Item Coversheet
      

5919 MAIN STREET .  NEW PORT RICHEY, FL 34652 . 727.853.1016


TO:City of New Port Richey City Council
FROM:Crystal S. Feast, Finance Director
DATE:6/6/2017
RE:Allocation of Penny for Pasco Proceeds

REQUEST:
The City Council is asked to review and approve the allocation of the second “bucket” of Infrastructure Sales Surtax (Penny for Pasco) proceeds based on the recommended percentage allocation.


DISCUSSION
:

PENNY FOR PASCO 1

 

In 2003, by way of Resolution No. 2003-02, the City Council elected to use the first “bucket” of Infrastructure Sales Surtax (Penny for Pasco) proceeds in the following manner:

§  Transportation Infrastructure - any fixed capital expenditure or outlay associated with construction, reconstruction, or improvements of roads and transportation facilities, and any land acquisition, land improvement, design, permitting, and engineering costs related thereto

 

§  Environmental Improvements - water quality and flood control infrastructure designed to protect and improve the City’s natural resources, including the water quality in the Cotee River, Orange Lake, and Gulf of Mexico; and for land preservation and recreational development improvement projects

 

§  Public Improvements – improvements of a varying nature designed to improve public safety or to improve cultural and recreational opportunities for the residents, such as acquiring public safety vehicles for use as Police Department vehicles, Fire Department vehicles, emergency medical vehicles, Public Works vehicles; other public construction projects designed to improve quality of life for residents

 

The City received the first “bucket” of Penny for Pasco proceeds for a ten year period, ending December 31, 2014.  Below is a summary of how those proceeds were allocated:

 

Category

Percentage Allocation

Dollar Amount

Transportation Infrastructure

35%

$4,872,576

Environmental Improvements

45%

$6,351,402

Public Improvements

20%

$2,730,708

 

100%

$13,954,686

 

PENNY FOR PASCO 2

In 2015, the City began receiving proceeds from the second "bucket" of Penny for Pasco proceeds.  These proceeds are expected through December 31, 2024. 

By way of Resolution No. 2012-14, the City Council set forth to use these proceeds in the following manner:

§  Utilities

o   Grant matches for utility infrastructure projects

o   Utility infrastructure improvements

o   Expansion or replacement of utility systems to encourage economic expansion

o   Stormwater drainage enhancements in flood prone areas and water quality improvement projects

 

§  Transportation

o   Paving of streets and right-of-ways

o   Sidewalk replacement and expansion projects

o   Multi-use trails and systems

o   Way finding and signage improvements

o   Parking improvements

 

§  Public Safety

o   Scheduled vehicle replacement

o   Communication & IT infrastructure upgrades or improvements

 

§  Public Facilities

o   New construction or building improvements or replacements

o   Replacement of equipment

o   Building hardening projects

o   Green building technologies and energy efficiency projects

 

§  Economic Development -

o   Neighborhood and downtown improvement projects

o   Eco-tourism and tourism development projects

 

§  Community Redevelopment -

o   Acquisition of land, land improvements, design, permitting, and engineering cost related thereto

 

§  Urban Forestry -

o   Tree replacement and new tree planting programs

o   Neighborhood and US Hwy 19 beautification programs

 

             §  Parks & Recreation Facilities -

                          o   Playground projects or improvements

                          o   Restroom facility improvements

                          o   Recreation & Aquatics Center improvements

                          o   River access, ramp, and dock improvements

                          o   Public park facility improvements

                          o   Blueway/greenway improvements

 

 The Resolution set forth the City’s intended use of the Penny For Pasco proceeds by category only.  The Resolution didn’t allocate a percentage of proceeds to these categories.  The purpose of this memorandum is to recommend such a percentage.

 

In consideration of the needs of the City, the recommendation is that the second bucket of Penny For Pasco proceeds be allocated to the approved categories, based on the percentages below. 

Category

Percentage Allocation

Utilities

10%

Transportation

20%

Public Safety

10%

Public Facilities

15%

Economic Development

20%

Community Development

5%

Urban Forestry

5%

Parks & Recreation Facilities

15%

 

100%

 

Although spending will be monitored on an annual basis, the percentage allocation will be applied to the total proceeds.  In other words, after December 31, 2024, when all Penny For Pasco proceeds have been received, spending of those funds should fall within the percentage allocation noted above.

 

Estimating that the City will receive approximately $2,000,000 of Penny For Pasco proceeds per year through December 31, 2024, below is a summary of what would be allocated to each category.  Please note that this is just an estimate.  Funds will be allocated based on actual proceeds received.

 

Category

Percentage Allocation

$ Estimate

Utilities

10%

$2,200,000

Transportation

20%

$4,400,000

Public Safety

10%

$2,200,000

Public Facilities

15%

$3,300,000

Economic Development

20%

$4,400,000

Community Development

5%

$1,100,000

Urban Forestry

5%

$1,100,000

Parks & Recreation Facilities

15%

$3,300,000

 

100%

$22,000,000

   
   


RECOMMENDATION:

It is recommended that the City Council approve the allocation of the second “bucket” of Infrastructure Sales Surtax (Penny for Pasco) proceeds based on the recommended percentage allocation.

BUDGET/FISCAL IMPACT:

The approved percentage allocation will be reflected in future budgets.    

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