ECONOMIC ASSESSMENT AND ANALYSIS OF THE INDIAN RIVER LAGOON

NATURAL RESOURCE VALUATION OF THE LAGOON
Submitted to the
FINANCE AND IMPLEMENTATION TASK FORCE
INDIAN RIVER LAGOON NATIONAL ESTUARY PROGRAM
by
APOGEE RESEARCH INC.
Bethesda, Maryland,

in Association with
RESOURCE ECONOMICS CONSULTANTS, INC.
Gainesville, Florida

January 1996

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ENVIRONMENTAL SUSTAINABILITY FOR A HEALTHY ECONOMY
IN THE INDIAN RIVER LAGOON BASIN

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Foreword

The Indian River Lagoon stretches for 156 miles spanning Volusia, Brevard, Indian River, St. Lucie, and Martin counties. These five counties are currently home to more than one million residents and host almost 6 million visitors a year. In 1995, these residents and visitors enjoyed 24 million recreation days fishing, boating, and swimming in the Lagoon, or otherwise taking advantage of its natural beauty. Recreation day estimates, more than population figures, indicate how much resource is used. Because one recreation day is measured as one person engaging in one activity for one day, recreational use days can exceed population when either the number of recreationists or the average number of recreation days per person is high. Forecasters expect that future recreational activity In the Lagoon will increase, as more people are drawn to the area's enviable amenities.

Recreation and tourism are important parts of the regional economy that together account for about half a billion dollars a year in purchases of Lagoon-related goods and services. Other uses of the Lagoon bring its total value to more than S730 million a year. These purchases include goods and services supplied by businesses directly related to recreation and tourism, such as bait and tackle shops and hotels, and also by businesses that indirectly support recreation and tourism, such as grocery stores and insurance companies. In 1995, Lagoon-based recreation and tourism supported more than 19,000 jobs economy-wide and generated more than S250 million in personal income for residents of the Indian River Lagoon counties.

Sustaining the Lagoon's economic contribution to the community depends on the continued health and possible enhancement of Lagoon ecology. It Is not hard to imagine, for example, that in the absence of management actions, unabated pollution, overuse, and other stressors associated with the two percent annual population growth in the five counties could quickly degrade Lagoon resources. The Comprehensive Conservation and Management Plan (CCMP) of the Indian River Lagoon National Estuary Program (IRLNEP) is the blueprint for environmentally sustainable development in the watershed. The CCMP specifically addresses priority problems that threaten environmental sustainability and future recreational opportunities. It offers 69 separate recommendations that are designed to enhance Lagoon resources and support economically important recreational activities, such as fishing, shellfishing, boating, water sports, hunting, swimming, and nature observation. If implementing the CCMP prevents even a 10 percent decline in the value of the Lagoon, it will sustain more than S70 million a year In economic benefits to the five counties within the watershed.

Preserving the health of the Lagoon is not cost-free. But investments in management actions to sustain or improve the health of the ecosystem are good for the local economy and good for local residents if its benefits exceed its costs.  Since the Lagoon is already relatively clean and its living resources relatively plentiful, it should not be surprising that costs of maintaining and improving this healthy environment are modest-especially when compared to the likely costs of
restoring the Lagoon should any degradation occur.

Implementing the Indian River Lagoon National Estuary Program's CCMP will cost less than S18 million a year, including about S7.4 million a year to continue selected on-going programs and S10 million a year for new activities such as wetlands creation and stormwater management. This cost Is small compared to the extensive investments In the Lagoon being planned by local governments, the state of Florida, and the federal government.

While the total costs are reasonable and far less than the benefits one could reasonably expect as a result, it's a fair question to ask whether individuals in one area will pay more than individuals in another. In fact, costs are spread relatively evenly across the five-county region.

To illustrate the relative cost distribution, we can divide the cost of new CCMP actions assigned to each county by the number of households in each county. The average household in Volusia county would pay the least, S17.66 a year, while the average household in Indian River county would pay the most, S22.61 a year. Households in Brevard, St. Lucie, and Martin counties would pay S18.44, S20.13, and S22.59 a year, respectively. The types of actions, scale of projects, and number of households determine average costs. The difference between the lowest and highest average household cost is small. This result indicates a relatively even distribution of CCMP costs across the region.

