[1]Lakewood Ranch Incorporation Study Group Newsletter #9.
Keep More Tax Dollars In Lakewood Ranch.
Prepared by the Lakewood Ranch Incorporation Study Group
We believe it is important for residents to understand the revenue streams that are created by statute for cities in Florida. Planned growth areas like Lakewood Ranch are entitled to take advantage of funds already established with NO INCREASE IN TAXES and NO NEW TAX SOURCES to sustain and improve our quality of life if we decide to become a city.
The Revenue Sharing Act of 1972 was enacted to make up for the lack of a municipal income tax in Florida.
Only “cities” can share in the fund collected by the State of Florida and set aside for “cities” each year from sales, motor fuel, and alternative fuel user taxes.
Additional funds for cities from the half cent sales tax and motor fuel revenue funds would create a revenue stream of over $2.2 Million dollars to Lakewood Ranch if we became a city now, more in later years.
In addition, the city will collect the .6109 mills MSTU (the existing unincorporated service tax currently paid to Manatee County) which will transfer $1.5 Million dollars from the county to the city if we became a city now, more in later years.
Also, the cable or communications taxes you now pay would be paid to the city rather than the county upon incorporation, an annual sum of approximately $253,000.
City costs are kept low by continuing law enforcement service by the sheriff and fire protection from the existing Fire District at current cost from our taxes.
Contracts for solid waste, water, and sewer with the county would continue. School and library services would not change.
Becoming a city makes good financial sense. We should be keeping our tax dollars at home.
Please invest a few minutes to read the following commentary that explains these bullet points.
Commentary
Florida has had no income tax since the 1885 Constitution. Due to the lack of an income tax for revenue, municipalities prevailed upon the legislature to pass the “Revenue Sharing Act of 1972” to provide additional sources of funding for local services. This Act sets aside funds from the sales tax, fuel tax, and the alternative fuel user tax to be used by incorporated cities. Lakewood Ranch at this time has no access to the funds since it is not a city. There are three revenue sharing funds and, for the most part, they are based upon population.
The “Municipal Revenue Sharing Program” would provide approximately $394,000 in the first year of incorporation based upon the feasibility study’s ( http://www.lwrincorporation.com/ [2]) conservative population estimate of 13,750 (the Supervisor of Election reports 10,683 registered voters in 2010 and the ratio of population to voters in most cities is more than 1.5 to 1). The “Local Government Half-Cent Sales Tax Clearing Fund” would provide an additional $895,000 to Lakewood Ranch when we are incorporated.
The “Local Option Fuel Tax” is distributed by the State to the counties and then to the cities within each county on a statutory formula. This fund must be used for transportation needs that include streets, street repairs, public transportation, bike trails, and other enumerated uses. It would be approximately $960,000. Although the fuel tax revenues are going to the county now, the needs of older infrastructure in the county cause Lakewood Ranch to receive less than its fair share in transportation spending.
But wait, there’s more! The most recent property tax bill for Manatee County had ad valorem tax lines for “Board of County Commissioners” and “County Unincorp-MSTU” The millage rates were, respectively, 1.6513 and 0.6109. The Florida League of Cities states that the exception to the rule that you will pay more taxes if you incorporate is when “the area to be incorporated is located within the boundaries of …MSTUs” (municipal services taxing units). The City of Lakewood Ranch would levy the former MSTU rate of 0.6109 mills and the County would not. The feasibility study, based upon known current taxable value of the proposed city of $2.36 billion, states that the .6109 millage rate would create $1.5 million. Recently incorporated cities such as Weston in 1996, Marco Island in 1997 and Bonita Springs in 1999 have shown little increase from the MSTU rate at the time of incorporation to the present. Their 2011 millage is, respectively, 2.00, 1.89, and 0.8273.
The “Communications Services Tax” is based upon Florida statute (Sec. 202) that allows counties and cities to charge a tax on the retail sale of communications services such as voice, data, audio, video, cable and satellite television and others. Manatee County charges consumers 1.84% (including the unincorporated Lakewood Ranch area). By incorporating as a city, this tax that generates over $250,000 a year would be paid by the telecommunication companies, who cocollect it, to the city instead of the county.
The above five sources of revenue are just five of the nine sources listed in the feasibility study. City costs are kept low by continuing service by the Sheriff, the existing Fire District, solid waste, water and sewer, schools and library services from the county which are paid for by existing taxes and fees. When Lakewood Ranch becomes a city, we will bring that money back to Lakewood Ranch. It just makes good sense to keep our tax dollars at home.
The availability of these funds occurs annually. The sooner that incorporation occurs, the sooner the funds can be accessed and used to provide and enhance quality services to the citizens and businesses of Lakewood Ranch with NO INCREASE in taxes or fees.
WHAT YOU CAN DO TO GET INVOLVED
Forward this email to your friends and neighbors within LWR to ensure they are informed.
If your neighborhood or group has not yet attended a charter draft presentation meeting, please contact us via email at IncorpStudy@lwrdv.com. We will be happy to arrange a presentation.
If you are interested in joining the Lakewood Ranch Incorporation Study Group, please contact us via email at IncorpStudy@lwrdv.com
If you want more detailed information on the pros and cons of incorporation, the incorporation process, FAQs, the charter, etc. visit our website at www.lwrdv.com/incorp [3].
IF YOU DID NOT RECEIVE THIS EMAIL DIRECTLY FROM US AND WANT TO MAKE SURE THAT YOU ARE ON OUR EMAIL LIST, PLEASE RESPOND WITH YOUR EMAIL ADDRESS TO IncorpStudy@lwrdv.com [4].
Lakewood Ranch Incorporation Study Group
www.lwrincorporation.com [5]
Posted as a public service announcement by REAL Magazine. REAL Magazine takes no position on the incorporation of Lakewood Ranch.
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