TOWN OF PALM BEACH Town Manager’s Office TENTATIVE SUBJECT TO REVISION COUNTY BUDGET TASK FORCE MEETING AGENDA TOWN HALL COUNCIL CHAMBERS-SECOND FLOOR 360 SOUTH COUNTY ROAD Monday, December 7, 2015 10:00AM I. CALL TO ORDER II. ROLL CALL Mayor Gail L. Coniglio, Chair Carla Termini Cove, Task Force Member Bobbi Horwich, Task Force Member Bruce McAllister, Task Force Member Nancy Murray, Task Force Member Jere Zenko, Task Force Member III. PLEDGE OF ALLEGIANCE IV. APPROVAL OF AGENDA V. COMMUNICATIONS FROM CITIZENS VI. PROPOSED COUNTY SALES TAX INCREASE TO FUND CAPITAL INFRASTRUCTURE IMPROVEMENTS [Verdenia Baker, County Administrator] VII. ANY OTHER MATTERS VIII. ADJOURNMENT PLEASE TAKE NOTE: The progress of this meeting may be monitored by visiting the Town’s website (www.townofpalmbeach.com) and clicking on “Meeting Audio” in the left column. If you have questions regarding that feature, please contact the Office of Information Systems (561) 227-6315. The audio recording of the meeting will appear within 24 hours after the conclusion of the meeting. Disabled persons who need an accommodation in order to participate in the meeting are requested to contact the Town Manager’s Office at 838-5410 or through the Florida Relay Service by dialing 1-800-955-8770 for voice callers or 1-800-955-8771 for TDD callers, at least two (2) working days before this meeting. Post Office Box 2029 * 360 South County Road * Palm Beach, Florida 33480 Telephone (561) 838-5410 * Facsimile (561) 838-5411 * townmanager@townofpalmbeach.com TOWN OF PALM BEACH Information for County Budget Task Force Meeting on: December 7, 2015 To: County Budget Task Force Members From: Jay Boodheshwar, Deputy Town Manager Re: Proposed Sales Tax Increase for Palm Beach County Date: December 2, 2015 STAFF RECOMMENDATION Staff recommends the County Budget Task Force (CBTF) review the following information, relative to the proposed sales tax increase for Palm Beach County and provide guidance to staff, as necessary. GENERAL INFORMATION The Board of County Commissioners (BOCC) is considering the use of a local discretionary sales surtax to fund capital infrastructure improvements in lieu of issuing general obligation bonds, which would require an increase in the County’s debt service millage rate. Either option requires a referendum, which would be held in November 2016, if the BOCC approves a ballot question seeking voter approval. The BOCC is considering a one-half (.5%) or one (1%) sales tax increase, which would yield approximately $110 million or $220 million respectively on an annual basis. The current plan before the BOCC would allocate 60% of revenue from the sales tax to the County and 40% to the municipalities. The method for determining what the actual amount each municipality would receive is undetermined. The County is in discussions with the School Board about partnering on the sales tax ballot question, since the School Board is also considering a sales tax increase to fund new technology and repairs to school buildings and buses. To date, the School Board remains undecided about partnering with the County. The Cultural Council has expressed interest in partnering with the County to push for the sales tax increase, as they are interested in receiving a share of the revenue generated to fund expansions and renovations for cultural attractions such as museums, theaters, etc. Lastly, Palm Beach County Fire-Rescue is pushing to ask voters to finance fire-rescue operations with a sales tax instead of property taxes, which would involve another increase to the County sales tax. The exact percentage of the increase is undetermined but officials have said that their goal is to lower the fire-rescue millage rate proportionately. 1 County Administrator, Verdenia Baker, has agreed to present the County’s proposal to the CBTF on December 7. This will provide the CBTF with a great opportunity to learn more about what’s being contemplated and how it would affect the Town of Palm Beach directly from the top County official. To assist in bringing you up to speed on this issue, I’ve attached a number of documents for your review in preparation for the December 7 meeting, including the following: 1. Back-up materials from the BOCC Workshop on 11-24-15 (Attachment A) 2. Polling Presentation provided to the League of Cities on 11-25-15 (Attachment B) 3. News article titled “Palm Beach sees first residential tax bill top $2 million” in Shiny Sheet on 11-8-15 (Attachment C) 4. News article titled “County, schools could join forces in high-stakes referendum push” in Palm Beach Post on 11-15-15 (Attachment D) 5. News article titled “PBC Commission to discuss sales tax, bond issuance options at meeting” in Palm Beach Post on 11-23-15 (Attachment E) 6. News article titled “As county weighs bonds or sales tax hike, jockeying for cash begins” in Palm Beach Post on 11-24-15 (Attachment F) 7. News article titled “Cities warm to sales tax hike but not to taking less than their share” in Palm Beach Post on 11-25-15 (Attachment G) 8. News article titled “Fight brewing over bond issue, sales tax hike money for zoo, museums” in Palm Beach Post on 11-30-15 (Attachment H) 9. News article titled “Cultural Council seeks share of proposed tax hike’s yield” in Shiny Sheet on 12-2-15 (Attachment I) Also attached to this memo are a couple of communications from CBTF member, Bruce McAllister, which he has requested I include in the back-up. They include the following: 1. Email #1 from Bruce McAllister, Dated 11-11-15 (Attachment J) 2. Email #2 from Bruce McAllister, Dated 11-11-15 (Attachment K) Attachments cc: Thomas G. Bradford, Town Manager John C. Randolph, Town Attorney Jane Struder, Director of Finance 2 ATTACHMENT A 3 ATTACHMENT A 4 ATTACHMENT A November 24, 2015 5 1 ATTACHMENT A Relieves more costly/numerous repairs Operational reliability Predictable service delivery Reduced liability Less expensive than new construction “Pay as you go” 6 2 ATTACHMENT A 70,000,000 65,000,000 60,000,000 55,000,000 50,000,000 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 7 3 ATTACHMENT A Projects ◦ ◦ ◦ ◦ ◦ ◦ Bridges & roads safety Drainage Canal Public safety buildings & equipment General buildings Parks $650-750M 8 4 ATTACHMENT A Drainage Bridges Roads – Resurfacing & Striping Signalized intersections Street lights Canal maintenance ◦ Improvements needed for traffic safety & to reduce flooding ◦ Improvements needed for traffic safety & to reduce risk of failures ◦ Improvements needed for safer roads & to avoid future excessive road maintenance costs ◦ Improvements needed for improved traffic flow, to reduce maintenance costs, & to improve signal performance after storms ◦ Improvements needed for energy cost savings & to reduce carbon footprint ◦ Improvements needed for safer roads & to avoid future excessive road maintenance costs 9 5 ATTACHMENT A Inventory grew by facilities and parks that were funded during prosperous years Recession reduced R&R funding Phases 2&3 of the Jail Expansion Project were cancelled, which would have resulted in $15M of R&R being accomplished at the Main Detention Center in addition to programmatic changes 47% of buildings reached at least age 20, including the Main Detention Center/Sheriff’s HQ and Main Courthouse 10 6 ATTACHMENT A Renovation of Existing Facilities ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ Playground replacement Sport lighting repairs Court resurfacing/Repairs Trail/pathway repairs Aquatic facility renovations Building repair/replacement Sports field renovations Boat Ramp Repairs Picnic pavilion replacement Level of Service ◦ Expansion of existing parks ◦ New parks – Canyon’s District & Garden’s District 11 7 ATTACHMENT A Increase operating millage Issue bonds ◦ General Obligation ◦ Non-ad Valorem Infrastructure Sales Surtax 12 8 ATTACHMENT A General Obligation ◦ ◦ ◦ ◦ Ad valorem to pay debt service 20 year maturity Paid by property owners Voted through a referendum ◦ ◦ ◦ ◦ Issued as a pledge to Non-ad valorem revenues 20 year maturity Debt service paid by General Fund Voted by BCC NAV 13 9 ATTACHMENT A The rate may be one-half or one percent BCC approves ordinance to allow referendum Voters must approve surtax Surtax is allocated between County (60%) and Municipalities (40%) Agreement needed to include other entities and change allocation ◦ Agreement must be approved by the governing bodies of the municipalities representing a majority of the County’s municipal population 14 10 ATTACHMENT A Surtax applies to all transactions subject to the State Sales Tax Tax applies to first $5,000 of sales price of tangible personal property Many items exempt ◦ Groceries, baby food and formula ◦ Medicines 15 11 ATTACHMENT A Countywide surtax to deal with infrastructure needs No more than 10 years Consultant to review PBC projects list ◦ Report completed by December 31 Consultant to review PBC spending ◦ Report completed by December 31 Create oversight committees to audit spending 16 12 ATTACHMENT A One Percent ◦ Annual projection - $220M ◦ Total projection, 10 years, with 3% growth $2.679B One-Half Percent ◦ Annual projection - $110M ◦ Total projection, 10 years, with 3% growth $1.340B 17 13 ATTACHMENT A Complete consultant reports January 26th – Workshop to present consultant reports and project list BCC Meetings to approve ordinance & interlocal agreements 18 14 ATTACHMENT B Palm Beach County Sales Tax Proposal: Winning At The Ballot Box 19 ATTACHMENT B About Us • National and local experience in political campaigns • Specialize in ballot issues at the local, county and state level: – Won campaigns on the Yes and No side – Understand election laws that deal with issue campaigns • Strong background in funding initiatives for education and tax related initiatives • Understand how to