Development FL Rural Summit November 6, 2014 . Alex McCoy, MBA, - - PowerPoint PPT Presentation
ED 101: Understanding Organized Economic Development FL Rural Summit November 6, 2014 . Alex McCoy, MBA, CEcD Putnam County Chamber Abbreviations (a.k.a. Alphabet Soup) ED = Economic Development EDO = Economic Development
ED 101: Understanding Organized Economic Development – FL Rural Summit November 6, 2014
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Alex McCoy, MBA, CEcD – Putnam County Chamber
Abbreviations (a.k.a. Alphabet Soup)
DEFINING ED
ED has Different Meanings to Different Constituents
– Attracting/retaining jobs that pay living wages which they can perform; improve quality of life
– Generate non-residential revenues to pay for services; jobs for constituents; political success
– New customers; improved/new workforce skills; economies of scale; shared service burden; innovation
What is ED?
Organized ED’s Working Definition:
– Organized ED is a deliberate set of programs, policies, or activities intended to improve the economic well being and quality of life, and to create
Goals of Organized ED efforts:
a) Create/Retain higher wage jobs b) Grow the community’s non-residential tax base c) Create and distribute wealth d) Help local government plan for the future
little things right by various players
long term view/ commitment from the public to build the community’s wealth
performed by a single person
that can be switched ON and OFF on a whim, with one year’s lost efforts taking several years to recover from
ED Is/Isn’t
What’s in ED?
& Reuse
– Brownfields – Downtown – Product
Policy
Development
– Projects – Infrastructure – Product
The ED Process
What’s Your Version of ED?
Competitiveness Marketing Relationships Generate Leads
Each of us has a position to play, and our performance affects the entire team
The County Store
Customer Service, Product Research and Development, & Growth Strategy Advisor Tax Collector Law Enforcement Public Works Planning & Zoning Property Appraiser Elected Officials/Manager Parks & Recreation Public Education Economic Development Organization
Local EDO Local Govt Airport / Port Authorities Tourism Dev Council (TDC) Development Authorities SBDC CRAs / DDAs / Main Street EFI / DEO Regional Partnerships Regional Council Utility Providers (FPL, Duke) Transportation (Rail, Port, DOT) Workforce (WIB, WF, Schools / College) Banks Others!!!! Chambers Local Partners State / Regional Partners Prospect, Consultant; Client
– Jobs that pay living wages so citizens can have the “American Dream”
– New markets and customers so they can grow
– Non-residential tax revenue – People with good jobs can afford to pay their taxes – Growing businesses generate more revenue Economic Security for All!!!
The Tax Base
Tangible Personal Property
Located in Putnam County
What Does This Have To Do With Us?
growing their tax base and could do a better job expanding it by:
– Be proactive with infrastructure expansions, transportation enhancements, & creating product – Aggressively pursue producer projects – Engage existing stakeholders / businesses to improve the existing business climate – Assist smaller businesses – Promote leadership development throughout community
American Farmland Trust
land, produce a healthier environment, & build successful communities
the cost / benefit impact of various land uses on local government
KY, ME, MD, MA, MI, MN, MT, NH, NJ, NY, OH, PA, RI, TN, TX, UT, VA, WA, & WI
Study’s Limitations
depending on the desires of the public
service depending on the desires of the pubic
Cost of Service Study
Cost of Community Service Study Ratios Leon Co., FL North- ampton Co., VA Appling Co., GA Brooks Co., GA Colquitt Co., GA Miller Co., GA Mitchell Co., GA Thomas Co., GA Residential $ 1.39 $1.13 $ 2.27 $ 1.56 $ 1.28 $ 1.54 $ 1.39 $ 1.64 Com/Ind $ 0.36 $0.97 $ 0.17 $ 0.42 $ 0.45 $ 0.52 $ 0.46 $ 0.38 Ag/Open $ 0.42 $0.23 $ 0.42 $ 0.39 $ 0.80 $ 0.53 $ 0.60 $ 0.66 Source: American Farmland Trust
Producers – Commercial, Industrial; Ag / Open Land Consumers – Residential
Economic Base Theory
“Primary Employer / Job”
community actually “Import” new wealth
impacts within local economies and create demand for “Secondary Employers / Jobs”
Primary Vs. Secondary Employers
distribution, high-end services, etc.)
– bring cash into the community by selling their goods/services outside the community
service based firms, etc.)
– recycle cash already in the local economy – usually driven by local business conditions (ex: amount of area disposable income, number of customers, etc.)
)
A Look at Residential
– 1) only source of $ is taxes; – 2) only homes are taxed
– $24.92 Million Budget – 5,444 Est. # Households, 2008- 2012 (U.S. Census) – Median Value of owner-
$113,800, 2008-2012 (U.S. Census)
x .0083114 Mils
must be $600,751.98 for COUNTY to break even
– Required FMV / Actual Value of Home
Relaxing the Model
– 1) taxes are 18.4% of revenue; – 2) only homes are taxed
– $24.92 Million Budget – $4.59 Million in Ad Valorem – 5,444 Est. # Households, 2008- 2012 (U.S. Census) – Median Value of owner-
$113,800, 2008-2012 (U.S.
