I. Public Works
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
MEETING DATE: November 14, 2007 DIVISION: Public Works
BULK ITEM: Yes No X DEPARTMENT: Public Works
STAFF CONTACT/PHONE#:
Dent Pierce/292-4560
AGENDA ITEM WORDING: Discussion of Gas Tax Fund 102.
ITEM BACKGROUND:
PREVIOUS RELEVANT BOCC ACTION:
CONTRACT/AGREEMENT CHANGES:
STAFF RECOMMENDATION:
TOTAL COST: $ BUDGETED: Yes: No:
COST TO COUNTY: $ SOURCE OF FUNDS:_____________
AMOUNT PER MONTH _____ PER YEAR_____
REVENUE GENERATED: Yes No
APPROVED BY: County Atty.: OMB/Purchasing: Risk Management:
DOCUMENTATION: INCLUDED: x NOT REQUIRED:
DISPOSITION: AGENDA ITEM #:
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
MEETING DATE: November 14, 2007
DIVISION: Public Works
BULK ITEM: Yes
No X
DEPARTMENT: Public Works
STAFF CONTACT/PHONE#: Dent Piercel292-4560
AGENDA ITEM WORDING: Discussion of Gas Tax Fund 102.
ITEM BACKGROUND:
PREVIOUS RELEVANT BOCC ACTION:
CONTRACT/AGREEMENT CHANGES:
STAFF RECOMMENDATION:
TOTAL COST: $
BUDGETED: Yes:
No:
COST TO COUNTY: $
SOURCE OF FUNDS:
REVENUE GENERATED: Yes
No
AMOUNT PER MONTH
PER YEAR_
APPROVED BY: County Atty.:
OMB/Purchasing: _ Risk Management:
DOCUMENTATION: INCLUDED: x
NOT REQUIRED:
DISPOSITION:
AGENDA ITEM #: :r:.-
O!!~V ~o~~~E
(305)~1
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RnaDn OF COUNIY
COMM'lCCTnIIERS
Mayor Mario Di Gennaro, Disbict 4
Mayor Pro Tern DixIe M. Spehar, Disbict 1
George Neugen~ District 2
Olarles'Sonny" McOJy, Disbict 3
SyM. J. Murphy, District 5
Sumnne A. Hutton, County Attorney""
Robert B. Shillinger, Chief Assistant County Attorney ..
Pedro J. Mercado, Assistant County Attorney
Susan M. Grimsl,'Y, Assistant County Attorney ..
Nati1eene W. Cassel, Assistaot County Attorney
Cynthia L. Hall, Assistant County Attorney
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Office of tfIe County Attorney
PO Box 1026
Key West, FL33041.1026
(305) 292-3470 - Phone
(305) 292-3516 - Fax
.. Board Certified in City, County &. Local Govt Law
October 26, 2007
TO:
Dent Pierce
Division Director
Public Works
FROM:
Suzanne Hutton 'J"ff
County Attorney
RE:
GAS TAX or SPECIAL ASSESSMENTS FUNDING
You have inquired as to the pros and cons of seeking funding mechanisms of either additional gas tax or
special assessments in order to generate the revenue necessary to continue to provide the necessary level
of maintenan,:;e and repair service for the roads and bridges in the unincorporated county. There are a
nwnber of comparisons which can be made. I may not consider all, but here are at least a few:
1. TIle gas tax would spread the cost of the additional revenues to visitors as well as the residents,
while special assessments would put the full burden on the property owners benefited.
2. The work necessary to get special assessments in place in time to be able to start collecting
revenues for repairs and maintenance in fiscal year (FY) 2009 has to be done inlmediately,
while we have some lead time for the imposition of additional gas tax.
Ordinances for special assessment districts would have to be approved in November, unless
Wl: are able to rely upon the special districts already set up in Monroe County Code Section 2-
235 et seq. In the latter case, the BOCC, acting as the governing board of each district, may
adopt by resolution user fees based on the estimated costs of the repairs and maintenance to be
in.:urred in the district less the allocation of gas tax to that district. In either case - establishing
Roads & Bridges districts, or utilizing the existing districts, proper cost allocation will be
absolutely necessary.
We have Wltil JWle, 2008 to pass an ordinance to either obtain a majority plus one vote ofthe
HOCC on an ordinance levying one or more additional cents or to enact an ordinance creating
a referendum to be placed on the ballot in November 2008 for additional gas tax.
3. The requirements for adoption of additional gas tax (either super majority vote ofBOCC or
n:ferendum of voters) could not be met and if that occurs, we will have the same time crunch
nl~xt year to get special assessment ordinances in place to be able to provide repairs and
maintenance in FY 2010. See below discussion of gas tax for more details on adoption.
