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HomeMy WebLinkAboutWorkshop - Airport Expansion I MINUTES WORKSHOP MEETING DANIA CITY COMMISSION DECEMBER 15, 1981 ROLL CALL: Present: Mayor: John Bertino (late) Vice Mayor: Chester A. Byrd Commissioners: Jean Cook James Adams Robert Donly Acting City Manager: Eugene Jewell City Attorney: FPank Adler Building Official : Paul Maxwell City Engineer: John Farina DISCUSSION CONCERNING NEGOTIATIONS WITH COUNTY ON AIRPORT EXPANSION 5, Acting City Manager Jewell presented a staff report concerning the fiscal impact to the City of Dania due to the proposed expansion of the Fort Lauderdale/Hollywood International Airport. Mr. Jewell stressed the loss of revenue from several revenue producing items as described in the attached report. City Engineer Farina stepped forward to explain that the City will be losing some 300 acres of land to the county. He expressed his concern for the loss of water lines that will be removed due to re- locating U.S. q1 and the Port Expressway. Mr. Farina suggested that 'the City request the County to install a new water line facility around and along the East boundary of the newly located U.S. #I, so that the City would have the capacity to serve the remainder of Dania for utilities, and to be certain that this facility provide the same amount of water as the existing facitlity. Mr. Farina informed the Commission that he would have an evaluation of this cost in a few days. He also stated that he has not evaluated the loss of revenue from sewer service. After lengthy discussion, the Commission agreed to have Mayor Bertino represent the City of Dania at the County concerning this matter and inform them 'on the issues that were discussed to .see what the county will do to resolve some of the loss that the City of Dania will suffer. After Mayor Bertino has met with the County, a meeting will be set to „ report back to the Commission before the public hearing on January 27, 1982, in Fort Lauderdale. eR-COMA ISSIONER CITY CLERK-AUDITOR Workshop Meeting -1- December 15, 1981 CITY OF DANIA INTER-OFFICE MEMORANDUM N ' TO: DANIA CITY`.•COMMISSION ,ri- FROM= 'EUGENE H. JEWELL, ACTING CITY MANAGER L• SaWECT: STAFF REPORT CONCERNING FISCAL IMPACT TO CITY OF DANIA DUE TO PROPOSED EXPANSION OF FTL/HWD INT. AIRPORT VA.E: DECEMBER 15,1981 The report presented to the South Florida Regional .Planning Council by it's staff, at their meeting on ' December 7, 1981, did very little to address the fiscal impact to the .City of Dania. Their only mention of fiscal impact was that of Ad Valorem Taxes (page 23). Planning Council staff utilized a 70% figure of an assessed property value c' $42.6 million, at a millage.rate.of 6.3170, to illustrate a revenue loss to the City of Dania of $188,000.00. - It is our contention a.70% factor should not be used. Florida Statute requires len.d b assessed at 100% of Market Value, therefore, the millage rate of 6.317 3hcul, be applied to 100% of the assessed property value of $42.6 ri;li�r . This would represent a net loss to the city in Ad Valorem Taxes of or - of the Total General Fund Budget for FY 81-82. F=r ermore, the Planning Council Staff failed to mention many revenue pr= ^g ite:,,s in which.we feel are very important. I would like to address th__� items individually. 1. Beverage Licenses Fees These are fees paid to the State of Florida, of which approx- mately 40% is returned to the Cities. Utilizing an actual print-out .furnished by the .State of Florida, businesses in the affected area pay $9,615. annually to the State. This would represent a revenue loss to the city in the amount of $3,846. (40% of $9,615.)., , 2. Occupational Licenses Utilizing actual figures furnished by our Building Department, net loss to the city in Occupational Licenses fees will be $37,388.. This represents approximately 241 of the $155,000. we have projected for Occupational Licenses Fees Revenue for FY 81-82. Page 2 To: City Commission- ' From: Eugene H. Jewell, Acting City Manager Re; Fiscal Impact due to propesed expansion of Airport Date: December 15,1981 3. Utility Taxes Although it is very difficult .to 'determine the exact loss in Utility Tax, this item is a large Revenue-Producer for the city. Utilizing a very conservative figure of 10% (for bargaining purposes), net revenue. loss to the city will be $78,000. (10% of projected $780,000.). We feel 10% is conservative, as-Ad Valorem Loss is 15% ($269,000. of $1,753,521.), Occupational Loss is 24% $37,388. of $155,000.),: and Beverage License Loss is 18% ($3,846. of $21,006.).• ' 4. Franchise Fees Again, utilizing 10%. Franchise Fee loss will be approximately S40,020. (10% of $400,200.).. 5. Cicarette Tax Net Loss estimated at $3,750. (10% of $37,500.).. 6. Gas Tax Rebate ;et Loss estimated.at $300. (10% of $3,000.). Remember, r. aadition to Service Stations located .in affected area, a, ority of the Rental Car Agencies have their own gas csos. Utility Assessments The General Fund will lose some revenue, as this line item is based on a percentage of the Water and. Se%ier Budget. As water and sewer sales are decreased, their budgets decrease, decreasing their contribution to the General Fund. ;. Sta`e Contribution to Police & Firefighters Pension Fund These revenues are based solely on Insurance premiums paid by residents and businesses. . The revenue loss is unknown(last year's total was $40,800.). 9. Sale of Water and Sewer Unable to estimate, 'Gut any revenue loss will definitely not }` be offset by a reduction of operating cost. 4; Page 3 To: City Commission ' From: Eugene H. Jewell, Acting City Manager Re: Fiscal ?mpact due to proposed expansion of Airport Date: Decmeber 15,1981 . • 10. Value & Cost of Relocating of Utilities Mr. Farina will discuss 11. One Cent Sales Tax If this flies, how much will we lose? 12. Growth-- How much do. we lose in building and other fees when we lose approximately 300 acres? In conclusion, I would like to say that this report was' compiled very gickly, and.it's only intent is to plant seeds, and attempt to paint a picture of the serious, serious impact- this project will have upon our city. Aster discussing this matter with Mr. Ma—rant, it is the recommendation of St_;f, after receiving direction from you, that a Negotiating.Committee . be appointed b: you , to meet with Broward County on behalf of the City of Dania. In addition to one or more of the City Commissioners, and the Ci_y rianager, the City Attorney and City Engineer should be considered for a_poir.tm nt to this committee. EF;,; r: AGENDA WORKSHOP" MEETING ;j- DANIA CITY COMMISSION DECEMBER 15 1981 ri. 4:15 P.M. a`. DISCUSSION OF NEGOTIATIONS REGARDING AIRPORT EXPANSION. ti r