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BOOK 77 r,,,UF 46
<br />If a referendum is considered, the earliest one could be scheduled is 90 days
<br />.from the date of approval by the Commission. Taking into account the time
<br />required to adopt an ordinance and a purchase contract this month, the
<br />earliest date would be October. The estimated cost is $27,000. As proposed,
<br />the. question would provide for a one year millage levy to fund the
<br />acquisition: Considering Mr. Ewing's requirement of total payment by
<br />December and the time frame for placing the millage rate on the tax roll, if
<br />approved, a short term note would be required. The total estimated expense
<br />for acquisition, including interest and issuance cost, would be approximately
<br />$2.9 million. The equivalent millage rate, based on the current roll, would
<br />be .7929.
<br />If the acquisition is approved, . a determination would need to be made
<br />concerning operation of the facility. Obvious factors would be scope, cost,
<br />funding, and by whom. Initially, the Preservation Society proposed that
<br />$500,000 be included in the referendum question for operating and
<br />maintenance purposes. As proposed, the funds would be used to establish a
<br />trust fund. The interest from the fund (approximately $50,000 annually)
<br />coupled with revenues generated by the Society would be utilized by the
<br />Society to operate the facility. However, as indicated by the County
<br />Attorney (Attachment W. this alternative is not feasible under Florida law.
<br />Estimates have been prepared for operation and maintenance by either the
<br />County ( Attachment #4) or the Society ( Attachment #5) . Both are preliminary
<br />and require further discussion and refinement. However, I believe they are
<br />realistic enough to serve as a guide to determine direction.
<br />The estimates for operation by the County, assumes that initially the 19 acre
<br />McKee site would be a passive park and there would be no utilization of the
<br />wetland areas. Approximately, $99,000 would be necessary for site
<br />preparation and "start up cost". In either, the first or second year,
<br />construction of parking facilities would be required at an estimated expense of
<br />$100,000. Additionally, at some point provision for restrooms ($30,000)
<br />should be considered. Operating and maintenance expense by Public Works is
<br />projected at about $70,000. As indicated, the preceding are preliminary
<br />estimates' only at this time.
<br />As reflected, beginning on page 36 of the Society proposal, start up and
<br />capital expense are estimated at $45,700 in the first year and $47,200 the
<br />second. Utilization of volunteers and donation of materials at varying stages
<br />are anticipated which reduced the expense. Operating costs are projected at
<br />$48,905 the first year and $73,980 the second. No provision for parking has
<br />been included at- this point.. Although. the estimates are preliminary they
<br />appear to reasonable, if the volunteers and donated materials are provided as
<br />anticipated.
<br />First year revenues are projected at $559,650. The majority, $462,500, is
<br />from individual membership enrollment. Another $65,000 is from group
<br />memberships. These memberships are proposed to be renewed annually and
<br />therefore a continuing revenue _ source. As 1 related to the Society, the
<br />estimates appear to me to be overly optimistic and even if achieved in the
<br />.first year difficult to sustain in subsequent years. However, having been in
<br />the community only five months it is difficult for me to adequately weigh that
<br />potential. If they can achieve and sustain 20% of their goal, together with a
<br />continuing volunteer effort, the plan appears feasible. Additionally, if a
<br />greater amount is generated, reserve could be established for future years.
<br />Taking into consideration the preceding factors from critical time element,
<br />with attendant restrictions, to funding alternatives, it is my recommendation
<br />that we proceed with consideration of acquisition through the referendum
<br />- process. With respect to operation and maintenance, I believe some further
<br />refinement is necessary prior to making a final decision.
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