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Agenda Item: |
Prepared By: David Harden, City Manager |
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Business: Discussion |
Department: Executive |
Subject:
Title
Proposed Projects for the 1% Collier County Infrastructure Sales Tax
Body
BACKGROUND:
At the February 20, 2018 City Council meeting, it was agreed to discuss priorities for the County Infrastructure Sales Tax as proposed for referendum by the Board of County Commissioners.
Attached are the Florida Statutes that prescribe the formula to calculate the amounts due to Municipalities from the additional revenues as well as the estimates published by the Florida Department of Revenue. Marco Island expects to receive approximately $3.2 million annually.
At the April 2, 2018 meeting the items below were discussed as possible priorities:
Fire & Rescue
Fire Station 50 - $6,000,000
Public Works
Master Drainage Projects - $10,000,000
Roadway Resurfacing - $17,785,000
Other Capital Projects - $13,391,000 (could potentially include beach renourishment)
At the March 18, 2019 meeting, Council requested that the listing be updated. Additional items that have been discussed as possibly being funded with the sales tax are as follows:
Ad-Hoc Parking Committee
Solution 1 - $2,400,000 (Bond for Alley improvements)
Solution 2 - $618,800 Year 1 (Year 2-5 TBD)
Utilities
Yellowbird Reconstruction - $2,200,000
Parks and Recreation Advisory Committee
Veterans Community Park. The purchase of land for recreational purposes also qualifies for funding.
RECOMMENDATION: Having considered all of these suggestions as well as project funding already planned in the City’s Capital Improvement Program, I have prepared a suggested plan for allocation of the Sales Tax funds. To finance construction of all Veterans Park improvements we would borrow $4,000,000 to be repaid over five years from Sales Tax revenues. Station 50 would be funded by financing $4,000,000 to be repaid over eight years from the bucket plan for Fire stations. I recommend the borrowing because the inflation rate for construction at 4.25% exceeds our borrowing costs which are under 3%.