What is the Problem?
2
How Large is the Problem?
$550,000,000 in needed road and street repairs community-wide ($380M County, $170M Municipalities)
3
Inflation versus Gas Tax 2.5
Gas tax revenues have dropped in recent years • More fuel efficient vehicles • People driving less 4
2
Rate of Change (∆)
As fuel costs rise, so do construction costs • But not gas tax revenues
1.5
1
0.5
0 FY2002
FY2003
FY2004
Change in Gax Tax Revenues
FY2005
FY2006
FY2007
Change in Consumer Price Index
FY2008
FY2009
FY2010
Change in Asphalt Price per Ton
4
Gas Prices versus Gas Tax Local gas tax is not adjusted with inflation • Fixed $/gallon • Not the cause of rising prices at the pump • ¾ cent of gas tax generates $750,000 in revenues
Florida Regular Conventional Retail Gasoline Prices and Alachua County's Share per Gallon $4.50 $4.06/gallon $4.00 $3.50
$3.39/gallon
$3.00 $2.50 $2.00 $1.65/gallon
$1.50
Weekly Florida Regular Conventional Retail Gasoline Prices (Dollars per Gallon) Combined Local Government Gas Taxes (Dollars per Gallon)
$1.44/gallon $1.00 $0.50
$0.15/gallon (12 cents local, 3 cents State)
$0.10/gallon (7 cents local, 3 cents State)
5
$0.00 1/1/2003
1/1/2004
12/31/2004
1/1/2006
1/1/2007
1/1/2008
1/1/2009
1/1/2010
1/1/2011
1/1/2012
1/1/2013
Funding Issues
• Gas Tax Revenues are not sufficient to address need • Relying on Gas Taxes for pavement management is no longer sustainable • A new way of funding road repairs is needed 6
The Effects of Waiting
• New • 20 Years Old • 30 Years Old • 40 Years Old
7
New
The Effects of Waiting Repair Cost: $250,000 per mile
• New • 20 Years Old • 30 Years Old • 40 Years Old
8
20 Years Old
The Effects of Waiting Repair Cost: $750,000 per mile
• New • 20 Years Old • 30 Years Old • 40 Years Old
9
30 Years Old
The Effects of Waiting Repair Cost: $1,250,000 per mile
• New • 20 Years Old • 30 Years Old • 40 Years Old
10
40 Years Old
Is the Problem Fixable?
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Is the Problem Fixable?
0.75 % (3/4 Cent) Sales Surtax for 15 Years • Estimated $22.5 million per year in revenues • At least $300 million for road repairs over its life • Shared by the County and all Municipalities
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Is the Problem Fixable? County Needs Comparison
$500,000,000
No change
$400,000,000 $350,000,000
$13M/yr
$150,000,000 $100,000,000 $50,000,000
Ten Years
$200,000,000
Five Years
$250,000,000
Fifteen Years
$300,000,000 Potential Effective Date 1/1/2013
If Fix Our Roads is approved: • Need will get addressed over time as revenues are generated
$450,000,000
Pavement Management Need
If no change in funding: • Need grows significantly
$2000
2005
2010
2015
2020
2025
2030
2035
Year 13
13
Eligible Road & Street Projects
2517 road projects eligible for Fix Our Roads funding
To see all the complete project lists plus an Interactive Project Map please visit: http://FixOurRoads.alachuacounty.us 14
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Why a Sales Surtax Works for Infrastructure Needs
• Potentially generates enough revenue to solve the problem – Rises and falls with inflation – $22.5 million per year
• Compared to Gas Taxes, everybody pays – Outside area commuters – Visitors – Multimodal users
} Up to 30%
• Commerce depends on roads 15
Statewide Discretionary Sales Surtax Rates
55 Counties currently levy a discretionary sales surtax
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Source: Florida Department of Revenue
Important Dates • November 6, 2012 General Election • If approved, goes into effect January 1, 2013 – Revenues would begin to be realized in following few months – Entities would be able to bond expected funds if necessary to begin projects as soon as they were ready – County will be “Pay-as-you-go” 17
Ballot Language Fix Our Roads Alachua County: Funding Road Improvements by levying a 他% sales surtax Shall Alachua County implement a Road Improvement Plan to extend the life and improve the safety of county Roads by maintaining, paving and reconstructing Roads; and in the Cities of Gainesville, Alachua, Newberry, High Springs, Hawthorne, Waldo and Archer, and the Towns of Micanopy and LaCrosse, funding municipal Road maintenance, construction, reconstruction and paving projects; by levying a 3/4% sales surtax for 15 years subject to independent audit and citizen review? ____FOR the three-quarters percent (3/4%) transportation sales surtax ____AGAINST the three-quarters percent (3/4%) transportation sales surtax. 18
What does this mean to an average resident? • Alachua County currently has no local option sales surtaxes. – Standard 6% state sales tax rate
• Initiative would add 0.75% to the sales tax rate • Taxable goods and services – Restaurants, clothes, home improvement, etc. – Only on first $5,000 (cars, boats, jewelry) – Groceries, prescription drugs are exempt 19
What if We Wait Two Years? County Needs Comparison
$500,000,000
Pavement Management Need
If community waits until 2014 to pass an initiative: • Difference in County need would grow $65 million by 2030
No change
$400,000,000
$13M/yr Wait Two Years
$300,000,000 $65 million
$200,000,000
$100,000,000
$2000 20
2005
2010
2015
2020
Year
2025
2030
2035 20
For More Information
Visit the Fix Our Roads Alachua County Website http://FixOurRoads.AlachuaCounty.us
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FixOurRoads.AlachuaCounty.us
Alachua County Public Works Dave Cerlanek, County Engineer (dcerlanek@alachuacounty.us) Tricia Kyzar, Administrative Assistant (tkyzar@alachuacounty.us) 5620 NW 120th Lane, Gainesville, FL 32653 Tel: (352) 374-5245 * Fax: (352) 337-6243