Citizens in the region are willing to pay between $52 and $66 a year to implement the CCMP -roughly three times the average cost per household- if CCMP actions result in a healthier ecosystem, according to a survey of 1,000 residents. Tourists also said they want to support CCMP implementation and are willing to pay about $9 a person per visit to improve the quality of the Lagoon. To the extent visitor dollars help support implementation, as they will through sales taxes, resident households will be less than presented above.

Finding ways to pay for CCMP actions should not delay implementation: benefits are high, costs are reasonable and distributed equitably, and residents and tourists are willing to pay more. Some $7.4 million in CCMP actions are already financed from a variety of sources including local wastewater and stormwater fees, SWIM funds, property taxes, federal grants, and special appropriations from the Florida legislature. These and other targeted sources of revenue also are effective and efficient ways to finance new and expanded programs.

This document explains why the Indian River Lagoon CCMP's scientifically-based management actions are needed to sustain an environmentally healthy economy well Into the next century and shows that CCMP actions are cost-effective and fair. In concise detail, it describes for residents and their elected officials how the CCMP can deliver stronger local economics, increased revenues, and more jobs, even as population grows and stress on natural systems increases. In the years to come, we will point to our resource-rich watershed with pride knowing that our decisions today sustained a way of life unique to the Indian River Lagoon basin.

Derek Busby
Dlrector, Indian River Lagoon National Estuary Program

A HEALTHY LAGOON SUPPORTS ECONOMICALLY VALUABLE RECREATION AND TOURISM

More than 1.25 million people live in the five counties bordering the Indian River Lagoon. In 1995, another 6 million visited the area. Recreational opportunities and an enviable quality of life afforded by Lagoon resources are a major reason people come to visit and settle in the region.

Lagoon-based recreational activity generates significant local economic value-more than S730 million in 1995. This value is tied to the estimated 24 million recreation days the Lagoon supported in 1995, 14 million for residents and 10 million for tourists. A recreation day is equal to one person engaged in one recreational activity for a day. This is the same level of activity as the entire population of Melbourne going fishing, boating, swimming, Jetskiing, windsurfing, hunting, or manatee watching on or near the Lagoon every day of the year.

Recreational uses, along with other land- and water-based activities, however, can place stress on the Lagoon ecosystem. Angling can reduce Lagoon fishery stocks, boats can be a source of water pollution, and other motorized watercraft can disturb aquatic life In sensitive areas. Surface runoff, discharge from wastewater treatment plants, and improperly functioning septic tanks also can impair the Lagoon's health.

Protecting the Lagoon will be critical over the next ten years as more people move to and visit the area. The number of residents in the five IRL counties is expected to increase from 1.25 to 1.54 million between 1995 and 2005. This would be an increase of 24 percent. If the number of visitors increases at the same rate, by 2005 over 7.3 million tourists will be coming to the region each year. At current recreational participation rates, in ten years the Lagoon could be providing almost 30 million recreation days a year, 6 million more than in 1995.

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The CCMP is a Blueprint for Environmentally Sustainable Growth

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The Indian River Lagoon Comprehensive Conservation and Management Plan, or the CCMP, is a blueprint for preserving Lagoon resources into the next century, and as such, it is a guide for maintaining economic prosperity in the IRL region.

The CCMP embraces the three primary goals of the Indian River Lagoon Surface Water Improvement and Management Plan, or IRLSWIM, a program administered solely by the St. Johns River and South Florida water management districts.
By adopting SWIM goals in its CCMP, the IRL National Estuary Program recognizes the SWIM program's significant planning and restoration accomplishments. The CCMP adds a fourth goal that specifically addresses funding needs.

In 15 separate action plans (see sidebars), the CCMP specifically addresses priority problems that threaten environmental sustainability and future recreational opportunities. In the absence of management actions to avoid or minimize such threats, the Lagoon has a limited ability to absorb human stress without suffering degradation. This ability is called carrying capacity.

When an ecosystem like the Indian River Lagoon reaches its carrying capacity, environmental degradation occurs, recreation days decrease, and economic values diminish. Fortunately, carrying capacity is not fixed.  Management measures, such as those in the CCMP, can reduce stressors, enhance the Lagoon's ability to replenish its resources, and minimize the impacts of development on natural resources.

