Villages of the Lee Islands City - Soon to come to your ballot.
The following are selected excerpts from the "Greater Pine Island Initial Financial Projections For Incorporation Feasibility Study", BJM Consulting, Inc., Joe Mazurkiewicz, Jr., President.
In January of 2017. the Greater Pine Island Civic Association (Client) signed a letter of engagement with BJM Consulting. Inc. This agreement directed BJM Consulting. Inc. to produce an Initial Financial Projections for Incorporation Feasibility Study to submit to them for review prior to their consideration or a comprehensive feasibility study for Incorporation. The study was developed through a series or tasks approved by the Client and was to provide an Impartial assessment of the tasks and present the findings to the organization.
Financial projections by BJM Consulting. Inc. are based on information provided by the client. Lee County, Matlacha Pine Island Fire Control District. And compared to projections provided by the State of Florida. In addition to developing these financial projections, BJM Consulting. Inc. reviewed many existing documents and review all local government web sites to collect as much of the data necessary to provide the Initial financial projections.
The study contemplates two possible alternatives to address all the future governance policy concerns of the residents of the community of Greater Pine Island: they can remain part of unincorporated Lee County: or . . .look at the feasibility of Incorporation. This Initial report addresses only the financial side or the Issue. If the client wishes to further examine Incorporation, a more comprehensive study will be needed.
The fiscal analysis assumes a level revenue generation for the possible Incorporation by using all existing levels of taxation and fees being charged by Lee County and no change in any of the service levels presently being provided by Lee County In the community of Greater Pine Island.
Fines and Forfeitures fines include court fines, library fines. "pollution control violations and violations of local ordinances." This report does not include revenues associated with such fines.
The construction, maintenance and Improvements of the road and street network are the most expensive area of the various transportation related expenditures.
"The initial Impacts on residents of Greater Pine Island would be very limited. There would be no new ad valorem taxes.
The original projected salaries for administrative staff were within the average salary for Florida cities with population between 7,500 and 15,000 residents. These salaries were shared with committee members and adjusted to be more in line with what other governmental agencies are presently paying on the Island. The projected contract costs for growth management, planning and code compliance could employ one full-time planner and operating costs, rather than contracting for services.
The proposed administrative and finance expenditures can be delineated as follows:
Personnel w/benefits $533,250
Mayor and Council Salary (7@$5.000) $35,000
Operating overhead @ 25% of Salaries $133,313
Contract Services $500,000
Local elections $32,500
Capital (one time) $175,000
Contingency@ 0 .083 $111,557
The above costs include all relevant expenditure categories and coupled with one month of expenses contingency factor, appear reasonable to assume the administrative and financial activities for the area or Greater Pine Island.
The following is the first year (FY/2019 f or 6 months) protections for revenues and expenditures necessary for the area of Greater Pine Island.
State Shared Revenue- $522.450
Franchise Fees- $298.507
Communication Services Tax- $135,821
Interest Earnings Business Tax and Licenses- $25,000
Bridge Loan- $1,000,000
Ad Valorem Property Taxes- $0
Total $1 ,981 ,778
Salary and Benefits- $266,625
Mayor and City Council Salary- $17,500
Contract Services- $250,000
Operating overhead- $66,657
Capital Equipment (One Time) $175,000
Contingency - $55,779
Total $1 ,044,380
Possible Reserve (Deficit) $937,398
This projection shows the cost of operating the new local government is not covered by the redirection of existing State Shared Revenues, Communication Services Tax and Franchise Fees during the first six months. To cover the initial short fall in the cost of the new local government, the new municipality would have to take out a $1 million Bridge Loan @ 3% and pay it back during the first 5 years.
IMPACTS OF PROPOSED INCORPORATION OF GREATER PINE ISLAND
On Residents and Businesses of New Incorporated Area, the initial impacts on residents of Greater Pine Island would be very limited. There would be no new ad valorem taxes. Some businesses would be charged an additional annual Business Tax Receipt (BRT) or city license of $35 to $45 annually. These would be businesses who operate in both Pine Island and Lee County.
On Lee County Government
The Lee County Unincorporated MSTV would lose $1,133,310 of ad valorem taxes In FY 2020 and only recover $675,771 through the lnterlocal agreement. In addition Lee County would lose $866.608 In SSR. $614,925 in Franchise Fees and $279.790 in Communication Services Tax for an annual loss of $l,761,323 the general fund. The County would have to find efficiencies in operations reduce services or raise General Fund Revenues to deal with this loss.
Projected for the year 2020 - (Best Case Scenario) - Total Rev $3,084,324 Total Exp. $2,390,700
(End of excerpts ________)
Go to GPICA.org for the full PRELIMINARY report on the Greater Pine Island Civic Assoc. website:
"The purpose of the GPICA is to recognize and promote the unique character of our rural and agricultural island community. Our goal is to preserve and maintain a desireable (sp), livable community and to promote smart growth and the preservation of sensitive natural areas. "
Following THE PRELIMINARY REPORT there will be a SWOT, “Strengths, Weaknesses, Opportunities and Threats” study to determine if the new municipality had any potential unfunded liabilities that would impact taxpayers or the process of incorporation. Possible taxing implications could be road paving and the like and natural disasters. This study is expected to be completed in Sept. of this year.
After the SWOT study and if the residents following a survey (already mailed to Pine Island Residents from the GPICA) agree to continue, a bill would be introduced to the local state delegation for introduction to the state Sept. 1, and the local delegation of: State Sen. Lizbeth Benacquisto, State Rep. Ray Rodriguez, State Rep. Matt Caldwell, State Rep. Dane Eagle and State Rep. Heather Fitzenhagen. If it is approved by the legislature and the governor signs it, Greater Pine Island would cast a ballot for or against incorporation. If the referendum were to pass, Pine Island would be incorporated on Dec. 31, 2018.
Stay tuned for Pine Island City - Part Two