Subject:
Title
Second Amendment to the Interlocal Agreement for the six-cent Local Option Fuel Tax (regular agenda item).
label
Recommended Action:
Recommended Action
Execute the Second Amendment to the Interlocal Agreement updating the distribution of monies derived from the imposition of the six-cent Local Option Fuel Tax to the County and various municipalities in the County and extending the term of the agreement to end December 31, 2027.
The agreement maintains the 60/40 split between the County and municipalities and revises the distribution formula among the municipalities to be based on the 2014 Bureau of Economic and Business Research (BEBR) population estimates. The previous distribution was based on 2004 BEBR population estimates.
Body
Strategic Plan:
Foster Continual Economic Growth and Vitality
4.5 Provide safe and effective transportation systems to support the efficient flow of motorists, commerce, and regional connectivity.
Deliver First Class Services to the Public and Our Customers
5.1 Maximize partner relationships and public outreach.
5.2 Be responsible stewards of the public’s resources.
Summary:
During a Strategic Planning work session about Horizon Issues on May 28, 2015, the Board expressed its desire to the reauthorize the six-cent Local Option Fuel Tax beyond the current termination date of August 31, 2017 in order to ensure the revenue stream for future planning purposes.
The Board also requested that staff engage the County’s municipal partners to determine what would be supported by the municipalities. The resulting consensus among the municipalities was to extend the levy for an additional 10 years.
As of December 2, 22 of the 24 municipalities have approved the Second Amendment to the Interlocal Agreement extending the term to end on December 31, 2027 and basing the distribution formula on more current population estimates.
Background Information:
On December 21, 2005, the Board entered into an interlocal agreement with the various municipalities and approved Ordinance 05-96 extending the six-cent Local Option Fuel Tax for ten years, for the period commencing on September 1, 2007 and ending on August 31, 2017. The interlocal agreement reduced the County’s share of the levy from 75% to 60% and based the distribution formula among the municipalities on the 2004 BEBR population estimates.
On May 6, 2008, the Board approved a First Amendment to Interlocal Agreement to the municipalities amending the effective date of termination to December 31, 2017.
In August 2015, the County distributed a Second Amendment to Interlocal Agreement to the various municipalities for their approval, amending the termination date to December 31, 2027 to be consistent with the renewal of the six-cent levy and revising the distribution among the municipalities as required by state statute.
Fiscal Impact:
Approval of the Second Amendment to Interlocal Agreement will continue the distribution of the six-cent Local Option Fuel Tax through December 31, 2027. The County’s 60% share of the LOFT revenue generates approximately $12.4M annually in County revenue to support transportation activities such as road, bridge, and right-of-way maintenance. The municipalities’ share is 40% and generates an estimated $8.2M which is distributed as outlined in Exhibit 1 of the Second Amendment to Interlocal Agreement.
Staff Member Responsible:
Cecilia McCorkell, Management and Budget Manager, Office of Management and Budget
Partners:
Pinellas County Municipalities (24)
Attachments:
Second Amendment to Interlocal
Signature pages
Interlocal Agreement
First Amendment to Interlocal