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Item R02 R.2 Coty f � ,�� ,' BOARD OF COUNTY COMMISSIONERS �� Mayor David Rice,District 4 The Florida Keys � Mayor Pro Tem Craig Cates,District 1 y Michelle Coldiron,District 2 James K.Scholl,District 3 Ij Holly Merrill Raschein,District 5 County Commission Meeting August 17, 2022 Agenda Item Number: R.2 Agenda Item Summary #10533 BULK ITEM: No DEPARTMENT: Assistant County Administrator Kevin Wilson TIME APPROXIMATE: STAFF CONTACT: Kevin Wilson (305) 292-4441 Yes AGENDA ITEM WORDING: A Public Hearing to consider adoption of an ordinance extending the one cent infrastructure sales surtax beyond its current 31 December 2033 expiration date, scheduling of a referendum as required by statute, and establishing the uses for the revenue stream created. ITEM BACKGROUND: The infrastructure sales surtax was first established by the County in 1989. It was extended in 2000 and 2012 and its current expiration date is 31 December 2033. The County has continuing needs for all kinds of infrastructure both new and replacement. An extension of the infrastructure sales surtax requires a referendum. The referendum is set by an ordinance which proposes the duration of the extension and makes any desired changes to the allowable uses of the proceeds of the surtax. The proposed ordinance extends the surtax for 15 years through 31 December 2048 with no changes to its usage. At its regular meeting on 20 July 2022, the BOCC directed staff to include a 15 year extension in the ordinance. This ordinance sets the wording for the referendum. The ordinance is attached as part of the backup documents. The date of the referendum is general election day, 8 November 2022. Staff recommends 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: 2022 - - On 20 July 2022 BOCC approved advertising a public hearing to adopt the proposed ordinance. Packet Pg. 3250 R.2 2012 - - On 21 September 2012 BOCC adopted Ordinance 023-2012 correcting the wording of Ordinance 017-2012 2000 - - BOCC adopted Ordinance xxx- 200m and the referendum approved an extension of 15 years through 2018. 1989 - - BOCC adopted Ordinance xxx- 1989 and the referendum approved an initial term for the surtax of 15 years. CONTRACT/AGREEMENT CHANGES: No STAFF RECOMMENDATION: Approval DOCUMENTATION: Draft Referendum ordinance 2022 2022-07-28 POP Weekly FINANCIAL IMPACT: Effective Date: For conduct of referendum —upon approval by BOCC For effective date of the ordinance, upon approval of the referendum Expiration Date: 31 December 2132 upon approval of the referendum Total Dollar Value of Contract: N/A Total Cost to County: N/A Current Year Portion: N/A Budgeted: Source of Funds: CPI: Indirect Costs: Estimated Ongoing Costs Not Included in above dollar amounts: Revenue Producing: Yes, if approved by referendum If yes, amount: TBD Grant: N/A County Match: N/A Insurance Required: N/A Additional Details: None N/A Packet Pg. 3251 R.2 REVIEWED BY: Kevin Wilson Completed 07/21/2022 11:07 AM Bob Shillinger Completed 07/21/2022 12:04 PM Purchasing Completed 07/21/2022 12:33 PM Budget and Finance Completed 07/28/2022 8:30 AM Brian Bradley Completed 07/29/2022 3:53 PM Lindsey Ballard Completed 08/01/2022 9:08 AM Board of County Commissioners Pending 08/17/2022 9:00 AM Packet Pg. 3252 R.2.a ORDINANCE NO. -2022 cN AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA, EXTENDING THE ONE CENT INFRASTRUCTURE SALES TAX, OTHERWISE DUE TO EXPIRE IN X 2033, THROUGH DECEMBER 31, 2048; PROVIDING LIMITS ON THE 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 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 CODE OF ORDINANCES; AND PROVIDING FOR AN EFFECTIVE DATE. X WHEREAS,the Board of County Commissioners of Monroe County a� 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 infrastructure, including a new jail which the county was under federal court order to build; and a WHEREAS, section 212.055(2), Florida Statutes was modified, among o other things, to change the number of years of life of a capital asset for which the CU infrastructure surtax could be expended; and WHEREAS,the Board of County Commissioners of Monroe County adopted Ordinance No. 01-2000 to extend the infrastructure surtax from its c? 