Within the 15 action plans, 69 separate recommendations are designed to enhance Lagoon resources that support economically important recreational activities, including fishing, shellfishing, boating, water sports, hunting, swimming and nature observation. The action plans represent a combination of hands-on restoration work, such as wetlands restoration, impounded marsh reconnection, sea grass planting, and stormwater abatement projects. They also include an array of actions that will strengthen and integrate on-going activities and help make the most of available financial resources.

Many local, state, and federal organizations will help implement the CCMP. The region's five counties-Volusia, Brevard, Indian River, St. Lucie, and Martin-as well as the 31 cities In the region will play lead roles. The St. Johns and South Florida water management districts, local water control districts, and other regional organizations, including the Treasure Coast and East Central Florida regional planning councils and the successor to IRLNEP also are key participants. State and federal agencies will help fund CCMP implementation and provide technical assistance. These include the Florida Department of Environmental Protection and Department of Community Affairs, and the U.S. Army Corps of Engineers, U.S. Fish and Wildlife Service, and U.S. Environmental Protection Agency.

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Just How Valuable is the Lagoon?
$733 Million a Year

In 1995, the value of Lagoon resources to residents and tourists was more than $733 million. The bulk of this amount, $533 million, is counted in direct expenditures, including recreational spending, commercial shellfish landings, and the premium paid for Lagoon-front property. This value is captured in everyday market transactions, such as boat rentals, shellfish sales, and home purchases. These expenditures do not include water-borne commerce, since shipping generally Is unaffected by water quality.

The Lagoon's total economic value also includes another $200 million that is not reflected in market transactions. For example, the value of fishing In the IRL is great enough that anglers are willing to pay more than they currently spend for bait, fuel, and other items. Additionally, residents and tourists are willing to pay more to improve the Lagoon beyond what they already pay for environmental programs (through taxes). This willingness to pay more is called a nonmarket value and it can be estimated and added to values that are more easily measured in market transactions.

Lagoon-Based Recreational Spending Tops $487 Million Annually
Residents, and tourists spent more than $487 million in 1995 to enjoy fishing, shellfishing, swimming, boating, other water sports, nature observation, and hunting in and around the Lagoon. Residents spent $257 million, while visitors spent $231 million. Total spending levels on recreation may be much higher as this figure does not include related purchases of the more expensive equipment that people don't typically buy every year, such as boats or recreational vehicles.

The Lagoon Provided Shellfish Worth Almost $13 Million in 1994
Commercially harvested clams, oysters, crabs, and shrimp were worth $12.6 million at the docks in 1994. Various finfish also contribute to but it has been difficult to calculate their value since July 1, 1995, when the ban on gill and entangling nets went into effect and commercial finfishing practices changed dramatically. Even before the ban, clams, shrimp, and crabs represented more than half of the total value of all commercial fish and shellfish catches.

$825 Million in Property Values Are Tied to the Lagoon

Proximity to the Lagoon adds $825 million to the market value of Lagoon-front property relative to non-Lagoon-front property in the five IRL counties. On an annual basis, the Lagoon generates $33 million a year in value for residential landowners. This is because people pay a premium to be on the water for aesthetics and convenience. Market values of riverfront property range from $358 million in Brevard county to $81 million in St. Lucie county, generally reflecting relative length of each county's Lagoon shoreline.

Access to Lagoon Fishing Grounds is Valued at $140 Million a Year

Currently, anyone can fish in the Lagoon free of charge because it Is a public resource. That is to say, no organization, public or private, charges an entry fee to fish. Anglers do of course pay modest sums for fishing licenses and boat registration fees. They also pay sometimes not so modest sums for boats, rods, and other fishing equipment. The amount people spend on such fees and equipment generally reflects only part of the value to them of fishing in the Lagoon. In fact, many IRL anglers would be willing to pay more to fish in the Lagoon, up to a certain dollar amount, before they would choose to fish somewhere else.

Collectively, IRL residents are willing to pay up to $140 million more a year than they currently pay to fish in the Lagoon, according to a study prepared for IRLNEP. This value would increase to $200 million by 2010, based on projected population and fishing participation rates.

