nestle waters - economic & fiscal impacts...economic & fiscal impacts of nestle waters in...

ECONOMIC & FISCAL IMPACTS of NESTLE WATERS in FLORIDA Nestle Waters NA, Inc.

Prepared on January 9, 2020

PFM Group Consulting LLC 12051 Corporate Boulevard | Orlando, FL 32817 pfm.com

1

Executive Summary Nestle Waters North America (NWNA) has three water bottling facilities and twelve branch offices and

distribution centers throughout Florida. These facilities contribute to the State and local economies through employment, purchases of goods and services and direct payment to governmental entities. PFM Group Consulting, LLC was tasked to determine the economic and fiscal impacts of NWNA properties and activities in Florida.

NWNA purchased $125.6 million in goods and services and taxes within the State of Florida in 2018 (direct spending). The expenditures made by those providing those goods and services (indirect spending) and NWNA’s employees spending (induced spending) also generate additional economic impacts. These economic, or multiplier effects generate the total goods and services produced resulting from the spending on statewide purchases of goods and services. The total direct + indirect + induced spending resulted in $256.8 million in total economic output for the State. These expenditures will also support 1,737 Florida jobs with wages of $93.2 million per year.

The average wages of NWNA bottling facility employees is significantly higher than the average wages in

the counties where they are located: Pasco 39.7% higher; Madison 51.1% higher and Gilchrist 48.4% higher.

NWNA is modernizing and increasing the capacity of its High Springs factory in Gilchrist County. The construction phase of the expansion will generate an additional one-time economic output. With an estimated $13.2 expenditures with the State, the economic impact results in an average of 171 jobs per year with total wages of $8.1 million for the construction period. The overall total economic output from the High Springs expansion construction period is projected to be $23.2 million for the State of Florida.

NWNA has paid $1,448,520 in sales and use taxes and $1,535,601 in fuel taxes in 2018. NWNA will pay approximately $900,000 in income tax to the State of Florida for 2018 operations.

Construction Expenditures

in Florida: $13,236,980

Operating Expenditures

in Florida: $125,644,721

Nestle Waters NA

Economic Output from Construction

$23,264,452

Construction Jobs: 171 per Year

Construction Wages: $8,175,697

FL Income Tax: $900,000

FL Sales Tax: $1,448,520

FL Fuel Tax: $1,535,601

Florida Jobs: 1,737

Annual Wages: $93,202,483

Annual Economic Output:

$256,841,556

Economic Impacts

2

NWNA paid $2,509,748 in property taxes to Florida counties in 2018. NWNA is projected to pay approximately $3,210,167 in property taxes in 2019.

The fiscal impacts are those that directly impact a local government’s budget. NWNA pays taxes and makes other payments to the government that are used to provide services to the business and its employees.

The three NWNA bottling factories in Florida generate significant operating revenues for their respective

county government. Their net fiscal impact is positive for each location. The Gilchrist factory is shown before and after expansion.1

1 Phase 1 expansion of the High Springs bottling facility includes the renovation of two bottling lines and is estimated to be completed by 2021. Phase 2 expansion, which includes the installation of 2 additional bottling lines by 2025, is planned, but not included within this economic analysis.

County Ad ValoremOperating Revenues


Net Fiscal Impact

Pasco $390,044 $418,079 $58,738 $359,341

Madison $733,411 $752,365 $46,050 $706,315

Gilchrist $69,718 $72,904 $7,740 $65,164

Gilchrist-Phase 1 (2021) $258,181 $262,958 $11,606 $251,353

Property TaxSales Tax Gas Taxes

Utility Taxes Franchise Fees

Permits Fees

Local Government

PoliceFire/EMS

Roads/Transportation Stormwater/Drainage

Utilities Human Services

Parks & Recreation Culture

Nestle Waters NA &

Employees

Fiscal Impacts

3

NWNA also generates significant ad valorem revenue for other local taxing authorities.