manage and coordinate both public information and private advocacy campaigns • Cornerstone Solutions is based in West Palm Beach, Florida and works around the nation as experts in the field of referendums and initiatives • Manage PAC programs and compliance • Have a full service team of professionals and strategic partners to manage all aspects of a campaign www.CornerstoneSolutionsTeam.com 20 2 ATTACHMENT B Countywide Referendums • • • • • 2004: Half-cent Sales Tax – 67% 2010: School Ad Valorem Levy – 66% 2012: Slot Machines Referendum – 56% 2014: Children’s Services Tax – 85% 2014: School Ad Valorem Levy – 79% Cornerstone has managed and won all of these elections 21 3 ATTACHMENT B SALES TAX VIABILITY SURVEY PALM BEACH COUNTY, FLORIDA www.FloridaOpinionResearch.com All Materials and Intellectual Property ©2015 Florida Opinion Research @FlaOpinResearch 22 ATTACHMENT B Telephone interviews performed by specially-trained opinion research interviewers Conducted with 400 randomly-selected November general election voters, within Palm Beach County, Florida, using a combination of valid residential, VOIP and cellular telephone listings +/- 4.9% overall estimated margin of error, with a confidence interval of 9.8% within which the results can vary September 27– September 29, 2015 Data was stratified so that the differences in vital characteristics, such as age, race, gender and geography are represented in proportion to their percentages of the county’s electorate Due to rounding, not all results add up to 100%, and the data is presented in a different order than the questions were asked Unless otherwise noted, only statistically-significant differences that were outside the confidence interval for the overall estimated margin of sampling error have been reported in this presentation of key findings Methods www.FloridaOpinionResearch.com All Materials and Intellectual Property ©2015 Florida Opinion Research @FlaOpinResearch 23 ATTACHMENT B Opinion Environment www.FloridaOpinionResearch.com All Materials and Intellectual Property ©2015 Florida Opinion Research @FlaOpinResearch 24 Voters exhibit contentment toward Palm Beach County – which ATTACHMENT B may be beneficial to the prospective tax request – and there is no partisan polarization about the local opinion environment 100 80 60 55 51 46 40 46 38 37 28 29 13 20 8 0 Right direction Wrong track Mixed Unsure Democrats* Republicans* Unaffiliated* Would you say that Palm Beach County is going in the right direction, or has it gotten off onto the wrong track? 23% Net Right Direction www.FloridaOpinionResearch.com All Materials and Intellectual Property ©2015 Florida Opinion Research * Differences are not statistically significant @FlaOpinResearch 25 At this time, education and jobs top the hierarchyATTACHMENT of public B concerns about which voters are most interested; crime also ranks fairly high and should not be overlooked 29% 28% The quality of public education Jobs and the economy 17% Fighting crime 8% 7% 4% Lowering taxes Traffic congestion The quality of life, such as arts and parks 7% 1% Other Unsure What do you think should be the top priority for local elected officials to work on right now? Forced Choice Battery www.FloridaOpinionResearch.com All Materials and Intellectual Property ©2015 Florida Opinion Research @FlaOpinResearch 26 6 ATTACHMENT B The prevalence of sensitivity to the rate of sale taxation is low 100 74 80 60 40 21 20 2 3 0 Too high Pretty fair Too low Unsure Would you say that the rate of sales tax in Palm Beach County is too high, mostly pretty fair or too low? Sales Tax Sensitivity www.FloridaOpinionResearch.com All Materials and Intellectual Property ©2015 Florida Opinion Research @FlaOpinResearch 27 ATTACHMENT B Uses of the Tax Funds www.FloridaOpinionResearch.com All Materials and Intellectual Property ©2015 Florida Opinion Research @FlaOpinResearch 28 B All of the top tier uses were extremely well-received ATTACHMENT by voters and should easily withstand criticism or second-guessing by naysayers who challenge the merits of such improvements Repairing bridges, which are old and need to be upgraded to meet current safety standards? 86 12 2 Repair of road and drainage systems to prevent flooding problems on main streets and in neighborhoods? 85 14 1 Updating learning materials, computers and new learning technology, which students need to be prepared for college or the workforce? 0% 79 20% 40% 19 60% 80% 3 100% Total good idea Total bad idea Unsure Would you say it is a good or bad idea to use some of the funds for… Top Tier Uses www.FloridaOpinionResearch.com All Materials and Intellectual Property ©2015 Florida Opinion Research @FlaOpinResearch 29 The intermediate tier uses are also quite potent and could be used ATTACHMENT B interchangeably or situationally without fear of eroding support Resurfacing roads that have been neglected because of the costs and past budget constraints? 77 New air conditioning systems at school buildings and to purchase school buses? 73 Revitalizing the local economy by building and expanding the local zoo, science center, museums, theaters and community centers, which would attract visitors and improve the quality of life for existing residents? 0% Total good idea 20 23 64 20% Total bad idea 40% 2 60% 4 35 1 80% 100% Unsure Would you say it is a good or bad idea to use some of the funds for… Intermediate Tier Uses www.FloridaOpinionResearch.com All Materials and Intellectual Property ©2015 Florida Opinion Research * Differences are not statistically significant @FlaOpinResearch 30 B Although there are modest form differences inATTACHMENT the results, both uses are popular and, presumably, tenable ones that could be used to explain the virtues of the tax VERSION A: Would you say it is a good or bad idea to use some of the funds for a fund to expand buildings that provide arts, music and science education programs for local children and adults? 73 VERSION B: Would you say it is a good or bad idea to use some of the funds for a fund to expand buildings that would recruit businesses and generate jobs in the community? 0% Total good idea 26 64 20% Total bad idea 1 32 40% 60% 4 80% 100% Unsure Split Sample Testing www.FloridaOpinionResearch.com All Materials and Intellectual Property ©2015 Florida Opinion Research @FlaOpinResearch 31 ATTACHMENT B Aspects & Safeguards www.FloridaOpinionResearch.com All Materials and Intellectual Property ©2015 Florida Opinion Research @FlaOpinResearch 32 B were The various aspects, including those to provide oversight andATTACHMENT safeguards, also highly effective Estimates show that, at least, a quarter of the revenues will be paid by visitors and tourists? 75 It would specify exactly how the money would be spent, and, by law, the uses could not be changed for any reason, once it is approved by voters? The money can only be spent on capital projects or infrastructure, such as buildings, facilities, land and roads, so, by law, none of it can be used for salaries or administration? 0% Total more likely Total less likely 18 74 22 70 20% 40% 6 2 31 25 60% No difference 32 80% 100% Unsure Would you be more or less likely to vote for the sales tax if you knew that… Top Tier Aspects www.FloridaOpinionResearch.com All Materials and Intellectual Property ©2015 Florida Opinion Research @FlaOpinResearch 33 The intermediate safeguards are also quite effective ATTACHMENT among broad B cross-sections of the public and could be used to allay any fears or misgivings that could emerge It would have a cut-off date, so it would automatically expire in 10 years, rather than being permanent? 69 25 6 1 All the sales tax funds would be monitored by an oversight committee made of volunteers who are citizens and experts? 69 25 42 Each of the cities in Palm Beach County will also receive a portion of the funding for projects in their communities? 66 28 4 3 Repairs to the aging infrastructure are no longer keeping up with needs, and it will be cheaper to make them now, rather than waiting or using a different type of tax to fund them? 66 28 4 3 80% 100% 0% Total more likely Total less likely 20% 40% 60% No difference Unsure Would you be more or less likely to vote for the sales tax if you knew that… Intermediate/Lower Tier Uses www.FloridaOpinionResearch.com All Materials and Intellectual Property ©2015 Florida Opinion Research @FlaOpinResearch 34 ATTACHMENT B Conclusion www.FloridaOpinionResearch.com All Materials and Intellectual Property ©2015 Florida Opinion Research @FlaOpinResearch 35 ATTACHMENT B Sales Tax Viability • A sales tax would pass with strong support • The county and school proposals are equally important to residents • A combined one-penny sales tax would create less confusion for voters and have a better chance of passage • The General Election of 2016 is the best time for a referendum for a sales tax 36 18 ATTACHMENT B Voter Registration Today Registered Voters 2015 Democrat Republican Other Total 372,790 239,636 252,043 864,469 43% 28% 29% 100% 37 19 20 ATTACHMENT B Voter Turnout Total Registered Absentee % of Vote Early Voting % of Vote Polls % of Vote Total Voted Turnout 2014 General Election 851,999 91,880 22% 93,468 22% 240,098 56% 425,446 50% 2012 General Election 870,182 128,256 21% 128,827 21% 351,556 58% 605,268 70% 2010 General Election 821,850 62,345 16% 62,367 16% 265,101 68% 390,740 48% 2008 General Election 831,423 122,839 21% 144,505 24% 323,205 55% 590,594 71% 2006 General Election 765,347 53,642 14% 59,020 16% 251,356 68% 370,080 48% 2004 General Election 729,575 91,039 17% 49,635 9% 402,721 74% 544,378 75% 38 ATTACHMENT B Planning for Success • • • • • • Negotiate A Plan and Show Unity Fiscal Needs and Validation Studies Partnerships: Schools, Cities & Cultural Evaluate the election environment Ability to