Fort Walton Beach Council agenda — 09-10-13--regular — reading text

0N fi 9( 5 fi96 FY 2012 -13 Adopted Budget 16, 500 Budges Amendment # 3 6965 Law Bnf Uuf Fund Amended Budget 23, 465 UTILITIES FUND Revenue Account & Amount I Expense Account & Amount Comments 401- 1600.389 -9300 ] 3, 8] 8 401 - 13505356402 73. 878 CC upped 925112 Tdcmcuy Namewbanding Force Main Upgrade County portion 1, 500, 000 401 - 5031 - 535 -6361 1500, 000 15]15] 3.3. 8]8] 88 15] 3, 8] 8 FY 2012 -13 Adopted Budget 8. 489. 269 Budget Amendment # 3 1 573. 678 Utilities Fund Amended Budget 10, 063, 147 FY 2012 - 13 Adopted Budges 2, 065, 927 Budget Amendment # 3 27, 800 GolfFund - Amended Budget 2.093, 727 Hope Section Sod FY 2012 -13 Adopted Budget 35, 600 Budget Amendment # 3 3, 290 Beat Memonal Food Amended Budget 38, 890 G noorivionei rent IAMAppOaU! Local MlameotnW Ind- 79mporvy Inlemel FiteSOnegibl amend 9 -10  112 City Council of Fort Walton Beach CITY MANAGER MEMORANDUM To: Michael D. Beedie, City Manager From: Carole Jones, Executive Assistant Date: September 10, 2013 Subject: 2013 -25 Interlocal Agreement for Local Option Gas Tax 1. BACKGROUND LL On May 30, 2013, the existing interlocal agreement between Okaloosa County and the municipalities of Cinco Bayou, Crestview, Destin, Fort Walton Beach, Laurel Hill, Mary Esther, Niceville, Shalimar, and Valparaiso for the distribution of the Six Cents Local Option Gas Tax. The Interlocal Agreement had been in effect since May 30, 2003. 1. 2. Section 336.025 of the Florida Statutes dictates the funding distribution formula for local option gas taxes, and if an Interlocal agreement is not reached with the county and a majority of its municipalities ( based on population), the formula must be followed. 1. 3. Back in 2003, the formula calculated the funding distribution as 67% Okaloosa County and 33% Municipalities. However, an agreement was reached for a 60% / 40% funding distribution, which was shown in the executed Interlocal Agreement. 1. 4. On May 14, 2013, City Council adopted Resolution 2013 -14 extending the interlocal agreement for the funding distribution of the Six Cents Local Option Gas Tax until December 31, 2014. 2. DISCUSSION: 21. In May 2013, the Okaloosa County Board of County Commissioners took no action on extending the interlocal agreement for the Six Cents Local Option Gas Tax. Upon adoption of a resolution in June 2013, the County essentially reset the calculation of the funding distribution. 2. 2. Each municipality and Okaloosa County were required to compile the transportation related expenditures over the past five years through September 30, 2012. These expenditures were submitted to the County, and an initial 71% / 29% funding split was calculated. 2. 2. 1. Upon initial review of the calculated funding split, it was apparent that there were discrepancies in the numbers submitted by the municipalities and County. 2. 2. 2. There are multiple sources of expenditures that could be pulled from, including the Comprehensive Annual Financial Report ( CAFR) and the Local Highway Finance Report that are submitted annually to the Department of Revenue. 2.2.3. Because of the October 1, 2013 deadline to submit the proposed funding split to the Department of Revenue for certification, it was imperative that a compromise be made between the agencies. DOC 0): 2509 Page I  1: z RESOLUTION 2013 - 25 2. 3. After much discussion and meetings amongst the municipalities and County, a compromised 64% / 36% funding split was determined. This compromise was reached when the County decided to use CAFR data minus any enterprise funds. 2. 3. 1. A funding distribution amongst the municipalities is also required in the interlocal agreement, and it has been decided that the current split ( relative to the new overall split), which was based on population, size, expenditures, etc., would be the appropriate approach. 23.2. The proposed funding split would begin on January 1, 2014. 2.4. On September 3, 2013, the Board of County Commissioners adopted an additional Three Cents Local Option Gas Tax, which would begin on January 1, 2014. 2. 4. 