Bottling Factories Annual Ad Valorem Revenue – All Taxing Authorities

Tax Authority Millage Ad Valorem

Pasco County 7.6076 $390,044

City of Zephyrhills 6.3500 $325,566

Pasco Mosquito Control 0.2034 $10,428

School District 6.2790 $321,926

SWFWMD 0.2955 $15,150

Total 20.7355 $1,063,114


Madison County 7.6076 $733,411


SRW Water 0.3131 $28,955

Total Ad Valorem 12.2377 $1,230,722

Tax Authority MillageAd Valorem

2019Ad Valorem

2021

Gilchrist County 7.6076 $62,706 $232,213

Gilchrist Cnty EM Medical 8.6076 $7,013 $25,969

Gilchrist School District 4.3170 $41,716 $154,482

SRWMD 0.3131 $2,606 $9,650

Total Ad Valorem 20.8453 $114,040 $422,314

4

1.0 Introduction 1.1 Assignment Nestle Waters North America (NWNA) has three water bottling facilities and twelve branch offices and

distribution centers throughout Florida. NWNA has engaged PFM Group Consulting LLC (“PFM”) to analyze the economic and fiscal impacts of their Florida facilities on the State and the three counties in which their bottling factories reside. Figure 1 shows the locations of the factories, branch offices and warehouse/distribution centers that are located in Florida.

Figure 1: Nestle Waters NA Florida Locations

5

1.2 Overview

The NWNA bottling facilities are located in Pasco County (Zephyrhills), Madison County (Lee) and Gilchrist County (High Springs) and generate the majority of the economic and fiscal benefits. These three factories account for approximately 60 percent of the Nestle Waters employment in Florida and 94 percent of the total expenditures. Total employment in Florida, while increasing, was pegged at 904 for this study and the expenditures used were the 2018 total expenditures of $182.6 million plus an estimated $21.9 million from the High Springs factory. The Zephyrhills and Madison factories have been producing bottled water for several years for NWNA. The High Springs factory was purchased in 2018. Further expansions of this factory’s output and facilities are planned through 2025. The branch offices and distribution centers are located throughout the State of Florida. For the purposes of this study, the economic impacts and fiscal impacts on the State of Florida were modeled for each of the bottling facilities along with all of the branch offices and distribution centers. In addition, the local economic and fiscal impacts of the three bottling facilities on their respective counties were modeled independently.

2.0 Economic Impacts 2.1 Overview

The NWNA facilities in Florida impact both the State and local economies in several ways. An economic impact analysis addresses the impacts of a proposed development on jobs, economic output, and wages. These impacts can be both directly and indirectly generated by a development. A direct economic impact is generated as a result of workers directly employed by the company, wages earned by those workers, and money spent in the community by the company. The expenditures for goods and services made by NWNA to other companies in Florida generate sales and employment by those companies. This is called the indirect economic impacts. In addition, the money spent in the community by the employee households also creates sales and employment and is referred to as an induced economic impact. This process of circulating money throughout the local economy is also referred to as the “ripple” or “multiplier” effect whereby money spent by the original company is re-spent throughout the economy. The economic impacts for the State are generated by the expenditures made for goods and services by NWNA within Florida. Likewise, the economic impacts for the individual counties are generated only from those expenditures for goods and services within the specific county. The on-going NWNA employee household’s spending generate also significant economic activity as this spending is multiplied throughout the counties and State. The State and counties do not directly receive economic impacts into their budget. These economic impacts represent economic activity, sales and jobs within the specified region.

2.2 Methodology

PFM Group conducted an economic impact analysis of the NWNA Florida operations in their entirety. This study includes the economic impacts of the bottling factories, branch offices and distribution centers within Florida. The economic impacts of each of the three factories within their home county was also determined. The economic impact of the short-term construction activity associated with expansion of the High Springs facility is also included in this study. PFM Group uses the IMPLAN (IMpact Analysis for PLANning) modeling system to estimate the economic impacts of the NWNA operations. A summary of IMPLAN is provided herein:

6

“IMPLAN’s Social Accounting Matrices (SAMs) capture the actual dollar amounts of all business transactions taking place in a regional economy as reported each year by businesses and governmental agencies. SAM accounts are a better measure of economic flow than traditional input-output accounts because they include “non-market” transactions. Examples of these transactions would be taxes and unemployment benefits.

Multipliers Social Accounting Matrices can be constructed to show the effects of a given change on the economy of interest. These are called Multiplier Models. Multiplier Models study the impacts of a user-specified change in the chosen economy for 440 different industries. Because the Multiplier Models are built directly from the region specific Social Accounting Matrices, they will reflect the region’s unique structure and trade situation.