run a public education campaign Ability to win at the ballot box 39 21 ATTACHMENT B Questions 40 Page 1 of 3 ATTACHMENT C Publication: Palm Beach Daily News; Date: Nov 8, 2015; Section: Main; Page: A1 Palm Beach sees first residential tax bill top $2 million Ken Griffin’s Billionaires Row estate leads town’s tax roll list. By DARRELL HOFHEINZ Daily News Real Estate Writer For the first time ever, an owner of a Palm Beach estate will pay more than $2 million in property taxes, thanks to the 2015 tax roll recently certified by the state. Luckily for him, the fellow involved has deep pockets. It’s Chicago hedge-funder Ken Griffin, who owns 9.3 acres on the South End’s Billionaires Row and whose worth is estimated by Forbes at $3.1 billion. Griffin is among at least 39 Palm Beach property owners who have been billed more than $500,000 each for their 2015 taxes, according to data compiled by the Palm Beach Daily News from tax bills viewable on Palm Beach County Tax Collector Anne M. Gannon’s website. Based on property values assigned Jan. 1 by Property Appraiser Gary Nikolits’ office, the 2015 tax roll was certified Oct. 10. Individual bills were mailed on Halloween. Griffin has been assessed a grand total of $2.23 million in taxes on his oceanfront estate’s five separate properties on Blossom Way, a quarter-mile south of the Southern Boulevard traffic circle. He bought four of the properties, including three houses, in late 2012 for nearly $130 million. But he has never built himself a new residence, even though the town has granted him permission to demolish two of the remaining homes there. A spokeswoman for Griffin declined to comment for this story. Nikolits’ office has assigned Griffin’s estate a total market value of $134.47 million, with a taxable value of $122.26 million. He owns the parcels through three separate limited-liability companies. Values on the rise Griffin, like the vast majority of property owners in post-recession Palm Beach, has seen his property values rise over the past year. The town’s new tax roll, in fact, saw about a 9.5 percent increase in market value over the previous year’s figures, according to Palm Beach County Deputy Property Appraiser Dorothy Jacks. In all, residential and commercial values here hit $19.2 billion, with taxable value adding up to $14.6 billion, she said. Residential properties generated the bulk of the town’s tax revenue, as just $1.3 billion of the taxable value was attributed to the commercial category. “Palm Beach is the second most valuable municipality in the county after Boca Raton but, interestingly, has a much smaller parcel count than Boca Raton. Palm Beach has about 9,500 parcels in it, but it accounts for 10 percent of value of the county tax roll,” Jacks said. Estate owner Griffin is in rarefied territory: Just five other island property owners have been assessed more than $1 million in the 2015 tax roll. He’s the only one to break the $2 million mark. In fact, the next homeowners whose tax bill even comes close will be assessed about $350,000 less than Griffin, who heads the Citadel hedge fund. Businessman Nelson Peltz and his wife, Claudia, will pay $1.88 million in taxes for their oceanfront estate, which comprises three properties at historic Montsorrel, 548 N. County Road, with a taxable value of $103.2 million. Homestead advantage 41 http://digital.olivesoftware.com/Olive/ODE/PalmBeachDailyNews/PrintComponentView.... 12/2/2015 Page 2 of 3 ATTACHMENT C Last year, Griffin paid $1.93 million in taxes on the four properties that then made up his estate. But this past summer he added a fifth property — a house at 70 Blossom Way that changed hands in June for a recorded $15.25 million and came with a temporary homestead tax exemption of $50,000. None of Griffin’s other properties is homesteaded as a primary residence, meaning that the amount he pays in property taxes can soar as much as 10 percent a year under state law. That compares to the tax cap for homesteaded properties, which keeps any value assessment from rising more than a certain percentage — either 3 percent per year or the change in the Consumer Price Index, whichever is lower. Over the life of a property’s ownership, homesteading can result in significant tax savings. Even so, of the six estates with tax bills of more than $1 million, none is homesteaded. The difference can be dramatic: Last year, homeowner Stephen A. Levin paid $193,088 in property taxes. He has since bought a new home in Miami-Dade County, and tax records show he has lost his homestead exemption on 446 N. Lake Way, which he has owned since 1990. The result? His 2015 tax bill has climbed to $477,624. To meet their $72 million budget for the budget year that began Oct. 1, town officials set a municipal tax rate of $3.38 per $1,000 of a property’s taxable value — 3 cents less than 2014. Officials said the rate would help offset the rise in property values for homesteaded owners, so that they would see little change in their tax bills for 2015. In any case, town taxes make up less than 20 percent of each tax bill. Overall, Palm Beach owners will be taxed at a rate of about $17.92 per $1,000 of their property’s taxable value. In addition to the town’s share, the revenue gets divided among the county, public schools and six special taxing authorities, including the Florida Inland Navigation District, Children’s Services Council and the South Florida Water Management District. Taxes must be paid in full by March 31. And for those watching their wallets, discounts are offered for early payments, beginning with a 4 percent reduction if the bill is paid in full this month. The discount drops by 1 percent each month thereafter through February. Which means that if taxpayer Griffin pays his bill in full before Nov. 30, he’ll get to deduct nearly $90,000. But then, who’s counting? — dhofheinz@pbdailynews.com Griffin Assessed a total of $2.23 million in taxes. 42 http://digital.olivesoftware.com/Olive/ODE/PalmBeachDailyNews/PrintComponentView.... 12/2/2015 Page 3 of 3 ATTACHMENT C Daily News File Photo (above); Griffin photo (far right) courtesy of Chicago Tribune Ken Griffin bought four properties, including three houses, in late 2012 for nearly $130 million. But he has never built himself a new residence at the beachfront site. Meghan McCarthy / Daily News Ken Griffin owns 9.3 acres on the South End’s Billionaires Row. He has been assessed a total of $2.23 million in taxes on his estate’s five properties on Blossom Way (above). 43 http://digital.olivesoftware.com/Olive/ODE/PalmBeachDailyNews/PrintComponentView.... 12/2/2015 Palm Beach County asks schools to join push for sales-tax hike | www.mypalmbeachpost.... Page 1 of 8 ATTACHMENT D 74° SUBSCRIBE as low as 99¢ LOG IN HOME / NEWS / LOCAL EDUCATION advertisement Resize text County, schools could join forces in highstakes referendum push Updated: 3:00 p.m. Saturday, Nov. 14, 2015 | Posted: 12:02 p.m. Saturday, Nov. 14, 2015 By Andrew Marra and Wayne Washington - Palm Beach Post Staff Writer In this Section Hoping to win hundreds of millions of dollars in new tax revenue, Palm Beach County government and cultural leaders are quietly pressing the county School Board to join them in a campaign to raise the county’s 6-cent sales tax by an extra penny. Both the School Board and the County Commission are weighing PBSO investigates home invasion in suburban West Palm Beach 8 tidbits from the highway construction bill whether to ask voters next fall to approve sales tax increases to fix decaying roads, bridges and buildings. Top county administrators think that linking their bid to the schools’ effort would make it easier to win over voters. It’s a similar pitch to the one county officials made to School Board members in 2013, when both agencies considered ALLEN EYESTONE The county firefighters union is calling for the county to replace the property tax that finances Palm Beach County FireRescue with ... Read More City’s bike trail plans inching forward Lottery winner killed in motorcycle crash west of Boca Raton Dogs eat remains of their dead owner putting proposed sales tax increases on the November 2014 ballot. The School Board rejected the county’s entreaties then, and the County Commission decided against going it alone. Two years later, county government is courting the School Board again, and this time it has extra help. Deputies: Naked Florida man breaks into condo Jupiter complains, then agrees to pay $72,000 for dune restoration Having poor Wi-Fi connections? Blame Christmas 44 http://www.mypalmbeachpost.com/news/news/local-education/county-schools-could-join-... 12/2/2015 Palm Beach County asks schools to join push for sales-tax hike | www.mypalmbeachpost.... Page 2 of 8 ATTACHMENT D The county’s Cultural Council, a non-profit cultural clearinghouse sponsored by county hotel tax dollars, wants to use a piece of the county’s sales tax windfall to pay for expansions of local museums and cultural centers, and it is lobbying School Board members to join forces as well. They are not the only ones clamoring to AP Conversation: Cruz’s ambitious foreign policy has limits O’Malley: I want to be your second choice _ for now ask voters for more money. County firefighters have mounted a separate RICHARD GRAULICH County government administrators worry about decaying roads and bridges, whose maintenance have been postponed while commissioners steered money to other projects. closed-door campaign to get its own request for a sales tax increase before voters. The amount raised through that tax, however, would be offset by a reduction in property taxes. The potential payout is huge. In 2014, county officials estimated a 1-cent increase could raise $220 million a year. With hundreds of millions of dollars a year at stake, the vying parties raise the prospect that county voters could face as many as three separate sales-tax increase requests on the November 2016 ballot. The fear that dueling requests could sour voters is being used by county and cultural leaders to encourage School BRUCE R. BENNETT Workers on the roof of Coral Sunset Elementary. The public schools suffer from a backlog of problems that administrators say they ... Read More Board members to join forces. A simple, one-penny request would be a sleeker sell than two half-cent pitches, they say. Schools skeptical County Administrator Verdenia Baker acknowledged she and her staff have begun having talks with their counterparts in the school district. “I personally would prefer if we could put these things together and go to the MEGHAN MCCARTHY voters together,” she said, “but that will be a decision made by our boards.” 