Individual access values vary by county of residence. The average angler living in Martin county is willing to pay $589 more a year than they currently do to fish in the IRL system, while the average angler living in St. Lucie county is willing to pay $110 more a year.

Fishing access values are not the only kind of access value that can be calculated. Based on the IRLNEP study, we can expect that residents and tourists also would be willing to pay more than they currently pay for other Lagoon-based recreational activities, such as nature observation and boating. Estimates of these values have not been developed, but they would certainly show that the value of Lagoon resources is substantially higher than the $733 million per year already estimated.

People Would Pay Up to $58 Million More to Protect the Lagoon

Residents care enough about the Lagoon that they are willing to pay up to $26 million more each year than they currently do to protect its resources. A survey asked 1,000 IRL households about three environmental programs:

When presented with a combination of these programs, respondents said they would be willing to pay an average of $60 per household a year, suggesting a maximum amount that residents are willing to pay for any program to improve the Lagoon. Notably, residents are willing to pay the most among three generic programs for the one that is not only an environmental priority but that probably will be most expensive for the region to implement.

In addition to the $26 million residents said they are willing to contribute to Lagoon management, nonresidents said they are willing to pay up to $32 million more a year to support stormwater management and wetlands protection programs for the Lagoon. A survey of 500 nonresident visitors showed that the average travel party (2.75 people) is willing to pay an additional $23 per party each time they visit the Lagoon if revenues were earmarked for the Lagoon.

The Lagoon Provides 19,000 Jobs and $250 Million in Annual Income for IRL Residents

The Lagoon's value also can be measured by the number of jobs and personal income associated with Lagoon-based activities, in addition to monetary value of goods, services, and other values.

Lagoon-based recreation currently provides over 19,000 jobs. This is equal to five times the workforce at Patrick Air Force Base, two and a half times the workforce of Harris Corporation, and exceeds the entire workforce of Kennedy Space Center, including government employees, contractors, and other on-site workers, by more than 3,000.

Lagoon-based recreation also currently provides $250 million in personal income for area residents. This averages $200 a year per resident, which could buy more than 100 quarts of orange juice.

The CCMP Will Protect Lagoon Values and Create Benefits for the IRL Community

The CCMP will do two things: at a minimum it will prevent further degradation of the Lagoon ecosystem that would have occurred in the absence of its management actions; and it will enhance the quality and quantity of Lagoon resources beyond current levels. Both outcomes will provide significant economic benefits to the IRL community.

In economic terms, a benefit is defined as an increase in value or prevention of loss of value. If, as experts expect, the value of Lagoon resources will decline as use increases, preserving any portion of current value constitutes a benefit in the same way that increasing current values creates a benefit.

The potential benefit of the CCMP can be illustrated in the following example. Imagine that the economic value of Lagoon resources will increase 5 percent with implementation of CCMP management actions, but will decrease 5 percent without implementation. The economic benefit of CCMP implementation is the total difference in value between the with CCMP' and without CCMP' cases, as depicted in the graphic below. This difference is calculated by adding the absolute value of the predicted changes under the two cases. In this example, the economic benefit of CCMP implementation is 5 + 5, or 10 percent of the Lagoon's total economic value- Here, the CCMP is worth well over $70 million a year (undiscounted) to the local economy.

Recall that by 2005, hundreds of thousands more people will be living in and visiting the five-county region and the cumulative effects of this growth could have significant consequences for the Lagoon. It is not hard to imagine that in the absence of CCMP management actions, additional pollution, overuse, and other stressors associated with the two percent annual population growth rate projected for the five counties could quickly degrade the Lagoon ecosystem. With the CCMP, resource managers can maintain the Lagoon's carrying capacity and continue to provide the recreational opportunities that residents and visitors have come to expect.

It is impossible to predict the exact value of the Lagoon with and without the CCMP because our scientific understanding of complex ecological cause and effect relationships is still evolving. Using existing science, CCMP management actions have been specifically targeted to address environmental problems that could threaten economic sustainability. At a minimum, we can be sure that the CCMP will be an economic benefit for every dollar of value it preserves, as well as every dollar of value it creates. Moreover, it is clear from the analysis presented thus far and continued below that that the IRL community has hundreds of millions of dollars at stake in its quest for environmentally sustainable development.