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 N Q N 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 referendum vote of the electorate; and 0 WHEREAS,the Board of County Commissioners of Monroe County adopted Ordinance 023-2012 amending the language set forth in Ordinance 17- 4T 2012 to clarify that surtax proceeds could be used to repay preexisting debt; and 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 a� E c� Extend Infrastructure Sales Tax to 2048 1 Packet Pg. 3253 R.2.a WHEREAS,the county and municipalities continue to have infrastructure needs which cannot be met through the infrastructure surtax expected to be collected through 2033; and 0 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 used for infrastructure as well as operations of the local governments; and U) WHEREAS, meeting wastewater, storm water, and re-use or reclaimed water needs are still paramount issues throughout the Florida Keys which rely on 2 a dwindling supply and greater demand of potable water, and experiences serious 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; NOW THEREFORE BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA: X x Section 1. Section 23-144 Monroe County Code is hereby amended to read as follows: Sec. 23-144. —Duration of surtax 0 a CU The surtax authorized by this article shall be collected commencing on January 1, 2004 0. and continuing through December 31, 24�3-2048. ,0 0 Section 2. EFFECTIVE DATE. This Ordinance shall take effect upon filing with the Department of State as provided in Section 125.66(2), Florida Statutes,provided that the following referendum is approved by a majority of the electors of the County voting in the c? November 8, 2022 general election: REFERENDUM ON EXTENDING THE ONE CENT INFRASTRUCTURE SALES SURTAX THROUGH 2O48. N N 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, 0 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? 4T a� For the one cent sales tax extension Against the one cent sales tax extension a� c� Extend Infrastructure Sales Tax to 2048 2 Packet Pg. 3254 R.2.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. X Section 4. SEVERABILITY. Should any provision of this Ordinance be declared by a court of competent jurisdiction to be invalid, the same shall not affect the validity of this W 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 W circumstances, such holding shall not affect its applicability to any other person,property or 2 circumstances. U) Section 5. CONFLICT WITH OTHER ORDINANCES. All ordinances or parts of 4- ordinances in conflict with this ordinance are hereby repealed to the extent of said conflict. a� Section 6. INCLUSION IN THE CODE OF ORDINANCES. The provisions of this 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 X x conform to the uniform numbering system of the Code. c� 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. 