Okaloosa County BOCC — May 7, 2013 (meeting #1140) — reading text

favor the Destin project outlined in Mr. Boyles’ proposal and asked if that is negotiable. Mr. Boyles confirmed it is negotiable, adding there are only three county roads within the City of Destin. He said he believes there is some confusion May 7, 2013 -16- Minute Book 69, Page 119 Okaloosa County Board of County Commissioners that the county will try to tell the cities how to spend their portion of the revenues. Mr. Amunds stated he is not in support of any gas tax at this time. At this point discussion ensued on the formula for distribution. Mr. Hofstad explained the formula was developed in 2003. The State’s proposed formula was 67%/33% but the county and the cities agreed to a 60%/40% split. This resulted in just under a $400,000 annual reduction for the county. The percentages are to be based on the transportation expenditures for the prior five years. Mr. Dowd said those expenditures for the last five years have not been calculated and we do not know what the split would be. He stated if interlocal agreements with the cities are not made by June 1, the default (State) formula is used. Mr. Hofstad commented the cities are preparing their budgets based on the current 60%/40% split. Mr. Parisot recommended continuing with that current formula for one additional year because of budgets. Mr. Amunds responded that he does not want to enter into any agreement without knowing the numbers. Mr. Hofstad said he made a commitment to the cities three weeks ago as a stopgap measure but the data must be obtained and this must go through the process with DOR and Mr. Stanford. A lengthy discussion ensued. Mr. Boyles stated he placed this item on the agenda in order to get more information. He said if there is no consensus that will be enough for him. Upon inquiry, Mr. Dowd confirmed that approval to add gas taxes could be by a super majority vote of the Board (four of five votes) or referendum. Mr. Parisot stated he will not support a tax increase for gas taxes. He questioned collection of the tax for only five years and the ability to bond the revenues for long-term benefits. Mr. Parisot said he believes there is a better way and gave his opinion on franchise fees. Mr. Amunds interjected there will be no vote tonight. Mr. Harris said his understanding is that as a result of the lawsuit a few years ago, the franchise fee cannot be imposed without permission of the utility companies. Mr. Dowd responded that a county cannot compel a utility to impose a franchise fee but the utility companies can agree to it. Mr. Harris said if the franchise fee is assessed, it will be the consumers who pay. He commented that is six of one or half dozen of the other (referring to assessment of franchise fees vs increasing gas May 7, 2013 -17- Minute Book 69, Page 120 Okaloosa County Board of County Commissioners taxes). Upon inguiry by Mr. Amunds, Mr. Dowd stated the county would have to get the utilities’ permission or go to the courts to show the benefit of imposing the fee. Mr. Padgett stated that in the early 1990s the non-charter counties could not levy a franchise fee. However, Santa Rosa County did levy the fee and a lawsuit with Gulf Power resulted. Mr. Padgett advised that Santa Rosa County prevailed in that lawsuit. He said the county can levy the franchise fee but cannot require the utility company to absorb the cost. Mr. Dowd said Mr. Padgett is correct that the county can impose the franchise fee either by agreement with the utility companies or by negotiations. He added the utility company can pass the cost along to its customers. Mr. Dowd said if these measures are not successful, the county could then adopt an ordinance and take evidence on the benefits to the utility companies for use of the county’s rights-of-way. Mr. Parisot asked if the ordinance could outline/dedicate the funding. Mr. Dowd replied it could designate those revenues. Mr. Windes said he believes the franchise fee will just trickle down to us. With regard to identifying projects for the gas tax revenues, he said the different entities could pick the projects they believe are most important. Mr. Parisot referred to the numerous “spout off,” emails, and blogs regarding the use of bed taxes. He said those taxes cannot be used for roads or stormwater and challenged the citizens to contact their Legislators to change the laws on expenditure of tourist taxes. Mr. Jamie Smith, Laurel Hill, referred to the charts used in Mr. Stanford's presentation on investments and asked for the specifics on those investments. Mr. Stanford responded that he will be glad to provide the specific investments, adding those are detailed in the CAFR which is on line. Mr. Smith said the efforts thus far are to put band-aids on the problems. He felt that if the Board does not have the freedom to move funds around, it should push the Legislature. Mr. Smith also spoke on being a good steward and said if he wants to do something but does not have the money, he cannot go to his neighbors and ask them to help him out. He stated the franchise May 7, 2013 -18- Minute Book 69, Page 121 Okaloosa County Board of County Commissioners fee will just be passed on to the consumers but the gas tax will be more fair. Ms. Haley Basham, Mary Esther, stated she is present to address the gas tax issue. She focused many of her remarks at Mr. Boyles and Mr. Harris. Ms. Basham said the price of gasoline is $.15 cheaper in surrounding counties and they are paving roads. She asked how they are getting this done. Mr. Harris replied those counties are assessing the full twelve cents. Ms. Basham Stated they travel a lot and she keeps a log of fuel costs, saying that gasoline cost more in Florida and New York. Continuing, she asked how the commissioners can think of increasing this tax when there are so many people living paycheck to paycheck. She asked, “Do you have any idea what you are doing? Do you have a brain?” Mr. Harris asked