45 http://www.mypalmbeachpost.com/news/news/local-education/county-schools-could-join-... 12/2/2015 Palm Beach County asks schools to join push for sales-tax hike | www.mypalmbeachpost.... Page 3 of 8 ATTACHMENT D The Cultural Council of Palm Beach County wants to use a piece of the county’s sales tax windfall to pay for ... Read More The county government’s pitch is echoed by the Cultural Council. Board member Mike Bracci said that he supports “a combined one-penny sales tax instead of proposing two different half-penny sales taxes.” “We all have a common goal of improving education, fixing safety and infrastructure needs and job creation that will benefit our children and all local residents,” he said in a statement. “Working together will encourage collaboration, combine our strengths, creates efficiencies and unite our community.” But many School Board members and school district officials remain skeptical about a joint campaign, people familiar with the negotiations say. DAMON HIGGINS Robert Avossa, new superintendent of the Palm Beach County School District, meets with the Post Editorial Board Thursday, July 16, 2015. ... Read More Historically, voters have supported sales tax and property tax increases for public schools by wide margins. But some educators privately worry that linking their bid to one for money to repair roads and bridges could dampen voters’ enthusiasm. The debate may prove to be the first major test for both Baker and Schools Superintendent Robert Avossa. Both are newly installed in their jobs and are being asked to steer their agencies toward a key tactical decision that could RICHARD GRAULICH affect their agencies — and the county’s quality of life and financial health — for County Administrator Verdenia Baker said she prefers that the county commission and school board “go to the voters together.” (Richard Graulich ... Read More years. Firefighters want in Complicating the picture is the firefighters’ desire for a sales tax for Palm Beach County Fire-Rescue. Using authority granted by the 46 http://www.mypalmbeachpost.com/news/news/local-education/county-schools-could-join-... 12/2/2015 Palm Beach County asks schools to join push for sales-tax hike | www.mypalmbeachpost.... Page 4 of 8 ATTACHMENT D Legislature, the union is calling for the county to replace property taxes for fire-rescue services with a sales tax. Chuck Lupo, executive vice president for the Professional Firefighters and Paramedics of Palm Beach County, said LANNIS WATERS An aging bus fleet is one of the school district’s many challenges. (Lannis Waters / The Palm Beach Post) the goal is to spread the tax burden beyond property owners and reduce reliance on property taxes, a revenue source that evaporates quickly during economic downturns. The firefighters need commissioners’ approval to put that sales tax on the ballot, however. The various hopes and plans are enough to make commissioners’ heads spin. “We seem to have many balls in the air,” County Commissioner Paulette Burdick, a former School Board member, said. Moving forward with a sales tax referendum is no sure thing, however. County Commissioner Hal Valeche said he’s still not sold on the idea of a sales tax. He said he wants Baker to present him with the benefits and drawbacks of a sales tax versus a bond issue. He said he also wants more information on the pros and cons of joining forces with the school district. A bond issue produces a large sum of money at once, requiring payments with interest for years. It’s not considered as regressive as a sales tax, which hits lower income taxpayers harder than a bond issue. A sales tax could generate even more money than expected if the economy strengthens. And the sales tax burden could be spread among tourists and snowbirds, lessening the load on locals. As valuable as roads? 47 http://www.mypalmbeachpost.com/news/news/local-education/county-schools-could-join-... 12/2/2015 Palm Beach County asks schools to join push for sales-tax hike | www.mypalmbeachpost.... Page 5 of 8 ATTACHMENT D So far, discussions about whether to join forces have been conducted behind closed doors. But School Board members are expected to begin a public discussion of their plans Tuesday. County commissioners may have a public discussion later this month. School Board member Erica Whitfield, who also serves on the Cultural Council’s board, said educators will have to pore over polling data before making a decision. “The deciding factor is whether the public sees education as being as valuable as roads, or if they see us as a more valuable commodity,” she said. “It sounds like everyone is going to go for it. The question is, is it better to partner up?” Commissioner Melissa McKinlay said she would like to see the county and the school district go to the voters together. “In my opinion, it’s the only way to assure the successful passage of a referendum,” she said. While joining forces with the school district has some benefits for the county, there is some wariness in the county about pursuing a partnership. County Commissioner Priscilla Taylor noted that the county and the school district had talks a couple of years ago about going to voters together. But then the school district decided to go it alone. School Board members ultimately decided against pursuing a sales tax, and, a few months later, county commissioners made the same decision. “I think it would be great if we could do it with the school district,” Taylor said. “But the last time we tried it, they kind of left us hanging.” Taylor said she does not want the county to forego its plans if the school district decides again not to move forward. “Every year that we wait, things get worse and worse,” she said. 48 http://www.mypalmbeachpost.com/news/news/local-education/county-schools-could-join-... 12/2/2015 Palm Beach County asks schools to join push for sales-tax hike | www.mypalmbeachpost.... Page 6 of 8 ATTACHMENT D Problems worsening School Board Chairman Chuck Shaw acknowledged that there are pros and cons to either scenario. At the end of the day, the route that seems more likely to win voter approval is the one the School Board should follow, he said. “The bottom line for the school district is we’ve got to make a decision based on what’s best for us,” he said. The public schools are suffering from a backlog of problems that administrators say they cannot afford to fix, from leaky roofs and unreliable air conditioners to aging school buses without safety alarms. The schools also suffer from a shortage of computers in classrooms, administrators say. High construction debt payments and a change in state law that lowers the amount the School Board can raise in property taxes for construction and maintenance have left the schools unable to keep up with needed repairs and upgrades. The county government, in turn, points to decaying roads and bridges, whose maintenance have been postponed while commissioners steered money to other projects. Despite the growing need for infrastructure repairs and upgrades, commissioners have refrained from taking the politically unpopular step of raising property taxes to pay for upgrades. Earlier this year, for example, commissioners approved a budget that held property tax rates steady. The county got more revenue because of rising property values, but commissioners acknowledged that repairs would have to be addressed in another way — either through a sales tax or a bond issuance. Whatever the county, the firefighters and the School Board decide, the public must be sold on the idea of paying more taxes, said Daniel Martell, president and chief executive officer of the Economic Council of Palm Beach County, an influential business group. 49 http://www.mypalmbeachpost.com/news/news/local-education/county-schools-could-join-... 12/2/2015 Palm Beach County asks schools to join push for sales-tax hike | www.mypalmbeachpost.... Page 7 of 8 ATTACHMENT D “They should be telling the public what’s needed and why and why it can’t be paid for otherwise,” Martell said. “They need to be able to plead their case.” Three Referendums? Voters could face as many as three proposed sales tax increases on the November 2016 ballot. Each would have to be approved by the County Commission or School Board. Schools — The Palm Beach County School Board is considering asking voters to approve a sales tax hike to pay for new technology in schools and repairs to school buildings and buses. County — The Palm Beach County Commission is considering a sales tax hike to pay for repairs to roads, bridges and other public needs. Cities would receive a portion. The county’s Cultural Council is negotiating for area museums and cultural centers to receive a portion. Firefighters — Palm Beach County firefighters are pushing county commissioners to ask voters to finance Fire-Rescue with a sales tax instead of the property tax. PREVIOUS: WORLD NEXT: WORLD Reports: Several killed in tr… Pianist plays 'Imagine' outs… By Cox Media Group National Content Desk Popular on MyPalmBeachPost.com Judge Jack Cox orders Palm Beach Post to take down transcripts Dolphins want balanced offense to take load off Ryan Tannehill Source: Ex-Georgia coach Mark Richt Miami's top choice Palm Beach State College launches engineering technology program Palm Beach County jailhouse lawyer doubles as jailhouse snitch 50 http://www.mypalmbeachpost.com/news/news/local-education/county-schools-could-join-... 