Item M7 M.7
County �� � .�� �y,4 ' �, "tr, BOARD OF COUNTY COMMISSIONERS
Mayor Michelle Coldiron,District 2
�1 nff `ll Mayor Pro Tem David Rice,District 4
-Ile Florida.Keys Craig Cates,District 1
Eddie Martinez,District 3
w Mike Forster,District 5
County Commission Meeting
June 16, 2021
Agenda Item Number: M.7
Agenda Item Summary #3333
BULK ITEM: No DEPARTMENT: BOCC District 4
TIME APPROXIMATE: STAFF CONTACT: Tamara Lamarche (305) 289-6000
No
AGENDA ITEM WORDING: Discussion and direction about prioritizing workforce
transportation.
ITEM BACKGROUND: Monroe County's geography and unique environmental features present
many challenges, including a high cost of living. The high cost of living significantly affects the
workforce for most, if not all, employers in the County. The leading industry in the County is the
hospitality industry. A large portion of that industry's workforce for employers in the Middle and
Upper Keys are bussed in from Miami-Dade County on a daily basis. Key West transit provides a
similar service in the Lower Keys.
The system is not perfect and needs improvement. Joining an existing regional transportation or
transit authority or creating a new authority opens up funding sources that could be used to fund
such improvements. For example, counties that are within or under an interlocal agreement with a
regional transportation or transit authority may levy a discretionary sales surtax of up to one penny
to fund transportation needs.
Under current law, Monroe County has the option of joining the South Florida Regional
Transportation Authority (SFRTA). That authority currently consists of Broward, Miami-Dade, and
Palm Beach counties but may operate within Monroe County with the mutual consent of the BOCC
and the authority. Under F.S. 343.58(1), each SFRTA member county must contribute $2.67 million
on an annual basis to that authority.
The SFRTA is one of four regional transportation authorities authorized in chapter 343 of Florida
Statutes. The others are the Central Florida Regional Transportation Authority, the Northwest
Florida Transportation Corridor Authority, and the Tampa Bay Regional Transit Authority. The
Jacksonville Transportation Authority is a similar entity authorized in chapter 349 of Florida
Statutes.
Another option is to create a new regional transportation authority for the Florida Keys. Creating
such an entity would require statutory authorization in order to be able to levy the discretionary sales
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M.7
tax. A third option is to commence the process for becoming a charter county.
The options are outlined in an attached memo that the County Attorney prepared for Commissioner
Rice. The purpose of the memo is to introduce the topic of the once cent transportation sales surtax
to the Florida Keys Transportation Coordination Committee. That committee is scheduled to discuss
the item on June 4, 2021 at 1 pm.
The purpose of this item is to discuss the options available and develop the Board's priorities based
upon that discussion.
PREVIOUS RELEVANT BOCC ACTION: On 5/26/21, the Board held a strategic planning
workshop. One issue discussed was the need for making transportation options a priority.
CONTRACT/AGREEMENT CHANGES:
n/a
STAFF RECOMMENDATION:
DOCUMENTATION:
One Cent Transportation Sales Surtax
FINANCIAL IMPACT:
Effective Date:
Expiration Date:
Total Dollar Value of Contract:
Total Cost to County:
Current Year Portion:
Budgeted:
Source of Funds:
CPI:
Indirect Costs:
Estimated Ongoing Costs Not Included in above dollar amounts:
Revenue Producing: If yes, amount:
Grant:
County Match:
Insurance Required:
Additional Details:
n/a
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M.7
REVIEWED BY:
David Rice Completed 06/01/2021 11:48 AM
Bob Shillinger Completed 06/01/2021 11:43 AM
Liz Yongue Completed 06/01/2021 12:35 PM
Board of County Commissioners Pending 06/16/2021 9:00 AM
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Memo
To: Commissioner David Rice
From: County Attorney Bob Shillinger
Date: May 28, 2021
Re: One Cent Transportation Sales Surtax
You asked me for information on the one-cent transportation sales surtax. Below
please find some information highlighting the salient points related to that tax, which is
authorized by F.S. 212.055(1). This memo is an introduction to the topic, not a
complete, definitive white paper. y
Summary: Florida law authorizes what is known as a "Charter county and regional
transportation system surtax" of up to 1 percent. That surtax is only available to
qualifying counties — Monroe does not currently qualify to levy the tax but it could. The
sales surtax is subject to approval by referendum. The proceeds can be used for a
variety of transportation related purposes determined by the County Commission.
