Advisory board says half-cent sales tax is best solution

After a group of Manatee County business professionals dug into the county’s budgetary needs, they all walked away with one funding solution in mind as a “best” alternative ... a half-cent sales tax.

The Manatee County Citizens Financial Structure Advisory Board, tasked with finding ways to fund the county’s infrastructure needs, presented its best solution to Manatee County Commissioners April 26.

The board said the tax, if approved, would cost the average household between $50 and $80 annually, but would generate $22.8 million the county could use to maintain roads, update playground equipment and address other needs associated with the county’s aging infrastructure.

“Our sense is that the county has operated well,” said East County businessman Mac Carraway, the committee spokesman. “It’s clear to us there exists a significant and growing backlog of aging infrastructure needs on bread-and-butter issues. More than half the major roads in the county require work. The county should not have to continually face a budget that pits roads against public safety.”

Although the group looked at other funding alternatives, including franchise and stormwater fees, and property tax increases, they believe a half-cent sales tax for infrastructure will provide the most benefit. A one-point increase in millage would raise more money — about $28 million annually — but it would only affect property owners. The sales tax would be spread across all demographics, including non-residents, who would contribute an estimated 35% of the total.

“There were appealing aspects to other revenues we looked at,” Carraway said. “The sales tax really is a great way to get someone besides the property owners involved. That 35% (among non-residents) is a huge number.”

The committee recommends spending be allocated with 65% to transportation, 14% to public safety, 13% to parks/community amenities and 8% for contingency.

Manatee County commissioners would not commit to the committee’s recommendation, but are making steps to move forward.

A joint meeting was held May 3 to discuss a potential November 2016 voter referendum to fund local infrastructure.

Commissioners also directed their staff to create a list of to-do projects consistent with the committee’s recommendations so it can tell the public exactly how dollars will be spent. It asked advisory board members to talk with their respective organizations to see how the public feels about the tax.

“We need to be open minded, but we need to be smart and vigilant,” Commissioner Vanessa Baugh said. “We need more information. I think we need to take this one step at a time. The bottom line is we can’t stay where we are today. We get a lot of complaints about traffic and roads. It’s not all because of new people coming to the county.”

The county is facing a financial constraint in 2018 after reserves accumulated during the real estate boom a decade ago are fully utilized. The county does not have sufficient funds to replace existing infrastructure, such as park equipment, or tend to aging roads. Property tax revenues have declined about 18.5% since 2007, leading to a 25% downsizing of county staff. Population has increased by 40,000 since 2007.