Okaloosa County BOCC — August 24, 2013 — Niceville Letter Gas Tax Distro — reading text

Randall Wise Office (850) 279-6436 Mayor Fax (850) 729-4073 E-mail: mayorboggy@aol.com 208 N. Partin Drive Niceville, Florida 32578 “Home of the Boggy Bayou Mullet Festival” August 8, 2013 —— LOR ED To: Okaloosa County Commissioners AUG 12 2013 Attn: Commissioner Don Amunds, Chairman 2? 1804 Lewis Turner Boulevard Suite 400 IBY: sente Fort Walton Beach, FL 32547 Re Okaloosa County Local Option Gas Tax Revenue We are concerned about the impact of changing the distribution formula used for determining the amount of local option fuel tax revenue municipalities receive from the County. As you know, the current formula is 60% County, 40% municipalities as per a 10 year interlocal agreement that expired in May of this year. The County plan is to not renew the agreement and use the 70/30 default formula based on transportation expenditures over the past 5 fiscal years. We estimated we will lose approximately $30,000.00 in revenue as a result of this decision. We recommend you execute a new interlocal agreement using the current 60/40 formula. The City of Niceville depends on all revenues received such as local option sales tax, % cent sales tax, revenue sharing, etc. to prevent a property tax increase which is very unpopular for the citizens we serve. Ad valorem tax revenue represents approximately 22% of our general fund budget. Our only other choice to fund essential services is to use reserve funds to make up lost revenues. Using this fall back position is not deemed fiducially responsible. We depend on our County Commissioners to support us on a variety of issues. This is a decision only you can make on our behalf. We request your consideration and support in this matter. Sincerely, 482... Randall Wise Mayor cc: County Administrator, Mr. Ernie Padgett