Canal maintenance tax methodology refined toward more equity

Several iterations and hours of public workshops later, town commissioners say the canal maintenance taxing method is heading in the right direction. 

The new proposed method is close to an 80/20 split, 20% being ad valorem tax for the entire island and 80% of the revenue collected via non-ad valorem assessments imposed on properties with direct access to canals. 

The town’s consultant, First Line Coastal, joined Public Works Director Charlie Mopps in presenting the update to the Longboat Key Town Commission at its March 24 workshop. 

Mark Stroik with First Line Coastal agreed the last method was complex and needed more molding to reach the commission’s goal of making a program easier to evaluate and communicate to constituents. 

After the last canal discussion held on Jan. 21, First Line Coastal and town staff furthered discussions to create a simpler and more equitable method based on the commission’s direction to use an 80/20 split as a baseline. 

Despite the method, Stroik said there are two distinct groups of residents on the island, those with and without direct canal access. 

“When we think about what’s fair, what we try to think about is: What are the different user groups that we have on the island,” Stroik said.

Aside from that general distinction, there are unique properties the team still has to figure out, like condominium or homeowner groups which share a few docks within the association. 

“Much is the crux of our issue here, which is trying to address every scenario,” Stroik told commissioners, adding these scenarios will be looked at further as the program progresses. 

Stroik first presented a millage-only funding option, which would split the cost so that properties with direct waterway access would pay 80% while those without direct access would pay 20%.

Though this concept was the simplest to communicate, Stroik said this method created too many disparities. 

For example, boat slip units would pay a lower cost at about $21-79 per year, whereas condominiums with direct access would pay closer to $531 per year. Vacant lots with direct canal access would pay around $265.50 per year, low in relation to a condominium with similar access.

The official recommendation from First Line Coastal and Stroik came with the second method, a combination of millage and direct assessment. About 20% of the costs would come from an island-wide ad valorem tax and the remaining 80% derives from non-ad valorem assessment. 

Stroik said the reasoning behind an island-wide millage is the implied intrinsic value of living in an island community near the water.

“The concept here is that there is some basic value for being a part of having a waterway program on Longboat Key, it being a boating community,” he said.

In this method, properties with direct water access would pay into both the ad valorem and non-ad valorem assessments. 

Given these assessments, slips would pay around $642-649 per year, and vacant lots on canals would be similar, around $670.35 per year. 

These costs are estimates and annual for the first five years of the program and, though marketed as an even 80/20 split in the presentation, Stroik cautioned the final iteration likely won't be a perfect 80/20. 

“We do think it’s more equitable than scenario one, but it is still a little bit complex,” Stroik said. “This is the recommendation from us to proceed with option two.”

Commissioners across the board seem to have better opinions about this method as opposed to its introduction in 2023. Previous iterations included splitting the town’s canals into different usage types on top of trying to solve the equity issue. 

Vice Mayor Debra Williams had some clarifying questions but said the new method presented was a step in the right direction. 

“It is a lot easier to understand and I think that you’re really getting toward where we need to be,” Williams told Stroik at the end of his presentation. 

Mayor Ken Schneier agreed with Williams, adding the consultants adequately listened to previous feedback. 

“This is getting us right on the path of what we need,” Schneier said.

A simpler-to-understand method was the goal because one challenge the commission will face is public outreach when the time comes to implement a method.

Long-time Village resident Rusty Chinnis said he’s seen the canal dredge program discussion arise over the years and sees the need. He said he’ll put his trust in the commissioners. 

“I think we have a really good commission and a great Public Works Department, so I’m confident they will do the right thing,” Chinnis said.

Lynn Larson, president of the Country Club Shores IV development, agreed there seems to be an understanding the dredging should happen, but feels residents oppose a taxing mechanism for the canal maintenance. 

“I’m not aware of any residents that are in favor of that,” Larson said about a canal taxing method.