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BOOK 108 FACE 144 5,0 ALTERNATIVE REVENUE SOURCES 5.1 INTRODUCTION This section of the report provides a review and analysis of potential funding sources for the proposed beach restoration and subsequent renourishment over eight (8) -year intervals. The BPP prepared by the County in 1998, identified projects for sand replenishment to provide protection to properties along the barrier island shoreline from erosion and to partially mitigate the inlet's adverse effects on the downdrift oceanfront beaches. The proposed projects include sand placement activities in all or part of five (5) of the eight (8) planning sectors which encompass the County's 22 -mile shoreline. A secondary goal resulting from providing storm damage protection and sand replenishment to the Indian River County shoreline is recreational enhancement of the beach. These objectives are important in the analysis of potential funding sources as well as the distribution of project benefits described in subsequent sections of this report. The Fiscal Year 1998-99 proposed budget for the Beach Restoration Fund is $418,000, an increase of $28,500 from last fiscal year. The majority of the revenue is derived from tourist development taxes imposed by the County in accordance with section 125.0104, Florida Statutes. The tourist development tax is levied at three (3) percent and generates approximately $300,000 for each cent or almost $1.0 milliQ,n per year. Pursuant to section 125.0104, Florida Statutes and a joint resolution between the City of Vero Beach and Indian River County adopted in 1993, the expenditure of the tourist development tax revenue can fund projects necessary to protect and preserve the County beaches with up to 50 percent of the revenues derived from the tourist development tax available to be pledged to secure revenue bonds issued by the County for this purpose. 5.2 TOURIST DEVELOPMENT TAXES Counties are authorized to levy five (5) separate tourist development taxes on transient rentals pursuant to section 125.0104, Florida Statutes. Tax rates vary by County depending on a County's eligibility to levy particular taxes; however, the absolute maximum rate is six (6) percent. Generally, the revenues derived from the tourist development tax may be used for capital construction of tourist related facilities, tourist promotion and beach and shoreline maintenance. The authorized uses vary by County according to the particular levy. As discussed previously, Indian River County imposes a tourist development tax of three (3) percent, which generates approximately $300,000 for each cent or almost $1.0 million per year. Although only imposing the tax at the three (3) percent rate, the County has the authority to impose a maximum rate of four (4) percent of the tourist development tax, with the additional one (1) percent available to finance a professional sports franchise facility. However, the revenues derived from the additional one (1) percent are restricted in use and cannot be used for beach improvement projects. JANUARY 19, 1999 -60- • 0