1. The same funding split would be used for the additional Local Option Gas Tax. 2. 5. The proposed interlocal agreement includes a term of ten ( 10) years with the expiration date set as December 31, 2023. There is a clause in the interlocal agreement that would allow the municipalities or the County to reopen the agreement at any time during the term. 3. FINANCIAL INFORMATION: 3. 1. Based on the 64% / 36% funding distribution between the County and the nine ( 9) municipalities and a relative percentage of 9. 7956% for the City for the overall Local Option Gas Tax, the City is expected to receive a net increase of approximately 213, 000 in the first year of the additional Three Cents Local Option Gas Tax. 3. 1. 1. The funding of the Six Cents Local Option Gas Tax would decrease approximately $66,000 from the 64 %/ 36% split. 3. 1. 2. The funding from the Three Cents Local Option Gas Tax is estimated at 279, 000. 3. 2. Local Option Gas Tax revenues are set aside for specific expenditures related to transportation. The additional revenue will allow the City to mill and resurface additional roads each fiscal year among other transportation related projects. 4. RECOMMENDATION: 4. 1. Staff respectfully recommends City Council adoption of Resolution 2013 -25 to approve an Interlocal Agreement for the Distribution of the Local Option Gas Tax, which includes the current Six Cents Local Option Gas Tax and the proposed Three Cents Local Option Gas Tax and to authorize the Mayor to execute all necessary documents. ATTACHMENTS: Interlocal Agreement Local Option Gas Tax Thm 2023 Calendar Year ( PDT) SIGNATURE BLOCK: Carole Jones Completed 09/ 04/ 2013 9: 33 AM Finance Completed 09/ 04/ 2013 12: 30 PM City Attorney Completed 09/ 05/ 2013 9: 33 AM  11. 2: ra.,.. RESOLUTION 2013 -25 Carole Jones Completed 09/ 05/ 2013 9: 52 AM City Manager Completed 09/ 05/ 2013 1: 47 PM City Council Pending  ll2 RESOLUTION 2013 - 25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA APPROVING THE INTERLOCAL AGREEMENT AMONG OEALOOSA COUNTY AND THE MUNICIPALITIES OF CINCO BAYOU, CRESTVIEW, DESTIN, FORT WALTON BEACH, LAUREL HILL, MARY ESTHER, NICEVILLE, SHALIMAR. AND VALPARAISO FOR THE DISTRIBUTION OF THE LOCAL OPTION GAS TAX IN ACCORDANCE WITH SECTION 336.025 OF THE FLORIDA STATUTES; AUTHORIZING THE MAYOR TO EXECUTE ANY NECESSARY DOCUMENTS RELATED TO THE INTERLOCAL AGREEMENT; AND PROVIDING AN EFFECTIVE DATE. Section 1. Authority. This resolution is enacted pursuant to the provisions of Chapter 166 of the Florida Statutes, the City Charter and other applicable provisions of law. Section 2. Findings. It is hereby ascertained, determined and declared that: A. On October 1, 2013, Okaloosa County and the municipalities of Cinco Bayou, Crestview, Destin, Fort Walton Beach, Laurel Hill, Mary Esther, Niceville, Shalimar, and Valparaiso shall enter into an Interlocal Agreement for the Distribution of the Local Option Gas Tax in accordance with the provisions of Section 336. 025 of the Florida Statutes; and B. The proposed Interlocal Agreement expires after a ten ( 10) year period, which is December 31, 2023. C. Section 336. 025 of the Florida Statutes dictates the funding distribution methodology, but the Interlocal Agreement assigns a 64% / 36% funding distribution between Okaloosa County and the Municipalities. D. Among the Municipalities, the funding distribution will remain the same relative to the new overall 64% / 36% split as the May 2003 Interlocal Agreement. E. The Interlocal Agreement applies to any local option gas tax levied by Okaloosa County, Section 3. Approval of Interlocal Agreement. The City Council of Fort Walton Beach hereby approves the Interlocal Agreement for the funding distribution for all Local Option Gas Tax from January 1, 2014 to December 31, 2023. Section 4. Authorization. The Mayor is hereby designated and authorized to execute any documents related to the Interlocal Agreement. Section 5. Effective Date.  11. 2 RESOLUTION 2013 - 25 This Resolution shall take effect immediately upon approval by the City Council. Mike Anderson, Mayor Attest: Approved for form, legal sufficiency Helen Spencer, City Clerk Hayward Dykes, Jr., City Attorney