Multiplier Models are the framework for building impact analysis questions. Derived mathematically, these models estimate the magnitude and distribution of economic impacts, and measure three types of effects which are displayed in the final report. These are the direct, indirect, and induced changes within the economy. Direct effects are determined by the Event as defined by the user (i.e. a $10 million dollar order is a $10 million dollar direct effect). The indirect effects are determined by the amount of the direct effect spent within the study region on supplies, services, labor and taxes. Finally the induced effect measures the money that is re-spent in the study area as a result of spending from the indirect effect. Each of these steps recognizes an important leakage from the economic study region spent on purchases outside of the defined area. Eventually these leakages will stop the cycle.” 2

The total economic impact has three primary contributors:

Direct Impacts are those generated from the actual employment and local spending by NWNA.

Indirect Impacts are generated from the employment and local spending that is the result of NWNA’s spending on goods and services.

Induced Impacts are those generated from the household spending of both the direct and indirect employee households.

This analysis was limited in scope to the determination of the economic impacts from NWNA’s local and statewide expenditures and employment.

2.3 Economic Impact – Annual Impact on State of Florida NWNA has a substantial position in the State of Florida including three bottling factories and thirteen

branch offices and warehouse/distribution centers and a growing employment base of over 900 employees.

The permanent economic impact of NWNA’s activities in Florida are derived from their spending and employment within the state. The total expenditures made by NWNA’s Florida bottling factories, offices and warehouse distribution facilities was $182.6 million. An annualized $21.9 million in expenditures from the High Springs factory brings the total to $204.5 million. The annual spending for goods, services and taxes within the State of Florida for 2018 was determined to be $125.6 million (Table 1). NWNA has direct employment of 920 people with earnings of $52.3 million. The NWNA spending (indirect) and employee spending (induced) generates an additional 817 jobs with income of $40.8 million. The total economic impact of NWNA in Florida is $256.8 million with 1,737 jobs and wages of $93.2 million.

2 IMPLAN V3.1.1001; Minnesota Implan Group, Inc.

7

Table 1: Economic Impact of NWNA in Florida

Based upon 2018 employment, wage and expenditure data plus estimated High Springs data 2.4 Construction Impacts in State of Florida The High Springs factory has been undergoing an updating and expansion. This process will continue

through 2020. The economic impacts of the construction phase are generated by the purchase of materials and labor within the State. The High Springs expansion project is budgeted to have a projected construction budget of $27.6 million including both hard and soft costs and equipment purchases. The impact calculation is based on the purchases of goods and services within the State of Florida, as provided by NWNA ($13.2 million, Table 2).

Table 2: Economic Impact – Construction Phase of Expansion

Table 2 shows the economic impact generated from the $13.2 million spent within the State will directly

generate an average of 35 direct jobs each year. Total wages for the entire construction period are projected to reach $4.9 million. The indirect impacts from this spending and the induced impacts from the employee spending will generate additional employment. Total employment generated from the expansion construction is projected to reach 171 employees per year with total construction period earnings of $8.1 million. The total economic output for Florida from the construction is projected to reach $23.2 million.

2.5 Economic Impact – Pasco (Zephyrhills) Bottling Factory

The permanent economic impact of NWNA’s activities from the Zephyrhills bottling factory are derived from the spending and employment within Pasco County. The annual spending for goods, services and taxes within Pasco County for 2018 was $19.0 million (Table 3). NWNA has direct employment of 277 people with earnings of $15.1 million. The average weekly wage of NWNA employees is approximately 39.7 percent higher than the average weekly wage in Pasco County.3 The NWNA spending (indirect) and employee spending (induced) generates an additional 80 jobs with income of $3.0 million. The total economic impact of NWNA in Pasco County is $29.1 million with 357 jobs and wages of $18.2 million.

3 Florida Department of Economic Opportunity, Bureau of Workforce Statistics and Economic Research, Quarterly Census of Employment and Wages

Program (QCEW), 2018.