Census)
x .0083114 Mils
must be $151,442.60 for COUNTY to break even
– Required FMV / Actual Value of Home
Putnam County Parcel Type with Tax Value
Parcel Type Number % Total 99,098 100.0% Vacant Parcels 53,613 54.10% Single Family 16,611 16.76% Mobile Homes 15,301 15.44% Ag/Green Belt 4,113 4.15% Commerce, Ind* 1,294 1.31% Government 1,092 1.10% Institutional 451 0.46% All Others 6,623 6.68%
* Includes Tangible Personal Property Property Appraiser - Parcel Count Nov 11, 2010 Property Appraiser – Tax Value Oct 18, 2010
Ave Value Total Value % $ 37,558 $ 3,721,874,216 100.0% $ 2,080 $ 111,490,784 3.00% $ 68,549 $ 1,138,670,948 30.59% $ 29,188 $ 446,610,734 12.00% $ 14,556 $ 59,868,067 1.61% $ 1,026,757 $ 1,328,623,675 35.70% $ 4,215 $ 4,602,336 0.12% $ 69,397 $ 31,297,848 0.84% $ 90,701 $ 600,709,646 16.14%
T a x b a s e Time Today Baseline Inflation Residential Growth Level of Service Tangible Asset Deprecation
Taxbase without (re)investment
Putnam Co. Top 2013 Taxpayers
TOTAL TAXABLE VALUE *
NAME 20-Oct-08 17-Oct-13
$267,161,206 $305,652,382
$274,885,961 $303,854,430
$157,885,864 $203,440,556
$81,354,979 $65,102,556
$41,643,939 $45,480,880
$13,733,574 $17,285,084
$16,144,023 $16,256,378
$23,868,261 $15,758,581
$14,738,976 $15,484,750
N/A $10,148,303
* Total taxable value includes real, tangible personal and centrally assessed properties. Putnam County Property Appraiser: Final Tax Roll - Oct 17, 2013
Contribution to County General Revenue as a % of Taxes Levied 1997 & 2009
1997 2009 1997 2009 1997 2009 1997 2009 Residential Commercial Industrial Agriculture Alachua Co 51.3% 57.3% 12.0% 12.7% 1.8% 2.5% 2.6% 2.3% Baker Co 36.7% 50.7% 6.0% 7.5% 1.5% 4.4% 19.3% 13.9% Bradford Co 59.2% 62.6% 9.9% 8.7% 2.0% 1.4% 14.7% 10.0% Clay Co 72.7% 75.9% 12.1% 11.6% 1.8% 1.6% 1.6% 0.7% Columbia Co 48.6% 57.4% 13.5% 13.7% 2.4% 4.7% 10.0% 6.6% Duval Co 57.5% 62.5% 18.0% 18.0% 6.5% 6.3% 0.3% 0.6% Flagler Co 77.6% 79.4% 8.7% 9.0% 1.1% 1.2% 1.8% 0.5% Nassau Co 68.3% 79.8% 11.6% 9.2% 3.2% 1.8% 5.5% 2.0% Putnam Co 64.5% 66.0% 7.7% 7.3% 3.8% 3.2% 3.1% 1.4%
78.4% 80.5% 9.8% 9.2% 1.2% 1.1% 1.3% 0.6% Volusia Co 73.9% 73.3% 13.2% 12.6% 2.2% 2.3% 0.9% 0.7% Florida Average 69.2% 69.9% 13.6% 14.2% 3.1% 3.8% 1.5% 0.9% Source: FL Statistical Abstract 1998 & 2010 * Excludes Tangible Personal Property Tax
Contribution to County General Revenue as a % of Taxes Levied 1999 & 2009
Community 1999 2009 1999 2009 1999 2009 1999 2009 Residential Commercial* Industrial* Agriculture
Gadsden Co 53.5% 63.5% 7.0% 7.4% 4.4% 4.0% 13.6% 8.7%
Jefferson Co 31.1% 52.5% 8.3% 5.9% 0.9% 0.9% 42.6% 24.9%
Leon Co 52.2% 60.5% 14.1% 13.8% 1.8% 1.9% 0.8% 0.5% Madison Co 41.0% 47.5% 7.5% 7.0% 2.9% 6.9% 31.9% 21.7% Suwannee Co 52.2% 58.8% 7.7% 10.0% 1.7% 4.4% 21.5% 15.3% Taylor Co 44.7% 57.7% 8.5% 8.6% 9.7% 2.0% 16.8% 11.1% Wakulla Co 56.9% 73.7% 5.1% 5.4% 1.4% 1.6% 6.8% 4.5%
Area Average 47.8% 59.2% 8.3% 8.3% 3.3% 3.1% 19.1% 12.4%
FL Statistical Abstract 2000 & 2010
* This is real property (buildings & land) & ignores tangible personal property tax
What Does All This Cost?
Incentives, Business Parks, Industrial Parks, Speculative Buildings, Marketing Materials, Trade & Industry Shows, Relationship Building & Maintenance Time, Researching
Expanding Water / Sewer / Road / Rail / Airport Capacity, Improving K-16 Educational Opportunities, Comprehensive Plans, Zoning, Future Land Use, etc., etc., etc. . . .
What Did You Forgo by Not Investing?
By Not Investing Over Time, Communities Lose Out On: Jobs, Increased Home Values, New Customers for Existing Businesses, Existing Business Expansions, Additional Tax Revenues for: New Schools, Textbooks, After School Programs, Art / Music Classes, Athletics, Teachers, Police Officers, Fire Fighters, Road Repairs, Jails, Parks, Reductions in Slum / Blight, etc., etc., etc. . . .
Stage 3
Summary: What is ED? & Why is it Important?
community, region, or state over time
maintain/expand their existing level of service
resources to generate new revenues
Thank You
Alex McCoy, MBA, CEcD Putnam County Chamber of Commerce Palatka, FL 386-328-1503 alex@pcccfl.org
www.putnamcountychamber.com