12/2/2015 Palm Beach County asks schools to join push for sales-tax hike | www.mypalmbeachpost.... Page 8 of 8 ATTACHMENT D This website is for subscribers; please Get Access to read or post comments. advertisement Read Today's Paper online Still like to read the newspaper in the familiar page-by-page format? Great news! Digital versions of today's paper are available on your computer or tablet. And it's included in your subscription. We’re Listening We hope you’re enjoying MyPalmBeachPost.com, our premium website exclusively for subscribers. Please tell us what you like and what we can do to make it even better by completing this brief survey. NEWS MARKETPLACE AFFILIATES ABOUT US © 2015 Cox Media Group. By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices . Learn about careers at Cox Media Group 51 http://www.mypalmbeachpost.com/news/news/local-education/county-schools-could-join-... 12/2/2015 Palm Beach County to go over sales tax, bond issuance plan | www.mypalmbeachpost.com Page 1 of 4 ATTACHMENT E 80° SUBSCRIBE as low as 99¢ LOG OUT HOME / NEWS / LOCAL GOVT & POLITICS advertisement Resize text PBC Commission to discuss sales tax, bond issuance options at meeting Posted: 7:37 p.m. Monday, Nov. 23, 2015 By Wayne Washington - Palm Beach Post Staff Writer In this Section Nearly half of Palm Beach County’s buildings are at least 20 years old, and the cost to upgrade or replace them — along with Busted! Fla. man chugs beer while driving next to cop needed repairs to roads and bridges — could be as much as $750 million, according to a county report. County commissioners are meeting Tuesday to go over a variety of options to pay for those unmet needs, including two plans to issue bonds, raising the property tax rate or raising the sales tax. The most discussed option on the table — raising the county’s 6 percent sales Herman Cain rips Jeb Bush, will appear at Donald Trump rally City whittles down manager applicant list to a half dozen Fear, faith and the rise of Ben Carson tax — would require going to voters with a referendum. Raising the sales tax by 1 piggy bank percent would generate an estimated $2.67 billion over 10 years, according to county calculations based on state Department of Revenue estimates. A half-percent hike would generate $1.34 billion over 10 years. Commissioners would also need voter-approval to issue bonds tied to property tax revenue. Next Royal Palm Beach RaceTrac meeting delayed until January Hillary Clinton calls for $275 billion in infrastructure spending Republicans will seek to display old national security chops in 2016 State law gives commissioners the authority to issue bonds backed by such revenue sources as communications fees and Christie fires back at Trump: ‘Donald is 52 http://www.mypalmbeachpost.com/news/news/local-govt-politics/pbc-commission-to-disc... 12/1/2015 Palm Beach County to go over sales tax, bond issuance plan | www.mypalmbeachpost.com Page 2 of 4 ATTACHMENT E franchise fees without seeking voter approval. County Administrator Verdenia Baker, however, noted that going that route would limit the county’s financial flexibility. Commissioners have long had the option of raising property tax rates to get additional money to pay for upgrades. But raising those rates would be less politically popular than boosting the sales tax, which is paid by tourists as well as property owners. used to intimidating folks’ Donald Trump claims ‘many, many’ endorsements from black pastors Orphaned grizzly cubs play snowbirds at Palm Beach Zoo About 25 percent of sales tax in Palm Beach County is paid by its visitors, according to a staff briefing note prepared for commissioners. While commissioners sift through options, the Economic Council of Palm Beach County, an influential business group, is urging them to take a deliberate approach. In an email to County Mayor Mary Lou Berger, the council asked commissioners to come up with a project list that would be paid for with sales tax revenue. The sales tax should be imposed for a finite period of time and a citizen’s review panel should be put together to review expenditures, it said. Like commissioners, the County School Board is also considering going to voters for a sales tax increase. County officials have expressed some interest in joining forces with the school district. “Those discussions are still ongoing,” Baker said. Palm Beach County Commission meeting on sales tax, bond issuance Where: Sixth-floor chambers of the Weisman Governmental Center at 301 N. Olive Avenue, West Palm Beach When: 9:30 a.m. Tuesday PREVIOUS: NATIONAL NEXT: NATIONAL 53 http://www.mypalmbeachpost.com/news/news/local-govt-politics/pbc-commission-to-disc... 12/1/2015 Palm Beach County to go over sales tax, bond issuance plan | www.mypalmbeachpost.com Page 3 of 4 ATTACHMENT E Boston teen banned from c… New traffic study names to… By Cox Media Group National Content Desk Popular on MyPalmBeachPost.com Jim McElwain reflects on first season as Gators head coach Boosters: Jimbo Fisher has better job at FSU than he would at LSU Greenacres shortens candidate list for manager job Palm Beach divorce case ends, with warnings for older couples This website is for subscribers; please Get Access to read or post comments. advertisement Read Today's Paper online Still like to read the newspaper in the familiar page-by-page format? Great news! Digital versions of today's paper are available on your computer or tablet. And it's included in your subscription. We’re Listening We hope you’re enjoying MyPalmBeachPost.com, our premium website exclusively for subscribers. Please tell us what you like and what we can do to make it even better by completing this brief survey. NEWS MARKETPLACE 54 http://www.mypalmbeachpost.com/news/news/local-govt-politics/pbc-commission-to-disc... 12/1/2015 Palm Beach County to go over sales tax, bond issuance plan | www.mypalmbeachpost.com Page 4 of 4 ATTACHMENT E AFFILIATES ABOUT US © 2015 Cox Media Group. By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices . Learn about careers at Cox Media Group 55 http://www.mypalmbeachpost.com/news/news/local-govt-politics/pbc-commission-to-disc... 12/1/2015 Palm Beach County looking into sales tax hike, bond referendum | www.mypalmbeachpo... Page 1 of 5 ATTACHMENT F 77° SUBSCRIBE as low as 99¢ LOG IN HOME / NEWS / LOCAL GOVT & POLITICS advertisement Resize text PALM BEACH COUNTY As county weighs bonds or sales tax hike, jockeying for cash begins Posted: 5:45 p.m. Tuesday, Nov. 24, 2015 By Wayne Washington - Palm Beach Post Staff Writer In this Section Palm Beach County commissioners have not made a decision on whether to ask voters to approve a bond issuance or a sales tax increase to pay for upgrades to roads, bridges and buildings, but jockeying for some of the additional money has already begun. During a workshop meeting to discuss the issue Tuesday, Commissioner Hal Valeche said he was “taken aback” when he learned the Cultural Council of Palm Beach County has a wish list of projects with a price tag approaching $300 million. That would be a big chunk of the estimated $1.3 billion to $2.7 billion generated over 10 years by a halfpercent to 1 percent increase in the sales tax, if the commission were to decide to go that route. And if the commission instead decided to go with a bond issue that would generate $700 million, the Cultural Council’s project list could take up nearly half of that money. “Maybe there’s some mission creep that got in here,” Valeche said. “Let’s make sure we’re doing what’s absolutely necessary.” San Bernardino shooting: What is Inland Regional Center and what do they do? Boynton police seek woman with details of liquor store murder New engineering technology program gives students handson experience PBSO investigates home invasion in suburban West Palm Beach 8 tidbits from the highway construction bill City’s bike trail plans inching forward Police: Fla. man blames devil after 56 http://www.mypalmbeachpost.com/news/news/local-govt-politics/as-county-weighs-bonds... 12/2/2015 Palm Beach County looking into sales tax hike, bond referendum | www.mypalmbeachpo... Page 2 of 5 ATTACHMENT F Some of Valeche’s colleagues echoed that call. But Rena Blades, president and chief executive officer of the Cultural Council, said projects the council supports are from taxexempt groups whose work would spur tourism and economic development in the county. She said the council does not have a finalized wish list of projects, and County Administrator Verdenia molesting girl at church Lottery winner killed in motorcycle crash west of Boca Raton Dogs eat remains of their dead owner Baker was quick to note that the $300 million figure is not one she is recommending. Tuesday’s discussions made clear that a series of threads still Deputies: Naked Florida man breaks into condo need to be woven together before a public campaign can be mounted for finding new revenue — everything from what type of funding the county plans to seek to how much it plans to seek and whether it can or should partner with the county School Board and county firefighters, who both have their own hopes for separate sales tax increases. The County Commission voted Tuesday to have county staff members continue gathering information on the relative merits of the various options. If commissioners move forward with a plan to get more revenue, one big question will be who gets to share in the loot. After Baker gave commissioners a general overview of the county’s needs, three of her top staffers — County Engineer George Webb; Audrey Wolf, director of facilities and operations; and Eric Call, director of Parks and Recreation — noted backlogs in their areas. “Many of our facilities are 25, 30, even 40 years of age,” Call said. He was speaking of parks and recreation facilities, but he could just as easily have been talking about other buildings, roads and bridges. Overall, county staff say the county’s backlog of repairs and upgrades would cost $650 million to $750 million, and that doesn’t include projects backed by the Cultural Council and other groups. 