ImpactType Employment Labor Income Output

Direct Effect 920 $52,340,324 $125,644,721Indirect Effect 298 $17,961,159 $58,713,765Induced Effect 518 $22,901,000 $72,483,070Total Effect 1,737 $93,202,483 $256,841,556

ImpactTypeAvg Annual Employment

Total Labor Income Total Output

Direct Effect 35 $4,998,265 $13,236,980Indirect Effect 7 $1,171,226 $3,677,887Induced Effect 15 $2,006,206 $6,349,585Total Effect 171 $8,175,697 $23,264,452

8

Table 3: Economic Impact of NWNA in Pasco County

Based upon 2018 employment, wage and expenditure data 2.6 Economic Impact – Madison (Blue Springs) Bottling Factory

The permanent economic impact of NWNA’s activities from the Blue Springs bottling factory are derived from the spending and employment within Madison County. The annual spending for goods, services, and wages within Madison County for 2018 was $9.0 million (Table 4). NWNA has direct employment of 173 people with earnings of $8.6 million. The average weekly wage of NWNA employees is approximately 51.1 percent higher than the average weekly wage in Madison County.4 The NWNA spending (indirect) and employee spending (induced) generates an additional 35 jobs with income of $910,614. The total economic impact of NWNA in Madison County is $13.5 million with 209 jobs and wages of $9.5 million.

Table 4: Economic Impact of NWNA in Madison County

2.7 Economic Impact – Gilchrist (High Springs) Bottling Factory

The permanent economic impact of NWNA’s activities from the High Springs bottling factory are derived from the spending and employment within Gilchrist County. The annual spending for goods, services and wages within Gilchrist County for 2018 was $2.3 million (Table 5). NWNA has direct employment of 44 people with earnings of $2.1 million. The average weekly wage of NWNA employees is approximately 48.4 percent higher than the average weekly wage in Gilchrist County.5 The NWNA spending (indirect) and employee spending (induced) generates an additional 9 jobs with income of $219,286. The total economic impact of NWNA in Gilchrist County is $3.3 million with 53 jobs and wages of $2.3 million.

Table 5: Economic Impact of NWNA in Gilchrist County

4 ibid. 5 ibid.


Direct Effect 277 $15,184,815 $19,005,792Indirect Effect 16 $666,753 $2,131,429Induced Effect 64 $2,426,327 $7,972,743Total Effect 357 $18,277,894 $29,109,964


Direct Effect 173 $8,626,095 $9,079,937Indirect Effect 9 $250,720 $1,378,366Induced Effect 26 $659,895 $3,137,689Total Effect 209 $9,536,709 $13,595,992


Direct Effect 44 2,168,229 2,361,728Indirect Effect 2 60,617 281,415Induced Effect 7 158,669 712,143Total Effect 53 2,387,514 3,355,286

9

2.7.1 Economic Impact – Gilchrist Factory After Expansion

The permanent economic impact of NWNA’s activities from the High Springs bottling factory after Phase 1 expansion are also derived from the spending and employment within Gilchrist County. NWNA has estimated that the Phase 1 expansion, when complete, will add 21 additional factory jobs and increase the payroll by $1.4 million. With the Phase 1 expansion completed, the annual spending for goods, services and wages within Gilchrist County is estimated to be $4.0 million (Table 6). NWNA will have direct employment of 65 people with earnings of $3.5 million. The NWNA spending (indirect) and employee spending (induced) will generate an additional 15 jobs within the county with income of $365,506. The total economic impact of NWNA in Gilchrist County is projected to reach $5.7 million with 80 jobs and wages of $3.9 million.

Table 6: Economic Impact of NWNA in Gilchrist County After Phase 1 Expansion

3.0 Fiscal Impacts of Nestle Waters NA 3.1 Overview Fiscal impacts refer to the actual impact a company and its employees have on the state and/or local

government. These impacts include revenues generated by taxes, fees and other charges; and expenditures for government provided services such as police, fire, roads, recreation, culture, and etcetera. The fiscal impact analysis looks at the land, building and equipment taxable values and the employee population and calculates the projected revenues generated for the local government and the projected expenditures to be made on behalf of the company and its employees by the local government, based upon the current local government budget.