Economic Gains in Lagoon-Based Recreation and Tourism are Multiplied Throughout the IRL Economy

The economics of the five counties bordering the Indian River Lagoon depend on healthy natural ecosystems for their welfare. Businesses related to fisheries, recreation, tourism, and agriculture generate about S4 billion worth of goods each year Brevard, Indian River, St. Lucie, within Volusia, and. Martin counties. The economic sectors comprising these natural resource-dependent businesses account for about three quarters of the value of all primary goods (i.e., non-service sector) in this region. Manufacturing, including everything from t-shirts to semiconductors, accounts for the remainder of non-service sector output.

In turn, much of the construction industry and retail trades depend directly on the primary producing sectors for their livelihood. Hotels, for example, are not built unless tourists want to visit the Indian River Lagoon region. Retail shops depend on residents and tourists to buy their goods; insurance agencies and bankers need local marinas, tackle shops, and other Lagoon-related businesses to buy their services.  So, in many ways, the regional economy depends on the' recreation, tourism, agriculture, and manufacturing sectors to drive much of the activity in other areas of the economy.

These interrelationships multiply any increase in the value of Lagoon-based recreation and tourism throughout the regional economy, increasing the total impact of CCMP implementation beyond what appears in the recreation and tourism sector alone. Every time residents spend $10 on recreation in the Indian River Lagoon, total sales in the region increase by $12.40. The additional increase results from spending by businesses like marinas, tackle shops, or grocery stores to buy more goods for their shelves and pay their employees to continue operations.

Every time tourists spend money for a hotel room, total sales in the region increase by $192. The additional increase results from hotel owners' purchases of local supplies and services to keep the hotel running. Suppliers to the hotel industry, in turn, reinvest portions of their earnings in the local economy to supply their businesses.

Conservatively, residents and tourists spend $487 million a year on Lagoon-related activities, such as fishing, shellfishing, boating, Water sports, lodging, and restaurants (this figure excludes purchases of boats, recreational vehicles, and other major capital goods). When this level of expenditure ripples through the regional economy, it results in nearly $750 million Worth of goods and services.

The tourism and recreation sector also creates thousands of jobs within the five-county region. For example, every $1 million in tourist spending on Lagoon-based activities generates between 51 and 56 jobs, depending on whether it is spent in the lodging or retail sector. Simply preserving the quality of the Indian River Lagoon, therefore, sustains more than 19,000 jobs across all five counties.

Enhancing water quality, increasing habitat, or providing additional points of access to the Lagoon can generate thousands more jobs over the next five years. All other things being equal, Florida economists predict the IRL economy will grow almost 16 percent between 1995 and 2000, implying an increase of $81 million In the annual value of Lagoon-based recreation and tourism. This presumes that the Lagoon continues to support its current share of the economy. It also presumes that the quality and quantity of Lagoon resources can be sustained, as the CCMP is designed to do.

Through the multiplier effect described above, an increase of this magnitude will create another $43 million In local trade, for a total impact of $124 million. This level of activity will add more than 3,000 net jobs to the 19,000 currently supported by Lagoon-based economic activity. Such additional employment opportunities are comparable to adding another Holmes Regional Medical Center or Rockwell International to the list of local employers.

But What About Costs?

All told, the CCMP will cost slightly less than $18 million a year over the first five years of CCMP implementation. About $7.4 million of this represents costs for activities and programs that were on-going or planned before the CCMP was developed. The $7.4 million Includes more than $5 million for managing fresh and stormwater discharges. Framers of the CCMP included selected on-going actions in the Plan to highlight important efforts and facilitate integrating new CCMP actions into existing county, special district, and other resource management plans.

Costs for new projects average a little over $10 million a year. Almost all of these new costs, S8 million annually, are for technical engineering studies and design work associated with reducing and managing fresh and stormwater discharges. This work lays the foundation for construction projects that will address fresh water and stormwater discharge problems. At this time, costs of actual construction are still being estimated, but it is reasonable to expect the cost for the five-county region will total in the hundreds of millions of dollars.

