 2020. Based on the report, Council will decide if it wishes to implement a stormwater capital assessment to fund the infrastructure improvements identified in the Stormwater Capital Plan.
Should Council move forward with a capital stormwater assessment program, the most effective and efficient method of fee collection is by the annual property tax bill issued by the Escambia County Tax Collector. This is the same fee collection method used by the City for the current stormwater assessment program. To preserve the option of using the tax bill for collection of the assessment fee, the City is required to hold a public hearing and adopt a “Resolution of Intent” to use the uniform method of collecting non-ad valorem special assessments. The resolution must be adopted prior to January 1, 2020. The resolution is non-binding and does not require the City to actually impose the proposed stormwater capital assessment fee.
The Mayor recommends that Council hold a public hearing on November 14, 2019 and adopt the Resolution of Intent.
PRIOR ACTION:
None
FUNDING:
N/A
FINANCIAL IMPACT:
None
CITY ATTORNEY REVIEW: Yes
10/27/2019
STAFF CONTACT:
Christopher L. Holley, City Administrator
Richard Barker, Jr., Chief Financial Officer
George J. Maiberger, Purchasing Manager
Derrik Owens, Director of Public Works and Facilities
ATTACHMENTS:
1) Resolution No. 2019-54
PRESENTATION: No end