Okaloosa County BOCC — 2013 meeting #1123 (date undetermined) — Budget Policy Document FY14 — reading text

to be continuing to increase after the promotional advertising following the oil spill incident in the Gulf of Mexico. Budget staff estimates the Fiscal Year 2013 revenue to increase from the Fiscal Year 2012 total of $13,128,501 by approximately $710,393 to a total of $13,838,894. The last five years of the five percent levy trends and projection are shown on the graph on the previous page. The Fiscal Year 2014 revenue is estimated to collect about $13,750,000. Local Option Infrastructure Surtax. Local governments are authorized to levy numerous types of local discretionary sales surtaxes pursuant to Florida Statutes Chapter 212.055. The only local option sales tax that has been utilized by the Board of County Commissioners, and continues to be a potential major source of discretionary funding for capital projects, has been the Local Option Infrastructure Surtax which was levied initially to fund Jail Construction in 1989 and most recently utilized solely by the Okaloosa County School Board to fund major school renovation from 1995 until 1999. According to the State 2013 estimate, a one-cent sales tax would generate $31,649,702 countywide. This tax is intended to be distributed to all local governments within the County. This tax, as divided by the State formula, would generate approximately $21,159,995 (66.85%) for the Board of County Commissioners and approximately $10,489,707 (33.15%) for Okaloosa’s municipal governments. Currently, 48 of the 67 counties in the State levy some portion of these discretionary taxes, with 20 of these counties levying the Infrastructure Surtax portion previously levied by Okaloosa County. Local Option Fuel Tax. Local governments are authorized to levy up to 12 cents of local option fuel taxes with three separate levies. All counties receive 7 cents worth of tax revenue on diesel fuel, regardless of Ninth-Cent Voted Fuel Tax whether or not the county is levying no tax on 1,100,000 $1,500,000 1,119,336 1,111,779 motor fuel or at the maximum level. 1,050,000 1,007,578 1,000,000 980,000 977,680 957,813 950,000 County Ninth-Cent Voted Fuel Tax. The County imposes the County Ninth-Cent Voted Fuel Tax on $1,000,000 all gasoline sales for the purpose of paying the cost of establishing, operating and maintaining a 430,322 transportation system and related facilities and the $500,000 cost of acquisition, construction, reconstruction and maintenance of roads and streets. This is a tax of 1 cent on every net gallon of motor $0 and diesel fuel sold within a county. The tax may 2009 2010 2011 2012 2013 be authorized by an ordinance adopted by an extraordinary vote of the governing body or voter Actual Budget Projected approval in a countywide referendum. Currently, 51 of the 67 counties in the State levy this 1 cent tax. Page 8 Budget staff estimates the Fiscal Year 2013 revenue to decrease from the Fiscal Year 2012 total of $1,119,336 by approximately (-$7,556) to a total of $1,111,779. This tax is projected to generate approximately $1,100,000 for Fiscal Year 2014 and is accounted for in the County Transportation Trust Fund for operations and maintenance. The proceeds of this local fuel tax are not required to be shared with the municipalities. First Local Option Fuel Tax. Of the 12 cents that local governments are authorized to levy, the First Local Option Fuel Tax, is a tax of 1 to 6 cents on every net gallon of motor and diesel fuel sold within a county. This tax may be authorized by an ordinance adopted by a majority vote of the governing body or voter approval in a countywide referendum. Generally, the proceeds may be used to fund transportation expenditures. Currently, 66 of 67 counties in the State levy the full 6 cents of this tax. Okaloosa levies all 6 cents of this first local option gas tax on all fuel sold in the County. Budget staff Local Option Fuel Tax estimates the Fiscal Year 2013 revenue to decrease 3,735,262 3,713,348 from the Fiscal Year 2012 total of $3,735,262 by $5,000,000 3,600,000 3,400,000 3,360,644 3,350,000 3,262,337 3,250,000 3,200,000 3,188,176 approximately (-$21,914) to a total of $3,713,348 $4,000,000 or approximately $618,890 per cent, for unincorporated Okaloosa County, only. Budgeted $3,000,000 distribution includes $1,800,000 (50.0%) to the 1,436,441 County Transportation Trust Fund for operations $2,000,000 and maintenance and $1,800,000 (50.0%) to the Road and Bridge Construction Fund for road $1,000,000 resurfacing and individual commission district road construction. This tax is projected to generate $0 approximately $3,700,000 for Fiscal Year 2014. 2009 2010 2011 2012 2013 The graph on the right shows that this 6 cent levy has provided a somewhat stable source of revenue Actual Budget Projected for transportation expenditures for the last five years. 2012 State and Local Fuel Tax Rates 0.36 0.36 0.36 $0.40 0.33 0.31 0.31 0.31 0.31 0.31 0.31 0.30 0.30 Cost per Gallon $0.30 $0.20 $0.10 $0.00 Bay Charlotte Clay Escambia Alachua Hernado Okaloosa St Johns St Lucie