3.2 NWNA Statewide Fiscal Impacts

As detailed above, the NWNA three bottling factories and thirteen offices/warehouse/distribution centers in Florida provide a very significant economic benefit to the State. From a fiscal perspective, the primary revenue sources for the State of Florida are sales taxes, fuel taxes and income taxes. NWNA paid $1,448,520 in sales and use tax to the State in 2018. Fuel taxes paid totaled $1,535,601 in 2018. The corporate state income tax payable is estimated at $900,000 for the same period. NWNA has facilities in fourteen Florida counties and pays taxes on property and equipment. These taxes help fund operations within the respective counties and also fund the local school districts. Table 7 shows that NWNA paid $2.5 million in property taxes and assessments in 2018. The 2019 property taxes and assessments payable are estimated to exceed $3.2 million.

ImpactType Employment Labor Income OutputDirect Effect 65 $3,568,229 $4,054,912Indirect Effect 4 $104,074 $483,169Induced Effect 11 $261,432 $1,173,372Total Effect 80 $3,933,735 $5,711,453

10

Table 7: NWNA Property Taxes Paid

Source: NWNA, includes Ad Valorem and local assessments 3.3 Detailed Fiscal Impacts of NWNA Bottling Factories

The county governments also receive other revenues from NWNA facilities and their employees including sales taxes, utility taxes, franchise fees, permits and license fees and etcetera. County governments also provide services to the NWNA facilities and employees including law enforcement, fire protection, planning and zoning, roads and other public works facilities, recreation, culture, human services and economic development. The fiscal models allocate these revenues and expenditures for the three counties in which NWNA has bottling factories: Pasco County, Madison County and Gilchrist County.

3.3.1 Operating Fiscal Impacts – Pasco County The NWNA bottling factory and facilities in Pasco County have a taxable value of approximately $51.2

million (at 96% using the early payment discount). This factory pays property taxes to the County, the City of Zephyrhills, the School District and other taxing authorities (Table 8). Total local ad valorem taxes are approximately $1.0 million per year (at 96% using the early payment discount). Table 8: Pasco Taxing Authorities and Ad Valorem Paid

Location County 2018 Taxes 2019 Taxes

Ft Lauderdale Branch Broward $7,780 $0Ft Myers Branch Lee $4,030 $4,371Jacksonville Branch Duval $26,481 $27,494Jupiter Branch Palm Beach $80,859 $98,749Melbourne Branch Brevard $4,121 $4,436Miami Branch Miami-Dade $26,008 $24,588Orlando Branch Seminole $49,780 $61,609Sarasota Branch Manatee $5,422 $8,504Tampa Branch Hillsborough $47,368 $47,175Davenport Branch Polk $3,167 $4,493Miramar Branch Broward $14,846 $30,910Madison Factory Madison $1,249,301 $1,521,014Zephyrhills Factory Pasco $987,765 $1,101,751High Springs Factory Gilchrist $0 $272,252Cypress Springs Washington $2,821 $2,821

$2,509,748 $3,210,167


Pasco County 7.6076 $390,044

City of Zephyrhills 6.3500 $325,566

Pasco Mosquito Control 0.2034 $10,428


SWFWMD 0.2955 $15,150

Total 20.7355 $1,063,114

11

Table 9 provides a summary of the fiscal impacts of the NWNA Zephyrhills bottling factory specifically on Pasco County’s operating budget. Table 9 shows that the annual operating ad valorem tax for the County is approximately $390,044. The County will also receive other revenues generated by the factory and employees, such as sales tax, franchise fees, excise tax and permit fees. Total annual revenues flowing from the Zephyrhills factory to the County are estimated at approximately $418,079. Revenue details are provided in Appendix A Table 2.

Table 9: Fiscal Impacts Summary – Pasco County

Expenditures will be made by the County on behalf of the factory and employees. These expenditures include general government services, police, fire, transportation, etc. and are estimated to be $58,738. The net fiscal impact is the difference between the revenues generated for the County and the projected expenditures made on behalf of factory and employees. The 2019 fiscal impact is projected to be a positive $359,341. The Zephyrhills bottling factory has a positive impact on the County’s Operating Budget.

3.3.2 Operating Fiscal Impacts – Madison County The NWNA bottling factory and facilities in Madison County have a taxable value of approximately

$76.3 million. This factory pays property taxes to the County, the School District and the Suwanee River Water Management District (Table 10). Total local ad valorem taxes are approximately $1.2 million per year (at 96% using the early payment discount). Table 10: Madison Taxing Authorities and Ad Valorem Paid

Table 11 provides a summary of the fiscal impacts of the NWNA Madison bottling factory on Madison County’s operating budget. Table 11 shows that the annual operating ad valorem tax for the County is approximately $733,411. The County will also receive other revenues generated by the factory and employees, such as sales tax, franchise fees, excise tax and permit fees. Total annual revenues flowing from the Madison factory to the County are estimated at approximately $752,365. Revenue details are provided in Appendix B Table 2.

Year Ad ValoremOperating Revenues


Net Fiscal Impact

2019 $390,044 $418,079 $58,738 $359,341


Madison County 7.6076 $733,411


SRW Water 0.3131 $28,955

Total Ad Valorem 12.2377 $1,230,722

12

Table 11: Fiscal Impacts Summary – Madison County

Expenditures will be made by the County on behalf of the factory and employees. These expenditures include general government services, police, fire, transportation, etc. and are estimated to be $46,050. The net fiscal impact is the difference between the revenues generated for the County and the projected expenditures made on behalf of factory and employees. The 2019 fiscal impact is projected to be a positive $706,315. The Madison bottling factory has a positive impact on the County’s Operating Budget.

3.3.3 Operating Fiscal Impacts – Gilchrist County High Springs

The NWNA bottling factory and facilities in Gilchrist County currently have a taxable value of approximately $6.8 million. The High Springs factory pays property taxes to the County, the School District and the Suwanee River Water Management District (Table 12). Total local ad valorem taxes are approximately $114,040 per year (at 96% using the early payment discount). The High Springs factory is undergoing an expansion. PFM has calculated a projected a taxable value of $25.4 million for the factory after the expansion is completed in 2020. Total Ad Valorem to all taxing authorities is projected to reach $422,314 in 2021, after completion of the expansion. Table 12: Gilchrist Taxing Authorities and Ad Valorem Paid

Table 12 provides a summary of the fiscal impacts of the NWNA High Springs bottling factory on Gilchrist County’s operating budget. Table 12 shows that the annual operating and emergency medical ad valorem tax for the County is approximately $69,718. After buildout, the factory will generate approximately $258,181 in annual operating ad valorem for the County. The County will also receive other revenues generated by the factory and employees, such as sales tax, franchise fees, excise tax and permit fees. Total annual revenues flowing from the High Springs factory to the County are estimated at approximately $72,904 and $262,958 after buildout. Revenue details are provided in Appendix C Table 2.

Year Ad ValoremOperating Revenues


Net Fiscal Impact

2019 $733,411 $752,365 $46,050 $706,315

Tax Authority MillageAd Valorem

2019Ad Valorem

2021

Gilchrist County 7.6076 $62,706 $232,213

Gilchrist Cnty EM Medical 8.6076 $7,013 $25,969

Gilchrist School District 4.3170 $41,716 $154,482

SRWMD 0.3131 $2,606 $9,650

Total Ad Valorem 20.8453 $114,040 $422,314

13

Table 13: Fiscal Impacts Summary – Gilchrist County

Expenditures will be made by the County on behalf of the factory and employees. These expenditures include general government services, police, fire, transportation, etc. and are currently about $7,740. Total expenditures will increase slightly to $11,606 with the additional employees. The net fiscal impact is the difference between the revenues generated for the County and the projected expenditures made on behalf of factory and employees. The 2019 fiscal impact is projected to be a positive $65,164. After the expansion is completed, the net fiscal impact on Gilchrist County is projected to reach $251,353. The High Springs bottling factory has a very positive impact on the County’s Operating Budget.

4.0 Methodology 4.1 Economic Impact Analysis Methodology

The economic impact assessment methodology consists of two basic steps.

1) Determine the NWNA expenditures within Florida and the selected counties and input into the IMPLAN economic impact model.

2) Determine the local construction expenditures and input into the IMPLAN economic impact

model.

NWNA local expenditures were calculated from data provided by NWNA. Invoices were first sorted by facility. Each vendor was then investigated (Google) to determine whether or not they were located in the State of Florida and within the three counties that were analyzed. These local expenditures, along with the NWNA provided employment and wage data was input into the IMPLAN “Industry Change” activity to determine the total economic output.

