Daytona Beach seeks $111.2 million from federal government in storm relief funds

DAYTONA BEACH — Next month city commissioners will vote on a $330 million budget for the new fiscal year that begins Oct. 1, a spending plan that aims to tackle the city's devastating flooding problem and provide funds for affordable housing.

"No one suffers like Daytona Beach when it comes to flooding and affordable housing," Mayor Derrick Henry said at Wednesday evening's budget meeting at City Hall.

Also included is a new fire station on Ridgewood Avenue, a new park in the LPGA area, and road and sidewalk improvements, including the multimillion-dollar East International Speedway Boulevard overhaul.

That list of projects could get much longer if the city receives $111.2 million of the $328.9 million in Community Development Block Grant Disaster Recovery funds coming to the county from the U.S. Department of Housing and Urban Development.

The city has written a letter to the county seeking the funds. It hopes to use the money for everything from a replacement for the Daytona Beach Pier to the construction of 25 new single-family homes to replace houses damaged by Tropical Storm Ian nearly a year ago.

Daytona Beach's $111 million wish list

The county held five meetings last month and this month asking residents how they think the $328.9 million should be spent. County officials are working on a draft plan now that will be reviewed by the County Council and then sent to HUD for its decision.

The money won't be available until next year, but Daytona Beach's city staff members have already outlined 13 projects they would like to fund with the $111.2 million being requested.

The city wants $20 million to build a storm-resistant concrete pier; $20 million to elevate sanitary sewer pump stations and buy generators; and $20 million for drainage improvements, flood protection and a new two-story administrative building on the city's Public Works Department campus on flood-prone Bellevue Avenue.

The city is also hoping the county provides $8.5 million to develop 325 senior housing units with supportive services, $7.2 million to acquire single-family homes in flood zones and $4.5 million to construct 25 new single-family homes to replace those damaged by Ian.

Other requests include $7.4 million to acquire commercial buildings in flood-prone areas; $4.5 million to repair flood-damaged commercial buildings; $2.5 million to rebuild storm-damaged multi-family housing; and $7.2 million to install underground utilities in flood-prone areas.

The final three items on the wish list: $2 million for rental and utility assistance for those impacted by Ian; $4.2 million to build a roundabout at Mary McLeod Bethune Boulevard and Lincoln Avenue; and $3.2 million to create a business incubator in Midtown.

City Manager Deric Feacher gave a general overview of the requests during Wednesday night's City Commission budget hearing, and during Tuesday evening's Midtown Redevelopment Board meeting.

"We're going to shoot for the stars," Feacher said at the redevelopment board meeting.

The chairman of that board, Shawn Collins, encouraged Midtown Redevelopment Board members to urge County Council members to send the money to Daytona Beach. Tens of millions of dollars of the city's request would go toward projects in the impoverished and flood-prone Midtown neighborhood if it's awarded.

Impact fee hike?

The mayor is also hoping Daytona Beach will also get more revenue from an increase in its impact fees, used to to help cover the expenses created by new development. The city hasn't increased those fees in 17 years.

Henry said he'd like to "expedite" a review of impact fees, but a formal process has to take place before the City Commission could vote on an increase.

For now, Daytona Beach will rely on its established sources of funding. The city will collect about $43.8 million in property tax revenue in the next fiscal year if commissioners go with the city staff-recommended property tax rate of $5.43 for every $1,000 of taxable value.

If they went with the rolled-back rate of $4.88 per $1,000 of taxable value, property tax revenue would drop to $39.4 million. The rolled-back rate is the rate that would generate the same amount of property tax revenue as the previous fiscal year.

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In addition to spending money on vital city services such as water and sewer systems, priorities will include helping the homeless, giving north Beach Street a new streetscape, and improving digital infrastructure.

The proposed budget includes $4.2 million for roads and sidewalks, $2.3 million for the East International Speedway Boulevard streetscape, $1.75 million for a lift station, $1 million for billing meter replacement, $600,000 for police vehicles, and $520,665 for Beach Street Redevelopment.

The city will take its first vote on the budget Sept. 6, and the final vote will be held on Sept. 20.

You can reach Eileen at Eileen.Zaffiro@news-jrnl.com

This article originally appeared on The Daytona Beach News-Journal: Daytona Beach working on new fiscal year budget