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COVER STORY
ACategory 5 hurricane and a worldwide pandemic failed to slow Bay County and its municipalities’ progress in meeting goals outlined to voters prior to their overwhelming approval of the Half-Cent Infrastructure Surtax in 2016. In November 2024, Bay County citizens will have an opportunity to maintain this momentum by voting to renew the surtax for another 10 years.
“We’ve faced significant challenges over the last several years, but those haven’t stopped us from staying on schedule to produce the projects we promised our citizens through the surtax,” Bay County Commissioner Robert Carroll said.
The tax is for use exclusively in Bay County to repair local roads, increase neighborhood safety through pedestrian paths and sidewalks to schools, reduce neighborhood flooding, and reduce traffic congestion. A commission-appointed Citizens Oversight Committee is responsible for ensuring the tax dollars are spent appropriately.
Carroll was Chairman of the Bay County Chamber of Commerce, as well as a candidate for the Bay County Commission during the November 2016 election when the sales tax referendum passed by a margin of 55.1 percent to 44.9 percent. The surtax sunsets after 10 years if not reapproved by voters. However, county officials intend to present the option to continue the surtax two years early, during the 2024 presidential election.
“We’re putting this on the ballot a couple of years early in the 2024 general election because presidential elections typically have a larger turnout,” Carroll said. “We want as many voices heard as possible on something as important as this issue.”
Bay County collects an average of $13.9 million annually in surtax funding and has been able to leverage that collection towards federal and state grants each year – so far an additional $31 million in grants, total. Since the tax began, the county has completed or is working on almost $180 million in projects.
“Bay County never had access to that extra grant funding in the past because of the requirement for a local match,” Carroll said. “It’s made a huge impact on our ability to get additional dollars.”
“The surtax and subsequent grant funding”, Bay County Chief of Infrastructure Keith Bryant said, “has been a game changer.” In the years prior to its implementation, Bay County moved $3
BY: VALERIE SALE, PUBLIC INFORMATION OFFICER, BAY COUNTY
million each year from the general fund – or property taxes – into infrastructure projects. The roadways were in poor condition with little hope for improvement due to lack of funding.
“With escalating costs, that $3 million didn’t do a lot for the county,” he said. “Now, we have funding coming in each year that we can budget and plan on for projects.”
After the passage of the surtax, the Bay County Commissioners also made good on a promise to cut property taxes by .25 mills and eliminate the annual $3 million allocation. At 4.43 mills, Bay County’s property taxes remain among the very lowest in the state.
“Because our economy is heavily funded by tourism, we are in a unique position that a significant amount of this tax is paid by the tourists who are visiting our community and at the same time impacting our infrastructure,” Carroll said.
The municipalities in Bay County also collect a share of the surtax for use on infrastructure needs based on the city’s population.
The money, Panama City Beach Mayor Mark Sheldon said, allowed the fast-tracking of the Phase II of the Philip Griffitts Sr. Parkway, also known as “Back Back Beach Road” or “Bay Parkway.”
“The parkway runs from North Pier Park Drive to Nautilus Street and was constructed in record time,” Sheldon said. It has been crucial in giving residents, businesses, daily commuters, and visitors some immediate traffic relief from otherwise congested roads, particularly during times of peak tourism.
Panama City Beach has collected more than $7.9 million overall in surtax funding, with some $6.7 million used for the Phase II project construction that had a total cost of about $15.5 million. Bay County and the state also contributed funding to the effort.
The funds not spent on Phase 2 remain on hand and will be used later in Fiscal Year 2023 for road resurfacing throughout the city, Sheldon said. All city wards have roads included in the upcoming resurfacing project. “Additional funds used for street resurfacing are so important to our residents,” Sheldon said. “These dollars improve our neighborhoods by making the roads better and safer. This is just so important for a community without an ad valorem tax.”
To the east, Panama City has steadily checked off projects on its to-do list as well. Through September 2022, the city collected more than $21.3 million in surtaxes and is using the money as part of the strategy to rebuild damage inflicted by hurricanes Michael and Sally.
The funds are being used to replace and improve vital infrastructure, such as projects on Lindenwood Drive, Cherry Street, Breezy Lane and at several critical lift stations.
Another major effort funded by the surtax is the Harrison Avenue Streetscape Project. The reconstruction of Harrison Avenue from Government Street to 4th Street, which includes the replacement of underground utilities, wider sidewalks, and the planting of native shade trees, came from the citizen-driven process to revitalize downtown Panama City.
“The infrastructure surtax is funding not only the replacement of some of the city's oldest infrastructure in downtown but also creating a better environment for shopping, business, and gathering," Greg Brudnicki said.
The surtax has allowed the county and some of the cities to work together on high-profile projects that would have otherwise floundered for lack of funding. Repaving Thomas Drive, widening Jenks Avenue, Phase II of the Philip Griffitts Parkway, and replacing the bridge at East Avenue are examples of city/county partnership projects.
An interactive map with details about the infrastructure surtax is available at www.bayhalfcent.com, a website dedicated to providing the public with information about how their tax dollars are being spent.
