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Item Q4 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: November 21, 2000 Division: County Attorney AGENDA ITEM WORDING: Adoption of a Resolution pursuant to Florida Statute Section 125.01(6)(b) responding to the petition of the City of Marathon seeking remittance of fund balances. ITEM BACKGROUND: By Resolution 00-10-61 (attached), the City of Marathon has purportedly initiated the statutory process for seeking relief from double taxation. The City's Resolution actually seeks payments from County fund balances. PREVIOUS RELEVANT BOCC ACTION: The BOCC has previously rejected the Village of Islamorada's demand for transfer of fund balances, while entering into Interlocal Agreements for transfer of equipment and impact fees to the newly created municipality in which the equipment is located and the impact fees were collected. STAFF RECOMMENDATION: Adoption of attached Resolution. TOTAL COST: BUDGETED: Yes___ No___ APPROVED BY: County Attorney X OMB/Purchasing Risk Management DOCUMENTATION: Included x Not required DIVISION DIRECTOR AGENDA ITEM # l-Qq Board of County Commissioners RESOLUTION NO. -2000 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA, IN RESPONSE TO THE CITY OF MARATHON'S RESOLUTION PETITIONING MONROE COUNTY FOR FINANCIAL RELIEF WHEREAS, on October 24, 2000, the City Council of the City of Marathon adopted by Resolution No. 00-10-61 its Petition ("the Petition") seeking relief under Florida Statutes Section 125.01(6)(a); and WHEREAS, the Petition identifies as "Revenues," subject to statutory relief, certain revenues received by Monroe County during fiscal year 1999-2000 as "ad valorem and non-ad valorem revenues, special assessments, impact fees and services charges"; and WHEREAS, impact fee revenues derived from the Middle Keys subdistrict, may lawfully be utilized only in that subdistrict; and WHEREAS, the BOCC is prepared to enter into an interlocal agreement with the City of Marathon to assure that impact fee revenues heretofore collected within the geographic boundaries of the City of Marathon are expended or refunded as provided in Chapter 9.5, Monroe County Code; and WHEREAS, Monroe County retains no funds derived from special assessments levied in FY 1999-2000 within the City of Marathon, and has neither the legal ability nor intent to make or collect special assessments within the City of Marathon for the current fiscal year or future fiscal years; and WHEREAS, because the Monroe County General Purpose Municipal Service Taxing Unit ("MSTU") finances its activities from ad valorem taxes collected solely within the district (Code ~2-388), no ad valorem tax will be assessed and collected by Monroe County on property within the City of Marathon in FY 2000-2001 or subsequent years to fund the MSTU's activities; and WHEREAS, because Monroe County's other municipal service taxing or benefit units (the "Districts") are also financed from ad valorem taxes levied and user fees collected within each district only, and the City of Marathon is not within the boundaries of any such district, no ad valorem tax will be assessed and collected by Monroe County within the City of Marathon in FY 2000-2001 or subsequent years to fund the Districts' activities; and WHEREAS, County revenues derived from or on behalf of a municipal taxing unit, special district, unincorporated area, service area or program area are speCifically excluded from the statutory prohibition [F.S. Section 125.01(7)] against the use of County revenues to fund services and projects of no real or substantial benefit to properties and residents of municipalities; now, therefore BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA: Section 1. Recitals. The above recitals are found to be true and correct, and are adopted as findings by the Board of County Commissioners. Section 2. This Resolution comprises the response of the Board of County Commissioners to the City of Marathon's petition adopted October 24, 2000, and identifies those mechanisms developed by Monroe County to finance, for the ensuing fiscal year, those services and programs rendered specially for the benefit of the property or residents in unincorporated areas. To the extent that the Petition seeks payment to the City of Marathon of MSTU or other Districts' fund balances, it is rejected. PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida, at a regular meeting of said Board held on the day of November, 2000. Commissioner