Okaloosa County BOCC — April 9, 2013 (meeting #1123) — reading text

expenditures of each local government for the immediately preceding 5 fiscal years as a proportion of the total of such expenditures for the county and all municipalities within the county. These proportions shall be recalculated every 10 years based on the transportation expenditures of the immediately preceding 5 years. Policy Recommendation. Due to the magnitude of capital improvement needs in the County, the Board should continue to consider additional revenue sources available to them. The most recent Okaloosa County increase occurred when the Board of County Commissioners levied both the final cent of the First Local Option Fuel Tax and the County Ninth-Cent Voted Fuel Tax in 2004. For purposes of any fuel tax considerations, an additional assessment would need to be imposed by July 1, 2013 to have an effective date of January 1, 2014, which would provide nine months of additional revenue for Fiscal Year 2014. State Shared Revenue State-shared and intergovernmental revenues have continued to be a significant source of support for the County, although declining in recent years. Typically, legislation is passed each year that results in changes to the State’s sales tax base or sales tax administration. Such changes have the potential for fiscal impact, either positively or negatively, to county governments via these revenue sources. Constitutional Fuel Tax Constitutional Fuel Tax (20.0 percent). Constitutional Fuel Tax is a two-cent tax levied on each gallon of $3,000,000 motor fuel and reserved for counties only. 1,905,016 1,846,980 1,832,963 1,850,711 1,895,589 Distribution is based on the formula in Article XII, $2,500,000 Section 9(c)(4) of the Florida Constitution. The $2,000,000 distribution formula consists of three components: (1) an area component, (2) a population component, and $1,500,000 (3) a collection component. Before distribution, the $1,000,000 monthly allocation is divided into two parts - an 80.0 percent portion and a 20.0 percent portion. Budget $500,000 staff estimates the Fiscal Year 2013 revenue to $0 476,231 461,730 458,230 462,665 473,868 increase from the Fiscal Year 2012 total of $462,665 by approximately $11,203 to a total of $473,886. 2009 2010 2011 2012 2013 Current trends indicate about $470,000 anticipated 20% 80% from the 20.0 percent portion during Fiscal Year 2014 to be used for operations and maintenance in the County Transportation Trust Fund. Page 10 Packet Pg. 17  1.b Constitutional Fuel Tax (80.0 percent). Constitutional Fuel Tax is utilized for construction projects and other uses authorized by Florida Statutes Chapter 206.47(7). This portion is segregated in the Road and Bridge Construction Fund where any project greater than $400,000 must be let to contract with the lowest bidder, with certain exceptions. Budget staff estimates the Fiscal Year 2013 revenue to increase from the Fiscal Year 2012 total of $1,850,711 by approximately $44,878 to a total of $1,895,589. Current trends indicate about $1,880,000 in total proceeds from the 80.0 percent portion to be collected and used for construction projects in the Road and Bridge Construction Fund in Fiscal Year 2014. The trend of both portions of the Constitutional Fuel Tax for Okaloosa County is depicted on the previous page. County Fuel Tax. A one-cent tax is collected on each County Fuel Tax gallon of motor fuel sold, in accordance with Florida Attachment: Budget Policy Document FY14 (1578 : Budget Policy Document) 1,150,000 Statutes Chapter 206.60. Budget staff estimates the Fiscal Year 2013 revenue to increase from the Fiscal 1,053,769 1,050,000 1,050,000 1,031,532 $1,400,000 1,007,713 1,001,920 1,000,311 1,000,000 1,000,000 Year 2012 total of $1,001,920 by approximately $1,200,000 $51,849 to a total of $1,053,769. Okaloosa County $1,000,000 anticipates receiving approximately $1,025,000 from this source in Fiscal Year 2014. Revenues received $800,000 from this tax are to be used for transportation-related 426,542 $600,000 expenses. Current law authorizes expenditure of these funds to be used solely for the acquisition of rights-of- $400,000 way; the construction, reconstruction, operation, $200,000 maintenance, and repair of transportation facilities, $0 roads, bridges, bicycle paths, and pedestrian 2009 2010 2011 2012 2013 pathways. All of this tax is used for support of the County Transportation Trust Fund. The graph to the Actual Budget Projected left depicts the trend of County Fuel Tax for the last five years. Sales and Use Taxes. Beginning July 1, 2000, and in each fiscal year thereafter, the sum of $29,915,500 is divided into as many equal parts as there are counties in the state of Florida. Therefore, an amount equal to $446,500 shall be distributed to each county. A subsequent distribution is made to the School Board. The use of this revenue is at the discretion of the Board of County Commissioners. Okaloosa County’s distribution is accounted for in the Debt Service Fund. Local Government Half-Cent Sales Tax. Half-Cent Sales Tax began in October 1982 pursuant to Florida Statutes Chapter 212. The local government share is based on the sales tax collected in each county. Each county’s share is determined by dividing the sum of the unincorporated area population plus two-thirds of the incorporated area population by the sum of the total county population plus two-thirds of the incorporated area population. Budget staff estimates the Fiscal Year 2013 revenue to increase again from the Fiscal Year 2012 total of $12,084,729 by approximately $453,757 to a total of $12,538,486. Current trends indicate receipt of $12,550,000 from this source in Fiscal Year 2014. This tax is a major source of revenue, currently increasing, for governmental funds. Page 11 Packet Pg. 18  1.b Local Government Half-Cent Sales Tax revenue Half-Cent Sales Tax will be utilized for a portion of the funding of the operations of the General Fund. This 12,538,486 12,525,000 12,100,000 12,084,729 12,000,000 11,949,441 revenue source is pledged to fund the debt 11,219,873