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* Pending property tax changes delays momentum to change fee-based infrastructure financing system.
Financing neighborhood-level infrastructure with assessment districts creates gaps in basic amenities and makes improvements more expensive, according to a study presented to Charlotte County commissioners Tuesday.
That's no surprise.
But what may surprise many is the county's much-maligned municipal service benefits unit system could be on the cutting edge of a statewide trend toward fee-based financing.
With state legislators pondering property tax changes that could reduce local government revenues, more municipalities are looking into MSBUs, said Camille Tharpe, of Tallahassee-based consulting firm, Government Services Group Inc.
"You are lucky right now that you have MSBUs," Tharpe said.
She said GSG is fielding calls from governments asking, "'What can we do to fund essential infrastructure now that taxes may be going away?'"
Until uncertainties about how state tax codes will be changed, commissioners agreed not to alter the county's MSBU system.
"We need to keep our options because we don't know what is going to happen," Commissioner Adam Cummings said.
Nevertheless, GSG's three-month study of the county's MSBUs offers 15 ways make the system more efficient.
Recommendations include:
* Comprehensive analysis: Tharpe said MSBUs are created at landowners' request, which contributes to "piecemeal infrastructure."
Tharpe said the county must examine money spent by road, drainage and canal maintenance MSBUs and determine if some could be "aggregated" to save money by "economies of scale."
County Administrator Bruce Loucks said determining the baseline is the key.
"Form follows function," he said, noting "function" is service level. "Then you can define what form you to take."
* Stabilize rates: Tharpe said every year, commissioners shelve projects because proposed hikes prompt outcries.
This can be avoided, she said, if hikes are built in over three years to ensure costs don't outpace budgeted revenue.
A review every three years will provide "a formal opportunity to show where costs are going," she said.
* Common administrative unit: Tharpe said a municipal service taxing unit could finance administrative costs of the MSBU system.
Right now, she said, each MSBU is assessed for handling each project, which raises costs.
Tharpe said four county offices involved in MSBU administration -- Public Works, Charlotte County Utilities, county attorney, the budget office.
Tharpe said to create this MSTU for fiscal year 2008, commissioners need to approve it by July 1.
However, with the tax system in flux, Commission Chairman Dick Loftus said this initiative will be among those that could be examined by year's end.
* Eliminate higher fees for vacant lots: Tharpe said the logic that vacant properties require more county care for services, such as mowing, is short-sighted.
Not only does the two-tiered assessment create more expense, occupied properties benefit by maintenance of vacant lots.
* Standardize methods: Tharpe said there are five different classifications for land in capital improvement MSBUs and 13 different ones in maintenance units.
They vary from per unit, per acre, per lot, square footage, frontage, or "equivalent residential unit," or ERU.
This not only creates administrative and accounting expenses, it's confusing, Tharpe said.
* Consolidation: Tharpe said the parameters of existing West, Mid- and South county stormwater districts could absorb maintenance MSBUs.
Cummings agreed, noting it simplifies the system and creates flexibility for regional needs.
Loftus agreed, but Moore was leery, noting bigger is not always better -- especially when it comes to road paving.
* TIF districts: Normally reserved for community redevelopment areas, Tharpe said as a charter county with home rule powers, commissioners could establish tax-increment financing districts for specific areas, or a countywide TIF trust fund.
By JOHN HAUGHEY
Reprinted with permission. See the Sun-Herald article.
Government Services Group (GSG) began in 1996, and has grown into the preeminent governmental consulting firm in the Southeast. Over time GSG has developed three strategic divisions that target almost every area of governmental need: Government Services, Municipal Services, and Technical Services.
Since 1996, GSG has built long-standing relationships with more than 170 local governments by identifying practical solutions for the funding and management of critical services and capital projects. GSG works with cities and counties of all sizes, providing a full range of services such as alternative funding solutions, revenue analysis, general management consulting, database management applications, offsite data management, utility contract management services, and information programs and seminars.
To celebrate its 10th anniversary, GSG implemented an innovative employee recognition program, a tuition reimbursement program and various client support and sponsorship programs.
GSG recently helped create the Infiltration and Inflow (I&I) prevention program for the Florida Governmental Utility Authority (FGUA). Under the supervision of GSG Project Manager John Dunty and Construction Manager Pradeep Sethi, GSG’s engineering team has developed the most efficient I&I prevention programs in the nation.
Infiltration and Inflow (I&I) is simply the term used for unhealthy water becoming mixed with healthy water. Under GSG’s lead, the FGUA has developed a very efficient system to prevent and eliminate the threat to Florida residents’ water system.
Due to hurricanes and other weather phenomena, utilities in Florida often must deal with excessive amounts of rainfall, which can flood water-piping systems. Conversely, during drought periods—usually the summer months—dry and cracked soil can lead to cracked or damaged water distribution pipes. This happens when the soil surrounding these pipes hardens and dries, causing pipes to shift.
The I&I Program developed for the FGUA uses two systems to prevent and repair
problems due to I&I: Slip Lining and Pipe Bursting. Slip Lining refers to the
process of placing a new pipe inside a damaged pipe, essentially replacing
the old one. Another way the FGUA uses Slip Lining is the insertion of a plastic
tube, shaped similar to a ziti noodle. Once the tube is in place, either
water or air fills the space, and the plastic tube takes the shape of the damaged
pipe, reinforcing it.
Pipe Bursting is a procedure where a drill is used to create holes in the pipe.
Immediately after the holes are created, filler is inserted, eliminating any
leaks and making that section of pipe stronger.
Dunty recognizes how critical I&I can be, and believes it needs to be a top priority across the country. “The Infiltration and Inflow problem is the largest unknown capital issue in many cities across the country.” Dunty said. “One mile of pipe costs around one million dollars and a small city with 30,000 to 35,000 people has upwards of 100 miles of pipe, totaling $100 million. People often look at water towers for water maintenance, when FGUA looks below ground to save a city money, and protect its water systems.”