The local construction spending was estimated using the projected construction budget; NWNA provided data for the amount of construction related spending within the State of Florida. Total Florida construction direct economic expenditure was determined to be $13.2 million. This spending was input into the IMPLAN “industry change” activity to determine the total economic output.

4.2 Modified Per Capita Methodology

A variety of methods exist for quantifying the revenue impacts flowing from a development opportunity such as the one presented here. The approach used in this report is the modified per capita approach.

The per capita approach involves the calculation of revenues using the latest published financial reports for the appropriate population basis (i.e. per person, per employee, per person plus employee, etc.). Ad Valorem and some other fees and tax revenues for the Project are usually estimated directly.

YearAd

ValoremOperating Revenues


Net Fiscal Impact

2019 $69,718 $72,904 $7,740 $65,164

2021 $258,181 $262,958 $11,606 $251,353

14

From an economic perspective the per capita approach is equivalent to assuming that average revenue generation applies to the particular situation being evaluated. This is a reasonable assumption in most cases for two reasons. First, local governments must run balanced budgets, so that current costs and current revenues balance and are appropriate for current circumstances. Second, assuming that long run averages apply, this means that any excess capacity is maintained in the various systems and not allocated to the Project. Furthermore, there is nothing peculiar about the location or the type of Project that indicates that per capita parameters estimated from the latest budgets would not be reflective of actual costs and revenues.

4.3 Nestle Waters NA Fiscal Impact Calculations

Property taxes are calculated based upon the taxable property value and the current Millage rates. The current Property Appraiser taxable values for each parcel were used in this analysis. The projected tax value of the High Springs expansion is based upon the estimated vertical construction value provided by Project less the soft costs plus the estimated land value.

Most other revenues and expenditures were made from the per capita methodology and the individual County’s Operating Budgets. The per capita numbers used are the full-time equivalents (FTE) employee-residents in each county. The revenues and expenditures are calculated by multiplying the FTE employee-residents by the per capita amounts from the County Budgets.

The Budget revenues and expenditures from the individual County’s General Funds were divided by

the FTE county population and the FTE county employment to provide the per capita amount used for each employee-resident.

4.4 Other Taxing Authorities Impact Calculations

The ad valorem for the School District revenues and other taxing authorities was calculated by multiplying the taxable value by the appropriate millage rates. NWNA pays property taxes early and is able to take a 4 percent discount. The discounted amount is reflected in this report.

15

APPENDIX A

Pasco County

16

Appendix A: Table 1Nestle Waters NA, Inc (Pasco)Development Impact Summary

Pasco County 2019

Employment 296

Total Taxable Value $51,270,255

County Ad Valorem Revenue $390,044

Fiscal Impact on Operating Budgets Total Operating Revenues Generated $418,079 Total Operating Expenditures Generated $58,738 Net Fiscal Impact of Operations $359,341

Ad Valorem Revenue 2019

Pasco County $390,044 City of Zephyrhills $325,566 School District $321,926 Pasco Mosquito Control $10,428 SWFWMD $15,150 Total Ad Valorem Generated $1,063,114

17

Appendix A: Table 2Nestle Waters NA, Inc (Pasco)Fiscal Impact Detail

2019Revenues

Ad Valorem Taxes (@ 96%) $390,044

Other Taxes $4,300

Licenses & Permits $8,875

Intergovernmental $10,175

Charges for Services $4,686

Total Revenues $418,079

Expenditures

General Government $9,169

Legislative, Financial, Admin. $5,130

Legal Counsel $936

Comprehensive Planning $1,522

Law Enforcement $22,393

Fire Control $6,117

Other Public Safety $1,627

Physical Environment $2,818

Road/Street Facilities $6,575

Economic Development $2,451

Total Expenditures $58,738

Net Fiscal Impact $359,341

18

Appendix A: Table 3Nestle Waters NA, Inc (Pasco)Fiscal Impact Assumptions

Tax Authority Millage

General Fund 7.6076 Mills City of Zephyrhills 6.3500 Mills Pasco School District-Operating 4.7790 Mills Pasco School District-Capital 1.5000 Mills SWFWMD 0.2955 Mills Pasco Mosquito Control 0.2034 Mills

20.7355Equivalent Full-Time

Factor EquivalentPopulation-Working Residents 91,182 0.7619 69,472Population-Non-Working Residents 414,527 1.0000 414,527 Population- Seasonal 908 0.34615 314

