Okaloosa County BOCC — May 15, 2013 — Action Item Printout — reading text

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: May 21, 2013 TO: Honorable Chairman and Members of the Board FROM: John Hofstad SUBJECT: Local Option Gas Tax Funding Split DEPARTMENT: Public Works BCC DISTRICT: All STATEMENT OF ISSUE: The current Interlocal Agreement for the distribution of Local Option Gas Tax (LOGT) between Okaloosa County and the County’s nine municipalities is set to expire on May 30, 2013. The County and municipalities must agree to a funding distribution methodology prior to the end of May; or future funding allocations will be based on each entity’s transportation related expenditures as a percentage of the total transportation related costs for the county and all municipalities. BACKGROUND: As defined in Chapter 336 of the Florida Statutes, all Florida counties may impose up to six cents of the first LOGT for the purpose of constructing and maintaining roads and transportation related infrastructure. If imposed, all LOGT revenue generated from the sale of motor fuels must be shared with each incorporated municipality based on each entity’s transportation related expenditures for the preceding 5-year period (State formula). The Statutes allow implementation of a different funding methodology through if agreed upon by those governmental entities representing a majority of the population of the incorporated area within the county. This alternative methodology is typically formalized through an interlocal agreement between the county and all incorporated municipalities. Okaloosa County and the County’s nine municipalities last entered into an interlocal agreement for the distribution of local option gas tax revenue in May 2003. At the time, the actual distribution of gas tax revenue according to the State formula should have been 67% to the County and 33% split among the municipalities. The projected revenues based on a 67/33 split would have resulted in less revenue annually for a majority of the municipalities. In consideration of this, the municipalities joined together through the local League of Cities delegation to petition the Board for a more favorable 60/40 funding distribution. After considerable debate, the Board ultimately elected to honor the request from the municipalities and approved the funding distribution with 60% of the revenue allocated for the County and 40% of the revenue being split among the municipalities (2003 agreement attached). Over the past several weeks, staff has coordinated closely with the municipalities regarding the allocation of future LOGT revenues in accordance with the requirements of Florida Statutes. Collectively, the municipalities have asked to extend the current funding distribution formula until such time as each entity’s transportation related expenditures are recalculated and a new funding distribution formula can be established. Approval of the extension will carry the current funding distribution formula through to the end of 2014, or until such time as a recalculation of the funding distribution is completed and approved by the Department of Revenue. OPTIONS: Approve/Disapprove extending the current interlocal agreement for the distribution of the first six-cents of local option gas tax between Okaloosa County and the nine incorporated municipalities through the 2014 calendar year, or until such time as the percentage allocation for each entity is recalculated based on the appropriate Department of Revenue distribution formula. RECOMMENDATIONS: Staff requests Board extend the current interlocal agreement for the distribution of the first six-cents of local option gas tax between Okaloosa County and the nine incorporated municipalities through the 2014 calendar year, or until such time as the percentage allocation for each entity is recalculated based on the appropriate Department of Revenue distribution formula. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator