TO: Honorable Mayor & Members of the North Port Commission
FROM: Peter D. Lear, CPA, CGMA, Interim City Manager
TITLE: Resolution No. 2017-R-22 establishing the not-to-exceed non-ad valorem assessment rates for the Road and Drainage District for fiscal year (FY) 2017-2018
Recommended Action
Approve Resolution No. 2017-R-22 establishing the not-to-exceed non-ad valorem assessment rates for the Road and Drainage District for fiscal year (FY) 2017-2018.
Background Information
The non-ad valorem assessment rates in the FY 2017-2018 proposed budget for the Road and Drainage District reflect a 7.5% increase over the assessment rates established in FY 2016-2017. The anticipated net revenue from assessments is $11,510,720; an increase of $914,160 from FY2016-2017. The 2013 Road and Drainage Study, completed by Burton and Associates, recommended a 4.5% increase for FY 2016-2017 as recommended at the Revenue Sufficiency Analysis Update presented at the February 26, 2016, Commission Workshop. No increase was adopted. We are requesting a 7.5% increase to meet current level of service needed for roads and drainage.
Fiscal Year 2017-2018 Maximum Assessment Rates Per Unit by Service Component
Base Road Administrative Services $ 4.40 per Road ERU
Base Road Services $ 11.94 per Road ERU
Enhanced Road Services $ 30.53 per Road ERU
Mowing Administrative Services $ 3.99 per Parcel
Right of Way Mowing $ 51.64 per Parcel
Drainage Administrative Services $ 5.27 per Drainage DBU
Primary Drainage (Drainage I) $ 34.50 per Drainage DBU
Secondary Drainage (Drainage II) $ 20.04 per Drainage DBU
Tertiary Drainage (Drainage III) $ 21.29 per Drainage DBU
The rates as shown in Exhibit A of the Resolution are recommended for Fiscal Year 2017-2018 and would increase the average home on a quarter acre property by $8.94 per year. This rate represents the maximum rate that would be allowed. The actual final adopted rate will occur in September 2017 as part of the budget approval process. The adopted rate may be lower than the Not-to-Exceed rate based upon the budget process.
Properties with contractual agreements for exemption, previously approved by the City Commission, will continue with those exemptions.
Strategic Plan
Financially Responsible City Providing Quality Municipal Services
Financial Impact
Anticipated Revenue of $11,510,720 at 97% collection rate
Procurement
Not Applicable
Attachments:
1. Resolution No. 2017-R-22
2. Property Impact Examples
3. Rate Comparison Table
4. Financial Analysis Summary
5. Resolution No. 2016-R-09
Prepared by: Valerie Malingowski
Department Director: Juliana B. Bellia