Item P03
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: February 20, 2008 - KL 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 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 imposes 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 byF.S. 336.025(1)(a).
12/19/2007 (Q-14) BOCC tabled to 2/20/2008 BOCC
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATIONS:
Approval.
TOTAL COST: BUDGETED: Yes - No -
COST TO COUNTY: None SOURCE OF FUNDS: N
REVENUE PRODUCING: Y es ~ No - AMOUNT PER MONTH_ Year
APPROVED BY: County Atty ~ OMBlPurchasing _ Risk Management _
DOCUMENTATION: Included X Not Required_
DISPOSITION: AGENDA ITEM #
ORDINANCE NO. - 2008
AN ORDINANCE CLARIFYING THE STATUTORY AUTHORITY FOR THE CURRENT
SIX CENT MOTOR AND SPECIAL FUEL TAX IN SECTION F.S. 336.025(1)(0);
PROVIDING fOR THE DISTRIBUTION OF THE SIX CENT MOTOR AND SPECIAL
FUel TAX TO ALL MUNICPAUTIES AND THE COUNTY; IMPOSING A FIVE CENT
lOCAL OPTION MOTOR AND SPECIAL FUEL TAX. AS AUTHORIZED BY F.5.
336.025(1)(b), 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UNLESS EARLIER REPEALED BY THE BOARD OF COUNTY COMMISSIONERS;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 ONt Y 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 of Islamorada 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
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 BaCC 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
-
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(1).W., 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, it'fl6 the City of
Layton, and the City of Marathon based on interloca1 agreements or F.S. 336.0255 absent
interlocal agreements. the transportation expenditures of each for the immediately preceding
five (5) fiscal years, as a proportion of the total e-f such expenditures for Monroe County and the
three (3) municipalities, to '.'If#;.
Monroe County. . . 62%
City of Key Vlest . . . 35%
City of Key Colony Beach. . . 2%
City of Layton. . . 1%
(13) The propertions set forth above shall be recalculated in 1990 according to the method set
forth in F.S. section 336 025(a)(1) [336.025(3)(a)1 ]. Hov;ever, if no interlocal agreements are
ffitered into vlith the various municipalities by June 1, 1990, the Monroe Cmmty Board of
County Commissioners shall recalculate the proportions according to the method set forth in F.S.
section 336.025(4)(u), by July 1, 1990.
Gas Tax Ordinance 2008 2
(e12) No recalculation madc under subsection (b) of this section 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(1)(b), effective January 1.2009,
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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 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. 336.025(2).
(c) EFFECTIVE PERIOD. The tax levied in Section 2-320(a) shall commence on
January L 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
expenditures as 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 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.
(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.
Gas Tax Ordinance 2008 3
No tax I2roceeds distributed to a municipality may be used for purooses 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 Islarnorada, 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.
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.
PASSED 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) BOARD OF COUNTY COMMISSIONERS
Attest: DANNY L. KOLHAGE, Clerk OF MONROE COUNTY, FLORIDA
By By Deputy Clerk
Mayor/Chairperson
Gas Tax Ordinance 2008 4 AH TON
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