Subject:
Title
Ordinance reauthorizing the levy of the six-cent Local Option Fuel Tax and extending the termination date from August 31, 2017 to December 31, 2027.
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Recommended Action:
Recommended Action
Adoption of the ordinance reauthorizing the levy of the six-cent Local Option Fuel Tax and extending the termination date from August 31, 2017 to December 31, 2027.
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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.
The proposed ordinance continues the six-cent levy from September 1, 2017 through December 31, 2027. Additionally, the related Second Amendment to the Interlocal Agreement also extends the 60/40 split between the County and the municipalities until December 31, 2027 and updates the distribution formulas using more current population estimates.
The Board of County Commissioners, on December 4, 2015, advertised the date, time, place and purpose of this Public Hearing to adopt the proposed ordinance amending the Pinellas County Code for the extension of the Six Cent Local Option Fuel Tax levy.
Background Information:
On December 21, 2005, the Board approved Ordinance 05-96 that extended the six-cent Local Option Fuel Tax levy for 10 additional years for the period commencing on September 1, 2007 and ending on August 31, 2017.
In conjunction with the approval of Ordinance 05-96, an interlocal agreement with the municipalities was executed. The Florida Department of Revenue later requested that the six-cent levy and the interlocal agreement be extended by four months to end on December 31, 2017. Subsequently, the interlocal agreement with the municipalities was amended to extend the termination date; however, staff is unable to determine whether the actual Ordinance was extended. In an abundance of caution, the proposed ordinance covers that four month period. This proposed ordinance levies the six-cent Local Option Fuel Tax for a period of 10 years and four months to end on December 31, 2027 which will coincide with the termination date of the Second Amendment to the Interlocal.
Fiscal Impact:
Approval of the proposed ordinance will continue the six-cent Local Option Fuel Tax through December 31, 2027. The six-cent levy generates approximately $20.6M annually to be distributed to the County and municipalities. An estimated $12.4M per year is deposited into the County’s Transportation Trust Fund to support transportation activities such as road, bridge, and right-of-way maintenance. The remaining $8.2M is distributed among the municipalities.
Staff Member Responsible:
Cecilia McCorkell, Management and Budget Manager, Office of Management and Budget
Partners:
Municipal Partners (24)
Attachments:
Local Option Fuel Tax Ordinance
Local Option Fuel Tax Ordinance - redline
Ordinance 05-96
Ordinance 93-64
Ordinance 87-46
Ordinance 85-14
Public Hearing Notice