Are you wondering if incorporating Golden Gate Estates is a smart move? Look no further! In this blog post, we’ll explore the financial benefits of incorporation, proving that it makes perfect fiscal sense and ensures our community’s quality of life is protected from the out-of-control development on our borders.
What Will It Cost You? The Answer May Surprise You!
The proposed increase in millage from 0.8069 to 1.5 (for an increase of 0.6931 mill) is projected to be a phenomenal return on investment due to State revenue sharing. It’s an increase that is then subject to the Save Our Homes annual cap for homesteaded properties and the 10% annual cap for non-homesteaded properties after the first year.
Based on projected revenue for the first 5 years following incorporation, by investing an additional 0.6931 mills in ad valorem tax (for many under $200) per year to the Town’s millage rate, it is anticipated the Town would reap between $8,390,492 at the lowest and $10,872,698 at the highest in additional State and County revenue sharing per year.
Incorporating is a smart move that not only protects the quality of life for all rural Golden Gate Estates residents but also brings significant financial benefits for the community. By gaining local control over development, budget allocation, and revenue opportunities, we can ensure that our community thrives and prospers.
Now is the time to take action. Don’t let out-of-control development on our borders dictate the future of Golden Gate Estates. Take charge and secure the financial well-being of Golden Gate Estates by signing a petition today to let us vote on the 2024 Ballot.
DISCLAIMER: THE FLORIDA LEGISLATURE RETAINS ALL POWER TO ESTABLISH TAXES. THE FIGURES PROPOSED IN THE FEASIBILITY STUDY ARE VERY CONSERVATIVE. THEY ARE NOT BASED ON INCREASED/DECREASED PROPERTY VALUES, RATHER PROJECTED POPULATION GROWTH AS THE TOWN OF GOLDEN GATE ESTATES BECOMES BUILT-OUT
The Proof
REVENUE SOURCES from the recently updated Feasibility Study:
Ad Valorem: 1 mill equals $1 per $1,000 of assessed value. Unincorporated MSTD assessed at 0.8069 mill. The 2022 Budget projected that the Town area would pay $2,680,642.84 towards the Unincorporated Area MSTD. With an estimated population of 34,266 that computes to $78 per capita.
The Total 2022 Unincorporated Area MSTD revenue was projected to be $62,181,490. With a county population of 347,045, that would equal $179 per capita. The increase in Ad Valorem tax from 0.8069 mill (unincorporated MSTD) to 1.50 mills (Town), guarantees we can participate in state revenue sharing, which is an integral part to incorporation. State revenue sharing gives the Town feasibility. See Pages 16 through 18 and Appendix 2 of the Feasibility Study.
FY2026 Ad Valorem revenue is projected to range between $5,051,130 to $5,728,841
FY2027 projected to range between $5,085,016 to $5,898,269
FY2028 projected to range between $5,118,901 to $6,067,697
FY2029 projected to range between $5,152,787 to $6,237,12
Municipal Revenue Sharing Program:
MRSP – distributes part of net sales and use tax and the one-cent municipal fuel tax to qualified municipalities. Fuel tax portion must be used for transportation-related expenditures. Distribution of these proceeds is based on an apportionment factor Projections are based on City of Naples per capita revenue expected for FY2022, adjusted for Town’s population growth. See Page 18 and Appendix 3 of the Feasibility Study.
FY2025 – partial tax revenue, once Town qualifies for revenue sharing
FY2026 – $1,698,928 to $1,882,516
FY2027 – $1,710,402 to $1,939,887
FY2028 – $1,721,877 to $1,997,259
FY2029 – $1,733,351 to $2,054,630
Local Government Half-Cent Sales Tax Program delivers shares of state sales tax to local governments, together with revenue from Community Services Tax. Formula per page 18 of the Feasibility Study implies allocation factor of 0.0798 (7.98%) for Town. FY2023 Collier County distribution is projected to be $64.7 million. Town would have received $5.2 million of that amount. Collier County anticipates lower revenue from this program, so it is estimated that the Town would receive anywhere from $4.2 million to $5.2 million per year from this source. Projections for 2025 (6 months) would be half that amount. See pages 18- 19 of Feasibility Study.
FY2025 – partial tax revenue, once Town qualifies for revenue sharing
FY2026 – $4,200,000 to $5,200,000
FY2027 – $4,200,000 to $5,200,000
FY2028 – $4,200,000 to $5,200,000
FY2029 – $4,200,000 to $5,200,000
Public Service Tax PST – [Optional Tax] a sales tax on utilities, can be up to 10%. Charter counties can levy this tax. Collier County is a non-Charter County, so this tax is not levied in the unincorporated areas.
The Feasibility study assumes that the Town will not assess this tax.
Projections are included, should the Town determine it wants to assess this tax. Bulk of tax revenue would come from taxes on electricity, since Town does not have gas or water service. Naples assesses 7% on electricity and gas utilities, Marco Island does not assess PST and Everglades City assesses 8% on electricity, some gas products, and water. Southwest Ranches (similar rural character with larger homes) assesses 10%. See Pages 19-20 and Appendix 4 of the Feasibility Study. IF Town decides to assess 10% projected PST revenue would be:
FY2025 – $2,838,370 to $3,145,087
FY2026 – $2,857,540 to $3,240,936
FY2027 – $2,876,709 to $3,336,786
FY2028 – $2,895,879 to $3,432,635
FY2029 – $2,915,049 to $3,528,484
NOTE: THESE REVENUE PROJECTIONS ARE NOT INCLUDED IN THE 5 YEAR REVENUE AND EXPENSE PROJECTIONS, BUT JUST USED TO SHOW A POTENTIAL REVENUE SOURCE.
Local Option Fuel Tax – 3 components 2 required to be shared by Counties with municipalities, 1 to 6 cent local option fuel tax (used for transportation maintenance and operations) and the 1 to 5 cents local option fuel tax (used for transportation capital improvements). Collier County levies at the highest rate, 6 cents and 5 cents, respectively. See Pages 20-21 and Appendix 5 of the Feasibility Study. FY 2025 = 0 (no revenue until 1 year after incorporation, so County will receive that revenue).
FY2026 – $2,103,989 to $2,683,982
FY2027 – $2,103,989 to $2,683,982
FY2028 – $2,103,989 to $2,683,982
FY2029 – $2,103,989 to $2,683,982
Communication Services Tax CST – sales tax on communication services, such as, voice, data, audio, video or other communications. State and local components. Local component can be as high as 5.22%. Collier County levies 2.1% for unincorporated area. Marco is 2.1%, Naples is 5.22% and Everglades City is 3.9%. See Page 21 and Appendix 6 of the Feasibility Study FY2025 – partial tax revenue, once Town qualifies for revenue sharing
FY2026 – $402,835 to $888,539
FY2027 – $405,537 to $914,817
FY2028 – $408,240 to $941,095
FY2029 – $410,942 to $967,373
Additional sources of Revenue which were not included in the projected revenue or municipal expenses are planning, zoning and permit fees, as well as the Local Option Infrastructure Sales Tax (the so called “penny tax), which has reached its anticipated goal and will expire prior to incorporation.
