$70 million bond? Sales tax? Volusia begins to draft new five-year road program

How will Volusia fund its infrastructure needs?


The intersection of A1A and East Granada Boulevard. File photo
The intersection of A1A and East Granada Boulevard. File photo
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As critical road infrastructure needs increase in Volusia, and officials explore ways to fund them, several members of the County Council expressed interest in pursuing a $70 million bond during a workshop on Tuesday, June 1.

The workshop, centered around infrastructure, outlined future projects such as widening Hand Avenue to four lanes from Clyde Morris Boulevard to Nova Road, replacing the Main Street bridge and widening Taylor Road to four lanes from Forest Preserve Boulevard to Summer Trees Road. Of the 11 identified critical projects, the $6.2 million Hand Avenue widening project ranked third in priority, which was calculated using project cost, road capacity and volume. 

Volusia County engineer Tadd Kasbeer told the council that the county plans to present their future projects to the public for input to bring back a new five-year road program. If the council decides to pursue a bond to help fund these projects, he said they could get more "buying power" as the money could help leverage grant funds as well. That's what Volusia did with a $65 million bond back in the 2003-2004 fiscal year, and Kasbeer said the county was able to get over $85 million worth of funds for projects.

“Yes, you may have periods where the economy slows down but that actually works to a certain extent in your favor because you have money in the first place, now you’re buying power improves," he said, adding that impact fee revenue could cover the bond's burden on taxpayers.

Another option presented to the council was an infrastructure sales tax. A half-cent sales tax referendum failed in May 2019, and officials began discussions to revive it later that fall during meetings by the Roundtable of Volusia County Elected Officials.

The county now estimates the sales tax would have brought in $19 million for the 2021-2022 fiscal year if it had passed.

County Councilwoman Barb Girtman said her district voted for the sales tax, and that aside from a bond, they could also pursue other funding revenue streams. Councilman Ben Johnson quickly jumped in to state that, if the sales tax is brought back, it needs to be a citizen-led initiative.

“That was one of the biggest problems we had with that," Johnson said.

Chair Jeff Brower pointed out that many people thought the sales tax revenues would benefit new development rather than fix the existing infrastructure issues. Wrong or right, that was the perception, he said.

“We have to find ways to make growth pay for itself instead of making all new growth paid for by the people that already live here," Brower said. "Growth needs to be productive. It needs to add to the community, not drain.”

County Councilwoman Heather Post said that it was important to think about messaging. Telling the citizens they didn't understand the sales tax is the wrong approach, she explained. 

Girtman agreed, and said that clarity will be needed.

“I think it would really take advocacy from the public about what they want.”

 

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