By Dale M. King
BOCA RATON – The Boca Raton City Council has shelved, at least for the time being, the idea of annexing property from the western suburbs into the city limits.
Council members and city officials had been eying three areas which, together and individually, generate more income than expenses, according to a report prepared by consultants PMG Associates.
Phil Gonot of PMG met recently with council members to deliver some unsettling news about the parcels that Boca wanted to Velcro to the existing city borders.
Gonot said more recent studies of revenue and expenses show that the amount of money the city would get if it annexed all nine of the parcels under consideration has dropped because of a decrease in land values. Most recent figures show the city would get $2,678,311 in net revenue, a drop from what had been figured earlier.
The three areas under annexation scrutiny are Boca Grove, to the west near Florida’s Turnpike; Boca Country Club and the Costco land in north central Boca and six communities in the northwest – St. Andrews, Newport Bay, Fieldbrook, Boniello Acres, Polo Fields and Le Lac.
Annexation is the process of bringing county land into Boca city limits. Normally, it yields additional revenue because providing services to largely residential areas is less expensive than the amount of taxes generated. Also, many Boca city services are not as costly as county utilities.
In addition to the worries about revenue, said Gonot, “if more than 70 percent of the land in a proposed annexation area is not owned by registered electors in the area, the area may not be annexed unless the owners of more than 50 percent of the land in the area consent to annexation prior to the required referendum on the annexation.” This state regulation applies to some areas of possible annexation and not others.
Sewer and water service in the area is also a matter of concern, said council members. “Water and sewer services are provided by Palm Beach County in all the areas to be annexed, with the exception of Mediterrania, which is on city of Boca Raton water and sewer, and Le Lac, which is on well and septic service.” He said state law requires that before annexation, the community state how it intends to deliver water and sewer. The city’s stand thus far has been to hope the county continues to provide the service, but “we have not had any discussions with the county regarding the provision of water and sewer to ensure the city is in compliance with the statute if we annex any areas currently served by Palm Beach County utilities,” said Gonot.
Getting back to the financial end, the consultant said “the taxable value of real estate has declined about 13 percent since the original annexation analysis was completed, and no sensitivity analysis has been performed to address potential future decreases in valuation and their effect on net revenues to the city.”
In addition, he said, “If the Florida Legislature imposes further limitations on or reductions in ad valorem revenues, similar to 2008, future net revenues to the city from the annexation areas would be uncertain.”
He also said that revenue estimates are based on bringing all nine areas into the city. If certain areas are annexed individually, “net revenues from those areas might be significantly impacted. If, he said, Boca annexed only St. Andrews Country Club, the cost of additional fire/rescue service would reduce net revenues from $1.4 million to about $316,000.
Not all council members are sold on the idea of annexation. In a discussion earlier this year, Deputy Mayor Susan Haynie said she favored the continued study, but “that doesn’t necessarily mean I will support annexation.” Councilwoman Constance Scott expressed concerns, as Haynie also did, about the fact that Le Lac has wells and septic tanks – utilities the city has been trying to eliminate for years.
And Councilman Anthony Majhess, citing the “dramatic change” it would cause in the community, said, “I don’t support it [annexation] as a means of raising money.”
City Manager Leif Ahnell said the proposal to annex land at this time was the result of inquires from St. Andrew’s Country Club and Boca Grove. Also, Mayor Susan Whelchel has cited the need to consider ways of pumping up revenue in light of the tight economy and budget restrictions.