Item N16BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: March 19, 2008 - MAR
Bulk Item: Yes No X
AGENDA ITEM WORDING:
Division County Attorney _
Staff Contact Person: Suzanne Hutton
Approval to advertise a public hearing for an Ordinance to impose a five -cent local option motor and
special 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 BOCC denied request to hold Public Hearing
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATIONS:
Approval.
TOTAL COST:
COST TO COUNTY: None
BUDGETED: Yes No
SOURCE OF FUNDS: N
REVENUE PRODUCING: Yes X No AMOUNT PER MONTH Year
APPROVED BY: County Atty x OMB/Purchasing Risk Management
DOCUMENTATION: Included X Not Required
DISPOSITION: AGENDA ITEM #
WHERE AS, 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 of lslamorada 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 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
Gas Tax Ordinance 2008 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 11
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 is
secured, the current level of services will have to be reduced and delays for road restorations and
reconstructions and necessary revitalization of bridges will continue; now therefore
.�'l'
COUNTY,
idRi FLORIDA
SECTION 1. Section 2-315, Monroe County Code shall be amended to read:
2-315. Under the authority of Florida Statutes section 336.025 1 (a, 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 11 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 Ivey 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-
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Gas Tax Ordinance 2008 2
(eb) No recalculation 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.
C�_IMPOSITION. Under the authority of F.S. 336.025(l)(b), effective January 1,2009,
there is hereby imposed a five cent gas tax upon.every gallon of motor fuel andspecial fuel sold
in the County and taxed under the provisions of part I or part 11 of Chapter 206 Fla.Stat.
b COLLECTION. The tax in this section shall be collected and remitted according to
the procedure in F.S. 336.0253).
.(c) EFFECTIVE PERIOD. The tax levied in Section 2-320(a) shall commence on
January 1, 2009,_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
enenditu_resas defined by state statute and which are:.
,(1�, 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 en 'neerin
signalization and pavement markings;
(4) Bridge renovation, restoration, and repaviM
5 Debt service for trans ortation ca ital 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 a ment of bonds. In the event such bonds are to be issued the count
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 oin together to issue bonds under this article. or
6 All other purposes allowed by state statute.
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 nroceeds between the County and the municipality or municipalities.
Gas Tax Ordinance 2008
No tax proceeds distributed to a municipality ma be used for purposes other than those
described in Section 2-320(d) above. The 12roceeds 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 Marathonpursuant 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 S. 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 COTE 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 was provided in section
125.66(2), Florida Statutes.
SECTION 8. FILING CERTIFIED COPY WITH STATE. In addition to filing a copy of
this Ordinance with the Department of State, the Clerk shall notify the Florida Departments
Environmental Protection and Revenue of the adoption of the ordinance, including providing
certified copies of the ordinance thereto, within ten days after the adoption of the ordinance.
PASSER AND ADOPTED by the Board of County Commissioners of Monroe County,
Florida, at a regular meeting of said Board held on the _th day of , 2008.
Mayor Charles "Sonny" McCoy
Mayor Pro Tern Mario DiGennaro
Commissioner Sylvia Murphy
Commissioner George Neugent
Commissioner Dixie M. Spehar
(SEAL)
Attest: DANNY L. KOLHAGE, Clerk.
By—
Mayor/Chairperson
Gas Tax Ordinance 2008
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY", FLORIDA
Deputy Clerk
� ONROF r:Oi. NTV ATTORNEv
APPE , c F
4 �' °!`J Y�-yw ' TON
NOTICE 1S HEREBY GIVEN TO WHOM 1T MAY CONCERN that on Wednesday, April 16,
2008 at 3:00 P.M., or as soon thereafter as may be heard, at the Harvey Government Center, 1200
Truman Avenue, Key West, Monroe County, Florida, the Board of County Commissioners of
Monroe County, Florida, intends to consider the adoption of the following County ordinance:
Pursuant to Section 286.0105, Florida Statutes, notice is given that if a person decided to appeal any
decision made by the Board with respect to any matter considered at such hearings or meetings, he will
need a record of the proceedings, and that, for such purpose, he may need to ensure that a verbatim
record of the proceedings is made, which record includes the testimony and evidence upon which the
appeal is to be based.
ADA ASSISTANCE: If you are a person with a disability who needs special accommodations in order to
participate in this proceeding, please contact the County Administrator's Office, by phoning (305) 292-444I,
between the hours of 8:30 a.m. - 5:00 p.m., no later than 2 working days prior to the scheduled meeting, ifyou
are hearing or voice impaired, call 711 ".
Dated at Key Nest, Florida, this 19`h day of March, 2008.
DANNY L. KOLHAGE, Clerk of the Circuit Court
and ex ofcio Clerk of the Board of County
Commissioners of Monroe County, Florida
(SEAL)
Publication dates:
Reporter (Fr) 3/28/2008
Keynoter (Sa) 3/29/2008
KW Citizen (Su) 3/30/2009