Supplemental Gas Tax Interlocal Agreement 07/20/2022 GV�S COURTq c
o: A Kevin Madok, CPA
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�o ........ � Clerk of the Circuit Court& Comptroller Monroe County, Florida
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DATE: August 8, 2022
TO: Judith Clarke, PE, Director
Engineering/Roads &Bridges
ATTN: Nicole Twyrnan
Executive Assistant
FROM: Liz Yongue, Deputy Clerk
SUBJECT: July 20th BOCC Meeting
The following item has been executed and added to the record:
CIO Supplemental Gas Tax Interlocal Agreement with the City of Key West to
compensate the City for the difference in 6-cent Local Option Gas Tax Revenue between the Citds
old distribution percentage (36.5%) and the updated distribution percentage (28.3%) for a period
of four years with the compensation amount decreasing by 25%per year.
Should you have any questions please feel free to contact me at (305) 292-3550.
cc: County Attorney_
Finance
File
KEY WEST MARATHON PLANTATION KEY
500 Whitehead Street 3117 Overseas Highway 88770 Overseas Highway
Key West, Florida 33040 Marathon, Florida 33050 Plantation Key, Florida 33070
SUPPLEMENTAL GAS TAX INTERLOCAL AGREEMENT
THIS INTERLOCAL AGREEMENT is made and entered into on this 201" day of July, 2022
between Monroe County(MONROE COUNTY), a political subdivision of State of Florida, and the City of
Key West (KEY WEST), a municipal corporation of the State of Florida.
WHEREAS, pursuant to Florida Statutes Section 336.025,the county and municipalities intend to
enter into an interlocal agreement setting forth a distribution formula for dividing the entire proceeds of
the tax among county government and all eligible municipalities within the county; and
WHEREAS, MONROE COUNTY and the cities of KEY WEST, KEY COLONY BEACH, VILLAGE OF
ISLAMORADA, LAYTON, and MARATHON have tentatively agreed to enter into Amendment Two to the
Local Option Gas Tax Sharing Interlocal Agreement to update the 5-cent gas tax distribution, which is
based upon populations, with the 2020 census data and the 6-cent gas tax distribution,which is based
on transportation expenditures, with transportation expenditures for the most recent past 5 fiscal years
(FY) (FY 2017-FY 21); and
WHEREAS, while the 5-cent percentage distribution for Key West increases slightly,the 6-cent
percentage distribution for Key West will decrease from 36.5%to 28.33%resulting in a reduction of
funds of approximately$250,000 based upon current gas tax revenue proceeds; and
WHEREAS, in order to allow for Key West to absorb this reduction over the next 4 fiscal years,
the County has agreed to enter into this Supplemental ILA whereby Monroe County will compensate Key
West for the difference between the new 6-cent percentage and what Key West would have received if
no percentage change were made and reducing it by 25%per year over 4 years; and
WHEREAS,the City of Key West,the most populous municipality in Monroe County, so long as
this Supplemental Gas Tax Agreement is approved,will execute the Amendment Two to the Interlocal
Agreement, rendering the agreement sufficient for purposes of the Department of Revenue (DOR) and
setting the updated distributions contained therein; and
WHEREAS,the Board of County Commissioners of Monroe County has decided to share a
portion of its distribution from the Florida Department of Revenue to compensate Key West for the
difference between the new 6-cent percentage and what the City would have received if no percentage
change were made and reducing it by 25% per year over 4 years;
NOW THEREFORE, IN CONSIDERATION OF the mutual promises and conditions contained herein,the
PARTIES agree as follows:
SECTION 1.TERM.
This Agreement shall be effective on the date as first written above and will be for a term beginning
September 1, 2022 and continue in force for four years, ending on September 1, 2026.
SECTION 2. PAYMENT AMOUNT SUPPLEMENTAL TO THE LOCAL OPTION GAS TAX SHARING ILA
This agreement supplements the county-wide Amendment Two to the Local Option Gas Tax Sharing
interlocal agreement approved by the County on July 20 , 2022, and is intended to compensate
the City of Key West for the difference between the updated 6-cent distribution percentage of 28.3%
and the amount the City of Key West would have received had no percentage change been made
(3 . )and to reduce the compensation a on 2 r year over 4 years. Monroe County will pay
In arrears from the gas tax distributions it receives from the Florida Department of Revenue( ). The
6-cent gas tax is levied and imposed pursuant to Ordinance No.033-2019 withn effective date of
September 1 to August 31.
