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Memories flooding back — Still mindful of the effects of Tropical Storm Fay, Deltona leaders are taking steps to prevent or lessen future flooding in vulnerable parts of the city. Deltona has borrowed $6.7 million to install new pumps and drainage systems in low-lying neighborhoods. Bloomfield Avenue was one of several streets made impassable by the rising waters.
BEACON PHOTO/AL EVERSON
Delivering supplies — Deltona firefighters had to use a boat to deliver supplies to a few homeowners on Piedmont Drive left stranded by the high water.
By Al Everson
posted Aug 4, 2009 - 9:28:12am
Hoping to avert flooding in susceptible neighborhoods, Deltona is trying to get ahead of problems.
After Tropical Storm Fay dumped more than 20 inches of rain on the region in less than 24 hours in August 2008, Deltona's stormwater shortcomings became apparent.
Assistant City Manager Dave Denny estimates Deltona needs approximately $10.1 million in stormwater-control projects right away, and the city borrowed money to alleviate the need.
The money is for projects not listed in the city's five-year capital-improvements plan.
"We have a stormwater master plan," Denny said. "The projects are not located in any one particular area; they're all over town."
The city took out a $6.7 million loan from BB&T Bank. Revenues from stormwater assessments — special charges that appear on the property-tax bills — will be used to repay the 20-year loan.
Deltona's leaders opted for a bank loan rather than a bond issue, on the advice of the city's financial adviser, Jeff Larson, of D.A. Davidson.
"The cost of doing a bond deal is about twice the cost of a bank deal," Larson told the City Commission. "A bank deal's real simple."
A bank loan has a higher interest rate — 5 percent — than a 30-year municipal bond, whose interest rate would probably be between 1.1 percent and 4.9 percent. However, the legal work required for a bond issue, including the hiring of a bond counsel, would be quite expensive.
Annual payments on the loan will be about $520,000 for the next two decades. Deltona's stormwater assessments generate $3.3 million per year. Repayment of the loan is assured by the stormwater fees, Larson said.
"The bank will have a lien on stormwater revenues," he said.
The city charges the owners of each single-family home $76.11 per year for stormwater control. Commercial properties pay more, based on square footage. Deltona also levies a $47.95 annual stormwater charge on vacant lots.
With the stormwater revenues, Deltona is creating an enterprise fund to cover both the capital and operating expenses related to flood control.
"This thing should be self-sustaining. It in no way involves property taxes," Deltona Finance Director Bob Clinger said.
The borrowed cash will enable Deltona to deal with some of the more urgent needs more quickly, notably low-lying areas. Denny said he expects the city will complete "$3 million to $4 million of projects over the next two or three years."
Already, the city has installed new pumps to head off future flooding in the Bloomfield Avenue area, as well as Piedmont Drive.
Other areas in need include parts of Elkcam Boulevard, Courtland Boulevard and Slater Drive, according to Denny. Yet another flood-prone area is Swallow Street and adjacent streets.
Denny said some stormwater problems may have been resolved with the four-laning of North Normandy Boulevard.
"With the completion of North Normandy, that will help that area," he said.
New drainage and retention ponds were constructed along with the widening of the road.
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We are borrowing How much???
$6.7 MILLION DOLLARS to fix WHAT????
OH OF COURSE!! Flooded Properties.
Hey citizens of Deltona, Why do WE have to pay for properties that are damaged by
flooding when our intelligent and learned leaders awarded the building permits for these houses to be built in flood zones??? Why did they DO that?
And how about the homeowners? Don't you need SOME degree of intelligence to become a homeowner?
Did our esteemed leaders award these permits because they were unaware that the lots were close to a lake and in a depression in the ground ???????
No! Of course not.
There HAD to have been OTHER reasons for them to issue these permits. Permits that your 6 year old CHILD wouldn't have agreed to.
How about the builders then. THEY are supposed to have SOME degree of intelligence aren't they? . After all, they passed SOME kind of test in order to get their license. DIDN'T THEY??
Where did we go wrong? What happened here? Who profited from these decisions?
Now, we all know that the people working in the permitting department now are NOT the same ones who were there when most of these homes were built, HOWEVER, I AM positive that most of you have seen homes built in a total HOLE in the ground with the roof at road level, and they AREN"T VERY OLD. Water pours down from the road into the house and the homeowner calls the CITY nad the taxpayers to bail them out. Meanwhile, the BUILDER is sitting on his boat out on the river with his line in the water and is feeling really good about himself, while you and I are out there busting our butts to pay the taxes to bail out these morons and the idiots that issued the permits.
Who is so stupid that they would issue a permit under those circumstances?? Would YOU grant a permit to build a house like that?
Well then, "How does this sort of thing come to pass" you say?
I'll leave that answer up to the taxpayers to figure out.
So let's sum up.
The accumlative values of the properties on Piedmont Blvd, according to the Volusia County Property Appraisers office is right around $500,000.00.
THAT figure is what we are collecting taxes on.
If we were to actually BUY all of these properties, the cost would be around, lets see, 20 properties surrounding the lake X (overkill) $200,000.00 per property = $4,000,000.00. FOUR MILLION DOLLARS!!
Now us uneducated backwoods Deltonians know for a fact that these particular houses surrounding the lake aren't worth THAT much. RIGHT??? They have already BEEN in the water, and the insurance companies have already PAID THE HOMEOWNERS FOR THESE PROPERTIES, Right? GET OFF YOR DUFF AND GO LOOK AT THEM!
Well, what happened to THAT money???
Ok, So let's average.
20 properties X AVERAGE $150,000.00 = $3,000,000.00 (STILL TOO MUCH.) The city Fathers will NEVER pay THAT much.
HEY, WHO OWNS THESE HOUSES ANYWAY?
Oh well let us calculate. HOPE YOU'RE STILL WITH ME HERE.
We are going to borrow $6,700,000.00 from BB&T Bank, for 20 YEARS at an interest rate that will be SOMEWHERE between 1.1% and 4.9% (give or take), according to the article.
(Hey, what the heck?) A little fluctuation in the payment amount adds to the intrigue.
Our annual payments will only be AROUND $520,000.00 a year for the NEXT TWENTY YEARS.
Calculate $520,000.00 per year X 20 years =
$$$$$10,400,000.00!!!!!!!!!!!!!!
That's TEN MILLION FOUR HUNDRED THOUSAND DOLLARS. Not too bad!
Could I maybe get a couple of peices of sod out of that?
Oh stop complaining!! It's only $43,300.00 a month plus change. IF they are being straight
with us. So lets' not let little things like these worry us! Just get on out there and get a second job for Pete's sake. We'll raise taxes some more. We, the Peons of Deltona will pay whatever it takes to live in this glorious CITY!!
If we keep letting people build homes in unsuitable areas, we will NEVER have enough money to fix these problems. The next time you see a home being built in an obvious hole in the ground, Take a picture of it and send it around on the internet to your friends. And hopefully to everyone who has a voice in the next election. It's time to stop the stupidness.
P.S. I know that other properties are earmarked for purchase or rehab with this money, but this project will not get finished with this loan. It's just a start, and we know it. Meanwhile, I'm gonna go buy a flooded house for $15,000.00 and sit on it untill Deltona buys it from me for $90,000.
Even if governments were inclined to repeal taxes they impose, the long-term debt means that they will feel obliged to continue to levy the tax. If they ever get close to paying it off, expect a fresh load of debt.
It wasn't over 24 hours, it was over about 4-5 days. However, that's still a TON of rain.
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