2/23/1994 - Laserfiche WebLink

Home Browse Search

Analysis In the late 1980's Indian River County found itself in an infrastructure dilemma when developing its Comprehensive Land Use Plan. Based on the capital improvement element at that time, the County had over $400 million of infrastructure improvements over the next twenty years and was seeking adequate revenue sources to meet the levels of service set -forth. A review was begun of additional revenue alternatives available to fund future infrastructure needs. After, studying the alternatives, Indian River County found the Optional Sales Tax appealing for the following reasons: L FAIR ALTERNATIVE - ALL USERS CONTRIBUTE - Everyone pays, including tourists and non-residents; not just the property owners of Indian River County. The roads and other infrastructure within the County are built for peak demand. Tourists and non-residents use the County's roads, parks, and facilities. Optional Sales Tax does not hit just one specific group of people, unlike user or impact fees. 2. DOLLARS GENERATED - There were no other revenue sources, besides ad valorem taxes, that could generate approximately $7 million a year in revenues. 3. INCLUDED EXEMPTIONS - Sales tax is exempted on purchases of medicine and food. 4. CITIES AND COUNTY SHARE - The sales tax is not just received by the County. The Cities get a proportionate share to help them in their infrastructure needs. S. PAY AS YOU GO - It gave Indian River County the ability to pay for capital improvements with existing available funds, possibly augmented by short-term borrowings. This would eliminate the need for ten or forty year debt for these type projects and would substantially reduce overall cost of capital improvements by not having to pay huge financing costs (interest) over a long period of time. 6. USED FOR NEEDED CAPITAL PROJECTS - Money could be used for jails, roads, parks and health facilities which would have to'be built regardless if an optional sales tax was in place or not. This would place a burden on other resources (i.e., ad valorem taxes). 7. MONEY CANNOT BE USED FOR OPERATING EXPENSES 8. LIMITED TIME PERIOD - It would be in affect for a maximum of fifteen years. 9. LIKELIHOOD OF STATE GIVING COUNTIES AND CITIES OTHER ALTERNATIVE REVENUE SOURCES - The state is in the same position as the County. It cannot keep up with capital improvements and is looking for ways to pay for its infrastructure. In fact, the State mandates more programs to the County every day without a revenue stream that will adequately support them. 3 800K