Title:
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Adopt Ordinance to create the Rice Lake Lake Management Municipal Services Benefit Unit [MSBU]; Adopt the associated preliminary capital assessment roll and the initial variable rate assessment roll required for funding the requested public services. District 5 - Herr (Michael A. Eason Jr., MSBU Program Manager)
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Authorized By:
Lorie Bailey-Brown, CFO, Resource Management Director
Division:
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Resource Management - MSBU
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Contact/Phone Number:
Michael A. Eason Jr. MSBU Program Manager/(407) 665-7164
Motion/Recommendation:
1. Adopt the proposed Ordinance creating the Rice Lake Lake Management Municipal Services Benefit Unit [MSBU]; (2) the preliminary Capital Assessment roll for Phase I MSBU services, (3) the initial Variable Rate assessment roll for Phase II MSBU services.
2. Deny the Ordinance creating the Rice Lake Lake Management Municipal Services Benefit Unit [MSBU]; (2) the preliminary Capital Assessment roll for Phase I MSBU services, (3) the initial Variable Rate assessment roll for Phase II MSBU services.
3. Continue the request to a time and date certain.
Background:
Rice Lake as related to the proposed MSBU is a 42-acre lake located in the NW quadrant of Seminole County in Commission District 5. Rice Lake has a proposed initial restoration with ongoing maintenance for lake management services over time. Due to natural lake deterioration over time and a need for lake management services aimed at managing aquatic plant communities as deemed beneficial and/or critical to restoring and enhancing the water quality and overall health of the waterbody; representatives of the waterfront community submitted an application in November 2022 for assistance with securing restoration and ongoing lake management public services by establishing an MSBU assessment district for funding . The essential need for these public services was confirmed through the County's evaluation of Rice Lake and subsequent recommendations of essential service components.
The required petitioning process coordinated by the MSBU Program demonstrated a 74% response in favor of the BCC creating the requested MSBU.
The proposed governing ordinance sets forth the necessary provisions to establish the municipal services for Rice Lake in a manner whereby each specially benefited property shares equitably in the cost of services. The assessment boundary of the MSBU includes 31 assessable properties which have all been designated as waterfront residential. The assessment allocation is based on one benefit-cost component: (1) Waterfront Residential. The assessment allocations and cost allocation per cost-benefit component are defined in the ordinance exhibits.
Creation of this MSBU includes approval of essential public services that will be conducted in two phases as directed by the County and funded through a combination of Public Works Department budgeted funds in FY2023 and non-ad valorem assessments levied against specially benefited property. County resources are required in support of the MSBU administration and for determining and managing the lake management services. The assessment calculation for each phase of service includes coverage of MSBU Program administrative cost. The cost for monitoring conditions and managing services will be funded by the General Fund utilizing Watershed Management Division budgeted resources unless otherwise directed by the Board.
Phase I services are identified as initial restoration activities to be completed after to November 1, 2023, at an estimated cost of $120,000. The initial funding sources for the Phase I services include a General Fund contribution of $20,000 [Public Works Department budget] and a fund advance of approximately $100,000 from the MSBU Program project funds. The final fund advance from MSBU Program will be based on actual restoration cost. The funds advanced from the County’s MSBU project funds will be repaid via a one-time non-ad valorem capital assessment levy that provides a 5-year repayment period with installment payments collected by the Seminole County Tax Collector via annual property tax bills potentially to begin with tax year 2024.
Phase II services are identified as ongoing lake management activities that will begin after the completion of Phase I services. The fund budget for PHASE II services is estimated to average $12,000 annually based on a 5-year projected budget that is inclusive of contracted service cost, administration, and reserve contingency planning. The contracted services and products acquired in conjunction with County recommended lake management services will be funded by non-ad valorem assessments that may vary annually based on actual cost. The assessments for Phase II services will be levied annually and collected by the Seminole County Tax Collector via annual property tax bills beginning with tax year 2024. The governing ordinance includes a maximum allowable assessment and maximum allowable annual increase for Phase II. Future year assessments will vary according to site conditions, responsiveness to treatments, and lake management requirements. Future year Phase II assessments will be determined annually and subject to Board approval.
Staff Recommendation:
Staff recommends the Board adopt (1) the Ordinance creating the Rice Lake Lake Management Municipal Services Benefit Unit [MSBU]; (2) the preliminary Capital Assessment roll for Phase I MSBU services, (3) the initial Variable Rate Assessment roll for Phase II MSBU services.