Population (peak season) 506,617 484,313Population (total) 505,709

Employment (total) 116,900 0.2381 27,834(State of Florida ES-202, 2017)

County Population (unincorporated) 461,727

Annual Growth Rate of Property 1.0%

19

APPENDIX B

Madison County

20

Appendix B: Table 1Nestle Waters NA, Inc (Madison)Development Impact Summary

Madison County 2019

Employment 184

Total Taxable Value 76,396,973

County Ad Valorem Revenue (@ 96%) $733,411

Percent of County's Total Ad Valorem: 11.0%

Fiscal Impact on Operating Budgets Total Operating Revenues Generated $752,365 Total Operating Expenditures Generated $46,050 Net Fiscal Impact of Operations $706,315

Ad Valorem Revenue 2019

Madison County $733,411 School District $468,356 SRW Water $28,955 Total Ad Valorem Generated $1,230,722

21

Appendix B: Table 2Nestle Waters NA, Inc (Madison)Fiscal Impact Detail

2019Revenues

Ad Valorem Taxes (96%) $733,411

Other Taxes $9,362

Licenses & Permits $678

Intergovernmental $6,124

Charges for Services $2,791

Total Revenues $752,365

Expenditures

General Government $11,990

Legislative, Financial, Admin. $0

Legal Counsel $0

Comprehensive Planning $0

Law Enforcement $24,477

Fire Control $0

Other Public Safety $0

Physical Environment $410

Road/Street Facilities $8,491

Economic Development $682

Total Expenditures $46,050

Net Fiscal Impact $706,315

22

Appendix B: Table 3Nestle Waters NA, Inc (Madison)Fiscal Impact Assumptions

Tax Authority Millage General Fund 10.0000 Mills Madison School District 6.3860 Mills SRW Water 0.3948 Mills

16.7808

Equivalent Full-TimeFactor Equivalent

Population-Working Residents 6,250 0.7619 4,762Population-Non-Working Residents 13,223 1.0000 13,223 Population- Seasonal 36 0.34615 13





23

APPENDIX C

Gilchrist County

24

Appendix C: Table 1Nestle Waters NA, Inc (Gilchrist)Development Impact Summary

Gilchrist County 2019 2021

Employment 44 65

Total Taxable Value $6,875,651 $25,461,908

County Ad Valorem Revenue (@ 96%) $69,718 $258,181

Percent of County's Total Ad Valorem: 1.0% 3.7%

Fiscal Impact on Operating Budgets Total Operating Revenues Generated $72,904 $262,958 Total Operating Expenditures Generated $7,740 $11,606 Net Fiscal Impact of Operations $65,164 $251,353

Ad Valorem Revenue (@96%) 2019 2021

Gilchrist County $62,706 $232,213 Gilchrist Cnty EM Medical $7,013 $25,969 Gilchrist School District $41,716 $154,482 SRWMD $2,606 $9,650 Total Ad Valorem Generated $114,040 $422,314

25

Appendix C: Table 2Nestle Waters NA, Inc (Gilchrist)Fiscal Impact Detail

2019 2021Revenues

Ad Valorem Taxes (96%) $69,718 $258,181

Other Taxes $1,574 $2,359

Licenses & Permits $114 $171

Intergovernmental $1,029 $1,543

Charges for Services $469 $703

Total Revenues $72,904 $262,958

Expenditures

General Government $2,015 $3,022

Public Safety $4,114 $6,169

Physical Environment $69 $103

Road/Street Facilities $1,427 $2,140

Economic Development $115 $172

Total Expenditures $7,740 $11,606

Net Fiscal Impact $65,164 $251,353

26

Appendix C: Table 3Nestle Waters NA, Inc (Gilchrist)Fiscal Impact Assumptions

Tax Authority Millage General Fund 9.5000 Mills EM-Medical 1.0624 Mills Gilchrist School District 6.3200 Mills SRWMD 0.3948 Mills

17.2772

Equivalent Full-TimeFactor Equivalent

Population-Working Residents 5,919 0.7619 4,509Population-Non-Working Residents 11,505 1.0000 11,505 Population- Seasonal 38 0.34615 13





nestle waters - economic & fiscal impacts...economic & fiscal impacts of nestle waters in...

Documents