Item O03
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: January 28. 2009 - KW
Division
County Attorney
Bulk Item: Yes
No~
Staff Contact Person: Suzanne Hutton
AGENDA ITEM WORDING:
Approval to advertise a public hearing for an Ordinance to impose a five-cent local option motor fuel
("gas") tax; to clarify the statutory authority for the existing six-cent "gas" tax, and to revise the
distribution language for the existing "gas" tax since municipalities have incorporated since the prior
ordinance was enacted.
ITEM BACKGROUND:
In 1983, the County imposed a four-cent "gas" tax, and imposed an additional two-cent tax in 1985
which were combined into the current six-cent tax in 1989. At the November 14, 2007 meeting of the
BOCC, discussion was held concerning the depletion of the County's gas tax reserves, due to increased
costs exceeding the gas tax revenues in the last few years, the state legislature's limitations on ad
valorem taxation precluding drawing upon that source to make up any shortfall, and the inability of the
County to continue to service the road and bridge system and to conduct critical renovations for bridges
nearing their 50-year life span. Options were provided to the BOCC to increase the gas tax as
authorized by F.S. 336.025(1)(b) or to levy special assessments. The BOCC directed staff to pursue the
gas tax increase.
PREVIOUS RELEVANT BOCC ACTION:
Ordinance No. 16-1989 approving extension of the six-cent "gas" tax authorized by F.S. 336.025(1)(a).
12/19/2007 (Q-14) BOCC tabled to 2/20/2008 BOCC
2/20/2008 (P-3) BOCC denied approval to advertise Public Hearing
3/19/2008 (N-16) BOCC motion for approval to advertise Public Hearing died for lack ofa second
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATIONS:
Approval.
TOTAL COST:
INDIRECT COST:
COST TO COUNTY: None
BUDGETED: Yes
No
SOURCE OF FUNDS:
N
REVENUE PRODUCING: Yes~ No AMOUNTPERMONTH_ Year
APPROVED BY: County Arty x ~ ONfB/Purchasing _ Risk Management _
DOCUMENTATION:
Included X
Not Required_
DISPOSITION:
AGENDA ITEM #
ORDINANCE NO.
- 2009
AN ORDINANCE CLARIFYING THE STATUTORY AUTHORITY FOR THE
CURRENT SIX CENT MOTOR AND SPECIAL FUEL TAX IN SECTION F.S.
336.025(1)(a); PROVIDING FOR THE DISTRIBUTION OF THE SIX CENT
MOTOR AND SPECIAL FUEL TAX TO ALL MUNICPALITIES AND THE
COUNTY; IMPOSING A FIVE CENT LOCAL OPTION MOTOR FUEL TAX. AS
AUTHORIZED BY F.S. 336.025(1)(b), UPON SUCH FUEL SALES IN ALL OF
MONROE COUNTY, INCLUDING THE MUNICIPALITIES THEREIN, FOR A
PERIOD OF THffiTY YEARS UNLESS EARLIER REPEALED BY THE BOARD
OF COUNTY COMMISSIONERS; PROVIDING FOR A METHOD OF
COLLECTION OF THE TAX AND REMISSION OF THE PROCEEDS;
PROVIDING THAT THE PROCEEDS MAY ONLY BE SPENT FOR
TRANSPORTATION EXPENDITURES AS DEFINED HEREIN; PROVIDING
FOR THE PLEDGE OF THE TAX REVENUE FOR BONDS WHOSE PROCEEDS
ARE USED FOR TRANSPORTATION CAPITAL PROJECTS; PROVIDING FOR
SEVERABILITY; PROVIDING FOR THE REPEAL OF ALL ORDINANCES
INCONSISTENT HEREWITH; PROVIDING FOR INCORPORATION INTO
THE MONROE COUNTY CODE OF ORDINANCES; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, Monroe County currently imposes a six-cent local option gas tax upon
every gallon of motor fuel and special fuel sold in the County pursuant to Florida Statute Section
336. 025( 1 )( a) and Monroe County Code Section 2-315, et. seq.; and
WHEREAS, the municipalities oflslamorada and Marathon incorporated subsequent to
the passage of Ordinance No. 16-1989, as codified in Monroe County Code Section 2-315, et.
seq.; and
WHEREAS, current gas tax expenditures cover Maintenance, Engineering, Street Lights
and Traffic Signal, distribution to municipalities, 7-year plan and cost allocation;
WHEREAS, the gas tax fund balance has been steadily declining since FY 2001 due to
annual expenditures exceeding annual revenues; and
WHEREAS, Monroe County maintains 389 miles of roads in the unincorporated county
and resurfaces those roads as needed;
WHEREAS, there are 28 bridges in the unincorporated county which are maintained by
the County and most of those bridges were built in the 1960s with a 50 year life span; and
WHEREAS, there are approximately 10 years left with no funds available for major
renovations necessary to extend the useful lives ofthe bridges which are maintained by the
County;
WHEREAS, drainage systems need to be added or restored, requiring reconstruction and
resurfacing of roads; and
Five Cent Gas Tax Ordinance 2009
1
WHEREAS, road resurfacing has been temporarily delayed in some areas of the
unincorporated county due to new sewer systems and resurfacing will be needed in the near
future; and
WHEREAS, an additional five (5) cents local option fuel tax would generate
approximately $250,000.00 per penny (or $1,250,000.00) per year; and
WHEREAS, an additional local option fuel tax can be accomplished by a majority plus
one vote of the BOCC or by an ordinance creating a referendum on the November 2008 ballot;
and
WHEREAS, implementation of an additional gas tax will spread the costs to both
residents and visitors using the County's roads as opposed to special assessments which would
place the full burden on County residents; and
WHEREAS, unless a revenue source additional to the existing local option fuel tax can
be secured, the current level of services will have to be reduced and the delay for needed road
restorations and reconstructions and necessary revitalization of bridges will continue; now
therefore
BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS FOR MONROE
COUNTY, FLORIDA that:
SECTION 1. Section 2-315, Monroe County Code shall be amended to read:
2-315. Under the authority of Florida Statutes section 336.025(.l)..UU, effective September
1, 1989, there is hereby imposed a six-cent gas tax upon every gallon of motor and special fuel
sold in Monroe County, including the municipalities therein, and taxed under the provisions of
part I or part II of chapter 206, Florida Statutes.
