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Frequently Asked Questions (Last
Updated: October 31, 2007)
In order to better address the concerns
of the Palm Beach community, we have compiled a list of the most
frequently asked questions as they relate to the proposed storm drainage
project.
To view the questions, simply click on one of the categories
below. To view the answers, click on the question. If you have
any comments or concerns or if you have a question that has not been
addressed, please feel free to contact
us.
General Considerations
- Why didn’t the Town use bonds for this program in the first place?
It is not uncommon for capital improvements such as this drainage program to be funded by bonds, but because of high property values and ample budget in the Town of Palm Beach, the Town was able to pay for six years of stormwater drainage improvements out of its capital improvement funds without borrowing.
- Why should I pay for improvements to the stormwater drainage system if there won’t be any improvements constructed directly on my street?
Improving select lines within a drainage basin improves drainage throughout the entire basin. The work impacts a much larger area than what is immediately located around the improved collection system. In other words, you don’t need to improve all the lines within a drainage basin in order to improve drainage performance in the basin.
On a larger scale, drainage is a town-wide issue. Any damage to public property caused by flooding will be paid for by the entire town.
- Why aren’t the current drainage improvements working?
Existing drainage facilities are insufficient to meet the adopted level of drainage guidelines established by the Town for drainage improvements to protect life and property. Specifically, for most storm events the level of service would provide protection for homes at a first floor elevation of 5 feet and above in Basin D-4, Basin D-8, and Basin D-10. It would also provide first floor protection for homes at elevation 5 feet 5 inches in Basin D-2 and 6 inches in Basin D-9. For a map of the locations where protection will be provided, click here.
- Why is this ballot question bundled with a question about beaches?
The Town has combined both the beach nourishment and stormwater drainage projects under one Comprehensive Storm Protection Program aimed at protecting the property and lives of residents, both during and after a storm. As the projects are critical to protecting the Town’s residents in the event of coastal erosion and/or storms, they are interrelated and complement each other and therefore are being put to vote as one item.
Beach nourishment replaces sand that has been lost to erosion, and protects the Town from storm surges. Stormwater drainage improvements minimize the effects of flooding that result from a storm surge as well as during rainfall events. Both improvements are critical to protecting residents from severe storms and hurricanes, and their aftermaths.
- What happens if the referendum is not approved by voters on December 18?
If the referendum is not approved, there will not be funding available to move forward with the projects as they have been laid out in the Town’s Storm Protection Program. As far as the storm drainage improvement project is concerned, there are some remaining funds available to complete the current work in progress, including the D-8 pump station. However, the planned system-wide improvements necessary to protect the Town in the event of a major storm or flooding will not be completed at this time.
As far as the beach nourishment project is concerned, if the funding is not approved the project will not move forward at this time. The Town may propose a project to construct dunes along Reach 8, however this would not provide the longer term storm protection that is provided by a combined nourished beach and dune and the Town would still need to reconvene and consider other options for storm protection.
Cost Considerations
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Why was the funding for drainage originally paid for by “Pay-As-You-Go”?
Before property tax reforms and a subsequent 5 percent property tax cut mandated by the State, the Town’s capital improvement funds were adequate to pay for the program.
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What happened to the capital improvement fund that was paying for this process before?
The recent property tax reforms and a subsequent 5 percent property tax cut mandated by the state means the “Pay-As-You-Go” Storm Drainage Plan can no longer be sustained out of the Town’s capital improvement fund. The Town of Palm Beach seeks voter approval of general obligation bonds to fund the remainder of the project.
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What are the effects to the Town for carrying so much debt if the funding for all three projects including beach nourishment, drainage and undergrounding utilities is approved by voters in the two separate referenda votes on 12/18/07 and 01/29/08?
Citigroup Corporate and Investment Banking reports that when they apply the Moody’s Investors Service formula of debt as a percentage of taxable value, they conclude that the Town of Palm Beach can borrow enough to complete the projects and still maintain a ‘Aaa’ rating. Aaa-rated obligations are judged to be of the highest quality, with minimal credit risk.
According to Citigroup, the Moody’s debt burden median for a ‘Aaa’ rated issuer with a population less than 50,000 is equal to 1.59 percent of total taxable value. The Town can incur $191,425,000 of total debt and still stay within the ‘Aaa’ debt burden guidelines.
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Will the excess taxes be tax-deductible?
Yes, if one’s income level allows for IRS Schedule A deductions.
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What will Town residents be paying for the total cost of the general obligation bonds with interest?
The total cost of the 30-year general obligation bond for the drainage project and the seven-year general obligation bond for the beach nourishment project combined will be an estimated $44 million, with $14 million in interest over the principal. The benefit of funding these projects through general obligation bonds spreads the responsibility of paying for the work out among residents over time, who will benefit in the future from improvements.
Timing and Process Considerations
Effects and Results of Undergrounding
- Is there any way to create a drainage program other than tearing up the streets?
No. Excavation is the only way to install stormwater collection improvements throughout the town.
- Will the stormwater drainage construction be loud and disruptive to me in my home?
As with all construction there is a certain amount of noise that is unavoidable, but our best efforts are used to minimize noise and disruption by utilizing the best construction practices available to mitigate these issues including the use of quieter electric pumps rather than diesel during the de-watering process, where applicable.
At times an owner may not have driving access to his or her property during the day, but we typically restore access each evening and on the weekends. If the property owner has a circular driveway, we try to keep one end of it open.
- Will traffic be re-routed on the streets during construction?
Where necessary, traffic would be re-routed to accommodate construction. Local traffic would be allowed to drive past construction sites as long as it is safe to do so.
Public Works always sends out press releases prior to working in the public streets. These notices identify the work, work hours, duration, contractor, Public Works contacts and impacts to traffic. We always try to maintain reasonable access for residents and businesses, whether pedestrian or vehicular.
- Will you be tearing up my front lawn to lay the pipes?
No, this is not likely to happen to any property owner. Work is usually limited to the public street right-of-way and possibly some utility easements on private property.
- How will I access businesses on the roads that are being worked on?
There are no businesses on the roads where this work will take place as most work is scheduled for residential streets. Public Works always sends out press releases prior to working in the rights-of-way. These notices identify the work, work hours, duration, contractor, Public Works contacts and impacts to traffic. We always try to maintain reasonable access for residents and businesses, whether pedestrian or vehicular.
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