0 a Mayor David Rice Mayor Pro Tem Craig Cates ,0 Commissioner Michelle Coldiron CU Commissioner James K. Scholl Commissioner Holly Merrill Raschein 2 (SEAL) BOARD OF COUNTY COMMISSIONERS Attest: Kevin Madok, Clerk OF MONROE COUNTY, FLORIDA N c� c� By By Deputy Clerk Mayor/Chairperson 0 Approved as to form and legal sufficiency for reliance only by the Monroe County B.O.C.C. Robert B. Shillinger,Monroe County Attorney E c� Extend Infrastructure Sales Tax to 2048 3 Packet Pg. 3255 R.2.b NOTICE OF INTENTION TO CONSIDER ADOPTION OF COUNTY WK- LEE L ORDINANCE NOTICE IS HEREBY GIVEN TO WHOM IT MAY CONCERN that on August 17,2022,at 1:30 C14 PM.,or as soon thereafter as (he ole*f may be heard,at the � Published Weekly Hurry 5'uVernnlertCer�ter, 120 tu�nah'A KeyWest 0 Marathon,Monroe County,Florida FlWdalthreBaar4ofcourttyr (6rnalkoonersof Mcinroq as C66nt�Elurdoa,intends to X PROOF OF PUBLICATION rranstddd`adopting the following nrdln�btati, '� AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS' STATE OF FLORIDA OF MONROE COUNTY,FLORIDA, COUNTY OF MONROE EXTESRUTHONEEnINFR T S x, Before the undersigned authority OTHERWISE DUE TO EXPIRE IN personally appeared JASON KOLER who 2033,THROUGH DECEMBER 31, ' LIMITS ON on oath, says that he is PUBLISHER of THE USEOFTDING E FUNDS AFTER the WEEKLY NEWSPAPERS, a weekly PROJECTS ARE IN PROGRE S newspaper published in Marathon, in ANF FULLY FUNDED:'PROVIDING U) THAT Monroe County, Florida: that the ONLY EFFEXTECTIVE IF Y ONLY EFFECTIVE IF APPROVED attached copy of advertisement was BY THE COUNTY ELECTORATE 9= VOTING IN THE NOVEMBER published in said newspaper in the 8,2022 GENERAL ELECTION; issues of:(date(s)of publication) PROVIDING FOR NOTIFICATION OF THE FLORIDA DEPARTMENT OF REVENUE IFTHETAX IS APPROVED BY THE PROVIDINGFOR SEVE BWTY, TIT PROVIDING FORTHE REPEAL OF. ALL ORDINANCES INCONSISTENT HEREWITH;PROVIDING FOR Affiant further says that the said WEEKLY INCORPORATION INTO THE MONROE COUNTY CODE OF ca NEWSPAPERS is a newspaper published ORDINANCES;AND PROVIDING FOR AN EFFECTIVE DATE. at Marathon, in said Monroe County, Thettttr Ir dtord*ceA1'uay Florida,and that the said newspaper has the$�belrw t onroe'tt�I ytlep uok'at iw tlr*00slte by 0 heretofore been continuously published V� Vit�tdwt�a�enala pwacket R�r � In said Monroe County, Florida, once tgte uButt9r2022unetrn each week (on Thursday) and has been "l tiwq�INha ltwst�tt(�I qkiritlng uarw AtuBgra „ , 22 atti trUjx# C qualified as a second class mail matter at rnunrnrzr: trnt ll,lcluvl' Cow the post office in Marathon, In Monroe 1t1 nsldafau t°asp q e rtdkkgaana mPy step be VI"RWO County,Florida,for a period of one year Attorneys t ati'11; °d 2th tste 408 next preceding the first publication of �e� s fL�1BrJ�D � the attached copy of advertisement.The theputr lerb artletpatein the # wtT„22 �nwtlrtgrtrw affiant further says that he has neither paid nor promised any person, firm, or taf- Nbrtre�gt? ty Fby ca attendd"a IAp�rsan uu ufa corporation any discount, rebate, 2q o �1�2praimlltdakranbr commission or refund for the purpose of ttr l lrt N gendrrat httow nwpAlr�iluatfI MY CIL securing this advertisement for urltRdeda�ut,aspx, ADA AtwSr1ANCE.if ycau are a publication in the said newspaper(s)and gaars�an wplhadq ablYityW66 that The Weekl�N .2 .f0 i5.-n...uJ1 compliancei r LpL. J ?pfj_ h lgrreroee osess pl,aarratcicri�plat rtnInnd att;uu ns tact I ,LIB:.—51? e St tutus on Legal and tott$2- � tJff lal Advertisements. 4 ^I10betweenthe hours of i O / sBt mauled Ikgn9,llryrauor o the CIL re00 hearIn or volce-lrn aimti,call Isa qka Ie our web arf11 rfSworn to ,and bscribed before me me rla Itanrtteerrurat1 m2 c14 this y sautt�llgnslDefaulrspxrlr �Ia of 2022, rnetrn srttllpMonroeCraurrty (SEAL) Boird� o�vn CommIsskrnstrs D� kel 2st,florlda"this s� _ 2�tgw�a f fr,Iry 21t2�a as KEVIN ADOK,Clerkofthe Circuit Court and N ota ry ExOfficlo Clerk of the Board ofCeun't tommisslpnersof amaa��bet,Ffrual�Sa Pu�y Ri r .. _ July28,2022 CHARLOTTE HRUSKA The Weekly Newspapers MY COMMISSION f#GG 221835 EXPIRES:September 1,2022 f..'F t _Bonded Thru Ncrlary Public Underwriters Packet Pg. 3256