57 http://www.mypalmbeachpost.com/news/news/local-govt-politics/as-county-weighs-bonds... 12/2/2015 Palm Beach County looking into sales tax hike, bond referendum | www.mypalmbeachpo... Page 3 of 5 ATTACHMENT F There are four paths the county could take to address the backlog. Commissioners could increase the property tax rate, a move they rejected in September when they passed a budget that held tax rates steady. Commissioners could go to voters for approval to sell bonds backed by property tax revenue, an approach Valeche has urged his colleagues to keep on the table. Selling bonds is not regressive like a sales tax, which hits the poor harder than it hits those better off financially. Commissioners would not need to go to voters to sell bonds backed by funding sources like franchise and communications fees, but staff members told them going that route could jeopardize the county’s strong bond rating. Commissioners appeared to be as uninterested in that approach as they were in raising the property tax rate. And then there is the sales tax increase. State law allows cities in the county to get 40 percent of the money from a sales tax increase. Baker said that, if the county pursued a 1 percent increase in conjunction with the Cultural Council and the School Board, she would ask cities to take a smaller cut. If elected officials representing a majority of the county’s residents vote to take less, all of the cities would be bound by an agreement to take less. The county’s sales tax is currently 6 percent. State law allows the county’s rate to rise by an additional 2 percent, and several entities are interested in a boost for facilities upgrades. That includes the county, the School Board and the firefighters, who want the county to reduce property taxes for fire rescue services by the same amount generated by a half-cent sales tax increase. 58 http://www.mypalmbeachpost.com/news/news/local-govt-politics/as-county-weighs-bonds... 12/2/2015 Palm Beach County looking into sales tax hike, bond referendum | www.mypalmbeachpo... Page 4 of 5 ATTACHMENT F Doing so would reduce reliance on property taxes and draw in money from tourists, they argue. The tax swap firefighters want would have to be approved by voters in a separate referendum, and the County Commission would have to agree to put it on the ballot. Several commissioners have expressed concern about overloading voters; County Mayor Mary Lou Berger said she feared voters could react as parents do when harried by children asking for a variety of things all at once. “I don’t want them to throw up their hands and just say, ‘No,’” Berger said. PREVIOUS: CRIME & LAW PBSO: Deputy stole more t… By Hannah Winston - Palm Beach Post Staff Writer NEXT: NEWS Backpack prompts evacuati… By Julius Whigham II - Palm Beach Post Staff Writer Popular on MyPalmBeachPost.com Judge Jack Cox orders Palm Beach Post to take down transcripts Dolphins want balanced offense to take load off Ryan Tannehill Source: Ex-Georgia coach Mark Richt Miami's top choice Don King-owned former jai alai stadium could get $500M makeover This website is for subscribers; please Get Access to read or post comments. advertisement 59 http://www.mypalmbeachpost.com/news/news/local-govt-politics/as-county-weighs-bonds... 12/2/2015 Palm Beach County looking into sales tax hike, bond referendum | www.mypalmbeachpo... Page 5 of 5 ATTACHMENT F Read Today's Paper online Still like to read the newspaper in the familiar page-by-page format? Great news! Digital versions of today's paper are available on your computer or tablet. And it's included in your subscription. We’re Listening We hope you’re enjoying MyPalmBeachPost.com, our premium website exclusively for subscribers. Please tell us what you like and what we can do to make it even better by completing this brief survey. NEWS MARKETPLACE AFFILIATES ABOUT US © 2015 Cox Media Group. By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices . Learn about careers at Cox Media Group 60 http://www.mypalmbeachpost.com/news/news/local-govt-politics/as-county-weighs-bonds... 12/2/2015 Palm Beach County League of Cities backs sales tax referendum | www.mypalmbeachpos... Page 1 of 5 ATTACHMENT G 80° SUBSCRIBE as low as 99¢ LOG OUT HOME / NEWS / LOCAL GOVT & POLITICS advertisement Resize text PALM BEACH COUNTY Cities warm to sales tax hike but not to taking less than their share Posted: 4:18 p.m. Wednesday, Nov. 25, 2015 By Wayne Washington - Palm Beach Post Staff Writer In this Section Members of the Palm Beach County League of Cities voiced support Wednesday for the county to pursue a sales tax increase Busted! Fla. man chugs beer while driving next to cop for repairs to roads, bridges and buildings. But several mayors and council members threw cold water on the idea of getting less from the tax increase than they are entitled to under the law — a prospect County Administrator Verdenia Baker has raised as a way to pay for more projects with the estimated $1.3 billion to $2.7 billion a half-percent or 1 percent increase in the sales tax would generate over 10 years. Herman Cain rips Jeb Bush, will appear at Donald Trump rally City whittles down manager applicant list to a half dozen Fear, faith and the rise of Ben Carson By law, cities would be entitled to a population-based proportional cut of 40 percent of revenue from a sales tax increase, and some of their representatives said they have the same urgent repair needs that have driven the county to consider a tax hike or bond issuance. “Why are you asking us to reduce it when we so desperately need it?” asked Robert Shalhoub, mayor of Lake Clarke Shores. “I don’t support reducing it to the cities at all.” Shalhoub said he agreed with the sentiment expressed by Next Royal Palm Beach RaceTrac meeting delayed until January Hillary Clinton calls for $275 billion in infrastructure spending Republicans will seek to display old national security chops in 2016 colleagues who said the county’s efforts will be more successful 61 http://www.mypalmbeachpost.com/news/news/local-govt-politics/cities-warm-to-sales-tax... 12/1/2015 Palm Beach County League of Cities backs sales tax referendum | www.mypalmbeachpos... Page 2 of 5 ATTACHMENT G if cities are united behind it. But he drew the line on his city getting less than it would be entitled to receive. Christie fires back at Trump: ‘Donald is used to intimidating folks’ “If the law says we get 40 percent, it’s a difficult sell for me to go back to my voters and say we’ll take less,” he said. If elected officials representing a majority of the county’s Donald Trump claims ‘many, many’ endorsements from black pastors residents vote to take less, all of the cities would be bound by an agreement to take less. Orphaned grizzly cubs play snowbirds at Palm Beach Zoo The county is considering a variety of options to address a backlog of upgrades whose cost it estimates to be $650 million to $750 million. Raising the property tax rate next year and issuing bonds not backed by property tax revenue are still technically on the table, but county commissioners have expressed little enthusiasm for those options. Issuing bonds backed by property tax revenue, which would increase the proprety tax rate, or increasing the county’s 6 percent sales tax to 6.5 percent or 7 percent have gotten more traction, with much of the discussion centered on a sales tax hike. Commissioners are expected to choose a path later this year or early next year, and voters could be asked to vote for a bond issue or sales tax increase in November of 2016. Complicating the picture, however, is the fact that county firefighters want the county to put a separate half-percent sales tax increase on the ballot. That tax would be offset by a corresponding decrease in property taxes for fire rescue services. The county School Board is also considering a sales tax increase, raising the possibility that voters could be asked to pass three separate referendums. One day after laying out options to county commissioners, Baker told city officials that the county remains interested in partnering 62 http://www.mypalmbeachpost.com/news/news/local-govt-politics/cities-warm-to-sales-tax... 12/1/2015 Palm Beach County League of Cities backs sales tax referendum | www.mypalmbeachpos... Page 3 of 5 ATTACHMENT G with the school board. She stressed, however, that the county must act. “I’ve got to push this,” she said. “I don’t have a choice. We’re in dire need of resources to shore up our infrastructure.” While city officials were generally supportive of Baker’s pitch, they were disappointed that the money must be used for repairs that would last for at least five years — a requirement that keeps the money from being used for beach re-nourishment. Some city officials were also cool to the idea of using some of the money for projects supported by the Cultural Council of Palm Beach County. On Tuesday, Commissioner Hal Valeche said he was “taken aback” when he learned that the council has a wish