SECTION 2. Section 2-319, Monroe County Code shall be amended to read:
Sec. 2-319. Distribution of proceeds.
(a) The proceeds of the tax levied in section 2-315 shall be distributed among Monroe County,
the City of Islamorada the City of Key West, the City of Key Colony Beach, and the City of
Layton. and the City of Marathon based on interlocal agreements or F.S. 336.0255 absent
interlocal agreements. the transportation expenditures of each for the immediately preoeding
five (5) fiscal years, as a proportion of the total of such expenditures for M-onroe County and the
three (3) municipalities, to v-lit:
Monroe County. . . 62%
City of Key West. . .35%
City ofKa)' Colony Beach. . . 2%
City of Layton . . . 1%
(b) The proportions set forth above shall be recalculated in 1990 according to the method set
forth in F.8. section 336 025(a)(1) [336.025(3)(a)l]. Hmvever, if no interlocal agreements are
entered into with the various municipalities by June I, 1990, the :Marroe County Board of
Five Cent Gas Tax Ordinance 2009
2
County Commissioners shall recalculate the proportions according to the method set forth in F.8.
section 336.025(4)(a), by July 1, 1990.
(ell) No recalculation made under subsection (b) of this seetiefl of the tax: distribution shall
under any circumstances adversely affect the rights of holders of bonds outstanding on July 1,
1990, which are backed by the tax authorized by this article; and the amounts distributed to
Monroe County and each municipality shall not be reduced below the amount necessary for the
payment of principal and interest and reserves for principle interest as required under the
covenants of any bond resolution outstanding on July 1, 1990.
SECTION 3. Section 2-320, Monroe County Code is hereby created to read:
2-320. SEVENTH THROUGH ELEVENTH CENT MOTOR AND SPECIAL FUEL
TAX.
(a) IMPOSITION. Under the authority of F.S. 336.025(l)(b). effective January L
2010, there is hereby imposed a five cent gas tax upon every gallon of motor fuel and special
fuel sold in the County and taxed under the provisions of part I or part II of Chapter 206.
Fla. Stat.
(b) COLLECTION. The tax in this section shall be collected and remitted according to
the procedure in F.S. 336.025(2).
(c) EFFECTIVE PERIOD. The tax levied in Section 2-320(a) shall commence on
January 1, 2010, and be in effect for a period of thirty (30) years, unless repealed by the Board of
County Commissioners. provided that no repeal shall in any circumstances materially or
adversely affect the rights of the holders of bonds backed by the tax and outstanding on the
effective date of the repeal.
(d) EXPENDITURES. The proceeds of the tax shall only be used for transportation
expenditures as defined by state statute and which are:
(l) Roadway and right-of-way reconstruction. renovation. resurfacing, paving of
existing graded roads. and equipment
(2) Roadway and right-of-way drainage:
(3) Installation of street lighting and traffic Signs, traffic engmeenng.
signalization and pavement markings:
(4) Bridge renovation., restoration. and repaving:
(5) Debt service for transportation capital projects. including construction or
reconstruction of roads and bridges. The revenues from the tax levied in section 2-320(a) may
be pledged to secure the payment of bonds. In the event such bonds are to be issued, the county
or the municipalities may use the services of the Division of Bond Finance of General Services
pursuant to the State Bond Act to issue any bonds under the provisions of this article and F.S.
section 336.025(b). Bonds may be issued only once per year. Monroe County and any of the
municipalities listed in section 2-320(e) may join together to issue bonds under this article: or
(6) All other purposes allowed by state statute.
Five Cent Gas Tax Ordinance 2009
3
(e) DISTRIBUTION TO :MUNICIPALITIES. The County may. at anytime. enter into an
interlocal agreement with any or all of the municipalities in the County in order to provide for
the distribution of the tax proceeds between the County and the municipality or municipalities.
No tax proceeds distributed to a municipality may be used for purposes other than those
described in Section 2-320(d) above. The proceeds of the tax levied in section 2-320(a) shall be
distributed among Monroe County. the City of Islamorada, the City of Key West, the City of
Key Colony Beach. the City of Layton, and the City of Marathon. pursuant to interlocal
agreements or F.S. 336.0255.
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
Ordinance as whole, or any part thereof, other than the part declared to be invalid. If this
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.
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
conform to the uniform numbering system of the code.
SECTION 7. EFFECTIVE DATE. This Ordinance shall take effect on .
provided that this Ordinance shall be filed with the Department of State as provided in section
125.66(2), Florida Statutes.
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 , 2009.
Mayor George Neugent
Mayor Pro Tern Sylvia Murphy
Commissioner Kim Wigington
Commissioner Heather Carruthers
Commissioner Mario Di Gennaro
(SEAL)
Attest: DANNY L. KOLHAGE, Clerk
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
By
By
Deputy Clerk
Mayor/Chairperson
MON E COUNTY ATTORNEY
PROVED AS T
Five Cent Gas Tax Ordinance 2009
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