The question was asked to define the three most urgent, far reaching, and challenging policy issues facing the City of Vero Beach over the next 5 years?
Population Increase in the County
The population growth rate in Indian River County continues to increase as documented in the 2020 Census data update. In fact, the Indian River County's population, currently 161,000, has grown steadily by approximately 2% per year over the past 10 years. In the past, citrus and tourism, with the supporting professional services, were the county’s largest industries. Over the last decade, citrus has decreased and has been replaced with an increasing number of firms in the healthcare and professional/scientific industries along with a steady stream of light manufacturing jobs. Conversely, the City of Vero Beach is essentially built-out. In fact, the City of Vero Beach population actually decreased from 17,900 in 2005 to 17,600 in 2021 based upon Indian River County GIS, 2021 data. This indicates that the county will continue to expand its tax base, while the city tax base will stay constant. This resulting tax limitation will not be sustainable. In other words, the City Council will be forced to increase the millage rate and adjust the utility fees to residents and non-residents just to maintain the existing service level and to keep up with inflation.
In addition, County residents use the City’s beaches, parks, bars, restaurants, museums and theatres because all major highways lead to the City recreation and entertainment facilities. The lack of a cohesive sharing of tourist tax dollars between municipalities and the County forces the City to fund the increased cost of public safety such as police to patrol the entertainment districts and lifeguards to patrol the beach. Over time, the city’s working class citizens may be unable to pay their increased property taxes.
Water Resources
In 2020, the City Council executed a contract for design of the new Water Reclamation Facility at the Vero Beach airport to replace the lagoon front aged Sanitary Sewer Treatment Plant. The original estimate provided by the consultant was $ 40 million. The most recent construction estimate for the plant was approximately 150 million, a 250 % increase and the final budget figure will be provided by the Construction Manager at Risk in December 2024.
It is important to note, the 2022 estimated construction cost figure was used by the Utility Rate Consultant to establish the new recommended utility rates that were approved by council in September 2022. The new rates replaced utility rates which remained in effect from 2009/2010 to December 2022. In other words, historically the Staff and Council failed to address the increased cost of operating the utilities, because money was plentiful when the city’s General Fund was supplemented by the Enterprise Funds.
Similar to population, the City of Vero Beach cannot expand its customer base because it is restricted. Since the city’s customer base is limited; the cost to its customers will continue to increase at an unknown rate until the Water Reclamation Facility is finally complete and comes on-line. The 2024/2025 council must take a proactive analysis of continued cost increases and work with the county and other stake holders to develop a plan to “share” existing and new facilities to reduce future utility costs to all local citizens.
Transforming the Waterfront Three Corners RFP
The Three Corners project is based upon the approved November 2022 referendum. the plan includes development of a hotel, waterfront village containing retail, restaurants, plazas, music venues & recreation with public access to open spaces with a small transient marina. The development will occur under a Master Development Agreement with the City. The NE parcel containing the abandoned power plant will be leased or subleased to the Developer and operator (Lessee) through a long-term ground lease with the City. The Development Team will be responsible for design, construction, maintenance and operation all the elements of the northeast parcel including the hotel, retail, restaurants, marina and the associated site improvement including but not limited to utilities, parking, and bulkheads necessary to service the new development. This completed project will be transformative to the local economy and provide a key sense of place for local citizens and visitors.
The revenue from this project will reduce the tax burden on the residential and commercial parcels throughout the city.