list of projects with a price tag approaching $300 million. Rena Blades, president and chief executive officer of the council, said her organization backs plans from non-profit groups that spur tourism and economic development in the county. No wish list has been finalized, she said. Baker said she would not recommend $300 million in Cultural Council projects but added that she wants to keep the door open to using some of the bond or sales tax money on them. That was a non-starter for some city officials. “Any time we talk about raising taxes for soft items — like for the Cultural Council — there is a lot of opposition,” said Mike Mullaugh, a Boca Raton City Council member. Palm Beach Mayor Gail Coniglio was skeptical of the whole idea of going to voters for a bond issuance or sales tax increase. She cast the lone vote against supporting the county’s plan. Residents of her town, she said, already pay enough taxes. “I am cognizant of the impact on Palm Beach residents and the taxes they pay to Palm Beach County,” she said. 63 http://www.mypalmbeachpost.com/news/news/local-govt-politics/cities-warm-to-sales-tax... 12/1/2015 Palm Beach County League of Cities backs sales tax referendum | www.mypalmbeachpos... Page 4 of 5 ATTACHMENT G PREVIOUS: CRIME & LAW Man charged with shooting… By Hannah Winston - Palm Beach Post Staff Writer NEXT: NATIONAL Parents: Popular toy could… By Michelle Linn - Fox23 - Tulsa, Oklahoma Popular on MyPalmBeachPost.com Jim McElwain reflects on first season as Gators head coach Greenacres shortens candidate list for manager job Boosters: Jimbo Fisher has better job at FSU than he would at LSU Palm Beach divorce case ends, with warnings for older couples This website is for subscribers; please Get Access to read or post comments. advertisement Read Today's Paper online Still like to read the newspaper in the familiar page-by-page format? Great news! Digital versions of today's paper are available on your computer or tablet. And it's included in your subscription. We’re Listening We hope you’re enjoying MyPalmBeachPost.com, our premium website exclusively for subscribers. Please tell us what you like and what we can do to make it even better by completing this brief survey. NEWS MARKETPLACE 64 http://www.mypalmbeachpost.com/news/news/local-govt-politics/cities-warm-to-sales-tax... 12/1/2015 Palm Beach County League of Cities backs sales tax referendum | www.mypalmbeachpos... Page 5 of 5 ATTACHMENT G AFFILIATES ABOUT US © 2015 Cox Media Group. By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices . Learn about careers at Cox Media Group 65 http://www.mypalmbeachpost.com/news/news/local-govt-politics/cities-warm-to-sales-tax... 12/1/2015 Will zoos, theaters, museums benefit if sales tax hike passes | www.mypalmbeachpost.com Page 1 of 5 ATTACHMENT H 80° SUBSCRIBE as low as 99¢ LOG OUT HOME / NEWS / LOCAL GOVT & POLITICS advertisement Resize text PALM BEACH COUNTY Fight brewing over bond issue, sales tax hike money for zoo, museums Posted: 2:57 p.m. Monday, Nov. 30, 2015 By Wayne Washington - Palm Beach Post Staff Writer In this Section The Palm Beach Zoo, the South Florida Science Museum, the Norton Museum of Art and the Jupiter Inlet Lighthouse and Herman Cain rips Jeb Bush, will appear at Donald Trump rally Museum are among the tax-exempt groups that could receive money from the bond issuance or sales tax increase being contemplated by Palm Beach County. A 1 percent sales tax increase — which could be on the ballot in November 2016 — would generate an estimated $2.7 billion over 10 years. County commissioners have said the money is desperately needed for repairs to roads, bridges and buildings, but the Cultural Council of Palm Beach is pushing for some of it to be used to The Jupiter Inlet Lighthouse and Museum is one of the cultural projects that could get funding from a possible bond issuance ... Read More enhance cultural attractions such as museums and theaters. “Many of our museums, theaters and cultural facilities are bursting at the seams with people visiting to see exhibitions, experience an event or enjoy a performance,” Cultural Council President Rena Blades wrote in an email to The City whittles down manager applicant list to a half dozen Fear, faith and the rise of Ben Carson Next Royal Palm Beach RaceTrac meeting delayed until January Hillary Clinton calls for $275 billion in infrastructure spending Republicans will seek to display old national security chops in 2016 Christie fires back at Trump: ‘Donald is used to intimidating folks’ 66 http://www.mypalmbeachpost.com/news/news/local-govt-politics/fight-brewing-over-bond... 12/1/2015 Will zoos, theaters, museums benefit if sales tax hike passes | www.mypalmbeachpost.com Page 2 of 5 ATTACHMENT H Palm Beach Post. “Our community must keep up with these demands. Expansions and renovations of facilities and campuses are inevitable. Planning for this growth is imperative.” Not all, however, see the imperative of the projects the council supports. Several city officials, gathered in Boynton Beach for a League of Cities meeting on Wednesday, worried that Donald Trump claims ‘many, many’ endorsements from black pastors Orphaned grizzly cubs play snowbirds at Palm Beach Zoo Trump mulls debate boycott unless CNN donates $5 million voter support for a bond issue or sales tax increase could soften if some of the money would be used for cultural projects. A bond issue would entail an increase in property tax rates. Rena Blades, president and chief executive officer of the Cultural Council of Palm Beach County, would like some of the money ... Read More “The infrastructure thing you could sell to the public,” Boynton Beach Mayor Jerry Taylor said. “When you add in other things — the schools, the cultural council — I think that muddies the waters.” County official estimate that addressing the backlog of infrastructure repairs and upgrades would cost $650 million to $750 million. Last week, during a meeting to discuss ways to get money for those repairs, Commissioner Hal Valeche said he was “taken aback” when he learned that the Cultural Council had a wish list of projects whose cost approached a separate $300 million. Valeche said he is concerned about “mission creep” and urged his colleagues to pursue money to address only what’s “absolutely necessary.” County Administrator Verdenia Baker, who has been spearheading the county’s efforts on a possible bond issue or sales tax increase, told commissioners she does not support $300 million in cultural projects. But she said she does want the door to remain open on the prospect of funding some of them. 67 http://www.mypalmbeachpost.com/news/news/local-govt-politics/fight-brewing-over-bond... 12/1/2015 Will zoos, theaters, museums benefit if sales tax hike passes | www.mypalmbeachpost.com Page 3 of 5 ATTACHMENT H Some of the projects the council wants the county consider include: - New exhibits and educational experiences at the Palm Beach Zoo. - Expanded galleries and new exhibits at the South Florida Science Museum. - A new public auditorium and education space at the Norton Museum of Art. - A weather station, natural history museum and other facilities at the Jupiter Inlet Lighthouse and Museum. - Stage expansion and back of house space at Maltz Jupiter Theater. - Rehearsal space, dressing rooms, prop storage and classrooms at Palm Beach Dramaworks. Blades’ email to The Post did not include any estimates for much those or other projects would cost. “The list of various capital projects in the cultural industry in Palm Beach County is still being put together,” Blades wrote. She said spending taxpayer money on cultural venues is a wise investment. “Without great museums, theaters, performing arts, ecological education, historic sites, and visual arts, a community cannot be competitive in attracting new companies, tourists and residents,” she wrote. PREVIOUS: CRIME & LAW PBSO: Amateur boxer lost s… By Lulu Ramadan - Palm Beach Post Staff Writer NEXT: NATIONAL State trooper cares for two… By HotTopics.tv Popular on MyPalmBeachPost.com 68 http://www.mypalmbeachpost.com/news/news/local-govt-politics/fight-brewing-over-bond... 12/1/2015 Will zoos, theaters, museums benefit if sales tax hike passes | www.mypalmbeachpost.com Page 4 of 5 ATTACHMENT H Jim McElwain reflects on first season as Gators head coach Boosters: Jimbo Fisher has better job at FSU than he would at LSU Greenacres shortens candidate list for manager job Enter to win tickets to the Palm Beach Food and Wine Festival This website is for subscribers; please Get Access to read or post comments. advertisement Read Today's Paper online Still like to read the newspaper in the familiar page-by-page format? Great news! Digital versions of today's paper are available on your computer or tablet. And it's included in your subscription. 