1. Making Hobe Sound an official town

2. The Hobe Sound Responsibility Protecting and preserving Hobe Sound is a top priority to every resident. For decades, the question of incorporation has been asked, but there was always a reason why it could not be accomplished. Now, a broad assembly of Hobe Sound residents are looking deeper into the details of incorporation.

3. Protecting Hobe Sound – Who We Are Early supporters of this effort: Mike Ennis, Longtime resident & business owner Pat Martin, Diamond Transfer and Garage Harry MacArthur, Harry and the Natives Alfred Miller, Banner Lake Club Every resident of Hobe Sound who wishes to be involoved

4. Protecting Hobe Sound – Why incorporate? Self-determination – Establishing our own town ensures true home rule where locals make the key decisions for our community. Local representation – The Town of Hobe Sound would elect five commissioners from Hobe Sound so the unique nature of our community would be clearly represented. Affordability – With a ‘government lite’ structure, we can provide the same services and keep taxes in check. Preservation, opportunity – With a direct say, we can prevent residential sprawl in rural areas while encouraging investment and job opportunities within town.

5. What is ‘Government Lite’? A newer structure for small municipal governments that avoids “growing a traditional government bureaucracy,” Government Lite gives citizens local control while they can contract with existing service providers to maintain levels of service.

6. Incorporation – The Process 1. Examine if proposed area meets basic requirements for incorporation 2. Conduct continual community outreach 3. Undertake initial feasibility study 4. Undertake in-depth feasibility study 5. Gain support of local legislative delegation (Sen. Joe Negron, State Rep. MaryLynn Magar) to sponsor Bill of Incorporation. 6. If Bill of Incorporation maintains Legislature support, it goes to public referendum 7. Registered voters in proposed area of incorporation take part in special election to vote on becoming a town. 8. If successful, any interested citizens can come forward to run for the Town Commission of Hobe Sound.

7. Where We Are We achieved Step 1 by first meeting the initial requirements for incorporation. Hobe Sound is: Compact Contiguous Near no other city within 2 miles Home to more than 5000 people At a density of 1.5 per acre

8. Where We Are Next, we formed the citizen group, Protecting Hobe Sound. We’ve been meeting with many community members, drafting a Mission statement, reading: The Town of Hobe Sound will promote citizen engagement and provide fiscally sound government that protects our necessary services, shared values, unique heritage and quality of life while planning for a sustainable future. We also estimated boundaries, so this initial fiscal analysis is based on: Population of 15,362 Taxable value of $2,058,294,690

9. The Town of Hobe Sound Boundaries of the Town of Hobe Sound Note: These boundaries do NOT encroach on the urban service boundary.

10. The Town of Hobe Sound Northern boundaries of the Town of Hobe Sound

11. The Town of Hobe Sound Southern boundaries of the Town of Hobe Sound

12. The Town of Hobe Sound Western boundaries of the Town of Hobe Sound. The river would serve as the eastern border.

13. Where We Are – Step 3 Next, we hired BJM Consulting, which is experienced in working with several incorporation efforts and helping establish new towns. They prepared the initial financial feasibility report. The report: Developed revenue analysis for proposed incorporated area Developed expenditure analysis for proposed incorporated area Created a pro forma presentation of revenue vs. expenditures, forecasted for the initial year of incorporation

14. Will My Services Suffer? No. BJM Consulting examined ALL existing levels of taxation and fees currently charged by Martin County. This analysis ensured NO change in any of the service levels presently being provided by Martin County to Hobe Sound.

15. Will My Taxes Increase? No. JM Consulting examined ALL existing levels of taxation and fees currently charged by Martin County. The findings in the initial feasibility report ZERO increase in current tax load.

16. So, Where Will Town Revenue Come From? Local governments can levy property taxes, based on mills. 1 mil = $1 of tax for every $1,000 of taxable value (Mils are capped at 10 mills for general operating purposes.)