The enactment of the special assessment districts does not require voter referendum. Of
course, if we don't do special assessments, we don't get a super majority vote of the BOCC for
additional gas tax, and the voters don't approve a referendum, we will be able to do only so
much maintenance and repairs as can be funded in FY 2009 with the existing gas tax, and the
remainder of the roads and bridges will have to wait until the following year, which of course
will exacerbate the problem Wltil more revenue is made available. FYI, there are several
memos in our files since about 2000 noting that the costs of maintenance and repairs have
been exceeding collections and eating into the fund balance.
It should be noted that the voters voted against a November 6, 1990 relerendum to impose an
additional one cent gas tax. A copy of the Wlderlying ordinance, No. 022-1990, creating the
refenmdum is attached. The vote was 13,958 No and 6,142 Yes.
GAS TAX:
The COWlty <:urrentIy utilizes a six cent local option gas tax, which expires September I, 2019. We have
up to eleven ';ents as a local option gas tax Wlder Section 206.41(1)(e), F.S. Section 336.025(1)(b), F.S.,
sets forth the enactment procedures for the five cents beyond the first six cents of local option gas tax.
Imposition of one or more cents of additional gas tax needs to be completed before July 1 in order to be
effective on January 1 of the following year. It can be done by ordinance which is adopted by a super
majority (4) vote of the BOCC or by referendum approved by the voters. Ifwe pursue the gas tax before
March, 2008, and the ordinance fails to get a super majority vote, we still would have time to get a
referendum ordinance approved by a vote of three before July 1,2008.
If we are going to levy additional gas tax, we need to update the ILAs we have with the cities to provide
for a share of the new levy before the effective date of the tax (January 1,2009).
SPECIAL ASSESSMENTS:
First, I must apologize. I see from going through the files we have on gas tax that you have been asking
questions for several years about the possibility of special assessments being used for roads and bridges
maintenance. The answer is that mWlicipal service benefit Wlits and special assessments may be
implemented for maintenance and repairs as well as capital improvements.
However, special assessments are charges assessed against particular property because that property
derives some special benefit from the expenditure of the money in addition to the general benefit accruing
to all property or citizens. There are two requirements for the imposition of a valid special assessment.
First, the property assessed must derive a special benefit from the service provided. Atlantic Coast Line
R.R. v. Otv or Gainesville. 83 Fla. 275. 91 So. 118 (1922). Second, the assessment must be fairly and
reasonably apportioned among the properties that receive the special benefit. South Trail Fire Control
Dist. v. State. 273 So.2d 380 (Fla.1973).
That will require assessments to be imposed by district, based annually on the estimated costs to be
incurred in each district. The assessments collected would then have to be applied to the maintenance and
repairs in the appropriate district. Higher administrative costs to account for collections and expenditures
in each district will be incurred than in the collection and use of gas tax, which will probably incur no
additional administrative costs since there is already a collection of the tax and distribution to the County
and municipalities. Special assessments also require equitable distribution of the gas tax which is not
currently resltricted to district-wide accounting but currently available for all roads and bridges in the
unincorporated county, so it will add a level of administration not currently applied.
Special assessments may be placed on the annual tax bill if we follow the appropriate procedure. That
makes collection much easier than sending out assessments separately. The procedure requires that the
BOCe adopt a resolution to place the non-ad valorem assessment on the tax bill before January I (unless
both the tax (lollector and the property appraiser agree to let BOee approve the resolution by March I) of
the year in which the assessment is to go on the bill. That means that for us to utilize he uniform non-ad
valorem assessment procedure to affix assessments on the ad valorem tax bill in November 2008, the
BOee would have to approve the resolution in December, 2007, or get the Tax Collector and Property
Appraiser to agree to a resolution passed no later than February 29, 2008.
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Commissioner Gene Lytton
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ORDIIl'AIICE !lIO. l>22 -1990
AN ORDINANCE IMPOSING AN ADDITIONAL ONE CENT
GAS TAX IN MONROE COUNTY, INCLUDING THE
CITIES, FOR TIlE PURPOSE OF FUNDING A TRANS-
POIl.TATION SYSTEM AND RELATED FACILITIES AND
TIlE COST OF ACQUISITION, CONSTRUCTION,
RECONSTRUCTION AND MAINTENANCE OF ROADS AND
STREETS, PROVIDING THAT A PORTION OF THE TAX
pi\iiCEEDS MAY BE DISTRIBUTED BY INTEIILOCAL
'A~NT TO ANY OR ALL OF THE CITIES IN THE
collllTY, PROVIDING FOR A Rr;YIOO<dl>lJM AS TO
WIlETIIER THE TAX SHOULD BE IMPOSED, PROVIDING
FOR SEVERABILITY, PROVIDING FOR REPEAL OF ALL
ORDINANCES INCONSISTENT HEREWITH, PROVIDING
FOR INCORPORATION INTO THE MONROE COUNTY
CODE, AND PROVIDING AN EFFECTIVE DATE. ~
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BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF
1lONR0E COUNTY, FLORIDA, t:hat:
Section 1.