The remaining S2 million in new costs includes a variety of in-the-ground projects, such as muck removal, as well as a number of new initiatives that will enhance planning and coordination among the Lagoon's many stewards. The relative proportion of existing to new costs across CCMP action plans varies substantially. This variability is more a function of the organization of actions among plans than necessarily  reflective of past expenditures and future needs in any one area.

Average Costs Per Family Will Be Modest

Bringing CCMP costs down to the household level helps to put them Into perspective. If all CCMP costs, for already planned as well as new activities, were divided equally among IRL households, each would pay $33.81 a year. Existing programs would claim $14.17 and new Initiatives would capture the remaining $19.64. Remember that 1000 IRL households said they would be willing to pay an additional $60 a year to support programs like those contained in the CCMP. The average cost of the CCMP per household is roughly half of what the average household said such programs were worth to them.

The truth is, however, that IRL residents will not bear the full cost of CCMP implementation. Floridians outside the IRL community will contribute to state programs and water management district projects through state sales taxes and federal income taxes redistributed to the state in the form of federal assistance. This will reduce the total cost of the CCMP to the IRL community. American and foreign tourists also will offset some CCMP costs by paying for implementation through sales and other special, taxes levied on local goods and services that flow to government programs.

Costs Are Spread Equitably Across the Five Counties

While costs of implementing the IRL CCMP are reasonable and far less than the benefits one could reasonably expect as a result, it's fair question to ask whether individuals in one area will pay more than individuals in another. In fact, this turns out not to be the case since costs are spread relatively evenly across the five-county region.

Together, all new CCMP costs represent less than one half of one percent of each county's total annual personal income. If costs of new CCMP actions were paid entirely by residents (as noted above, this will not be the case), the average citizen in Volusia county would pay the least, S7.42 a year, while the average citizen in Indian River county would pay the most, $9.50 a year. Citizens in Brevard, St. Lucie, and Martin counties would pay $7.75, $8.46, and $9.49 a year, respectively.

For all intents and purposes, costs per person are the same in all five counties. The difference between the highest and lowest average cost per person is just barely enough to buy a Big Mac on U.S. I with nothing left after sales tax, not even for a small soda.

Many Options Exist to Finance

Fortunately, paying for the CCMP can be relatively painless, without any need to raid the region's piggy bank. Implementing agencies have already allocated funds for slightly less than half of the Plan's total costs. The IRL community can pay for the remaining $10 million in annual costs with a variety of revenue sources In ways that spread costs equitably, place some responsibility on tourists that enjoy Lagoon resources, and minimize burdens for any one group.

For many CCMP actions, the easiest ways to fund implementation will rely on enhanced revenues from existing sources. To some extent, population growth alone will bring an increase in revenues. For selected sources, however, local officials may want to adjust tax rates and/or fee levels to be more in line with funding needs for targeted activities.
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Existing Revenue Sources
                                                                                                                                   

	Local wastewater and stormwater utility fees
	Local general revenues (ad valorem taxes)
	SWIM funds including water management district (WMD) ad valorem revenues and state matching funds
	Non-SWIM WMD funds, including ad valorem tax revenues, permit fees, State and federal grants and funds from state land acquisition trusts
	State land acquisition and environmental trust funds such as CARL, Preservation 2000, and others
	State general revenues and state grant and loan programs
	Federal funding, including grants from EPA, USFWS, and others

With both existing or new revenue sources, citizens and government representatives typically expect that some relationship exists between a revenue source and the activities it supports. Many believe that individuals and businesses should pay for environmental programs in proportion to their contribution to problems or the benefits they
receive from ecosystem protection. While it Is not always possible to achieve this goal, several potential funding sources match up well with CCMP actions. One simple funding package is illustrated on the next page.

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ONE CCMP FUNDING SCENARIO

This example illustrates how the $10 million in new annual costs needed for CCMP implementation could be raised according to the following criteria: (1) Nonresidents pay reasonable share; (2) A relationship exists between the revenue source and its use; and (3) No single group pays a disproportionate share. These criteria were adopted by the IRLNEP Finance and Implementation Task Force, which oversaw projects to estimate costs and benefits associated with-CCMP actions and develop a financing strategy. This example presents 2 simplified funding strategy where only three revenue mechanisms are used and several practical issues relating to revenue dedication and Jurisdictional boundaries are set aside. It is meant to serve only as an illustration of the possibilities and does not represent a recommended strategy.

