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al is <br />In the late 1980's Indian. River County found itself in an infrastructure dilemma when <br />developing its Comprehensive Land Use Plan. Based on the capital improvement <br />element at that time, the County had over $400 million of infrastructure improvements <br />over the next twenty years and was seeking adequate revenue sources to meet the levels <br />of service set -forth. A review was begun of additional revenue alternatives available to <br />fund future infrastructure needs. <br />After- studying the alternatives, Indian River County found the Optional Sales Tax <br />appealing for the following reasons: <br />1. FAIR ALTERNATIVE - ALL USERS CONTRIB - Everyone pays, <br />including tourists and non-residents; not just the property owners of Indian <br />River County. The roads and other infrastructure within the County are built <br />for peak demand. Tourists and non-residents use the County's roads, parks, <br />and facilities. Optional Sales Tax does not hit just one specific group of people, <br />unlike user or impact fees. . <br />2. DOLLARS GENERATED - There were no other revenue sources, besides ad <br />valorem taxes, that could generate approximately $7 million a year in revenues. <br />3. INCLUDED EXEMPTIONS - Sales tax is exempted on purchases of medicine <br />and food. <br />4. CITIES AND COUNTY SHARE - The sales tax is not just received by the <br />County. The Cities get a proportionate share to help them in their <br />infrastructure needs. <br />S. PAY AS YOU GO - It gave Indian River County the ability to pay for capital <br />improvements with existing available funds, possibly augmented by short-term <br />borrowings. This would eliminate the need for ten or forty year debt for these <br />type projects and would substantially reduce overall cost of capital <br />improvements by not having to pay huge financing costs (interest) over a long <br />period .of time. <br />6. _USED FOR NEEDED CAPITAL PROJECTS -Money could be used for jails, <br />roads, parks and health facilities which would have to* be built regardless if an <br />optional sales tax was in place or not. This would place a burden on other <br />resources (i.e., ad valorem taxes). <br />7. MaNEY-CANNOT-BE USED FOR OPERATING EXPENSES <br />8. LIMITED TIME PERIOD - It would be in affect for a maximum of fifteen <br />years. <br />9. LIKELIHOOD OF STATE GIVING COUNTIES AND CM70 OTHER <br />ALT=ERNATIVE REVENUE SOURCES - The state is in the same position <br />as the County. It cannot keep up with capital improvements and is looking for <br />ways to pay for its infrastructure. In fact, the State mandates mom programs <br />to the County every day without a revenue stream that will adequately support <br />them. <br />APR 2 8 1994 BOOK 92 -a;F.. ` 1?W <br />