By Ed Offley
Panama City Beach is gearing up for a major public works spending campaign in the upcoming 2022-23 fiscal year that will accelerate modernization of the city’s street system under the Community Redevelopment Area (CRA) program.
Flush with anticipated revenues of $58.3 from surging business tax revenues and other sources, as well as $13.7 million in projected state and federal grants, City Council was expected to pass a record $72.6-million budget at its meeting on September 8. That represents a $29.2-million, or 67 percent, hike over the 2021-22 city budget of $43.4 million.
Beach Mayor Mark Sheldon called the budget a “roadmap for the future.” Following formulation of a city Strategic Plan and a detailed citizen survey in 2020, City Council opted to accelerate completion of the CRA blueprint to modernize and enlarge traffic capacity on the city’s street grid.
Now in its twentieth year, the CRA project is upgrading the city’s aged two-lane street system with widened roadways, dedicated bike and trolley lanes, underground utilities and drainage, lighting and landscaping.
“Seeing the growth in our community, we can no longer afford to delay completion of the CRA,” Sheldon told PCB Life. “This Council is committed to seeing this project through as quickly as possible for the benefit of our entire community.” The work will be funded by a two-stage bond issue raising $80 million to cover construction costs. The first $40-million bond issue has been raised, with the second $40-million to be issued within the next year or two, Sheldon said.
In several workshops held during August, City Council reviewed the ambitious public works program that will utilize $66.2 million for CRA construction, a whopping 220 percent hike over the $46 million allocated for the current fiscal year. This includes $35.9 million in partial funding for three additional segments of Front Beach Road running from Lullwater Drive to Richard Jackson Boulevard: $4.5 million for Powell Adams Road, and $2.3 million in initial funding for Alf Coleman Road. The five street projects will require another $53.7 million in 2024 and $25 million in 2025.)
While the capital budget for 2022-23 and beyond aims at accelerating CRA construction, officials declined to provide a projected end date for the massive roadway project. Originally structured for completion in 2031, the program suffered two major blows a decade apart – the Great Recession of 2008 and Hurricane Michael in 2018. This prompted City Council in 2019 to authorize extending the program deadline as the situation dictates. In addition, some delays have occurred in the last two years because of supply chain disruptions stemming from the COVID-19 pandemic.
But financially, city officials are confident about hastening construction.
“We have enough money,” Assistant City Manager Holly White told Council at an August 23 workshop. “Over the next five years we’re in good shape to fund these projects.”
Another major project on the drawing board for 2022-23 include a 15,600-square foot Community Center Annex at Frank Brown Park for expanded recreational activities, while also serving as a short-term hurricane shelter for up to 2,100 people. The $8.1 million structure will be designed to safely withstand a wind speed of 200 mph.
Also funded is a $3.9-million down payment on the proposed $21-million offshore outfall project designed to transport storm outfall from Lullwater Lake west of Pier Park to a point between 1,200 and 1,500 feet offshore. The underwater pipeline will minimize the odds of flooding in nearby neighborhoods. White said that while future-year funding for the project has not yet been locked in, the city will have time to secure the funds.
In addition, the city proposes to spend $7.7 million to reconstruct Fire Station 31; $3.6 million to relocate Fire Station 32; $1.55 million for an east end police substation; $1.9 million for a police K-9 facility; $12.2 million for lighting at Frank Brown Park, and $1 million for a firefighting training tower.
The budget calls for a modest increase in city staff, with fourteen new positions created in 2022-23, bringing the city workforce to 389. This includes eight new slots in the police department (six police officers, a new dispatch receptionist and an IT specialist), and three positions in fire rescue (one firefighter and two lifeguards).
Since unlike most localities in Florida, Panama City Beach relies on the 1 percent business sales tax instead of ad valorem property tax, city residents will feel little to no impact from the ambitious capital budget plan, said Beach spokeswoman Debbie Ingram.