17. What Is A Mil? To set a mil, the County Property Appraiser determines the Assessed Value of property. Assessed Value (value of property, building and any improvements; commercial property also includes relevant personal property) - Exemptions (Homestead: $50,000, Widow, Widower, Disability: $500) = Taxable value

18. Mills continued To remain conservative, we’ll use the industry formula and multiply by.95 percent of the taxable value: Taxable value of Hobe Sound $2,058,294,690 x the percent 0.95 Revised Taxable Rate of Hobe Sound $1,955,379,956 x millage rate.001 Estimated Property Tax per mil: $1,955,380

19. Your Current Local Tax Burden Right now, residents of unincorporated Hobe Sound pay Martin County: + Fire Rescue MSTU* – 2.5263 mills + Parks and Recreation MSTU* – 0.1488 mills + Stormwater MSTU* – 0.2667 mills + Roads MSTU* – 0.3254 mills = 3.2672 mills

20. Town of Hobe Sound – Your Costs For a Hobe Sound house with a market value of $260,000 and assessed value of nearly $171,000, the current annual costs of the combined MSTUs are $122.

21. Your Current Local Tax Burden With incorporation, the Fire Rescue, Parks and Rec, Stormwater and Roads MSTUs would instead be paid to the Town of Hobe Sound, which would contract for those same services. Total millage – 3.2672 mills – should remain the same. Remember, 1 mil equals $1,955,380 of revenue. So: 3.2672 mils X 1,955,390 = $6,388,617.54 (operating budget for Town of Hobe Sound)

22. The Town of Hobe Sound The initial feasibility study identified other means potential means of revenue, including: Municipal Revenue sharing to the Town of Hobe Sound: $416,171. Half-cent local government sales tax distribution: $1,476,720. Business Tax Receipt revenues (FY2018): $25,000 Investment income findings (FY2018): $25,000

23. Town of Hobe Sound ‘Government Lite’ enables contracting key services, but in addition to electing a town commission, the Town of Hobe Sound would need a small staff.

24. The Town of Hobe Sound - Staffing Positions Proposed Salary City Manager $145,000 Assistant City Manager Contract Specialist $125,000 Finance Director/Comptroller $105,000 City Clerk/Treasurer $75,000 Administrative Assistant $50,000 Total Salaries $500,000 Benefits @ 35% $175,000 Total Salary and Benefits $675,000 Note: Salaries competitive with staff of cities with comparable populations.

25. The Town of Hobe Sound – Outside Services Contract ServicesProposed Cost Legal Services $100,000 Growth Management$75,000 Professional Services$75,000 Total $250,000

26. The Town of Hobe Sound – Year 1 In the first year, (FY/2018), the Town would collect no ad valorem revenue, as the county would continue to provide services. Nevertheless, there are some other revenue sources, including: State Shared Revenue$964,445 FPL Franchise Fee/Communication Service Tax$184,590 Interest Earnings Business Tax and Licenses25,000 Ad Valorem Property Taxes0 Total $1,174,035

27. Town of Hobe Sound – Year 1 Expenditures Salary and Benefits $327,375 Mayor and City Council Salary $25,000 Contract Services $125,000 Operating Overhead $64,800 Insurance $37,500 Local Elections $32,500 Audit $35,000 Capital Equipment (One Time) $175,000 Contingency $47,075 Total $869,250 Reserve $212,490

28. Town of Hobe Sound So far, this process is encouraging. Not only does the proposed area meet the initial requirements, it’s very positive that the first year in operation—where the Town of Hobe Sound is not even able to collect revenue from property taxes—shows some monies left over.

29. What’s Next? Step 4, and in-depth feasibility analysis, looks at revenue and expenses over the first five years in office. We’re currently collecting contributions to pay for this study and welcome any contribution you can make. To find out more or interact with others interested in establishing the Town of Hobe Sound, please visit us on Facebook.