The
Monroe
Count:y
Board
of
Count:y
C0DID1881oners may, by resolution, impose a tax, including the
municipalit:ies therein, in addit:ion t:o all ot:her t:axes required
or allowed by law, a one cent gas tax upon every gallon of motor
fuel and special fuel sold in t:he Count:y and t:axed under t:he
prov1sions of part I or part: II of Chapt:er 206, Fla.St:at:. The
t:ax shall be collect:ed in t:he manner pronded in Sec. 336.021,
Fla.St:at:.
Section 2.
The proceeds of t:he t:ax shall be used for t:be
purpo-se of paylngthe coat. and expenses of establishing, operat-
ing and maint:aining a t:ransport:at:ion syst:em and relat:ed facil-
ities and the cost of acquisition, construction, reconstruction,
and maintenance of roads and streets.
Section 3.
The County may, at anytime, enter .1Dto an
int:erlocal agreement wit:h any or all of t:be municipalit:ies in t:he
Count:y in order t:o provide for t:he distribution of the t:ax
proceeds beween t:he Coont:y and t:he municipali t:y or municipal-
it:iel. No t:ax proceeds distribut:ed to a municipality may be used
for purposes ot:her tban t:hose described in Section 2 of t:hb
Ordinance.
Section 4.
Tbe November 6, 1990, general elect:ion ballot
in Monroe County, including the municipalities locat:ed therein,
shall have tbe following referendum question:
Additional One Cent Gas Tax Levy
Should an additional one cent gas tax be
imposed in Monroe County, illcluding the
cities, for the purpose of funding a
transportation system and related facilities,
and
the
acquisition,
construction,
reconstruction, and maintenance of roads and
streets?
Yes
No
Sec tion 5.
If any section, subsection, sentence, clause
or provision of this Ordinance is held invalid, the remainder of
this Ordinance shall not be affected by such invalidity.
Section 6.
All ordinances or parts of ordinances in
conflict with this Ordinance are hereby repealed to the extent of
said conflict.
Section 7.
If this Ordinance becomes effective, it shall
be included and incorporated in the Code of Ordinances of the
County of Monroe, Florida, as an addition- or amendment thereto,
and shall be appropriately renumbered to conform to the uniform
numbering system of the Code.
Section 8.
A copy of this Ordinance shall be filed in
the Office of the Secretary of State, State of Florida, but the
Ordinance shall not take effect unless and until a majority of
those voting on the referendum question Bet forth in Section 4
vote yes.
PASSED AND ADOPTE~ by the Board of County Commissioners of
MOnroe County, Florida, at a regular meeting of said Board held
on the /A+IL day of ... Juf, , A.D., 1990.
(SEAL)
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY. FLORIDA
By ok~i~
AIWIOVEOA1l70 FO#IM
~~
I~FFECTIVE DATE:
L
mann.!' I.. liolbage
,
BRANCH OFFICE
3117 OVERSEAS HIGHWAY
MARATHON, FLORIDA 330m
TEL. (306) 7_
....... ~RK OF THE CIRCUIT COURT
MONROE COUNTY
600 WHITEHEAD STREET
KEY WEST, FLORIDA 3IlO4O
TEL. (305' 294.4641
BR~CH OFFICE
P.O. ROX 37f
PLANTATION KEY. FLORIDA 33070
TEL. _I 86_
July 18, 1990
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Mrs. Liz Cloud, Chief
Bureau of Administrative Code and
Department of State
The Capitol
Tallahassee, Florida 32301
Dear Mrs. Cloud:
Laws
f ~-sD~
-oo:r7(J3
Enclosed please find a certified copy of Ordinance
No. 022-l990 imposing an additional one cent gas tax in
Monroe County, inCluding the cities; providing that a por-
tion of the tax proceeds may be distributed by inter local
agreement to any or all of the cities in the County; pro-
viding for a referendum as to whether the tax should be
imposed I etc.
This Ordinance was adopted by the Monroe County
Board. of County Commissioners at a Regular Meeting in formal
session on July 10, 1990. Please file for record.
Very truly yours,
Danny L. Kolhage
Clerk of the Circuit Court and
ex officio Clerk to the Board
of Ceun iss ners
ee, Mayor J. Stormont
Mayor Pro Tem W. Harvey
Commissioner D. Jones
Commissioner E. Lytton
Commissioner M. Puto
County Attorney R. LUdacer
County Administrator T. Brown
Public Works Director D. pierce
Fi.le