Commissioner Commissioner Commissioner George Neugent Commissioner Nora Williams (SEAL) Attest: DANNY L.KOLHAGE, Clerk BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA By Deputy Clerk By Mayor/Chairperson jdrescomspecass RESOLUTION NO. oo-IO-fol A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MARA THON, FLORIDA, PETITIONING MONROE COUNTY, FLORIDA, TO REMIT TO THE CITY OF MARATHON ITS PROPORTIONATE SHARE OF AD VALOREM AND NON-AD VALOREM REVENUES, SPECIAL ASSESSMENTS, SERVICE CHARGES, IMPACT FEES OR OTHER REVENUES COLLECTED BY THE COUNTY FROM THE RESIDENTS OF THE CITY WHICH THE COUNTY IS UTILIZING TO PROVIDE SERVICES THAT DO NOT BENEFIT THE CITY PURSUANT TO ARTICLE VIII, SECTION I(H), FLORIDA CONSITUTION AND SECTIONS 125.01(6) AND (7), FLORIDA STATUTES; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Article vm, Section l(h) of the Florida Constitution, prohibits the taxation of property within a municipality for those services rendered by a county exclusively for the benefit of the property or residents in unincorporated areas; and WHEREAS, Section 125.01(7), Florida Statutes, prohibits county governments from expending county revenues to fund any service or project provided by a county when no real benefit accrues to the property or residents within a municipality or municipalities; and WHEREAS, Section 125.01(6)(a), Florida Statutes, authorizes the governing body of a municipality to petition the Monroe County Board of County Commissioners (the "County") to remit to the municipality a portion of taxes and revenues collected from the municipality if such , taxes and revenues are to be expended on services or programs that benefit the property or residents in unincorporated areas; and WHEREAS, for fiscal year 1999-2000, the County collected and retained both ad valorem and non-ad valorem revenues, special assessments, impact fees and services charges (the "Revenues") from the residents of the City; and WHEREAS, those Revenues were separated by the County into several funds, including but not limited to, the Fire and Ambulance District I, the Unincorporated Parks and Beaches Fund, and the Planning, Building, Code and Fire Marshall Municipal Service Taxing District (the "Districts "); and WHEREAS, on November 30, 1999, the City of Marathon (the "City") was incorporated; and WHEREAS, the Residents of the City are no longer included in the Districts; and WHEREAS, on October I, 2000, the County carried forward into its fiscal year Budget for 2000-2001, a "fund balance" of unexpended revenues and reserves from each of the Districts; and WHEREAS, a portion of the fund balances 10 each of the Districts represents City revenues; and WHEREAS, as the City is no longer included in any of the Districts, the County can expend said Revenues in only unincorporated Monroe County; and WHEREAS, it is a violation of the Florida Constitution and Florida Statutes for the County to spend City revenues on municipal-type services that benefit the unincorporated areas. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MARATHON, FLORIDA, AS FOLLOWS: Section 1. Recitals. The above recitals are true and correct and are incorporated herein by this reference. Section 2. Pursuant to Section 125.01(6), Florida Statutes, the City Council requests the Board of County Commissioners of the County to remit to the City its proportionate share of 2 Revenues presently being held by the County in the District funds, which Revenues represent those funds collected by the County from the City. A copy of the "Revenues and Fund Balances" spreadsheet providing a detailed description of the funds at issue attached as Exhibit "A" is incorporated into and made a part of this Resolution. Section 3. Pursuant to Section 125.01(6)(a), Florida Statutes, the City Council petitions to the County to remit the Revenues to the City within six (6) months of the adoption of the County budget in the proportion specified in Section 125.01(6)(a), Florida Statutes, or by any other method prescribed by law. Section 4. Pursuant to Section 125.01(6)(a), Florida Statutes, the City Council requests the County to respond to this petition within 90 days as required by law. Section 5. Effective Date. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 21 ~ day of ,2000. '$.:.::r.~:~;:;;'" Carol N. Chamberlain [:(~-.;t;~ MY COMMISSION # CC682322 EXPIRES ~.~.~: September 21. 2001 ".~iir:.r..'t-.. BONDED lliRU TROY FAIN ~ INC. ArrEST: ~1.~ CITY CLERK ". APPROVED AS TO LEGAL SUFFICIENCY 3