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Item C24 C.24 Coty f � ,�� ,' BOARD OF COUNTY COMMISSIONERS �� Mayor David Rice,District 4 The Florida Keys � Mayor Pro Tem Craig Cates,District I y Michelle Coldiron,District 2 James K.Scholl,District 3 Ij Holly Merrill Raschein,District 5 County Commission Meeting July 20, 2022 Agenda Item Number: C24 Agenda Item Summary #10803 BULK ITEM: Yes DEPARTMENT: Assistant County Administrator Kevin Wilson TIME APPROXIMATE: STAFF CONTACT: Kevin Wilson (305) 292-4441 No AGENDA ITEM WORDING: Approval to advertise a public hearing to adopt an ordinance amending Section 23-144 of the Monroe County codes to extend the one cent infrastructure sales surtax through 31 December 2048 and providing that the extension is only effective if approved by the County electorate at the November 2022 general election. ITEM BACKGROUND: Extension of the infrastructure sales surtax beyond its current expiration deadline requires approval via a referendum of the electors of the County. That referendum is established by adopting an ordinance setting the date and wording of the referendum. The ordinance is adopted at a public hearing of the Board of County Commissioners (BOCC) and said public hearing must be publicly noticed. This agenda item seeks BOCC approval to advertise such public hearing. Among the items to be included in the advertisement is the wording of the ordinance. The ordinance includes the length of the extension. The draft ordinance lists the extension as 15 years. Staff seeks extension of the surtax at this time to ensure continuity of the revenue stream past 2033, the current sunset date. Among other things this revenue stream is pledged to debt service for the Clean Water State Revolving fund (SRF) loans for completion of the wastewater projects which have repayment terms of twenty (20)years through 2038. This discrepancy in the end date of the repayment period requires the County to budget a final payment in 2033 in the amount of $55,693,491.03. Extension of the surtax will allow more realistic budgeting for major capital replacements from 2033 through 2048, the proposed new sunset date. PREVIOUS RELEVANT BOCC ACTION: 2012 - - BOCC adopted Ordinance 023-2012 on 21 SEP 2021 correcting the language of Ordinance 017-2012 2012 - - BOCC adopted Ordinance 017-2012 on 18 July 2012 calling for a 15 year extension and a Packet Pg. 396 C.24 referendum to approve that extension 2000 - - BOCC adopted Ordinance 001- 2000 and the referendum approved an extension of 15 years through 2018. 1989 - - BOCC adopted Ordinance 013- 1989 and the referendum approved an initial term for the surtax of 15 years. CONTRACT/AGREEMENT CHANGES: No STAFF RECOMMENDATION: Approval DOCUMENTATION: 2022-07-03 Draft Referendum ordinance 2022 FINANCIAL IMPACT: Effective Date: N/A Expiration Date: N/A Total Dollar Value of Contract: Total Cost to County: Advertising costs Current Year Portion: Budgeted: Source of Funds: CPI: Indirect Costs: Estimated Ongoing Costs Not Included in above dollar amounts: Revenue Producing: N/A If yes, amount: Grant: County Match: Insurance Required: Additional Details: N/A N/A REVIEWED BY: Kevin Wilson Completed 07/05/2022 1:33 PM Bob Shillinger Completed 07/05/2022 2:05 PM Budget and Finance Completed 07/05/2022 4:39 PM Lindsey Ballard Completed 07/05/2022 4:45 PM Packet Pg. 397 C.24 Board of County Commissioners Pending 07/20/2022 9:00 AM Packet Pg. 398 C.24.a ORDINANCE NO. -2022 CN cN AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF C MONROE COUNTY, FLORIDA, EXTENDING THE ONE CENT C INFRASTRUCTURE SALES TAX, OTHERWISE DUE TO EXPIRE IN X 2033, THROUGH DECEMBER 31, 2048; PROVIDING LIMITS ON THE X USE OF THE FUNDS AFTER 2018 UNLESS WASTEWATER PROJECTS ARE IN PROGRESS ANF FULLY FUNDED: PROVIDING THAT SUCH EXTENSION IS ONLY EFFECTIVE IF APPROVED BY THE COUNTY ELECTORATE VOTING IN THE NOVEMBER 8, 2022 GENERAL ' ELECTION; PROVIDING FOR NOTIFICATION OF THE FLORIDA 2- DEPARTMENT OF REVENUE IF THE TAX IS APPROVED BY THE ELECTORATE; PROVIDING FOR SEVERABILITY; PROVIDING FOR THE REPEAL OF ALL ORDINANCES INCONSISTENT HEREWITH; PROVIDING FOR INCORPORATION INTO THE MONROE COUNTY 0 CODE OF ORDINANCES; AND PROVIDING FOR AN EFFECTIVE E DATE. WHEREAS,the Board of County Commissioners of Monroe County adopted ordinance no. 13-1989 levying a one-cent infrastructure sales tax, subject to a referendum vote of the electorate, to generate revenue for much needed A infrastructure, including a new jail which the county was under federal court order > to build; and 0 WHEREAS, section 212.055(2), Florida Statutes was modified, among > other things, to change the number of years of life of a capital asset for which the infrastructure surtax could be expended; and N WHEREAS,the Board of County Commissioners of Monroe County N adopted Ordinance No. 01-2000 to extend the