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Learn about careers at Cox Media Group 69 http://www.mypalmbeachpost.com/news/news/local-govt-politics/fight-brewing-over-bond... 12/1/2015 Will zoos, theaters, museums benefit if sales tax hike passes | www.mypalmbeachpost.com Page 5 of 5 ATTACHMENT H 70 http://www.mypalmbeachpost.com/news/news/local-govt-politics/fight-brewing-over-bond... 12/1/2015 Page 1 of 2 ATTACHMENT I Publication: Palm Beach Daily News; Date: Dec 2, 2015; Section: Main; Page: A4 Cultural Council seeks proposed tax hike’s yield share of By WAYNE WASHINGTON Palm Beach Post Staff Writer The Palm Beach Zoo, the South Florida Science Museum, the Norton Museum of Art, and the Jupiter Inlet Lighthouse and Museum are among the tax-exempt groups that could receive money from the bond issuance or sales tax increase being contemplated by Palm Beach County. A 1 percent sales tax increase — which could be on the ballot in November 2016 — would generate an estimated $2.7 billion over 10 years. County commissioners have said the money is desperately needed for repairs to roads, bridges and buildings, but the Cultural Council of Palm Beach is pushing for some of it to be used to enhance cultural attractions such as museums and theaters. “Many of our museums, theaters and cultural facilities are bursting at the seams with people visiting to see exhibitions, experience an event or enjoy a performance,” Cultural Council President Rena Blades wrote in an email to The Palm Beach Post. “Our community must keep up with these demands. Expansions and renovations of facilities and campuses are inevitable. Planning for this growth is imperative.” Not all, however, see the imperative of the projects the council supports. Several city officials, gathered in Boynton Beach for a League of Cities meeting last Wednesday, worried that voter support for a bond issue or sales tax increase could soften if some of the money were to be used for cultural projects. A bond issue would entail a property tax rate increase. “The infrastructure thing you could sell to the public,” Boynton Beach Mayor Jerry Taylor said. “When you add in other things — the schools, the cultural council — I think that muddies the waters.” County officials estimate that addressing the backlog of infrastructure repairs and upgrades would cost $650 million to $750 million. Last week, during a meeting to discuss ways to get money for those repairs, Commissioner Hal Valeche said he was “taken aback” when he learned that the Cultural Council had a wish list of projects whose cost approached a separate $300 million. Valeche said he is concerned about “mission creep” and urged his colleagues to pursue money to address only what’s “absolutely necessary.” County Administrator Verdenia Baker, who has been spearheading the county’s efforts on a possible bond issue or sales tax increase, told commissioners she does not support $300 million in cultural projects. But she said she does want the door to remain open on the prospect of funding some of them. Some of the projects the council wants the county to consider include: • New exhibits and educational experiences at the Palm Beach Zoo. • Expanded galleries and new exhibits at the South Florida Science Museum. • A new auditorium and education space at the Norton Museum. • A weather station, natural history museum and other facilities at the Jupiter Inlet Lighthouse. • Stage expansion and back-of-house space at Maltz Jupiter Theater. 71 http://digital.olivesoftware.com/Olive/ODE/PalmBeachDailyNews/PrintComponentView.... 12/2/2015 Page 2 of 2 ATTACHMENT I • Rehearsal space, dressing rooms, prop storage and classrooms at Palm Beach Dramaworks. Blades did not include any estimates on how much those or other projects would cost. — wwashington@pbpost.com 72 http://digital.olivesoftware.com/Olive/ODE/PalmBeachDailyNews/PrintComponentView.... 12/2/2015 Page 1 of 1 ATTACHMENT J Re: Palm Beach County asks schools to join push for sales-tax hike Bruce Mcallister to: JBoodheshwar@TownofPalmBeach.com 11/15/2015 12:56 PM Cc: "TBradford@TownofPalmBeach.com" Hide Details From: Bruce Mcallister <bruce.mcallister@amrl.com> To: "JBoodheshwar@TownofPalmBeach.com" <JBoodheshwar@TownofPalmBeach.com> Cc: "TBradford@TownofPalmBeach.com" <TBradford@TownofPalmBeach.com> History: This message has been replied to and forwarded. This seems to be nothing more nor less than an effort to place the burden of expense not included in the County's annual budget (capital or otherwise), where that burden belonged, on the backs of the less fortunate among us. "ITEP Tax Inequality Index According to ITEP’s Tax Inequality Index, Florida has the 2nd most unfair state and local tax system in the country. States with regressive tax structures have negative tax inequality indexes, meaning that incomes are less equal in those states after state and local taxes than before (See Appendix B for state-by-state rankings and more details)." Sales taxes are among the most regressive taxes. The alternative, should expenditure for infrastructure be deemed necessary which I believe is likely, in light of Florida's refusal to enact or increase any more progressive form of taxation, is clearly the bond issue. This should be Topic A. I assume this message, since sent to the Deputy Town Manager to circulate only when and as appropriate, does not violate Sunshine. Bruce Sent from my iPad On Nov 15, 2015, at 09:20, "JBoodheshwar@TownofPalmBeach.com" <JBoodheshwar@TownofPalmBeach.com> wrote: Good morning! This article is related to the discussion we'll have at the upcoming County Budget Task Force meeting. Thanks. Jay https://shar.es/15FRVV Palm Beach County government leaders are pressing the School Board to join them in a campaign to raise the county’s 6-cent sales tax by a penny. Sent using ShareThis Sent from my iPad 73 file:///C:/Users/boodheshwa.PALMBEACH/AppData/Local/Temp/notes5D3EFE/~web00... 11/23/2015 Page 1 of 3 ATTACHMENT K Fwd: Palm Beach County asks schools to join push for sales-tax hike Bruce Mcallister to: JBoodheshwar@TownofPalmBeach.com 11/15/2015 04:51 PM Cc: "TBradford@TownofPalmBeach.com" Hide Details From: Bruce Mcallister <bruce.mcallister@amrl.com> To: "JBoodheshwar@TownofPalmBeach.com" <JBoodheshwar@TownofPalmBeach.com> Cc: "TBradford@TownofPalmBeach.com" <TBradford@TownofPalmBeach.com> Jay: more, and interesting, backup. Bruce Sent from my iPad Begin forwarded message: From: Fred Scheibl <fscheibl@att.net> Date: November 15, 2015 at 15:41:03 EST To: Bruce Mcallister <bruce.mcallister@amrl.com> Subject: Re: Fwd: Palm Beach County asks schools to join push for sales-tax hike Reply-To: Fred Scheibl <fscheibl@att.net> Bruce, The county has had plenty of opportunity over the last few years to address infrastructure spending in the regular budget process, but chose other priorities instead (eg. raises for all and bonuses for PBSO). This year we have the largest single year tax increase in county history, yet some of the infrastructure areas were actually cut since they are optimistic about gaining another source of funding. Fire Rescue is proposing their sales tax to replace property taxes, which would shift the burden from property owners within the county and Jupiter MSTUs to all consumers in the county - in that case you are right that it is a burden on the less fortunate. The county and the School District's sales taxes on the other hand would be in addition to the property taxes already being collected (the increasing of which can be hung around their necks politically). It is an attempt to grow the size and reach of government, burdens the less fortunate, but does not give any relief to property owners. If all three taxing districts go to the voters for their own penny increase in the fall, they will all likely fail, thus the interest in combining school and county proposals. Like 3 years ago, I doubt the school district will want to bundle their move with the county - "for the children" is a more compelling pitch then explaining why the county can't manage their basic responsibility to keep the roads and bridges functioning. Ultimately, I think they will move toward a GO bond issue, but only after churning up a great deal of resentment in the community. The process of putting three proposals on the ballot that could lead to a 9% total PBC sales tax will be interesting to watch. Fred From: Bruce Mcallister <bruce.mcallister@amrl.com> To: Fred Scheibl <fscheibl@att.net> Sent: Sunday, November 15, 2015 2:30 PM 74 file:///C:/Users/boodheshwa.PALMBEACH/AppData/Local/Temp/notes5D3EFE/~web05... 11/23/2015 Page 2 of 3 ATTACHMENT K Subject: Fwd: Palm Beach County asks schools to join push for sales-tax hike Fred, FYI, Bruce Sent from my iPad Begin forwarded message: From: Bruce Mcallister <bruce.mcallister@amrl.com> Date: November 15, 2015 at 12:56:04 EST To: "JBoodheshwar@TownofPalmBeach.com" <JBoodheshwar@TownofPalmBeach.com> Cc: "TBradford@TownofPalmBeach.com" <TBradford@TownofPalmBeach.com> Subject: Re: Palm Beach County asks schools to join push for sales-tax hike This seems to be nothing more nor less than an effort to place the burden of expense not included in the County's annual budget (capital or otherwise), where that burden belonged, on the backs of the less fortunate among us. "ITEP Tax Inequality Index According to ITEP’s Tax Inequality Index, Florida has the 2nd most unfair state and local tax system in the country. States with regressive tax structures have negative tax inequality indexes, meaning that incomes are less equal in those states after state and local taxes than before (See Appendix B for state-by-state rankings and more details)." Sales taxes are among the most regressive taxes. The alternative, should expenditure for infrastructure be deemed necessary which I believe is likely, in light of Florida's refusal to enact or increase any more progressive form of taxation, is clearly the bond issue. This should be Topic A. I assume this message, since sent to the Deputy Town Manager to circulate only when and as appropriate, does not violate Sunshine. Bruce Sent from my iPad On Nov 15, 2015, at 09:20, "JBoodheshwar@TownofPalmBeach.com" <JBoodheshwar@TownofPalmBeach.com> wrote: Good morning! 75 file:///C:/Users/boodheshwa.PALMBEACH/AppData/Local/Temp/notes5D3EFE/~web05... 11/23/2015 Page 3 of 3 ATTACHMENT K This article is related to the discussion we'll have at the upcoming County Budget Task Force meeting. Thanks. Jay https://shar.es/15FRVV Palm Beach County government leaders are pressing the School Board to join them in a campaign to raise the county’s 6-cent sales tax by a penny. Sent using ShareThis Sent from my iPad 76 file:///C:/Users/boodheshwa.PALMBEACH/AppData/Local/Temp/notes5D3EFE/~web05... 11/23/2015