Background: The Charter county and regional transportation system surtax is one of
nine local option sales surtaxes authorized by F.S. 212.055. Monroe County currently
levies a one-penny infrastructure sales surtax under subsection (2) of that statute. The
Monroe County School Board currently levies a half-cent school capital outlay surtax
under subsection (6) of the statute. Department of Revenue guidance documents state
that the maximum surtax that can be charged is 2.5% leaving Monroe with the
additional capacity to levy the full penny for a transportation surtax.
Uses: The statute lists a variety of transportation related uses that the proceeds can be
used to fund. Those uses include the development, construction, equipment,
maintenance, operation, supportive services, including a countywide bus system,
on-demand transportation services, and related costs of a fixed guideway rapid
transit system; as well as for planning, development, construction, operation, and ca
maintenance of roads and bridges. The statute authorizes uses of the proceeds
to pay debt service for qualifying projects. Alternatively, the BOCC could remit
the funds to a transit authority created by law for use at the discretion of that
authority.
Qualifying Counties: To qualify to levy the transportation sales surtax, a county
must be a charter county, a county that has been consolidated with a
municipality, or associated with a regional transportation or transit authority
created under chapters 343 or 349 of Florida Statutes. Monroe does not
currently qualify to levy this tax but we do have options to consider.
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Option 1 - Charter County
Monroe is not a charter county at this moment. Past efforts to adopt a county
charter have not progressed to the point of drafting a proposed charter, much
less a successful referendum to adopt one. A charter is essentially a county
constitution that functions similar to the charters adopted by each municipality in
the County. Charters range from simple "starter charters" to complex
documents. Given a 2018 amendment to the Florida Constitution, county
charters can no longer radically alter county governance by eliminating the five
independently elected constitutional officers in favor of charter officers
subordinate to the BOCC. Adopting a charter is the only option completely within
the control of the BOCC and county voters.
Option 2 - Consolidated Government
The statute allows a county that has consolidated with a municipality to levy this y
tax. Monroe County has not consolidated with any of its municipalities. To do so
would require a legislative act authorizing consolidation. Any such act would
require a referendum. Essentially, the participating city/cities would be merged
into the County. Jacksonville/Duval County is the most notable example of a
consolidated city/county government in Florida. I am not aware of any others in
Florida though I am aware of an unsuccessful effort to consolidate the City of
Pensacola with Escambia County.
Option 3 - Regional Transportation / Transit' Authority
The statute also allows a county that is within or under an intrlocal agreement
with a regional transportation or transit authority created under chapter 343 or
349 to levy the tax. Chapter 343 authorizes four (4) regional
transportation/transit authorities (South Florida, Central Florida, Northwest
Florida, and Tampa ay). Each authority is established through its own part of
chapter 343. Chapter 349 authorizes the Jacksonville Transportation Authority.
Monroe is not currently a member of the South Florida Regional Transportation
Authority (SFRTA), which consists of Broward, Miami-Dade, and Palm Beach
counties. The SFRTA statute does contemplate expansion of that entity's
operations into Monroe County with the consent of the Monroe County BOCC.
There is an open question of whether Monroe County needs to become an actual
member of the SFRTA to be able to levy the transportation surtax or whether
entering into an ILA is sufficient to qualify us to levy the surtax. The statutory
language suggests that an ILA would work but more research must be conducted
1 found no meaningful difference between a transportation and transit authority.
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to clarify that answer. The distinction is important because membership in the
SFRTA requires an annual contribution of $2.67 million from each member
county to the SFRTA to fund its operations.
Another idea would be to ask the Legislature to create a separate Florida Keys
Regional Transportation Authority. Such an entity would be a separate
governmental entity from the County and its participating municipalities. As such,
it would have a different governing body. The Legislation would have to spell out
representation on the governing body and method of selection of members. This
option would require additional research and study on the pros and cons vs. the
other options and sub options outlined above.
In sum, Option 3 really has three sub options:
— Join the SFRTA.
0
— Explore whether an ILA with the SFRTA will qualify Monroe County to
levy the surtax. If so, negotiate such an ILA with the SFRTA.
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— Create a Florida Keys Regional Transportation Authority.
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