Item O04
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: January 28. 2009 - KW
Division
County Attorney
Bulk Item: Yes
No --X-
Staff Contact Person: Suzanne Hutton
AGENDA ITEM WORDING:
Approval to advertise a public hearing for an Ordinance to impose a ninth-cent local option motor and
special fuel ("gas") tax.
ITEM BACKGROUND:
The County imposes a six-cent local option gas tax on motor fuel. The State mandates a County fuel
tax on diesel fuel under FS 206.87 and the County gets a portion of that from the State. 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, the state legislature's limitations on ad valorem
taxation, and the inability of the County to continue to service the road and bridge system and to
conduct critical renovations for bridges nearing their SO-year life span. Options were provided to the
BOCC to increase the gas tax 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-13) BOCC tabled to 2/20/2008 BOCC
2/20/2008 (P-2) BOCC denied request to hold Public Hearing
3/19/2008 (N-IS) BOCC approved advertising Public Hearing for 4/16/08
4/16/2008 (Q-2) Public Hearing - Motion to Adopt failed due to lack of a four-fifths vote (3-1:
Commissioner Spehar Opposed/Commissioner Neugent not present)
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 X No AMOUNT PER MONTH Year $500.000
APPROVED BY: County Atty x;j} OMB/Purchasing _ Risk Management _
DOCUMENTATION:
Included X
Not Required_
DISPOSITION:
AGENDA ITEM #
ORDINANCE NO.
- 2009
AN ORDINANCE IMPOSING A "NINTH~CENT" LOCAL OPTION MOTOR
FUEL TAX, AS AUTHORIZED BY F.S. 206.41(1)(d) AND 336.021, UPON SUCH
FUEL SALES IN ALL OF MONROE COUNTY, INCLUDING THE
MUNICIPALITIES THEREIN, FOR A PERIOD OF THIRTY 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EARLIER REPEALED BY THE BOARD OF COUNTY COMMISSIONERS;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 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, Florida Statute Section 206.41(1)(d) authorizes counties to impose a tax of
one cent per net gallon on motor fuel, known as the "ninth-cent" fuel tax to be levied and used as
provided in F.S. 336.021; and
WHEREAS, Florida Statute Section 206.87(1)(b) mandates a "ninth-cent" fuel tax to be
levied on diesel fuel, to be levied and distributed according to F.S. 336.025; and
WHEREAS, the County has been receiving from the State a distribution of the mandate
fuel tax on diesel fuel; 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 ofthose 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 of the bridges which are maintained by the
County;
WHEREAS, drainage systems need to be added or restored, requiring reconstruction and
resurfacing of roads; and
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
Ninth Cent Fuel Tax Ordinance 2009
1
WHEREAS, the County is seeking to enact an ordinance imposing an additional five (5)
cents local option fuel tax to generate approximately $250,000.00 per penny (or $1,250,000.00)
per year~ and
WHEREAS, an additional ninth-cent local option fuel tax on motor fuel is needed to
provide funding, particularly for the renovations of the bridges and other critical major
renovations of roads~ and
WHEREAS, an additional ninth-cent local option fuel tax on motor fuel can be
accomplished by a majority plus one vote of the BOCC or by an ordinance creating a referendum
on the November 2008 bal1ot~ 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
plac~ 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 2-321, Monroe County Code is hereby created to.read:
2-321. NINTH-CENT MOTOR FUEL TAX.
(a) IMPOSITION. Under the authority of F.S. 336.021(1)(A), effective January L
2010. there is hereby imposed a one cent gas tax:. to be designated the "ninth-cent fuel tax." upon
every gallon of motor 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. 336.021.
(c) EFFECTIVE PERIOD. The tax levied in Section 2-321 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 Florida Statute Section 336.025(7) and which are:
(1) Public transportation operations and maintenance:
(2) Roadway and right-of-way maintenance and equipment and structures used
primarily for the storage and maintenance of such equipment:
(3) Roadway and right-of-way drainage~
Ninth Cent Fuel Tax Ordinance 2009
2
( 4) Street lighting;
(5) Traffic signs. traffic engineering. signalization and pavement markings:
(6) Bridge maintenance and operation:
(7) Debt service and current expenditures for transportation capital projects in
the foregoing program areas.
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
Ninth Cent Fuel Tax Ordinance 2009
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