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www.volusiataxreform.com. Budget Study Groups . Volunteers Diverse Group Research Finance Reports Trends / Policies / Benchmarks Review and Compare Findings Publish Information . Types of Reports. 772 Pages. 75 Pages. Other Sources of Information. Newspapers Interviews

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Budget Study Groups

  • Volunteers

    • Diverse Group

  • Research Finance Reports

    • Trends / Policies / Benchmarks

  • Review and Compare Findings

  • Publish Information

VTR 2010

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Types of Reports

772 Pages

75 Pages

VTR 2010

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Other Sources of Information

  • Newspapers

  • Interviews

  • Public Records


    Data Bases

  • Employees

    • E Mails

    • Minutes

VTR 2010

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Volusia County

VTR 2010

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Port Orange Payroll Examples


VTR 2010

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Per Capita Debt

VTR 2010

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Port Orange

VTR 2010

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Real Cost of Debts and Deficits

  • Illinois Borrows $375 Million After Credit Rating Reductions By Jeremy R. Cooke Dec. 16 2009 (Bloomberg)

  • California’sA rating from Standard & Poor’s is the lowest among U.S. states.

VTR 2010

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Debt Equation

  • "There are equations in which certain relationships become progressively explosive," such as if a spiral starts in which increasing interest payments increase the deficit and debt, leading to another increase in interest payments, and so on,” Alan Greenspan

VTR 2010

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Volusia County Debt Policy

  • ( 7) The County will at all times manage its debt and sustain its financial position in order to seek and maintain the highest credit rating possible.

VTR 2010

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County Debt Report 2009

“Several of the trend indicators for proprietary funds also changed from

favorable to inconclusive.”

“As of September 30, 2008, total County indebtedness was $331,007,506.00.”

VTR 2010

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Volusia County Debt Policy

( 6) The County shall not construct or acquire a public facility if it is unable to adequately provide for the subsequent annual operation and maintenance costs of the facility.

A Financial Condition Assessment. ..has resulted in an overall rating of Favorablefor the previous seven consecutive fiscal years.

This year the rating was Inconclusive, primarily due to the spending down of capital project programs (i.e., the Ocean Center). County Debt Report 2009

VTR 2010

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Volusia Debt Trends

Debt Service % Revenues over 15%

is considered high by Agencies

VTR 2010

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Bond Ratings

“In November of 2008, MBIA was downgraded again, requiring acceleration of the funding requirement to the debt service reserve

($2.5 million) from five years to ten months. “

VTR 2010

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Debts Draining Effects

2007-2008, the County received $17.2 million in sales tax revenues and used $8.5 million to pay debt service on the sales tax revenue bonds.

VTR 2010

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Volusia County Bond Ratings


Volusia County

VTR 2010

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County Debt Crisis

“We’re in difficult times,” Deputy

County Manager Mary Anne Connors

…county leaders have proposed new sources of financing future capital improvements and maintenance.

One such new source may be a local-option sales tax.

Without additional cash, County Manager James Dinneen warned, the outlook is “very pessimistic.”

“All of the impact fees you collect

will be going to debt service,”

VTR 2010

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Spiraling Effect!!

  • 2004 Volusia County sold $65.5 million in bonds to pay for roads in the 5 year Plan

    • So Far We paid 12.2 million in interest and 11.8 million in Principle

  • The debt service is about $4.8million per year, more than all the road-impact fees the county expects to collect this year or next.

  • Volusia County collects the maximum 12 cent per gallon gas tax allowed by the State …

VTR 2010

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Implications of Debt

  • In a term limit environment there is little incentive for Elected officials to lower Debt

  • New taxes are automatically calculated as “debt servicing funds” and then shopped on Wall Street as a 30 year Note ( Bond)

  • Any voter approved increase in taxes results in higher debts, thus more money leaving the County

  • The best way to cut government spending appears to be to cut funding

VTR 2010