For the period of September 1,2022,through August 31,2023,the Monroe County shall pay Key West
In arrears In two Installments on or about March 1,2023,and September 1,2023, 1 of the
difference een the gas tax revenues percentage n . applied to the i gas tax
revenue for that annual term.
For the period of September 1,2023,through August 31,2024,Monroe County shall pay Key West In
arrears In two Installments n or about March 1,2024,and September 3,2024,7 f the difference
between the gas tax revenues percentage of 28.33%and 36.5%appliedto the 6-cent gas tax revenue for
that annual term.
For the period of September 1, 2024,through August 31,2025,the Monroe County shall pay Key West
In arrears in two Installments on or about March 1,2025,and September 1,2025,50%difference
between the gas tax revenues percentage of 28.33%and 36.5%applied to the tax revenue for
that annual term.
For the period of September 1,2025,through August 1,2026,the Monroe County shall pay Key West
in arrears in two instailments on or about March 1,2026,and September 1,2026,25%of the difference
between the gas tax revenues percentage of 28.33%and 36.5%appliedthe 6-cent s tax revenue for
that annual term.
Upon expiration of this ILA on September 1,2026 or upon payment of the final amount by Monroe
County,the percentage distribution in Amendment 2 to the ILA will apply and the County shall not pay
any additional funds from gas tax distributions after August 31,2026.
ADJUSTMENT;MAINTENANCE
No adjustment to the distributions specified In Section 2 above shall be made except Ina written
document executed by all parties affected by the adjustment.
The City of Key West shall maintain adequate fiscal control and fund accountingprocedures that comply
with generallya d government accounting principles In order to assure that the funds are spent
for the purposes permitted by state statute.Any funds transferred by the COUNTY to the municipality
under this agreement andwhich ore determined the County Clerk,an auditor employed by the
COUNTY or employed by the State to have been spent for a purpose not permissible under state law
must be paid back to the COUNTY with interest calculated u unt to S. . (1),FS,from the date o
any report that the funds were spent for an Impermissible pur s .
SECrION 4.TERMINATION.
This Agreement shall terminate n or about September 1,2026,or after the final payment Is made for
the period of 9/1/25t / in accordance with ion 2 above,whichever occurs first.This
agreement will automatically terminate with no further action needed by either party.
SECTION S.ASSIGNMENT.
o Party may assign this Agreement or assign or subcontract any of its obligations under this Agreement
without the approval of the governing boards of the other Parties.All the obligations of this Agreement
will extend to and bind the legal representatives,successors and assigns of all Parties.
SECTIONI f .
This Agreement is subordinate to the laws and regulations of the United States,and the State of Florida,
whether in effect on commencement of this agreement or adopted after that date.
SECTION ! .
This Agreement is governed by the laws of the State of Florida and the United States.Venue for any
dispute arising under this Agreement must be in Monroe County, Florida. In the event of any litigation,
the prevailing party Is entitled to a reasonable rny's fee and costs.
SECTION .
Notices in this Agreement, unless otherwise specified, must be sent by certified mail to the following:
County Administrator
1100 Simonton Street
Key West, FL 33040
County Attorney
P.0. 13ox 1026
Key West,FL 33042
WEST:KEY
City Manager
City Attorney
P.0. Box 1409
Key West, FL 33041
SECTION .FULL UNDERSTANDING.
This Agreement Is the rties'final mutual understanding regarding the subject matter hereof. It
replaces any earlier agreements or understandings,whether written or oral.This Agreement cannot
modified or replaced except another written and signed agreement.
SECTIONIN COUNTERPARTS.
This Agreement may be executed In any number of counterparts,each of which shall be regarded as an
original,all of whichher shall constitute one and the some Instrument and any of the parties
heretoy by signing y such counterpart.
In Witness Whereof,each party has caused this Agreement to be executed by its authorized
representative. '
(SEAL) _ . BOARD OF COUNTY COMMISSIONERS
KEVIN MADOK,CLERK 0 ( ® OF MONROE COUNTY,FLORIDA i.
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n��MONROE p COUNTYCy ATTORNEY
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3 R CHRISTINE LIMBERT.BARROWS
Li_.. ASSISTANT COUNTY ATTORNEY
C.< f- DATE: 8/5/22
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