Ms. Basham if she complained to the gas people when the cost of gasoline went up five cents recently. Ms. Basham stated she has not spoken to the first person who thinks this is a wonderful idea. She asked how the Board could consider this and felt the decision should be left to the residents. Ms. Basham again commented on the high cost of gasoline in Florida. Mr. Harris reminded her that is the cost of the gas and not gas taxes. Ms. Basham asked “What are we doing wrong in this county?” Mr. Boyles said he would like to make a point on decorum. He advised the speaker that the commissioners are trying, that he is trying to make a good decision but he doesn’t have all the answers. Mr. Boyles stated that he has a family, that his mother drives a school bus, and his grandfather is a used appliance repairman. He asked for Ms. Basham not to call him stupid or ignorant, not to use any names. He told her she could disagree and asked her to help the Board find some creative answers. Mr. Boyles stated he had spoken to Ms. Basham before the meeting and looked up some information on gas taxes. He said the gas tax in New York is $.69, in California it is $.67, and in Florida it is §.49. Mr. Boyles also pointed out that some states have a state income tax which plays into the equation and we should also look at the sales taxes imposed in other states. He said we are doing a decent job with limited resources. Mr. Boyles asked for cordial dialogue. Mr. Parisot told Ms. Basham the difference in the gas prices is the profit margin for the retailer. May 7, 2013 -19- Minute Book 69, Page 122 Okaloosa County Board of County Commissioners Mr. Carl Bane, Crestview, felt Mr. Parisot is the only commissioner looking at a solution without increasing taxes. Mr. Bane’s next comment was directed to Mr. Boyles. He said Mr. Boyles calls himself a conservative Republican but he wants to raise taxes. Mr. Bane stated Republicans are for less government and less taxes. He said the county should not build “fortresses” for their employee to work in, Mr. Bane said as elected officials the commissioners should be the voice of the citizens. Mr. Rob English, Laurel Hill, said if a person feels he is not paying his fair share, he should take out his checkbook and write a check to the government of his choice. He said he realizes that not all of the money in a $250 Million budget can be accessed for roads. Mr. English felt the county should spend the money it has properly. Addressing the comment made earlier about everyone paying their fair share, he questioned the issue of unpaid leases and the county waiving ad valorem taxes for businesses. He referenced the TDC scandal and commented the money is not being watched. Mr. English stated he believes we are paying our fair share and he must live within his means. He said, “It’s not like people can chose to buy gas.” Mr. English commented that we (residents/citizens) don’t have a continual increase in our income and the Board should not expect to have one either. Mr. Ben White, Crestview resident and President of the Republican Club, told the commissioners he would not want to be in their shoes. He said that he has seen the ad valorem tax revenue decline since 2007, has seen county employees put on furlough and even seen employees working in the dark to save money on utilities. Mr. White asked Mr. Padgett to set aside time to work with him and asked the Board to wait 60 days before making a decision. He said he needs those 60 days to come up with a solution, an Okaloosa Lean Solution. Mr. White mentioned earlier work on lean solutions and again asked Mr. Padgett for time to work with him and permission to talk with county staff. Mr. Amunds stated there are two new commissioners on the Board and suggested Mr. White forward copies of his earlier lean initiatives to them. He asked Mr. White if he has ever done a lean initiative with the Constitutional Officers. Mr. White replied he has been in dialogue with Tax Collector Ben Anderson. He stated we are in desperate times and he wants to help. Mr. Harris said this is primarily a discussion on gas taxes and asked Mr. White to start with that concept. May 7, 2013 -20- Minute Book 69, Page 123 Okaloosa County Board of County Commissioners Mr. James Patrick Jacobs said he is a former EMT and left because of moral and ethical issues. He commented there is waste everywhere in the county. Mr. Jacobs thanked Mr. Amunds for being upfront about the TDC scandal and for going to Tallahassee, Mr. Mike Chesser, Shalimar, said for twenty-five years he has been advocating the Board look at roads. He stated there needs to be a by-pass around Crestview. Mr. Chesser feels there is an overwhelming conflict with the TPO, FDOT, the cities, and the county. He said this is a very difficult issue and no one should be hiding behind the complexities of the issues. Mr. Chesser stated he has requested to be on the May 21 agenda to speak on tax increment financing and believes the presentation will open minds. He stressed that it will not cost a dime. Mr. Chesser said the Board has made the best effort it can with the money it has. He stated, “Let's get in a room and figure out how it will be done.” Mr. Chesser said we must be one county and cannot be thinking in terms of North County and South County. He said BRAC has brought many families to the area and we have a responsibility to build roads they can use. Mr. Chesser noted that remarks were made earlier that no decision would be made tonight but told Mr. Parisot he has already made up his mind. He asked him not to say “no” before they can say what they can do. Mr. Harris pointed out Mr. Chesser has championed this for a while. Mr. Chesser spoke about the traffic issue south of Crestview and urged the Board not to continue to back away from the problem. Upon further commentary, Mr. Parisot said he would sit down with Mr. Chesser. Mr. Steve Menchel, Destin, said he believes the reason the City of Destin did not support Mr. Boyles’