For convenience, responsibility is split between residents and nonresidents-Residents pay $6 million a year and nonresidents pay S4 million a year. This division roughly reflects the breakdown between resident and nonresident Lagoon recreation days: 14 million to 10 million in 1995.

In this example, residents' responsibility Is split equally in two S3 million shares to approximate the significance of CCMP costs related to stormwater management compared to all other CCMP costs. One share is funded through a stormwater utility charge and the other is funded through an incremental increase in ad valorem tax rate that the St. Johns and South Florida water management districts collect from IRL county residents. Nonresidents pay their share through a single source, a tax on lodging charges.
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It could be appropriate, for example, to match actions to mitigate impacts of marinas and boating on the Lagoon with revenues from sources such as watercraft sales taxes, marine fuel taxes, or boat registration and mooring fees. Similarly, fishing license fees would provide a way for anglers to pay for fishery research and stock management programs.

When CCMP actions result in generally available benefits, broad-based revenue sources are often acceptable funding options. For example, a small Increase in the ad valorem tax rate of the water management district could provide additional funds for wetlands restoration, impounded marsh management, land acquisition, or species protection
programs.

When CCMP projects will provide services or otherwise generate benefits over a long period of time and require considerable up-front capital, as is the case with wastewater treatment plants and stormwater management facilities, it is customary to rely on loans or bonds. These allow large, up-front costs to be repaid over time consistent with growth in population and use of Lagoon resources and have the added advantage of distributing costs in proportion to a community's contribution to the problem.

Conclusion

IRLNEP's CCMP for the Indian River Lagoon specifies the scientific rationale and management actions needed to sustain an environmentally healthy economy well into the next century. In developing the CCMP, many dedicated and talented individuals have expended great amounts of time and effort in obtaining agreed upon recommendations. The actions recommended in the CCMP are cost-effective and fair. Elected officials should be particularly interested because the CCMP can deliver stronger local economies, increased revenues, and more jobs-even as population grows and stress on natural systems increases. A new era in the history of Indian River Lagoon restoration is upon us where a communal commitment to action is needed. In the years to come, we will point to our resource-rich watershed with pride, knowing that our decisions today sustained a way of life unique to the Indian River Lagoon basin.

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SEAGRASS PRESERVATION AND RESTORATION: A DIAGNOSTIC PLAN FOR THE INDIAN RIVER LAGOON
by
Robert W. Virnstein
Supervising Environmental Specialist
and
Lori J. Morris
Environmental Specialist
St. Johns River Water Management District
Division of Environmental Sciences
P.O. Box 1429
Palatka, FL 32178
Correct citation of this report is:
Virnstein, R.W. and Lj. Morris. 1996. Seagrass preservation and restoration: a diagnostic plan for the Indian River Lagoon. Technical Memorandum #14.
St. Johns River Water Management District, Palatka, Fl. 43 pp.

COVER PHOTOS: Representing the premise of this document by going from large-scale to fine-scale, clockwise from far left -- satellite image of the Indian River Lagoon system; aerial photograph of the Ft. Pierce Inlet area looking north showing seagrass as dark areas; and a mixed seagrass bed consisting of Syringodium filiforme with some Halodule wrightii.

BENEFITS
Instituting these management changes should result in the protection or restoration of increased acres of seagrass. One major benefit is that seagrass provides the basis for a major regional economy by providing productivity and nursery habitat for fisheries. Seagrass meadows in the Lagoon may provide about $1 billion per year of economic benefit, based on the following assumptions:

Commercial fisheries in the Lagoon area:

Recreational fisheries in the Lagoon area:

Under the above assumptions, total economic impact of the fisheries of the Lagoon region due to seagrass is about $1 billion dollars. Although the above estimates are crude, they indicate the great magnitude of the value of seagrass. Seagrass in the Lagoon may thus provide over $12,000 per acre per year in economic impact, based on fisheries benefit alone. Seagrass is worth protecting!