infrastructure surtax from its original expiration date of September 30, 2004, to December 31, 2018, and to modify the permissible uses to include wastewater infrastructure, subject to a referendum vote of the electorate; and WHEREAS,the Board of County Commissioners of Monroe County adopted Ordinance No. 17-2012 to extend the infrastructure surtax from its original expiration date of December 31, 2018, to December 31, 2033, subject to a T referendum vote of the electorate; and WHEREAS,the Board of County Commissioners of Monroe County , adopted Ordinance 023-2012 amending the language set forth in Ordinance 17- 2012 to clarify that surtax proceeds could be used to repay preexisting debt; and c� WHEREAS,the electorate voted in 1989 for the initial levy of the infrastructure surtax and voted again in 2000 and 2012 for its extension; and c� Extend Infrastructure Sales Tax to 2048 1 Packet Pg. 399 C.24.a WHEREAS,the county and municipalities continue to have infrastructure needs which cannot be met through the infrastructure surtax expected to be N collected through 2033; and U) C WHEREAS, changes in the economy and state legislation have resulted X in both legal and policy reasons to limit the levy of ad valorem tax which could be X used for infrastructure as well as operations of the local governments; and CU U) WHEREAS, meeting wastewater, storm water, and re-use or reclaimed water needs are still paramount issues throughout the Florida Keys which rely on a dwindling supply and greater demand of potable water, and experiences serious 2- near shore water quality problems due to storm water run-off, and 4- WHEREAS, obsolescence and age will periodically require changes and improvements to existing infrastructure throughout the Florida Keys; 0 NOW THEREFORE BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA: 2 T Section 1. Section 23-144 Monroe County Code is hereby amended to read as follows: Sec. 23-144. —Duration of surtax > The surtax authorized by this article shall be collected commencing on January 1, 2004 0 and continuing through December 31, 24�3-2048. > 0 CL CL Section 2. EFFECTIVE DATE. This Ordinance shall take effect upon filing with the N c°� Department of State as provided in Section 125.66(2), Florida Statutes,provided that the N following referendum is approved by a majority of the electors of the County voting in the November 8, 2022 general election: REFERENDUM ON EXTENDING THE ONE CENT E INFRASTRUCTURE SALES SURTAX THROUGH 2O48. 0 E Shall the existing one cent infrastructure sales surtax be extended through 2048 (it otherwise expires in 2033) with the proceeds used for the following projects: wastewater facilities and, only if those wastewater projects are completed or fully funded, recreation and conservation lands, marinas, courthouses, parking, offices, roads, bridges, airports, libraries, piers, auditoriums, riprap/seawalls, solid waste, jails, police/fire facilities, land acquisition, storm water, and any , public purpose authorized by law? N For the one cent sales tax extension Q N Against the one cent sales tax extension c� Extend Infrastructure Sales Tax to 2048 2 Packet Pg.400 C.24.a Section 3. NOTICE TO DOR. If the referendum is approved at the general election of November 8, 2022, then the County Clerk must notify the Florida Department of Revenue within 10 days of the referendum dates as provided in Sec 212.054(7)(a), Florida Statutes, but no later than November 16, 2022. a� X Section 4. SEVERABILITY. Should any provision of this Ordinance be declared by a 0 court of competent jurisdiction to be invalid, the same shall not affect the validity of this CU Ordinance as a whole, or any part thereof, other than the part declared to be invalid. If this U) ordinance or any provision thereof shall be held to be inapplicable to any person,property or circumstances, such holding shall not affect its applicability to any other person,property or circumstances. Section 5. CONFLICT WITH OTHER ORDINANCES. All ordinances or parts of ordinances in conflict with this ordinance are hereby repealed to the extent of said conflict. 0 Section 6. INCLUSION IN THE CODE OF ORDINANCES. The provisions of this E ordinance 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 2 conform to the uniform numbering system of the Code. 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 , 2022. > Mayor David Rice Mayor Pro Tem Craig Cates Commissioner Michelle Coldiron CL Commissioner James K. Scholl CL d Commissioner Holly Merrill Raschein N c°� c� c� (SEAL) BOARD OF COUNTY COMMISSIONERS Attest: Kevin Madok, Clerk OF MONROE COUNTY, FLORIDA 0 By By Deputy Clerk Mayor/Chairperson T Approved as to form and legal sufficiency for reliance only by the Monroe County B.O.C.C. 9 C14 c14 c14 Robert B. Shillinger,Monroe County Attorney c� Extend Infrastructure Sales Tax to 2048 3 Packet Pg.401